Comprehension
Intercontinental Business Manufacturing (IBM) was doing a roaring business. Demand of the products was high and supply of raw material was abundant. IBM was manufacturing three different products. Some customers bought two types of products and some bought only one. The three products were ``quickie - quick'', ``run - of - the - mill'', and ``maxi - max''. Customers were not complaining loudly. Ram, the product manager, was confused! Demand for ``quickie - quick'' was increasing. Raw material suppliers wanted to supply lower quality at cheaper price. It was profitable for the company to increase production. Quality department was not happy with the product. Ram met Rahim, the CEO, who, as always, wanted higher profits. He said that IBM will set up a committee for improving the quality.
Question: 1
What must not be done by Ram?
What must not be done by Ram?
Show Hint
In decision-making under conflicting pressures (profits vs. quality), avoid extreme, one-sided actions that compromise long-term sustainability. Balanced strategies are always safer.
Updated On: Mar 20, 2026
- Only produce “quickie - quick” as it gives highest profits.
- Increase the production for “quickie - quick” and ask the supplier for better quality raw material.
- Maintain the level of production for “quickie - quick” and ask the supplier for better quality raw material.
- Reduce the production of “quickie - quick” till committee submits its report.
- Stop production of “quickie - quick” till committee submits its report.
Show Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Step 1: Understand the situation.
IBM manufactures three products: “quickie - quick”, “run - of - the - mill”, and “maxi - max”.
Demand for “quickie - quick” is rising. Suppliers are offering cheaper but lower quality raw material.
The Quality Department is unhappy, but the CEO prioritizes profits and has formed a committee to look into quality. Step 2: Analyze the possible actions.
- (A) Only producing “quickie - quick”: This would mean ignoring the other two products (“run - of - the - mill” and “maxi - max”), which might harm customer satisfaction and market balance. It is too risky and shortsighted, since the company serves different customer segments. This must not be done.
- (B) Increase production and demand better quality material: This balances growth with quality. Acceptable.
- (C) Maintain production level and demand better raw material: Balanced and safe choice. Acceptable.
- (D) Reduce production until committee report: Conservative, but avoids risks until clarity emerges. Acceptable.
- (E) Stop production until committee report: Extreme, but still an option in the interest of quality control. Acceptable.
Step 3: Conclusion.
The only option that Ram must not do is to abandon all other products and focus only on “quickie - quick” (Option (A). That would harm long-term strategy and reputation. \[ \boxed{\text{Only produce “quickie - quick” must not be done.}} \]
IBM manufactures three products: “quickie - quick”, “run - of - the - mill”, and “maxi - max”.
Demand for “quickie - quick” is rising. Suppliers are offering cheaper but lower quality raw material.
The Quality Department is unhappy, but the CEO prioritizes profits and has formed a committee to look into quality. Step 2: Analyze the possible actions.
- (A) Only producing “quickie - quick”: This would mean ignoring the other two products (“run - of - the - mill” and “maxi - max”), which might harm customer satisfaction and market balance. It is too risky and shortsighted, since the company serves different customer segments. This must not be done.
- (B) Increase production and demand better quality material: This balances growth with quality. Acceptable.
- (C) Maintain production level and demand better raw material: Balanced and safe choice. Acceptable.
- (D) Reduce production until committee report: Conservative, but avoids risks until clarity emerges. Acceptable.
- (E) Stop production until committee report: Extreme, but still an option in the interest of quality control. Acceptable.
Step 3: Conclusion.
The only option that Ram must not do is to abandon all other products and focus only on “quickie - quick” (Option (A). That would harm long-term strategy and reputation. \[ \boxed{\text{Only produce “quickie - quick” must not be done.}} \]
Was this answer helpful?
0
0
Question: 2
Rahim set up a “brand” committee comprising of a few selected managers, headed by Robert. The committee proposed that IBM should continue to manufacture the three differently branded products. It also proposed to recruit a new brand manager for improving brand image of the products. It agreed with Rahim that the company should increase the price. Rocket Singh, head of sales, was confused because he realized that customers were miffed with “run - of - the - mill” and “maxi - max”. What should Rocket Singh do?
Rahim set up a “brand” committee comprising of a few selected managers, headed by Robert. The committee proposed that IBM should continue to manufacture the three differently branded products. It also proposed to recruit a new brand manager for improving brand image of the products. It agreed with Rahim that the company should increase the price. Rocket Singh, head of sales, was confused because he realized that customers were miffed with “run - of - the - mill” and “maxi - max”. What should Rocket Singh do?
Show Hint
When facing customer dissatisfaction, always diagnose the problem first through structured feedback or research before jumping into solutions like new products or campaigns.
Updated On: Dec 4, 2025
- Launch one more product to increase sales.
- Stop production of quickie - quick.
- Launch a campaign on social media to increase awareness about company’s products.
- Send an anonymous email to all the employees highlighting customer dissatisfaction.
- Conduct a research study to find out the reason for customer’s dissatisfaction.
Show Solution
Verified By Collegedunia
The Correct Option is
Solution and Explanation
Step 1: Understand the problem.
Rocket Singh, head of sales, notices that customers are dissatisfied with “run - of - the - mill” and “maxi - max”. Before taking any action, he must know why customers are unhappy. Without this knowledge, any decision could be misguided. Step 2: Evaluate the options.
- (A) Launch one more product: This may increase variety, but it does not solve the core problem of existing dissatisfaction.
- (B) Stop production of quickie - quick: This product is not the problem; in fact, it is doing well. Hence, stopping it is irrational.
- (C) Launch social media campaign: Promotion without fixing the underlying issues would not address customer dissatisfaction and could worsen brand image.
- (D) Send anonymous email to employees: This is unprofessional and ineffective, as it does not identify or solve the root cause.
- (E) Conduct research study: This directly addresses the confusion. By identifying the reasons for dissatisfaction, the company can take targeted action to improve the products and customer satisfaction.
Step 3: Conclusion.
The most logical and effective step is to conduct a research study. This provides data-driven insights and avoids premature, ill-informed actions. \[ \boxed{\text{Rocket Singh should conduct a research study to find the reason for dissatisfaction.}} \]
Rocket Singh, head of sales, notices that customers are dissatisfied with “run - of - the - mill” and “maxi - max”. Before taking any action, he must know why customers are unhappy. Without this knowledge, any decision could be misguided. Step 2: Evaluate the options.
- (A) Launch one more product: This may increase variety, but it does not solve the core problem of existing dissatisfaction.
- (B) Stop production of quickie - quick: This product is not the problem; in fact, it is doing well. Hence, stopping it is irrational.
- (C) Launch social media campaign: Promotion without fixing the underlying issues would not address customer dissatisfaction and could worsen brand image.
- (D) Send anonymous email to employees: This is unprofessional and ineffective, as it does not identify or solve the root cause.
- (E) Conduct research study: This directly addresses the confusion. By identifying the reasons for dissatisfaction, the company can take targeted action to improve the products and customer satisfaction.
Step 3: Conclusion.
The most logical and effective step is to conduct a research study. This provides data-driven insights and avoids premature, ill-informed actions. \[ \boxed{\text{Rocket Singh should conduct a research study to find the reason for dissatisfaction.}} \]
Was this answer helpful?
0
0
Question: 3
Some of the managers in production department were discussing the problems faced in shipping products in time. They complained that they had to undertake responsibility of creating financial and marketing plans in addition to responsibility of production planning. At the same time, finance and marketing managers were to be involved in preparing production plans. It was expected that this will reduce customer complaints. It was rumored that these changes were initiated by the managers educated in the U.S. Which of the following is the best possible course of action available to the affected managers?
Some of the managers in production department were discussing the problems faced in shipping products in time. They complained that they had to undertake responsibility of creating financial and marketing plans in addition to responsibility of production planning. At the same time, finance and marketing managers were to be involved in preparing production plans. It was expected that this will reduce customer complaints. It was rumored that these changes were initiated by the managers educated in the U.S. Which of the following is the best possible course of action available to the affected managers?
Show Hint
In workplace conflicts, creating platforms for dialogue and problem-solving is usually more effective than resorting to extreme measures like lawsuits or external complaints.
Updated On: Dec 4, 2025
- Create a union to safeguard their rights.
- File a law suit against the company.
- Create a forum for discussion and resolution of issues.
- Register a complaint with the human rights body.
- Go for further education to the U.S.
Show Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Identify the core issue.
The managers in the production department are burdened with additional responsibilities of financial and marketing planning, apart from production planning. They feel this is affecting their efficiency and causing delays in shipping products on time. Step 2: Evaluate possible actions.
- (A) Creating a union: While unions protect rights, forming one might escalate conflict instead of solving the immediate problem.
- (B) Filing a lawsuit: This is an extreme step that damages employee–employer relations, and should be the last resort.
- (C) Creating a forum: This allows open dialogue between production, finance, and marketing managers, addressing misunderstandings, clarifying roles, and finding a collaborative solution.
- (D) Registering a complaint with human rights body: This is irrelevant, since the issue is managerial responsibility distribution, not human rights violation.
- (E) Going for education in the U.S.: This does not address the present organizational issue.
Step 3: Logical conclusion.
The best course of action is to create a forum for discussion. This promotes communication, teamwork, and resolution of issues in a constructive manner. \[ \boxed{\text{The managers should create a forum for discussion and resolution of issues.}} \]
The managers in the production department are burdened with additional responsibilities of financial and marketing planning, apart from production planning. They feel this is affecting their efficiency and causing delays in shipping products on time. Step 2: Evaluate possible actions.
- (A) Creating a union: While unions protect rights, forming one might escalate conflict instead of solving the immediate problem.
- (B) Filing a lawsuit: This is an extreme step that damages employee–employer relations, and should be the last resort.
- (C) Creating a forum: This allows open dialogue between production, finance, and marketing managers, addressing misunderstandings, clarifying roles, and finding a collaborative solution.
- (D) Registering a complaint with human rights body: This is irrelevant, since the issue is managerial responsibility distribution, not human rights violation.
- (E) Going for education in the U.S.: This does not address the present organizational issue.
Step 3: Logical conclusion.
The best course of action is to create a forum for discussion. This promotes communication, teamwork, and resolution of issues in a constructive manner. \[ \boxed{\text{The managers should create a forum for discussion and resolution of issues.}} \]
Was this answer helpful?
0
0
Top XAT Questions
- Ashok, a maths teacher in the school, asked his students to guess his date of birth by giving the following hints.
Hint 1: He was born in 1995
Hint 2: The sum of the products of his birth date multiplied by 24 and his birthday month multiplied by 60 is 1284.
Find the sum of Ashok’s birth date, birth month, and birth year. - Solve for the number of integral values of \(x: \frac{(x^2-15x+47)(x-13)}{(x-8)}<0\).
- In an examination, Akhil scored 11.11% less than the pass marks and Akshay scored 12.5% more than the pass marks. Find the percentage of pass marks if the sum of the scores of Akhil and Akshay is 25% more than the total marks.
- The ratio of paint and oil in Tank A is 3: 4, whereas in Tank B, the respective ratio is 4: 5 . Then, 96 liters of a mixture consisting of paint and oil in the ratio of 5: 1 is added to Tank A, such that the respective ratio in Tank A becomes exactly the reverse of that in Tank B. Find the amount (in liters) of the mixture from Tank B that is poured into Tank A such that the amount of paint and water in Tank A become equal.
- The points (–4, 3) and (–1, –4) are two end points of a diagonal of a parallelogram. If the other diagonal has the equation 7y + 3x + c = 0, then find the value of c.
View More Questions