91. Which of the following management practices can be used by an organization that wants to create a
competitive advantage through its employees?
high wages contingent on organizational performance
92. Leon Dodd is a member of a self-managed team at Standard Aero Alliance, Inc. (SAAI). His team’s
top priorities are understanding customer requirements and expectations. It would appear that
SAAI is:
using employee benchmarking
allowing its employees to assume various decisional roles
letting its teams handle all planning functions
using its employees to create a competitive advantage
relying more on conceptual skills than human skills
Krispy Kreme
Krispy Kreme is a relatively small doughnut seller. It has only 292 stores while Dunkin Donuts has
3,600 outlets in the United States. 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 is not conducive to
food operations succeeding is due to a mix of “shrewdness, original thinking, and entrepreneurship.”
The company originated in Winston-Salem, North Carolina, where it still operates a plant that fills a
50-pound bag with doughnut mix every seven seconds. It recently opened a new plant in Effingham,
Illinois, that fills a bag every three seconds. This second plant allows the company to reduce costs
while increasing its output. The company began 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. His death caused the company problems for the
next decade.
93. Refer to Krispy Kreme. The building of the Effingham plant increased the __________ of the Krispy
Kreme operation.