XAT Decision Making Questions – Set 2

Thursday, November 15th, 2018


XAT Decision Making Questions - Set 2

XAT Decision Making Practice Questions Set 2

Answer XAT Decision Making Question no. 1 – 5 on the basis of the information given in the following case.

Rahul Sharma has been recently promoted to the post of Managing Director for TCY distillery. TCY is the largest producer of alcoholic drinks in the North India region and has been performing consistently well in this part of the country. The next task in front of Rahul is to plan an expansion strategy for the company and ensure that company grows beyond its traditional base in North India. The two regions which are being targeted by the company are:
a. Western India
b. Central India
For the distillery, four target locations have been picked:
a. Nasik
b. Indore
c. Mangalore
d. Trivanduram

Rahul has the task of finalizing the final location of the new distillery. In order to finalize the location, he has to complete the following: a preliminary assessment of the project by a consulting group, the costing involved in various locations in setting up the project, the feasibility of launching such a project in the current scenario, the status of TCYs competitors and their sales and the possible market size that can be captured by TCY in the near term. In order to do accomplish all of the above, he needs to build a team of the company’s best managers in the first place that can take care of all of the above.

Such being the complex nature of work above, Rahul is consistently under stress as he wishes that his first assignment should be completed on time. Along with the above work-pressures, Rahul is also faced with a re-location to any of the above cities for the duration of the project, so that the process is seamless in nature. The idea of shifting to any of the above regions is being met with resistance by Rahul’s wife and this has further added to his worries. The deadlines combined with domestic pressures have meant that Rahul has not managed to fully adjust to his job and is struggling to cope with his work requirements.

XAT Decision Making Question 1. Considering the current state the Rahul finds himself in, which out of the following is the task he is that he should undertake first:
A. Identifying the company that would undertake the preliminary assessment of the project.
B. Pacifying his wife and explaining the demands of his job to her.
C. Apply for a short leave so that he can handle his domestic issues first.
D. Build his team of lieutenants who are then assigned to handle the different works, thus relieving Rahul of some of the responsibilities.
E. Work with the consulting group and identify the location of the new distillery first, as all other decisions would depend on the location.

XAT Decision Making Question 2. Bckinsey Consulting Group have come in with their assessment report and have recommended that TCY set-up its new distillery in Western India, though they have not provided a specific location and have provided a list of pros and cons for the two Western Indian cities. Rahul now needs to finally select the one option that would be best for his company. Consider the following solutions to the problem of making the final choice:
(i) Rahul should send a team of his own experts to carry on-ground research in two cities.
(ii) Rahul should talk to his wife with respect to the city she would be comfortable with and make the final choice according to her wishes.
(iii) Rahul should present the case of the two cities to the board of directors, with the final deductions about the two cities.
(iv) Being the managing director of the company, Rahul should make the bold decision without any fuss and take full responsibility on his own shoulders.
(v) Rahul should hire another consulting group that provides him with the city name he is looking for.
Which two solutions, out of the above, would be appropriate in resolving the situations and select the appropriate sequence of the decisions as well:
A. (ii) and (iii) B. (i) and (iii) C. (v) and (iv)
D. (iii) and (i) E. (iii) and (iv)

XAT Decision Making Question 3. Which, out of the following, would weaken the need for hiring another consulting company (keep the information supplied in the previous question in mind) to arrive at the final decision?

A. The final outcome in any project is hardly at variance with reports submitted by consulting companies.
B. The essential details required for making a final decision can be accrued only by first-party physical research.
C. The mode of research for most consulting groups focuses on industry information.
D. Distilleries are part of evergreen businesses that do not require any real market research and assessment reports.
E. Distilleries need to set-up in areas with maximum per-capita alcohol consumption and that is the only data required by Rahul to make the decision.

XAT Decision Making Question 4. Rahul has arrived at the conclusion that this is not the best time to start a new distillery plant as the market forces do not seem to favorable at the time. Yet, at the back of his mind, there is the nagging doubt that since his wife is opposed to the idea of moving out of North India and has made her opinion public to some of his colleagues, his decision may not be viewed as impartial. Which, out of the following, is the best course of action that he can adopt in the given situation?

A. He should excuse himself from the decision making process, even though a fair amount of time has passed, citing personal reasons.
B. He should go ahead with his decision and not air his personal concerns, hoping that his colleagues do not spill the beans.
C. He should not take unnecessary burden on his conscience and reveal the whole sets of facts (including his personal situation) to the board.
D. He should maintain his professional standards and present his case purely on the basis of the facts and figures to justify his recommendation.
E. He should take some more time before making his decision and in the meantime, ensure that each of directors understands his situation.

XAT Decision Making Question 5. Which, out of the following, is the least likely reason for Rahul to reject any of cities as a possible distillery location:
A. Lack of transportation facilities.

B. Lack of easily accessible raw materials.

C. Lack of real estate at viable rates for the development of the distillery.

D. Lack of migratory labor in the region, to be employed at the distillery.

E. Lack of an organized retail structure to sell the finished good.

XAT Decision Making Practice Questions – Answer Set 2

XAT Decision Making Answer 1. Build his team of lieutenants who are then assigned to handle the different works, thus relieving Rahul of some of the responsibilities.

XAT Decision Making Answer 2. (i) and (iii)

XAT Decision Making Answer 3. The essential details required for making a final decision can be accrued only by first-party physical research.

XAT Decision Making Answer 4. He should maintain his professional standards and present his case purely on the basis of the facts and figures to justify his recommendation.

XAT Decision Making Answer 5. Lack of migratory labor in the region, to be employed at the distillery.

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XAT Decision Making Questions – Set 2

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