XAT 2025 Question Paper | Bussiness Decision Making

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Read the following scenario and answer the THREE questions that follow.

Sundaram Stores operated in a gated community, situated about 30 Kilometers away from the main town. The store owner Mr. Sundareswaran Pichaimuthu, or Sundaram as he was called by everyone, secured a space in the gated society through a competitive bidding process. The residents’ association, led by Mr. Thangamoorthy Selvaganapathy, selected Sundaram over three other bidders, based on his willingness to pay the highest rent. Desperate to augment his post-retirement income, Sundaram agreed to pay a very high rent, banking on the prospect of generating exceptional revenue from the gated community.
Sundaram was awarded the contract to establish the store, with provisions for a review every three years. Feeling elated during the meeting with the residents’ association to finalize the contract, he enthusiastically committed to offering a 15% discount on all groceries and stationary, cementing goodwill and reinforcing the partnership established through the contract. The association was delightedly taken aback by his generous assurance. Sundaram hoped to make up the difference through volume.
Although his sales were strong during the initial months, he soon realized that the SUV-owning residents of the gated community primarily made their purchases at large, branded retail chains in the main town. These stores offered deeper discounts, which he could not afford to compete with. However, gradually, Sundaram store became their go-to store for daily essentials and occasional urgent big purchases such as replacing a broken mixer-grinder.

Question 3 :Sundaram is a happy man now. He has managed to get contracts with two more nearby gated communities. He feels like the grocery king of the suburb.
However, his happiness is short-lived as Rush’em, a new startup, begins making waves among gated communities. This app-based startup promises to deliver any grocery item within 15 minutes, leveraging its own large warehouses. Earlier, Rush’em was confined to the main town, but now, the startup has expanded its delivery services to the suburbs, including gated communities where Sundaram operates. Of course, for the suburbs, Rush’em promises delivery within 60 minutes, given the distance.
Though not an official slogan, the rumour in the market is that Rush’em’s founder inspired her employees by shouting “Rush’em or Crash’em, but Push’em through that door!” Sundaram started losing business to Rush’em. He felt rushed, pushed, and was wondering if his business would come crashing.

What should Sundaram BEST do to ensure that his revenues do not come down due to Rush’em?

Sundaram should not bother since the nearest town is 30 kilometers away.
Sundaram should employ a few helpers who will do home delivery of his products within 10 minutes across the three gated communities.
Sundaram should demand that his rent be reduced to one-third since Rush’em has free access to these societies
Sundaram should start giving discounts on every product he sells.
Sundaram should explore starting his own delivery startup Finish’em, dedicated to the suburb, competing with Rush’em.

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