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ANALYSIS OF BUSINESS SITUATIONS
Directions : There are two passages in this section. Read each one; read also the directions
for answering questions under the passage before answering.
FIRST PASSAGE
FSL was a food manufacturing company established in 1945. Until 1995 its major products
consisted of tomato specialties such as pickles and barbecue sauces. Its consumer products
business accounted for 40% of sales; the balance consisted of sales to restaurants, hospitals and
armed forces. The company has advertised for restaurant, hospital market but never for
household consumers.
In 1995, the company introduced products meant for consumer market. The line was composed
of a number of dishes. Each package contained all of the necessary ingredients (except meat)
including seasoned tomato sauce, cheese and noodles.
Jagdish, son of the company’s president, had conceived the idea for the line of products.
Jagdish’s enthusiasm for the product was quickly picked up by other executives. The financial
expert wanted expansion would enable the company to solve a number of financial problems
associated with its inability to attract outside capital.
Many meetings were held through the summer. The original thinking of the committee was that
the product line should be introduced at the beginning of the food-merchandising season, which
started on about October 1. This deadline however, subsequently proved to be unrealistic.
Production of the first items in the line did not get underway until September 30 and packaging
difficulties prohibited introducing product before mid December.
In July the problems involved in the product introduction were not foremost in the planner's
thoughts. Many hours were spent on discussing the name of the product. Finally, the name
Vegetable Scotch was adopted but without enthusiasm from the president's son who believed that
a name did not express the gourmet image that he thought the name should express. With the
exception of the name this man directed most of the decisions related to the marketing program.
From the beginning he argued that there were already plenty of middle class products on the
grocer’s shelves. What was needed, he believed, was a prestige-even a “gourmet” - line. The
popularity of expensive restaurants in cities convinced young manager of the opportunity to
market these food specialities.
Early in the planning it was decided to limit distribution to the regional markets in which this
company had previously established its reputation. National distribution would be undertaken
from the beginning. It was planned that preparation would be marketed in all major food chain
and headquarters would be made by food brokers handling such products rather than brokers
used to handling goods.
For the first time in its experience, FSL planned to undertake an extensive consumer-advertising
programme. A small advertising agency in Delhi with slight experience in handling food
products was appointed. However by the time the agency has been selected and oriented to the
marketing programme, the time remaining before the scheduled introduction did not allow for
the preparation of advertisements or sponsored programmes on TV. In order to break into the
consumer market at the time of product introduction on October 1st a consumer-advertising
programme using newspaper, television commercials and radio was prepared. Except for the

Product introduction period, however, relatively little thought was given in planning sessions to
the total amount money required to support the product with consumer advertising.
A number of circumstances combined to prevent the introduction in October as originally
Planned. No one has taken personal responsibility for package design and production was held
up for three weeks while the company waited for supplies of packaging materials. FSL was
Forced to move very rapidly to obtain a package, but the result was neither very well designed
nor attractive from a promotional point of view. Time was short, however, and there was no
choice but to use this package or abandon the project for the present season and possibly
Altogether, depending upon competitive conditions.
A hastily put together advertising campaign was introduced in November. However, advertising
cost had been greatly under estimated, that the intensity of the campaign was much lower than
the manager had anticipated, even with the limited budget. As a result, most of the budget was
allocated to newspapers and radio. Moreover problem of writing of the script of the TV
commercial delayed broadcasting until the beginning of December. Newspaper advertisements
and Radio commercials did commence as planned.
The new product was finally launched in mid December. However, by February, two major
competitors began marketing similar products. Shortly thereafter the company to determine
whether the product made a favourable impression on sponsored a market research survey
housewives. The result of the survey was negative. Only twenty two percent of the housewives
interviewed could recall the name and those only twelve percent had tried the product. Consumer
evaluation of the product was for the first time, only, four percent stated that they would buy
again.
Another indication that worried the company’s management was that few major food chains
showed interest. By midyear product sales were so poor that management established a special
committee to determine without delay what immediate steps might be taken to reverse the poor
sales record.

Directions: The questions that follow relate to the preceding passage. Evaluate, in terms of
the passage, each of the item given. Then select your answer from one of the classifications.
1) A Major Objective in making the decision: one of the goals sought by the decision.
2) A Major Factor in making the decision: an aspect of the problem, specifically
mentioned in the passage, that fundamentally affects and/or determines the decision.
3) A Minor Factor in making the decision: a less important element bearing on or
affecting a Major factor, rather than a Major objective directly.
4) A Major Assumption in making the decision: a projection or supposition arrived at by
the decision maker before considering the factors and alternatives.
5) An Unimportant issue in making the decision: an item lacking significant impact on, or
relationship to, the decision.
Questions :
1. Possibility of using existing production facilities in manufacturing new products.
2. Likelihood of achieving wide consumer acceptance of the new products.
3. Company's growth and expansion.
4. Age of FSL.
5. The popularity of high priced restaurants in the country.
6. Depth of company's experience and expertise in the sale of consumer products.

7. Market survey results.
8. Size of the advertising agency hired to promote the product.
9. National distribution of the product.
10. Company's inability to attract outside capital.
11. Difficulties with new package design.
12. Need for this new food line.
13. Market entry of competitors.
14. Obtaining packaging materials.
15. Introducing the new product in October 1st.
16. Interest of major food chains in the product.
17. Scripting of T.V. commercials.
18. Introduction of new product line.
19. Developing products as fast as possible.
20. Marketing ability of the company.
SECOND PASSAGE
Coirfoam, a small company producing foam rubber mattresses, was in financial trouble, and its
owners wanted to sell it. The company had been established some twenty years age, but its
market share had steadily declined over the last five years. Since, Mr. Krishnan had no previous,
experience in the mattress business, he requested his friend to tell him what he could do about it.
His friend analysed the company’s resources. Its best resources was its product and brand name.
However, synthetics are much cheaper than foam rubber mattresses. Latex mattresses are known
for their orthopaedic and anti allergic qualities, among others. The Coirfoam brand name had
very nearly become a generic term for all types of rubber mattresses. Coirfoam however was the
only latex mattress produced locally.
Apart from a superior product, the company had few resources. Its equipment, though
satisfactory, was old. It operated in leased premises on a year to year basis, although the landlord
was willing to conclude a long term agreement on favourable terms. On the other hand the
company’s labour force was experienced and dedicated and its production manager had more
than ten year’s experience in lated manufacturing.
The Chairman of the company was seventy years old and wanted to retire. Apart from the sales
manager, no one else shared responsibility for marketing or administration. He told Krishnan's
friend that if the company was sold, he had no intensions of remaining in service; he had
eighteen years of experience in mattress industry. If the sales manager left the company Krishnan
might not find a suitable replacement. This was another issue that Krishnan's friend had to study.
Coirfoam's financial position was precarious. The company was heavily in debt and its line of
credit fully extended. There was some question as to whether the company would be able to
purchase enough latex to keep production going, but the manager assured, that the company had
a bank letter of credit to purchase additional month’s supply.
In spite of the chairman’s optimism, the fact was that his company had steadily lost market share
once the dominant mattress manufacturers, with fifty percent of local market, its market share
had declined to less than 10 per cent. The chairman attributed this decline to popularity gained
by spring mattresses manufacturers, who had only begun production five years ago. Spring
mattresses now accounted for seventy percent of the total market, another company ten percent,

with remaining twenty percent shared by a number of small plants producing synthetic rubber
mattresses. Spring mattresses had some attributes similar to those of foam rubber, such as
orthopaedic qualities. They were less costly to manufacture but sold to customers at about the
same price as Coirfoam.
Because of Coirfoam’s financial difficulties, it ceased advertising in Newspaper and on radio for
over the past five years. As a result retailers were reluctant to handle the product. In contrast to it
two spring manufacturers had advertised heavily in the mass media. One of these manufacturer’s
products was sold exclusively by the largest furniture chain. During his study of the mattress
market, a number of retailers had expressed the opinion to Krishnan's friend that a whole
generation of young people largely unaware of the Coirfoam product because of lack of
advertising. One retailer was quoted saying: ”It is true that older people remember Coirfoam, but
these mattresses last for twenty years. The big market is not the replacement market, but sales
generated by family formation. Thousands of young couples get married every year and every
marriage means another mattress sale. It is obviously easier for my salesman to sell a mattress
which his customers have seen in countless advertisements that one which is relatively
unknown”.
Krishnan's friend was aware of the fact that if Coirfoam was ever to regain some of its lost
market share, it would have to launch a major advertising programme to educate young -adults
about the important attributes found in its products. A major question that needed an immediate
answer was: “To what extent are people aware of Coirfoam mattresses and their attributes?”
Other questions involved the attitudes of people toward spring mattresses in general and how
these attitudes compared to those towards spring mattresses. Krishnan's friend ordered a market
research survey to obtain answers to his questions. In brief, the study of Coirfoam mattresses
showed that customers over twenty five years of age who were aware of Coirfoam mattresses
had favourable attitudes towards their attributes. About three quarters of these people expressed
a preference for foam rubber mattresses for their children (by contrast with other mattresses for
their own use). Awareness among younger segments of the population of the attributes of foam
rubber mattresses in general and Coirfoam in particular, was very low. Few people expressed an
intention to buy foam rubber mattresses.
On the basis of the preliminary research Krishnan was optimistic that he could rum the company
around. In support of his brief, he sighted the recognition of the company among a significant
portion of the population, and the fact that they would buy a Coirfoam for their children. He
believed that once retailers became aware that new management had taken over the company,
they would be willing to stock the product. Krishnan was aware that the research findings were
not always in agreement with his conclusions. However, the findings that young people were
relatively unaware of Coirfoam did not seem to worry him. He felt that well designed advertising
programme would concince many people to buy a foam rubber mattresses, rather than any
competing type. Moreover, the introduction of a new management team would instil confidence
among Coirfoam bankers, credit lines would be increased thereby improving the company's
financial position. However, before making a final decision as to whether to purchase Coirfoam,
Mr. Krishnan waited for his friend's final report and recommendations.
Directions: The questions that follow relate to the proceeding passage. Evaluate, in terms of
the passage each of the item given. Then select your answer from one of the classification.
1) A Major Objective in making the decision: one of the goals sought by the decision.
2) A Major Factor in making the decision: an aspect of the problem, specifically

mentioned in the passage, that fundamentally affects and or determines the decision.
3) A Minor Factor in making the decision: a less important element bearing on or
affecting a Major factor rather than a Major objective directly.
4) A Major Assumption in making the decision: a projection or supposition arrived at by
the decision maker before considering the factors and alternatives.
5) An Unimportant issue in making the decision: an item lacking significant impact on or
relationship to, the decision.
Questions :
21. Public awareness of the high quality of Coirfoam mattresses.
22. The anti allergic qualities of Coirfoam mattresses.
23. Attitude of older consumer towards Coirfoam mattresses.
24. Willingness of retailers to stock Coirfoam products in the future.
25. Need to import latex rubber.
26. Coirfoam’s present market share.
27. Krishnan’s friend's recommendations.
28. Coirfoam leased its premises.
29. Plausibility of changing consumer attitudes through advertising.
30. The Chairman's explanation for loss of market share.
SECTION II
READING COMPREHENSION
Directions: This section contains two reading passages. You have to read each carefully.
Each passage is followed by questions based on its content. After reading each passage,
choose the best answer to each question. The questions are based on what is stated or
implied in each passage.

FIRST PASSAGE
Virtually everything astronomers know about objects outside the solar system is based on the
detection of photonsquants of electromagnetic radiation. Yet there is another form of radiation
that permeates the universe; neutrinos. With (as its name implies) no electric charge and
negligible mass, the neutrino interacts with other particles so really that a neutrino can cross the
entire universe, even traversing substantial aggregations of matter, without being absorbed or
even deteced. Neutron can thus escape from regions of space where Sight and other kinds of
electromagnetic radiation are blocked by matter. Further more neutrinos carry with them
information about the site and circumstances of their production; therefore, the detection of
cosmic neutrinos could provide new information about the history of the universes carry with
them information about the site and circumstances of their production; therefore, the detection of
cosmic neutrinos could provide new information about the history of the universe.
But how can scientist deduct a particle that interacts so infrequently with the other matter?
Twenty five years passed between Pauli's hypothesis that the neutrino existed and its actual
detection; since then virtually ail research with neutrinos has been with neutrinos created
artificially in large particle accelerators and studies under neutrino microscopes. But a neutrino
telescope, capable of detecting cosmic neutrinos, is difficult to construct. No apparatus can
deduct neutrinos unless it is extremely massive, because great mass is synonymous with huge
numbers of nucleons (neutrons and protons) and the more massive the detector, the greater the

probability of one of its neutron's reacting with a neutrino in addition, the apparatus must be
sufficiently shielded from the interfering effects of other particles.
Fortunately a group of astrophysicists has proposed a means of deducting cosmic neutrinos by
harnessing the mass of ocean. Named Dumand, for deep underwater Muon and neutrino detector,
the project calls for placing an array of light sensors at a depth of five kilometers under the ocean
surface. The detecting medium is the s-2a water itself; when a neutrino interacts with a particle
in an atom of sea water, the result is a cascade of electrically charged particles and a flash of
light that can be deducted by the sensors. The five kilometer of seawater above the sensors will
shield them from the interfacing effects of other high-energy particles raining down through the
atmosphere.
The strongest motivation for the Dumand, project is that it will exploit an important source of
information about the universe. The extension of astronomy from visible light to radio waves to
X-rays and gamma rays never failed to lead to the discovery of unusual objects such as radio
galaxies, quasars and pulsars. Each of these discoveries came as a surprise, neutrino astronomy
will doubtlessly bring its own share of surprise.
Questions:
31. Which of the following titles best summarises the passage as a whole?
1) At the threshold of Neutrino Astronomy
2) Neutrinos and the history of universe
3) The creations and the study of Neutrinos
4) The Dumand system and how it works
5) The properties of Neutrino

32. Which of the following statements regarding neutrino astronomy would the author is
most likely to agree?
1) Neutrino astronomy will supersede all present forms of astronomy
2) Neutrino astronomy will be abandoned if the Dumand project fails
3) Neutrino astronomy can be expected to lead to major breakthrough in astronomy
4) Neutrino astronomy will disclose phenomena that will be more surprising than pas discoveries
5) Neutrino astronomy will always be characterised by a large time lag between hypothesis and
experimental configuration.
33. In the last paragraph the author describes the development of astronomy in order to
1) Suggest that the potential findings of neutrino astronomy can be seen as part of a series
of astronomical success
2) Illustrate the role of surprise in scientific discovery
3) Demonstrate the effectiveness of the Dumand apparatus in detecting neutrinos
4) Name some cosmic phenomena that neutrino astronomy will illuminate
5) Contrast the motivation of earlier astronomers with that of the astrophysicists, working
on the Dumand project
34. The passage states that interactions between neutrinos and other matters are
1) Rare
2) Artificial
3) Unpredictable
4) Undetectable
5) Hazardous

35. According to the passage, one advantage that neutrinos have for studies in astronomy is
that key
1) Have been detected for the last twenty five years
2) Possess a variable electric charge
3) are usually extremely massive
4) Carry information about their history with them
5) are very similar to other electromagnetic particles
36. According to the passage, the primary use of the apparatus mentioned would be to
1) Increase the mass of a neutrino
2) Interpret information neutrinos carry with them
3) Study the internal structure of a neutrino
4) See neutrinos in distant regions of space
5) Detect the presence of cosmic neutrinos
37. The passage mentions which of the following as a reason that neutrinos are hard to
detect? 1) Their pervasiveness in the universe
2) Their ability to escape from different regions of space
3) The inability to penetrate dense matter
4) The similarity of their structure to that of nucleons
5) The infrequency of their interaction with other matter
38. According to the passage, the interaction of a neutrino with other can produce
1) Particles that are neutral and massive
2) A form of radiation that permeates the universe
3) In accurate information about the site and circumstances of neutrino’s production
4) charged particles and light
5) A situation in which light and other forms of electromagnetic radiations are blocked
39. According to the passage, one of the methods used to establish the properties of
neutrinos was
1) Detection of photons
2) Observation of interaction of neutrinos'with gamma rays
3) Observation of neutrinos that were artificially created
4) Measurement of neutrinos that interacted with particles of sea water
5) Experiments with electromagnetic radiation
40. The strongest motivation for the Dumand project is
1) That it will detect the presence of cosmic neutrinos
2) That it will exploit an important source of information about the universe
3) That measurement of neutrinos is possible
4) That it will suggest the potential of neutrino astronomy
5) That will doubtlessly bring its own share of surprises
SECOND PASSAGE
It is riot easy to write a familiar style. Many people mistake familiar for a vulgar style, and
suppose that to write without affection is to write at random. On the contrary there is nothing that
requires more precision and, if I may so say purity of expression than the style I am speaking of.
It utterly rejects not only all unmanning pomp, but all new, cant phrases and loose, unconnected
slipshod allusion. It is not to take first word that offers, but the best in common use; it is not to
throw words together in any combinations we please, but to follow and avail ourselves of the
idiom of the language. To write a genuine, familiar or truly English style to write as any one

would speak in common conversation who had a thorough command over choice of words, or
who discourses with ease, force and perspicuity, setting aside all pedantic and oratorical
flourishes. Or, to give another illustration, to write naturally is the easy thing to give the true
accent and inflection to the words you utter, because you do not attempt to rise above the level of
ordinary life and colloquial speech. You do not assume, indeed, the solemnity of the pulpit, or
tone of stage declamation, neither or you at liberty to gabble on at a venture, without emphasis or
discretion, or to resort to vulgar dialect or clownish pronunciation. You must steer a middle
course. You are tied down to a given appropriate articulation, which you can do only by entering
into the author's meaning, as you must find the proper words and style to express yourself by
fixing your thoughts on the subject you have to write about any one may write a passage with a
propriety and simplicity is more difficult task. Thus it is easy to affect a pompous style, to use so
word twice for the thing you want to express; it is not so easy to pitch upon that very word that
exactly fits in. Out of eight or ten words common, equally intelligible, with nearly equal
pretensions, it is a matter of some nicety and discrimination to pick out the one the
preferabteness of which is scarcely preceptible, but decisive.
Questions:
41. According to the passage
1) One should be permitted to speak in any way he wishes to
2) ‘Getting on stilts’ should aid one in speaking more effectively
3) It is easier to write pompously than simply
4) The preacher is a model of good speech
5) A grammatical background is not necessary for good writing
42. When the writer says "you must steer a middle course", he means that
1) You should speak neither too loudly nor too softly
2) You should speak neither too formally nor too colloquially
3) You should write as well as speak
4) You should not come to any definite conclusion about what is proper or not proper in speech
5) You should write neither too fast nor too slowly
43. "Cant Phrases" means
1) A type of language which is peculiar to a particular class
2) A sing-song type of speech
3) Expressions which consistently indicate refusal to do another’s bidding
4) Obscene language
5) Obsolete expressions
44. the author mentions all of the following important to good speech, except
1) A good command of English vocabulary
2) The careful selection of words used
3) The use of allusions and metaphors
4) Straight forward and precise delivery
5) The placing of emphasis on important words and phrases
45. The author
1) is critical of the person who converses in a manner which is easy to understand
2) Implies that foreigners do not speak well

3) Feels that there is relationship between the sound of a word and its meaning
4) Criticizes pomposity of style more so than vulgarity style
5) Urges us to speak like an actor or the preacher
SECTION III
PROBLEM SOLVING
Directions: For each of the following questions, select the choice which best answers the
questions or completes the statement.
Questions:
46. The ratio of x to y is ½. If the ratio of x + 2 to y + 1 is 2/3, then what is the value of x?
1) 6 2) 4 3) 3 4) 2 5) 1