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Comprehension
There’s a community 30 km outside of the main city. Mr. S started a grocery business in the community after winning the bid by offering way above the rent initially drafted by the community council. The community council, led by Mr. D, agreed to the offer with a performance review every three years. Mr. S also agreed to provide an additional 15% of his grocery sales to the council, banking on the prospect of selling in higher volumes. After setting up his business, Mr. S noticed that SUV owners in the community usually bought goods in bulk from the city once a week and used his store primarily for daily necessities and occasional big purchases like mixer grinders.
Question: 1

After a while, Mr. S noticed that he was barely breaking even, especially with the rent scheduled to increase after three years. To maximize profit, which of the following options should he choose?

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When facing competition or financial strain, focus on providing value or services that meet unmet needs in the market. This helps establish a niche.
Updated On: Nov 26, 2025
  • Promote his business through leaflets and pamphlets.
  • Stock and sell goods not available in the community but in high demand.
  • Do nothing and wait to observe further developments.
  • Negotiate with the council to reduce the rent.
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The Correct Option is C

Solution and Explanation

Mr. S can boost sales and profits by offering goods unavailable to community residents, thereby distinguishing his business. While discounts and promotions might offer short-term sales increases, they do not address the fundamental problem of low sales volume.

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Question: 2

The startup ”Rush Em’,” which initially provided home delivery in the city, expanded to the suburbs with a promise of delivering groceries within 50 minutes. This led to a decline in Mr. S’s business. What should Mr. S do?

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To counter competitors, focus on improving service quality and response time rather than directly replicating their model. Adapt to the specific needs of your customer base.
Updated On: Nov 26, 2025
  • Create his own app and start delivering groceries to the city to counter the startup.
  • Recruit a few employees and provide home delivery to the community residents within 10 minutes.
  • Offer more discounts to attract customers.
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The Correct Option is B

Solution and Explanation

Faster local delivery allows Mr. S to distinguish himself from "Rush Em'," whose core promise is 50-minute delivery. This strategy is expected to resonate with local residents and foster customer loyalty.

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Question: 3

Due to increasing sales, Mr. S started selling vegetables, which negatively impacted the community’s vegetable vendors. These vendors stopped selling, which affected some employees in the community who relied on free or low-priced vegetables. The community council decided to address this issue. What should they do?

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When conflicts arise, collaboration and compromise often yield the best outcomes, ensuring all parties benefit without disproportionately impacting one group.
Updated On: Nov 26, 2025
  • Threaten Mr. S to stop selling vegetables since it was not mentioned in the initial agreement.
  • Ask Mr. S to provide free or low-priced vegetables to lower-class employees.
  • Impose a higher tax on Mr. S for selling vegetables and use the revenue to support affected employees.
  • Collaborate with Mr. S to find a middle ground, such as allowing both him and local vendors to sell vegetables.
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The Correct Option is D

Solution and Explanation

Collaboration safeguards Mr. S’s business and local vendors’ livelihoods. Promoting coexistence yields community benefits through diverse options and equitable competition.

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