A Case Study

I have a case study to discuss. We know that the city of Mumbai has many restaurants and unlike in the past there are enough restaurants that offer cuisines from different parts of the world. Let us also say that there is one hypothetical restaurant that offers exquisite Indian food. But in their effort to be ultra trendy they had introduced a cover charge of Rs 2000 per person for entry. It worked when the going was good and the restaurant was a must visit for many people. Over time however, other restaurants who wanted to compete improved their quality without introducing any cover charge. Our cover charge restaurant's management had let hubris creep in and ignored quality and improvements. They refused to introduce new dishes nor improve the deteriorating quality of the dishes. When the inevitable economic downturn came, our restaurant management suddenly found patrons vanishing. Nobody was interested in paying a cover charge when they could get similar quality food elsewhere. The management brainstormed and came to the conclusion that it was the cover charge which was the cause of their difficulty. It decided to remove the cover charge. The question to you is will this decision to allow anybody to walk in without a cover charge increase business and improve profits?

The Government has given a New Year gift to the world (at least in their minds it must have been a gift) They have allowed foreign nationals to buy into the Indian markets directly. This must, according to them, result in a positive start to the New Year's trading. Whatever be the case, I am short and will remain short until 4729 is taken out by Nifty futures.