XAT 2020 Question Paper | Bussiness Decision Making

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Read the situation below and answer the 3 associated questions:

Two industrial towns, Jayanagar and Ramnagar, about 15 kms. apart, are similar in land area, population, ethnic diversity and per capita incomes.
Jagdeep Singh owns a bakery named Le Baguette in Jayanagar. He specializes in croissants, masala bread and whole wheat bread; eggless cakes are also a favorite.
Among the four bakeries in Jayanagar, Jagdeep’s bakery with a market share of 30% issecond only to the oldest Le Croissant bakery whose market share is 40%. Le Croissant commands a loyal customer base and does not offer eggless varieties.

Question 5 : Jagdeep has decided to open a branch in Ramnagar. Which of the following facts about Ramnagar will BEST support his decision?
A. Before starting his own bakery, Jagdeep was supplying bread to most bakeries in Ramnagar. 2. One interviewer was constantly probing how Rakesh managed to meet his project deadlines with B. 3% of Le Baguette’s current revenue comes from Ramnagar.
C. Le Croissant’s Ramnagar branch struggles with a market share of 10%.
D. Jagdeep has managed to acquire a big space in Ramnagar at a nominal rent.
E. Ramnagar is served by 4 bakeries, with the two largest bakeries having market shares of 55% and 25% respectively.

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Video Explanation

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Explanatory Answer

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Hence, the answer is 'Le Croissant’s Ramnagar branch struggles with a market share of 10%.'

Choice B is the correct answer.

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