Refer to the Scenario Below to Answer the Questions That

question 100

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
Fred Fryer's Doughnuts (Scenario)
Since the integration of two new stores in Hamilton,Ontario,Fred Fryer's Doughnuts,Ltd.,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,then dispose of all old equipment to a salvage dealer at three-fourths of the book value,or a loss of $2000 per store.This means that 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 the five days that 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 undergoing implementation of teams to replace the old employee reporting system.Ordering of materials will now be done by an intranet among the stores and the corporate purchasing function.Fred has promised that no one will lose his or her job because of the reengineering 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.The planned opening of a new store in Guelph will absorb any "excess" employees due to the efficiency of the new equipment.
-Do the employees of Fred Fryer's Doughnuts have a legitimate reason to be concerned about the reengineering and to resist the changes that have been announced by Fred?

• A)No.They have been promised a job after training on the new equipment.
• B)Maybe.They do have a few changes occurring in their job.
• C)Maybe.The technology will require some adjustment.
• D)Definitely.Everything in their job is changing,including the location they may be assigned to.
• E)No.Reengineering is a frequent occurrence in today's dynamic business world.

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Definitions:

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners in a given period, reflecting the international flow of capital.

Net Exports

The balance achieved by subtracting a nation's total import value from its total export value.

Domestic Investment

Financial investments within a country's borders in the form of business expansions, new construction, and purchases of machinery and equipment.

National Saving

National saving is the total amount of savings generated within a country, typically calculated as the sum of private and public saving.