XAT Decision Making Questions – Set 3

Thursday, November 15th, 2018


XAT Decision Making Questions - Set 3

XAT Decision Making Practice Questions Set 3

XAT Decision Making Question 1. The Vahindra MUV is a newly launched sports utility vehicle in the market with the whole gambit of accessories and value added features. One of the features added to the car is an enhanced navigation GPS system. Vahindra, after it had sold about 100000 MUVs, got to know that in some of the car’s GPS systems, the wiring has some execution flaw that leads to system failure within a few months of use. The flaw crept in because the training given to some of the electricians who fit the system was faulty. Vahindra has no way of establishing who fitted these systems in certain car and thus cannot establish the faulty vehicles amongst the whole lot. The company is now faced with a tricky situation: face the ire of its customers or risk a significant loss in reputation by making the flaw public. Which, out of the following, is the correct solution for the company?
A. The company should not make the error public, and repair the ones that report the fault without charging the concerned customer.
B. The company should conduct a survey amongst its customers and try to establish the ones who are facing the problem with the GPS system.
C. The company should make the fault public, and at the same time, publically fire the group of electricians responsible for the flaw.
D. The company should introduce a new variant of car, without any such flaws, and make sure the limelight is completely focused on this product.
E. The company should recall the cars and rectify the errors, whatever maybe the consequences.

XAT Decision Making Question 2. Quickr Airways finds itself in a peculiar circumstance. The low-cost aircraft carrier has recently experienced success with its e-commerce venture and that has meant that most of its ticketing operations have gone online. Since these processes have gone online, the staff requirements in the ticketing division have reduced significantly. At the same time, Quickr Airways is known for its employee friendly policies and is known to provide its employees a stable and secure work environment. The organization now finds itself in a dilemma of how to reduce its costs by downsizing (to account for the increasing fuel costs in the last few years) and maintain it employee-friendly nature.
Which, out of the following, could be the most suitable long-term solution to the problem?

A. Since the economic viability of the organization comes first, the airline should let go of its employees.
B. The company should retain the best performing employees in the ticketing division and let go of the others.
C. The company should start another venture where all the employees who lose their jobs can be employed.
D. The company should wait for the fuel prices to decrease, so that it does not need to remove the employees, and in the meantime, bear the losses.
E. The company should offer the relieved employees handsome early retirement benefits and make sure that all those relieved in the ticketing department receive adequate compensation.

XAT Decision Making Question 3. In the last 1 year, Trust Communication, a major Indian telecom company, has seen its 2G users drop by 23%. During the same period of time, the revenue earned by the company has increased by 14% and consequently, the company has attracted significant foreign investments. This behavior of the company stock has raised speculation about the conduct of the company and most people find its performance inexplicable.
Which, out of the following, accounts for a possible explanation for the increase in revenue of Trust Communication and the subsequent investments it has attracted?
A. The company has successfully warded-off a takeover bid and is seen in control by all stakeholders, thus inspiring confidence in its consumers.
B. The company has expanded in new territories, such as Africa, and soon hopes to reap in rewards from these areas.
C. The company has increased the number of free services to its existing customers, thus rewarding them for their loyalty.
D. The number of telecom companies in the last 2 years has decreased significantly, especially after the scams pertaining to 2G spectrum allocation.
E. The company holds the pan-India 4G license, and has leased to these at significant premium to other telecom companies.

XAT Decision Making Question 4. Ambalal Corporation hired a new branding and sales manager in the year 2012. The hiring was done considering the fact that the retail clothing market has seen a dip of 10% in the last one year and something needed to be done, and the person concerned has stellar record in the field of sales and marketing. In the last one year, Ambalal have declined by 5%, and considering the fact that market has continued to underperform in the year 2013, the results are along expected lines. Out of the following, which would be the best course of action for the branding and sales manager in the upcoming board meeting?

A. Considering the market dipped by double digit numbers and Ambalal faced only a single digit loss, the manager can take credit for the situation.
B. Since the manager has not managed to increase the sales figures, he should resign from his post and make way for someone else.
C. Since the market has performed badly, and Ambalal has managed to hang in, the manager should ask for another chance to prove his mettle.
D. Since a number of companies do well even in declining markets, the manager has not performed up to mark and should be forced to leave.
E. The manager should highlight the current sales scenario, come up with a plan for the next year keeping the cost in mind, and leave it to the board to decide the future outcome.

XAT Decision Making Question 5. There is a new fuel additive ‘Elixir’ that can be mixed with petrol and can improve fuel efficiency of vehicles by 50%. This additive only increases petrol cost by about 10% and can be readily derived from some natural sources. Despite its success, majority of the oil marketing companies has not providing fuel pre-mixed with this additive and thereby are missing out on a chance of using the already limited petrol resources for a lot longer.

Which of the following statements explains the approach adopted by oil-marketing companies?
A. Majority of the oil companies do not have necessary mixing techniques at the moment to use this additive immediately.
B. The number of cars running on petrol has dropped by 20% in the last 3 years.
C. The essentially middle class country currently is in the middle of an economic boom, and the companies do not wish to alter the consumption patterns.
D. The companies are unsure of the long term impact of the additive on the car and wish to wait for the studies to establish the safety of ‘Elixir’.
E. Since the fuel additive would reduce petrol consumption, companies do not wish to lose out potential revenue.

XAT Decision Making Practice Questions – Answers Set 3

XAT Decision Making Answer 1. The company should recall the cars and rectify the errors, whatever maybe the consequences.

XAT Decision Making Answer 2. The company should offer the relieved employees handsome early retirement benefits and make sure that all those relieved in the ticketing department receive adequate compensation.

XAT Decision Making Answer 3. The company holds the pan-India 4G license, and has leased to these at significant premium to other telecom companies.

XAT Decision Making Answer 4. The manager should highlight the current sales scenario, come up with a plan for the next year keeping the cost in mind, and leave it to the board to decide the future outcome.

XAT Decision Making Answer 5. The companies are unsure of the long term impact of the additive on the car and wish to wait for the studies to establish the safety of ‘Elixir’.

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XAT Decision Making Questions – Set 3

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