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Directions: Read the following case and answer the questions that follow:
Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.
The company, in the given case, can be said to have majorly committed the mistake of:
  • a)
    trusting its suppliers
  • b)
    assuming that the customers would act as trusting lambs, and would not be too demanding.
  • c)
    not accounting for government red-tape.
  • d)
    being naïve to have not envisaged operational and pricing issues.
Correct answer is option 'D'. Can you explain this answer?
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Directions: Read the following case and answer the questions that fol...
In the given case, most of the options fit in some way or the other. This means that for this question, you need to select the best answer and not necessarily the only correct answer. Matas have made two major mistakes: the first was not figuring out the possible opposition to their projects and thus not being able to see the time delay, and the second was not being able to predict and use a pricing model that would service them well in the future as well. These two combined lead to the downfall of the Matas. And these two are best reflected by option (d) Most of the other options commit the mistake of being too narrow in their focus, and picking on only one of the two mistakes committed by the Matas.
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Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.In the given scenario, Matas should:1. Deliver the cars booked for the promised amount as soon as possible.2. Increase prices for the new models.3. Resolve the supplier issue by increasing their prices4. Take a hit but deliver the vehicle at the promised price.5. Increase the prices of the booked cars to cover their costs6. Cancel the orders with an apology note informing the customers about their issues.

Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.In the given scenario, what is the advisable approach that the branding team for Matas should adopt?

Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.In order to compete with the Matas, Baruti has decided to come-up with its own economy vehicle. Baruti feels that having a low-priced vehicle in the market would ensure that its number-1 reign in the market continues. Baruti should adopt which out of the following strategies?

Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.From the above example, it can be concluded that the biggest challenge while dealing with a product targeting the lower and the lower middle class is

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Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.Correct answer is option 'D'. Can you explain this answer?
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Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.Correct answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.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 case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Directions: Read the following case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.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 case and answer the questions that follow:Mata Motors introduced an ambitious project in the year 2007 of launching a car that would only cost Rs. 1 lac. The basic ambition behind this scheme was to target the group of motor-cyclists and two-wheeler drivers in India. The company thought at the time that such a product would be highly attractive to the lower and the lower-middle classes as this would give them a chance of escaping lives on two-wheelers, and at the same time, enable the company to generate a foothold in the Indian market. The company first decided to set-up the plant in West Bengal and got into an MOU with the West Bengal government. The company was forcibly allocated land in Bandigram, and it started work on the plant. One year into the project, the company faced wide-scale protests against the forcible land acquisition, and ultimately it had to shift the plant to another state. The company lost 2 years in the process. Ultimately, the car which was meant to be launched in 2010, was launched in 2012. During these years, the international metal and oil market went through some wild fluctuations and this has meant that the company had to face rising raw material costs. This meant that the overall cost of the car went up by about 15% and meant that the 1 lac price point previously announced become clearly unviable. To add to the companies’ woes, the company’s suppliers for essential accessories and fittings such as lamps, seat covers etc. also asked for an increase in prices, and have started delaying or cancelling their deliveries. In the light of these events, even though the car was launched in the year 2012, very few deliveries have been made, and the enormous interest the car generated is beginning to dissipate. The customers who pre-booked the cars are unhappy that their cars have not been delivered, and the Matas are in a fix with respect to their suppliers as well the price of the car.The company, in the given case, can be said to have majorly committed the mistake of:a)trusting its suppliersb)assuming that the customers would act as trusting lambs, and would not be too demanding.c)not accounting for government red-tape.d)being naïve to have not envisaged operational and pricing issues.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CAT tests.
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