Krispy Kreme Krispy Kreme a relatively small doughnut seller.  It has

Question : Krispy Kreme Krispy Kreme a relatively small doughnut seller.  It has


Krispy Kreme

Krispy Kreme is a relatively small doughnut seller.  It has only 295 stores while Dunkin Doughnuts has over 3,600 outlets in the United States and Canada.  In spite of its size, Krispy Kreme has been described by many as “the hottest brand in America.”  The company’s success in an environment that has made success difficult for many food operations is due in large part to the long-term vision of its top management and its establishment and achievement of S.M.A.R.T. goals.  The company originated in Winston-Salem, North Carolina, in the mid-1930s when Vernon Rudolph bought a secret recipe for yeast doughnuts from a French pastry cook.  Rudolph ran the company until his death in 1973 when he died without naming a successor, which caused the company problems for the next decade.


143.Refer to Krispy Kreme.  How does Krispy Kreme benefit from planning?

a.Planning makes persistence unnecessary.

b.Planning allows managers to direct their employees to “do their best.”

c.Planning gives direction to managers and employees.

d.Planning eliminates the need for task strategies.

e.Planning would provide all of these benefits to Krispy Kreme.

144.Refer to Krispy Kreme.  Krispy Kreme’s goal to open six new Krispy Kreme stores by 2008 in British Columbia where it already has a well-established reputation would be an example of a S.M.A.R.T. goal because it is:

a.specific, marketable, and temporal

b.specific, measurable, attainable, realistic, and timely

c.service-oriented, manageable, achievable, and time-oriented

d.standardized, measurable, actionable, response-driven, and temporal

e.selective, marketable, achievable, and real-time-oriented

145.Refer to Krispy Kreme.  The company’s goal to open six new Krispy Kreme stores by 2008 in British Columbia where it already has a well-established reputation would be an example of a(n) __________ goal.






146.Refer to Krispy Kreme.  The company’s goal to never reveal its secret recipe to anyone outside the company is an example of a(n) __________ goal.






147.Refer to Krispy Kreme. Which of the following would be an example of an operational plan for Krispy Kreme? open a new plant for making doughnut mix outside the United States change the color of the “walking KK” logo of the company turn on the HOT DOUGHNUTS NOW sign whenever fresh doughnuts come off the line hire a new human relations vice president to oversee all of the company’s operations modify the doughnut mix recipe so that less expensive ingredients can be used


Diebold (pronounced DEE-bold) is a $3 billion company whose core products are ATMs, bank vaults, and security systems. Until the 1990s, it was a global market leader. Then, its rival NCR surpassed it in sales. As a result, Diebold began acquiring suppliers around the world. One company it purchased was a Brazilian manufacturer of ATMs. Around this time the Brazilian government was looking to fully automate its voting system, and Diebold got the contract through its Brazilian company. The Brazilian presidential election went off without a hitch with Diebold machines. Emboldened by this success, Diebold decided to enter the voting machine market. The U.S. seemed a likely market, especially after the passage of the Help America Vote Act when local governments were told to replace punch-card voting machines with touch-screen machines. The big contracts meant big problems for Diebold. Orders were lost, manufacturing fell way behind schedule, and its technical staff was overwhelmed by the demand. In addition, allegations of the potential for voter fraud filled the Internet media and Diebold was labeled "an enemy of democracy."


148.Refer to Diebold. The decision to purchase global suppliers in order to defend against eroding market share was made using which marketing function?






149.Refer to Diebold. According to the S.M.A.R.T. guidelines, the goal of becoming the leader in the manufacturer of touch-screen voting machines was not:

a.service-oriented because it was based on assumptions

b.rational because the company did not have the technical staff needed

c.attainable because of a lack of resources

d.timely because of the passage of the Help America Vote Act

e.measurable because of the inability to predict need

150.Refer to Diebold.  If Diebold had paid more attention to the third step of planning and developed effective _____, orders would not have been lost, manufacturing would not have fallen behind schedules, and its technical staff would not have been overwhelmed.

a.short-term strategies

b.proximal goals

c.action plans

d.action plans

e.subordinate objectives

151.Refer to Diebold. What kind of goal did Diebold set when it determined to retake its place as the global market leader for ATMs, bank vaults, and security systems?






152.Refer to Diebold. On the top of the Diebold’s home Web page, it reads, “We won’t rest until we measurably improve the extent to which our customers’ customers are delighted with our self-service and security solutions; and we measurably improve the effectiveness and profitability of our customers’ business.”  This is more than likely an example of a(n):

a.purpose statement because it is inspirational and describes what the company ought to do

b.action plan because it’s long term

c.public statement to renew corporate goodwill

d.denial of guilt

e.ethical statement of action

153.Refer to Diebold.  In 2003, a study of the Diebold voting machines noted that the administrative password to all Diebold voting machines was the same: 1-1-1-1.  Diebold was buried in an avalanche of criticism.  As a result, Diebold managers had to engage in _____ to design and manufacture voting machines that would deal with this criticism.

a.problem identification

b.rational decision making


d.multivariable selection


154.Refer to Diebold. After a study revealed how easy it was to hack into the Diebold voting machines and how it did not provide voter security, Diebold responded with a 27-page report that basically said that there were “checks and balances in place to prevent fraud.”  Rather than trying to fix the problem, Diebold chose to engage in _____, or what it though was a “good enough” alternative to the problem.


b.optimizing the solution



e.framing constraints

155.Refer to Diebold. Because voting is such a personal issue and voter privacy is an important part of the democratic process, conflict arose between Diebold and its customers and even within the Diebold organization. The type of conflict that arose from Diebold’s initial decision to ignore all criticisms of its touch-screen voting machine was:

a.a-type conflict

b.c-type conflict

c.emotive empowerment

d.organizational disharmony

e.norm disruption



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