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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect answer is option 'D'. Can you explain this answer?

EduRev

All Courses

Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity

Open App

CAT Exam > CAT Questions > Directions: Read the following case and answ...

Join the Discussion on the App

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?

a)
Come up with a car that matches the price of the Mata Micro.
b)
Come up with a car that has better features than the Micro, yet is cheaper.
c)
Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.
d)
Come up with a car that has better features than the Micro, though it might be priced higher than it

Correct answer is option 'D'. Can you explain this answer?

FREE This question is part of

XAT Mock Test - 9 (New Pattern)

Attempt Test

Attempt this Test

Most Upvoted Answer

Directions: Read the following case and answer the questions that fol...

Here the real choice is between option c and d. Option b is simply not possible. Since the Matas are already facing problems in delivering the existing model under the current price stipulations, Baruti would find it next to impossible to make a car that has more features and is cheaper at the same time. Option d represents a balanced view, as the car made by Baruti would be a better one, and even though the price would be higher, the company would be able to sustain in the longer term, and not struggle like the Matas. Option 3, though possible, would mean that the car does not compare well with the Micro, and in the long term, Baruti would lose customers because of this. Options a and e do not offer sufficient information, and are one dimensional in nature.

Answered by Wizius Careers · View profile

Attention CAT Students!

To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.

Quantitative Aptitude (Quant)

Crash Course for CAT

CAT Mock Test Series 2024

3 Months Preparation for CAT

View all answers Start learning for free

< Previous Question Next Question >

Explore Courses for CAT exam

Similar CAT Doubts

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?

View answer

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.

View answer

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

View answer

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

View answer

DIRECTIONS for questions: The passage given below is accompanied by a set of three questions. Choose the best answer to each question.The issues and preoccupations of the 21st century present new and often fundamentally different types of challenges from those that faced the world in 1945, when the United Nations was founded. As new realities and challenges have emerged, so too have new expectations for action and new standards of conduct in national and international affairs. Since, for example, the terrorist attacks of 11 September 2001 on the World Trade Centre and Pentagon, it has become evident that the war against terrorism the world must now fight – one with no contested frontiers and a largely invisible enemy – is one like no other war before it.Many new international institutions have been created to meet these changed circumstances. In key respects, however, the mandates and capacity of international institutions have not kept pace with international needs or modern expectations. Above all, the issue of international intervention for human protection purposes is a clear and compelling example of concerted action urgently being needed to bring international norms and institutions in line with international needs and expectations.The current debate on intervention for human protection purposes is itself both a product and a reflection of how much has changed since the UN was established. The current debate takes place in the context of a broadly expanded range of state, non-state, and institutional actors, and increasingly evident interaction and interdependence among them. It is a debate that reflects new sets of issues and new types of concerns. It is a debate that is being conducted within the framework of new standards of conduct for states and individuals, and in a context of greatly increased expectations for action. And it is a debate that takes place within an institutional framework that since the end of the Cold War has held out the prospect of effective joint international action to address issues of peace, security, human rights and sustainable development on a global scale.With new actors – not least new states, with the UN growing from 51 member states in 1945 to 189 today – has come a wide range of new voices, perspectives, interests, experiences and aspirations. Together, these new international actors have added both depth and texture to the increasingly rich tapestry of international society and important institutional credibility and practical expertise to the wider debate.Prominent among the range of important new actors are a number of institutional actors and mechanisms, especially in the areas of human rights and human security. They have included, among others, the UN High Commissioner for Human Rights and the International Criminal Tribunal for the former Yugoslavia, both created in 1993, and its sister tribunals for Rwanda established in 1994 and Sierra Leone in 2001.The International Criminal Court, whose creation was decided in 1998, will begin operation when 60 countries have ratified its Statute. In addition to the new institutions, established ones such as the UN High Commissioner for Refugees, and the ICRC and International Federation of Red Cross and Red Crescent Societies, have been ever more active.Nearly as significant has been the emergence of many new non-state actors in international affairs – including especially a large number of NGOs dealing with global matters; a growing number of media and academic institutions with worldwide reach; and an increasingly diverse array of armed non-state actors ranging from national and international terrorists to traditional rebel movements and various organized criminal groupings. These new non-state actors, good or bad, have forced the debate about intervention for human protection purposes to be conducted in front of a broader public, while at the same time adding new elements to the agenda.Q. The author presents the example of the terrorists attacks of September 9, 2011 to

View answer

Top Courses for CATView all

Quantitative Aptitude (Quant)

Crash Course for CAT

CAT Mock Test Series 2024

3 Months Preparation for CAT

CAT Mock Test Series and 500+ Practice Tests 2024

Top Courses for CAT

View all

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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect answer is option 'D'. Can you explain this answer?

Share with a Friend

Answer this doubt

Question Description
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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect 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.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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect 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.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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect 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.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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect 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.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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect 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.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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect 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.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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect 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.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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect 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.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?a)Come up with a car that matches the price of the Mata Micro.b)Come up with a car that has better features than the Micro, yet is cheaper.c)Come up with a car that is cheaper than the Micro, though it may have lesser number of features than it.d)Come up with a car that has better features than the Micro, though it might be priced higher than itCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice CAT tests.

Explore Courses for CAT exam