Comprehension
Read the situation below and answer the 3 associated questions:
Two industrial towns, Jayanagar and Ramnagar, about 15 kms. apart, are similar in land area, population, ethnic diversity and per capita incomes.
Jagdeep Singh owns a bakery named Le Baguette in Jayanagar. He specializes in croissants, masala bread and whole wheat bread; eggless cakes are also a favorite.
Among the four bakeries in Jayanagar, Jagdeep’s bakery with a market share of 30% is second only to the oldest Le Croissant bakery whose market share is 40%. Le Croissant commands a loyal customer base and does not offer eggless varieties.
Two industrial towns, Jayanagar and Ramnagar, about 15 kms. apart, are similar in land area, population, ethnic diversity and per capita incomes.
Jagdeep Singh owns a bakery named Le Baguette in Jayanagar. He specializes in croissants, masala bread and whole wheat bread; eggless cakes are also a favorite.
Among the four bakeries in Jayanagar, Jagdeep’s bakery with a market share of 30% is second only to the oldest Le Croissant bakery whose market share is 40%. Le Croissant commands a loyal customer base and does not offer eggless varieties.
Question: 1
Jagdeep has decided to open a branch in Ramnagar. Which of the following facts about Ramnagar will BEST support his decision?
Jagdeep has decided to open a branch in Ramnagar. Which of the following facts about Ramnagar will BEST support his decision?
Updated On: Dec 6, 2025
- 3% of Le Baguette’s current revenue comes from Ramnagar
- Jagdeep has managed to acquire a big space in Ramnagar at a nominal rent.
- Before starting his own bakery, Jagdeep was supplying bread to most bakeries in Ramnagar
- Ramnagar is served by 4 bakeries, with the two largest bakeries having market shares of 55% and 25% respectively
- Le Croissant’s Ramnagar branch struggles with a market share of 10%
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The Correct Option is A
Solution and Explanation
Jagdeep's decision to open a branch in Ramnagar should be supported by concrete evidence that indicates potential success and viability. Among the options provided, the fact that "3% of Le Baguette’s current revenue comes from Ramnagar" is the most compelling. Here's why:
- The existing revenue: The revenue already coming from Ramnagar shows a ready market for Le Baguette's products, indicating that customers are willing to purchase from them despite the lack of a local branch.
- Market potential: A portion of the current revenue indicates a demand for Le Baguette's offerings, suggesting that with a physical presence, market share could increase due to improved accessibility and customer engagement.
- Risk reduction: Having current revenue from Ramnagar minimizes risk compared to starting a branch with an entirely untested market. This existing revenue stream provides a foundation for expansion.
The other options do not offer as strong a rationale based on existing customer and revenue data. Therefore, leveraging the 3% revenue from Ramnagar is a strategic move supporting the establishment of a branch there.
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Question: 2
Jagdeep wishes to open a 100% eggless branch in Ramnagar. To explore feasibility, he collected the following facts:
1. Eggless products account for 30% of Le Baguette’s sales.
2. At least 20% of all bakery sales in Ramnagar is from eggless products.
3. The eggless varieties of Le Baguette contain minute traces of egg.
4. Le Baguette currently makes 3% of its revenue from Ramnagar customers and all of it comes from eggless products.
5. Le Croissant’s Ramnagar branch struggles with a market share of 10%.
From the combinations below, in the DESCENDING order of effectiveness, choose the one that BEST
supports Jagdeep’s decision.
Jagdeep wishes to open a 100% eggless branch in Ramnagar. To explore feasibility, he collected the following facts:
1. Eggless products account for 30% of Le Baguette’s sales.
2. At least 20% of all bakery sales in Ramnagar is from eggless products.
3. The eggless varieties of Le Baguette contain minute traces of egg.
4. Le Baguette currently makes 3% of its revenue from Ramnagar customers and all of it comes from eggless products.
5. Le Croissant’s Ramnagar branch struggles with a market share of 10%.
From the combinations below, in the DESCENDING order of effectiveness, choose the one that BEST
supports Jagdeep’s decision.
1. Eggless products account for 30% of Le Baguette’s sales.
2. At least 20% of all bakery sales in Ramnagar is from eggless products.
3. The eggless varieties of Le Baguette contain minute traces of egg.
4. Le Baguette currently makes 3% of its revenue from Ramnagar customers and all of it comes from eggless products.
5. Le Croissant’s Ramnagar branch struggles with a market share of 10%.
From the combinations below, in the DESCENDING order of effectiveness, choose the one that BEST
supports Jagdeep’s decision.
Updated On: Dec 6, 2025
- 5, 2, 1
- 2, 1, 3
- 2, 4, 1
- 4, 3, 2
- 5, 4, 1
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Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Jagdeep is considering opening an eggless branch in Ramnagar. To evaluate the feasibility, we must assess the provided statements for their effectiveness in supporting this decision.
- Statement 1: Eggless products account for 30% of Le Baguette’s sales.
This indicates substantial demand but does not specifically highlight the potential in Ramnagar. - Statement 2: At least 20% of all bakery sales in Ramnagar is from eggless products.
This highlights an existing demand in Ramnagar for eggless products, making it a strong indicator of potential success for an eggless bakery. - Statement 3: The eggless varieties of Le Baguette contain minute traces of egg.
This could be a concern for opening a 100% eggless branch, so it potentially detracts from Jagdeep's decision. - Statement 4: Le Baguette currently makes 3% of its revenue from Ramnagar customers, all from eggless products.
This shows existing customer interest in Ramnagar, reinforcing demand for eggless products and supporting the decision. - Statement 5: Le Croissant’s Ramnagar branch struggles with a market share of 10%.
This implies competitive weakness of existing bakeries, suggesting an opportunity for Jagdeep.
In descending order of effectiveness, the statements supporting Jagdeep's decision are: 2, 4, 1. Statement 2 confirms significant demand for eggless products in Ramnagar. Statement 4 emphasizes existing revenue from such products. Statement 1 underlines Jagdeep's experiential basis from his current bakery.
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Question: 3
From a newspaper, Jagdeep has learnt that Americans use their own ovens to bake ready-to-bake products, sold by some bakeries. This idea is apparently catching up in Indian metros as well.
Jagdeep wants to try this out in his bakery. He has gathered the following facts:
1. US bakeries that also sell ready-to-bake products earned higher revenues compared to those that do not.
2. Around 7% of Jagdeep’s regular customers own baking ovens in their homes.
3. The sale of baking ovens in India is forecast to increase by 12% every year, for the next three years.
4. 50% of Jagdeep’s regular customers are fulltime working couples.
5. In Indian metros, ready-to-bake products give higher profit margins compared to finished products.
Select the BEST of the following sequences of the above facts, in DESCENDING order of effectiveness, to support Jagdeep.
From a newspaper, Jagdeep has learnt that Americans use their own ovens to bake ready-to-bake products, sold by some bakeries. This idea is apparently catching up in Indian metros as well.
Jagdeep wants to try this out in his bakery. He has gathered the following facts:
1. US bakeries that also sell ready-to-bake products earned higher revenues compared to those that do not.
2. Around 7% of Jagdeep’s regular customers own baking ovens in their homes.
3. The sale of baking ovens in India is forecast to increase by 12% every year, for the next three years.
4. 50% of Jagdeep’s regular customers are fulltime working couples.
5. In Indian metros, ready-to-bake products give higher profit margins compared to finished products.
Select the BEST of the following sequences of the above facts, in DESCENDING order of effectiveness, to support Jagdeep.
Jagdeep wants to try this out in his bakery. He has gathered the following facts:
1. US bakeries that also sell ready-to-bake products earned higher revenues compared to those that do not.
2. Around 7% of Jagdeep’s regular customers own baking ovens in their homes.
3. The sale of baking ovens in India is forecast to increase by 12% every year, for the next three years.
4. 50% of Jagdeep’s regular customers are fulltime working couples.
5. In Indian metros, ready-to-bake products give higher profit margins compared to finished products.
Select the BEST of the following sequences of the above facts, in DESCENDING order of effectiveness, to support Jagdeep.
Updated On: Dec 6, 2025
- 2, 5, 1, 3, 4
- 3, 4, 5, 1, 2
- 1, 5, 3, 2, 4
- 2, 3, 5, 1, 4
- 3, 2, 1, 4, 5
Show Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
The problem is about deciding the most effective sequence of facts to support Jagdeep's decision to introduce ready-to-bake products in his bakery. Let's analyze the facts for their effectiveness:
- 7% of customers own ovens:The fact that a certain percentage of customers can immediately use ready-to-bake products is very effective as it shows an existing market.
- Sales of baking ovens are increasing by 12% annually:This indicates a growing future market, giving Jagdeep a chance to capitalize on the trend before it matures.
- Ready-to-bake products have higher profit margins:This is crucial for business profitability and thus very compelling.
- US bakeries with ready-to-bake products earn higher revenues:This provides international precedence and trend data supporting the business move.
- 50% of customers are full-time working couples:They likely have less time for baking from scratch, making ready-to-bake products more appealing.
Ordering the facts in descending order of effectiveness: 2, 3, 5, 1, 4. This sequence reflects prioritizing immediate customer potential, anticipated growth, profit benefits, proven success, and customer demographics.
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