Refer to the Scenario Below to Answer the Following Questions

question 59

Multiple Choice

Refer to the scenario below to answer the following questions.
Fred Fryer's Donuts (Scenario)
Since the integration of two new stores in Littleville, U.S., 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. Fred is setting up the main store as a training store. Employees from the other stores will train at the main store for five days while their respective store's equipment is being converted. 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 that store's employees return from training. 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.
• E) The company is mechanistic.

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Definitions:

Resource Dependency

A theory suggesting that organizations are in constant need of resources from their environment and must manage dependencies and relations with other entities to obtain these resources.

Consumer Misunderstanding

Occurs when consumers have an incorrect perception or comprehension of a product, its benefits, or its terms.

Mission Statement

A formal summary of the aims and values of a company, organization, or individual.

Charter

A formal document granting rights, privileges, or authority, often used to establish and outline the operations of organizations, corporations, and cities.