CLAT Exam  >  CLAT Questions  >  Directions: Read the following passage and an... Start Learning for Free
Directions: Read the following passage and answer the question.
Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors' reputation for its timely delivery and quality goods.
Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.
The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and won't be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.
This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."
Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?
  • a)
    Modernizing its processes to avoid the domination of the market by the competitors
  • b)
    Working in favour of and towards the overall well being of the employees
  • c)
    Neither of the above
  • d)
    Both (1) and (2)
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Directions: Read the following passage and answer the question.Asian M...
The context states that Asian Motors Ltd wants to compete and not discourage its employees. So both options 1 and 2 are correct. It states 'achieving the target of modern plant in Asian Motors' and 'we will never commit such things which will put our employees in loss' to define the stand taken by Asian Motors Ltd. So option 4 is right.
View all questions of this test
Most Upvoted Answer
Directions: Read the following passage and answer the question.Asian M...
Understanding the Context
Asian Motors Ltd. is facing challenges due to increased competition and the need for modernization. The company values its employees, who have long tenures, and management has assured them of job security despite potential changes.
Key Inferences
- Modernization of Processes:
- The entry of competitors armed with modern technologies poses a significant threat to Asian Motors.
- To maintain market presence and competitiveness, it is crucial for the company to modernize its processes.
- Employee Well-being:
- The low turnover rate indicates employee satisfaction and loyalty.
- The management's commitment to not jeopardizing employee security reflects a focus on their well-being.
Conclusion
Given the context, both options presented are favorable for Asian Motors Ltd.:
- Option (a): Modernizing processes will help the company stay relevant and competitive in the changing market landscape.
- Option (b): Ensuring employee well-being fosters loyalty and satisfaction, which is vital for maintaining productivity and morale amidst changes.
Thus, both strategies are essential for the company’s growth and stability. This leads to the conclusion that option (d) is correct, as it encompasses both necessary actions for Asian Motors Ltd.'s future success.
Explore Courses for CLAT exam

Similar CLAT Doubts

Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q.Which of the following is not similar to the strategy adopted by Asian Motors Ltd. to deal with its new competitors?

Direction: Read the following passage and answer the following question:In terms of labour, for decades the relatively low cost and high quality of Japanese workers conferred considerable competitive advantage across numerous durable goods and consumer electronics industries (eg. Machinery, automobiles, televisions, radios). Then labour-based advantages shifted to South Korea, then to Malaysia, Mexico and other nations. Today, China appears to be capitalizing best on the basis of labour. Japanese firms still remain competitive in markets for such durable goods, electronics and other products, but the labour force is no longer sufficient for competitive advantage over manufacturers in other industrializing nations. Such shifting of labour-based advantage is clearly not limited to manufacturing industries. Today, a huge number of IT and service jobs are moving from Europe and North America to India, Singapore, and like countries with relatively well-educated, low-cost workforces possessing technical skills. However, as educational levels and technical skills continue to rise in other countries, India, Singapore, and like nations enjoying labour-based competitive advantage today are likely to find such advantage cannot be sustained through the emergence of new competitors.In terms of capital, for centuries the days of gold coins and later even paper money restricted financial flows. Subsequently, regional concentrations were formed where large banks, industries and markets coalesced. But today capital flows internationally at rapid speed. Globa commerce no longer requires regional interactions among business players. Regional capital concentrations in places such as New York, London and Tokyo still persist, of course, but the capital concentrated there is no longer sufficient for competitive advantage over other capitalists distributed worldwide. Only if an organization is able to combine, integrate and apply its resources (eg. Land, labour, capital, IT in an effective manner that is not readily imitable by competitors can such an organization enjoy competitive advantage sustainable overtime.In a knowledge-based theory of the firm, this idea is extended to view organizational knowledge as a resource with at least the same level of power and importance as the traditional economic inputs. An organization with superior knowledge can achieve a competitive advantage in markets that appreciate the application of such knowledge. Semiconductors, genetic engineering, pharmaceuticals, software, military warfare, and like knowledge-intensive competitive arenas provide both time-proven and current examples. Consider semiconductors (e.g. computer chips), which are made principally of sand and common metals. These ubiquitous and powerful electronic devices are designed within common office buildings, using commercially available tools, and fabricated within factories in many industrialized nations. Hence, the land is not the key competitive resource in the semiconductor industry.Q. Why labour-based competitive advantages of India and Singapore cannot be sustained in IT and service sectors?

Top Courses for CLAT

Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer?
Question Description
Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer?.
Solutions for Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
Here you can find the meaning of Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the following passage and answer the question.Asian Motors Ltd. is an automobile spare part company serving to the needs of the customers by delivering good quality products from time to time. The work force is the main reason behind Asian Motors reputation for its timely delivery and quality goods.Most of the employees in Asian Motors are associated with the organisation for more than 3 to 4 decades. The turnover ratio is very low due to a feel of satisfaction and job security provided by Asian Motors Ltd. management. Everything was fine with Asian Motors till last year when the scenario changed. A number of competitors entered the market and all of them were well-equipped with modern technologies.The management is also ready for organisational development by accruing new machines. The management hired an organisation development consultant for the same. The OD consultant stated, in his report, that employees are the major hurdle in achieving the target of modern plant in Asian Motors. The report also mentioned that it is not advisable and wont be fruitful to invest the training and development amount on those employees (40%) who are going to retire in less than 5 years.This in turn made the employees concerned about job security. The management assured them that "we will never commit such things which will put our employees in loss."Q. Which of the following could Asian Motors Ltd. consider favourable, as inferred from the context?a)Modernizing its processes to avoid the domination of the market by the competitorsb)Working in favour of and towards the overall well being of the employeesc)Neither of the aboved)Both (1) and (2)Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CLAT tests.
Explore Courses for CLAT exam

Top Courses for CLAT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev