Fred Fryer's Donuts (Scenario)

question 94

Multiple Choice

Fred Fryer's Donuts (Scenario)
Since the integration of two new stores, Fred Fryer's Donuts, Inc. has recognized that there is a need for reengineering the entire organization. The main need is to install new state-of-the-art kitchen equipment in the seven remaining stores, and then dispose of all old equipment to a salvage dealer or else incur a loss. The employees will have to be trained to operate the new computer programmed equipment. Some of the older employees are worried that learning the computerized system may be too difficult. Fred is setting up the main store as a training store. The regular employees from the main store have the responsibility of instructing the classes or overseeing the installation of the new equipment and testing its operation before employees return to their jobs. The organization is also replacing the old employee reporting system. Ordering of materials will now be done by an intranet. Fred has promised that no one will lose his or her job because of the organizational changes. He estimates that when the employees get to the computer programming training, as many as 10 percent of the current employees will resign or retire. He also thinks that opening a new store will absorb the excess employees.
-Having the regular employees from the main store train other employees and oversee installation of the new equipment indicates that to some extent the company is ________ through employees acquiring and sharing knowledge.

• A)innovative
• B)adaptive
• C)organic
• D)bureaucratic

---

Definitions:

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify the risk of investment.

Time to Maturity

The period left until the final payment date of a financial instrument, usually a bond or a loan.

Stock Price

The current price at which a share of stock can be bought or sold on the stock market.

Implied Volatility

The market's forecast of a likely movement in a security's price, often derived from the price of options on that security.