The Startup Where Ha-Jin Works, Affiniti, Was Recently Acquired by Futurica

question 22

Multiple Choice

The startup where Ha-Jin works, Affiniti, was recently acquired by Futurica, a huge multinational conglomerate. Everyone at Affiniti was severely stressed by the many changes that accompanied the transition. Many of Affiniti's managers were let go and replaced by people from Futurica. For almost a week, Ha-Jin was not even sure who her direct supervisor was. On top of everything else, Affiniti people were given a huge manual of Futurica's company policies that they had to memorize in less than a week. It was chaos, and several of Ha-Jin's colleagues ending up handing in their notices. How could Futurica's management have handled the transition more effectively?

• A)by introducing new policies gradually and encouraging Ha-Jin and her co-workers to help take charge of implementing them
• B)by posting a chart in the conference room clearly comparing Futurica's performance with that of other high-performing organizations
• C)by moving quickly to implement all of the new policies as one and dealing with employee problems as they arise
• D)by making sure that all policy changes are treated like company secrets and discussed only by top Futurica managers

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Definitions:

Semi-strong-form Efficient

Semi-strong-form efficiency is a class of market efficiency that posits that all public information is already reflected in stock prices, making it impossible to consistently achieve higher returns by trading on that information.

Historical Prices

The past trading prices of a security or commodity, often analyzed to identify trends and patterns for future trading decisions.

Variance

A statistical measure of the dispersion of data points in a data set around the mean, indicating the volatility and risk associated with a particular asset or investment.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean of the data set.