Question

Renu is a final year B. Sc. student who is always missing her Garam Masala Chai and Samosas made by Sevakram's Mobile Restaurant in her hometown of Kanpur. She approaches Sevakram with a business partnership proposal to open a similar mobile restaurant in Mumbai near her college. Sevakram is horrified. He is not willing to invest in a city that is unfamiliar to him and is more than a thousand kilometers away. However, he has known Renu for many years as she had patronized his restaurant for years and had never asked for payment credit and had always paid cash. Thus, he offers her his secret formulas in return for 5 per cent of gross revenues that she can make creating products using his formulas. Renu gladly accepts the deal. She creates samples of Chai, samosas, cold sandwiches, and idlis using Sevakram's secret formulas and serves them to her classmates. Her classmates love the Chai and eatables. Renu tells them that she wants to start a business selling Chai and these eatables across the whole country. She convinces ten of her classmates to contribute '1,000.00 each at 10 per cent simple annual interest with the principal due after two years and one free Chai and eatables every week till she pays back the loan. With the seed money that she has now she rents a ultra small mobile kiosk and names it Renu's Tea House and hires a couple of friends to sell these eatables from her kiosk. Meanwhile, she focuses on creating these products and streamlining the production process at her apartment. She delivers these products thrice a day to her kiosk. Renu's Tea House even though a small kiosk is a big success in her university campus. Three months later, her 10 friends contribute an additional '50,000.00 to start another kiosk and a commercial kitchen where she can create these eatables. She hires production staff and logistics staff and six months later, she has paid off all her loans and has two very successful kiosks, a commercial kitchen with trained staff and a small logistics department who delivers on bicycles, and a very happy Sevakram with his 5 per cent royalties and a happy set of friends who have had a return of 10 per cent in nine months and 40 sets of free eatables. QUESTIONS: a). Renu has approached you, a financial consultant, to help her out with additional finances. She wants to open 18 more kiosks in the campus since the campus has many colleges and hostels and 20 kiosks will comfortably survive without cannibalizing each others' sales. What will be your recommendation? b). Fifteen months later Renu approaches you again for help, with additional funding. All her 20 kiosks are a runaway success and her commercial kitchen is running at full capacity. She has a small managerial team of three people who are now managing the kitchen and the logistics. In a range of 5 km outside the campus, there are enough commercial businesses to support at least 100 kiosks. Renu wants to hire a real-estate manager to negotiate kiosk areas in the commercial and retail buildings, she wants to buy two delivery trucks for her logistics department, and she needs funding to create and run the additional 100 kiosks. What will be your recommendation?

Answer 1

Answer:

Sanskrit is a classical language of South Asia belonging to the Indo-Aryan branch of the Indo-European languages. It arose in South Asia after its predecessor languages had diffused there from the northwest in the late Bronze Age.