Fred Fryer's Donuts (Scenario)

question 50

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.
-Which situational factor seems to be prompting the cultural changes at Fred Fryer's Donuts?

• A)The business is young and small.
• B)There is a leadership change.
• C)A crisis has occurred.
• D)The culture is weak.

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