Food for Thought Howard Owned Caselots, a Store That Sold Food and Non-Food

question 8

Multiple Choice

Food for Thought
Howard owned Caselots, a store that sold food and non-food items in a warehouse environment.He employed 350 people and had them work in specialised areas.Some people only unloaded the pallets from the trucks or drove the pallets onto the floor, and still others unloaded the pallets in their specific area of responsibility.He had managers controlling each specific area.For example, the automotive manager was in charge of all functions (accounting, purchasing, sales, etc.) related to the automotive area.This arrangement had generally worked well, but recently, he noticed that employees seemed bored, and turnover and absenteeism had risen.In addition, he found that attempting to get special projects completed, such as creating their new 'First-Class Customer' card, had turned into a nightmare due to the lack of cooperation and misunderstanding between the groups.
-Refer to Food for Thought (Scenario) .If Howard regularly put together teams made up of specialists from different areas to tackle new projects, like the 'First-Class Customer' card project, these would be called ________.

• A)cross-functional teams
• B)quality circles
• C)total quality management
• D)special project teams
• E)specialty teams

---

Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, based on the sum of the present values of all cash flows associated with it.

Required Rate

The minimum expected return by investors to compensate for the risks of an investment.

Fast-Food Chain

A series of restaurants offering quick service and a menu of fast food items, typically operating under the same brand name.

Proposed New Product

A concept or prototype being considered by a company for development and market introduction.