Question

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.

Answer 1

Fred Fryer's Donuts is undergoing cultural changes due to the need for organizational reengineering, which includes updating technology and training employees as the company expands, aligning with the trend of McDonaldization.

Step-by-step explanation:

The situational factor prompting the cultural changes at Fred Fryer's Donuts appears to be the need for organizational reengineering to improve efficiency, as evidenced by installing new high-tech kitchen equipment and training employees in its use. Although the case does not explicitly mention a crisis, leadership change, or the inherent strength or weakness of the existing culture, it does hint at the need for change due to the integration of new stores and technological advancements. Such changes typically reflect a company's strategic response to growth opportunities and operational requirements to remain competitive and provide predictability and control as part of a broader trend of McDonaldization of services. Fred Fryer's Donuts is likely experiencing a natural evolution as it expands, necessitating updates in technology and processes to sustain and streamline its operations, which suggests a shift towards a more bureaucratic and conventionalized approach.