Instructions

Analyse the following caselet and answer the questions that follow:

Recently a private food testing agency reported the presence of a harmful chemical in Crunchy Chips, a product of a fast moving consumer goods giant. The report sparked a nationwide Outcry.

Question 1

Rajan Shekhawat, the CEO of the company, feared this incident might affect the company’s image among consumers. Rajan had the following options:
1. Apologizing publicly for this inconvenience and immediately withdrawing the products from all stores.
2. Communicate ‘the correct findings’ to the public.
3. Hire a reputed independent testing agency to verify the claims of the report.
4. Establish internal mechanisms to prevent repetition of such incidences in future.
5. Give higher incentives to distributors and retailers for selling the company brands.

Which of the following would be the MOST APPROPRIATE ORDER of options for Rajan, starting from the immediate?

Solution

Statement 1 would mean the acceptance of the allegation which will tarnish the company's image.
Statement 5 would neither be effective in increasing sales nor be able to sway allegations.

The authenticity and accuracy of the report is not known. Hence, the statements 3,2, and 4 are the correct way to approach the crisis at hand.
Hence, option B is the correct answer.

Question 2

Mukesh Routray, a shopkeeper in a remote village was surprised to read in the newspaper, his only source of information, about harmful chemicals in Crunchy Chips. He had stocked a large quantity of Crunchy Chips for the forthcoming festive season. He also realized that people in his village are completely unaware of this controversy. He had the following options:
1. Sell the entire stock at a discount before the news spreads.
2. Destroy the entire stock and advise customers not to buy this product from other shops as well.
3. Donate the entire stock of Crunchy Chips to a local orphanage.
4. Inform customers about the controversy but understate its seriousness.
5. Ignore the news and sell the stock at the forthcoming festive season as planned.
6. Explore the veracity of the report and then take decision

If arranged from ethical to unethical which of the following is DEFINITELY the WRONG order?

Solution

Mukesh has just read the news in the newspaper and he is not sure about its truthfulness. So, the most appropriate step for him would be to explore the reality behind the news. Therefore, 6 is an ethical option. Option 2 is ethical too. 1,3,5 are unethical options. Option 4 can be considered as unethical too but to a lesser degree than 1,3,5.
So 6,1,4 is definitely the wrong order because 1 is more unethical option than 4. Hence, option B is the correct answer.

Question 3

An independent and trustworthy confidante of Rajan Shekhawat, the CEO of the company, informed him that one of their main competitors had bribed the food testing agency to manipulate the report.

Which of the following actions will BEST help Crunchy Chips to bounce back?

Solution

Proclaiming something without any evidence is futile. Option A is wrong.
Without being sure of the involvement of competitors in any conspiracy, blaming is not correct. Options D and E are incorrect.
Option B would not help Shekhawat prove that his product is healthy which is the main allegation.
Option C is the best alternative for Shekhawat. He can prove both that his product is healthy and the allegations are false.
Hence, option C is the correct answer.

Instructions

on the basis of the following letter.

To the Chairman:
Dear Mr. Sailesh,
At the December 3, 2011 meeting, it was decided that no two officers would hold positions on the same committee. It has recently come to my attention that both Chaitanya Rao and Ajit Singh will be serving in
some capacity on the Cultural Committee, and both have been nominated for officer status. As you know,
this is in direct disregard for the rules as voted by the Members Council last December 3, 2011. I would
hope that sufficient action be taken by the Disciplinary Committee (on which committee both of the above are members) so that this problem will be remedied.
Sincerely,
Arvind Singh

Question 4

Which of the following is an essential flaw that the writer of the letter overlooked?

Solution

Consider the sentence: "..........and both have been nominated for officer status." Option D proves that they are yet to become officers. It means that they are not holding the same positions.
Hence, option D is the correct answer.

Question 5

If both the nominations are confirmed, which of the following exhaustively and reasonably, describes actions that may occur in the near future?

Solution

In the meeting on December 3, it was decided that no two officers would hold positions on the same committee. Both Rao and Ajit are part of two committees as of now. If the nominations are confirmed, one could resign from either of the two groups that they are a part of. For instance, Rao decides to rescind his Disciplinary Committee membership while Ajit decides to resign from the Cultural Committee; this way, both could retain one spot. Option E specifically presents this idea. Option B is vague and perhaps indicates that one of them has to resign from both committees.

Thus, the correct option is E.

An independent and trustworthy confidante of Rajan Shekhawat, the CEO of the company, informed him that one of their main competitors had bribed the food testing agency to manipulate the report. Which of the following actions will BEST help Crunchy Chips to bounce back?

Which of the following is an essential flaw that the writer of the letter overlooked?

If both the nominations are confirmed, which of the following exhaustively and reasonably, describes actions that may occur in the near future?

An independent and trustworthy confidante of Rajan Shekhawat, the CEO of the company, informed him that one of their main competitors had bribed the food testing agency to manipulate the report.

Which of the following actions will BEST help Crunchy Chips to bounce back?