Mr. Delfin Dumlao has been working with Jupiter Drug for the last 5 years. He was promoted
Question:
Mr. Delfin Dumlao has been working with Jupiter Drug for the last 5 years. He was promoted to supervisor three months ago. Currently, Jupiter Drug maintains a branch in each of the five cities in the province of Tarlac. The towns are Ciudad Tarlac, Camiling, Moncada, Paniqui and Concepción. The sole owner of Jupiter Drug is Mr. Severo Lagayan and he is worried about how to cope with growing as fast as it should. He still remembers well how it was established three years ago but still couldn't put up a sixth branch. He blames bad sales for his situation. Mr. Lagayan was a supervisor of a local branch of the Development Bank of the Philippines. He resigned to pursue an entrepreneurial career in the pharmacy business. He is a long-time member of the local Knights of Columbus council. On several occasions he rejected the candidacy for the highest position of said council. He doesn't talk much, but when he does, some people are perplexed. Mr. Lagayan was lucky because his business flourished during the first 10 years. However, in year 11, the total sales of his five outlets seemed to have reached their peak. Sales declined 5% in year 12. Mr. Lagayan believes the decline is largely due to the recent entry of competitors into his service area. One day, he called the managers and supervisors of the five branches to a meeting to discuss the problem of declining sales. He asked the participants for opinions but no one dared to say anything except Delfin who was visibly eager to share an idea. He raised his hand and was recognized, but before Delfin could say anything, Mr. Lagayn made a comment: “I don't think that, as a supervisor, I can be of much help. Please take a seat." Delfin was surprised and couldn't believe what he had just heard. He was thinking of sharing some ideas that may be of help to Jupiter Drug.
Guiding Questions:
1. What is his comment regarding Mr. Lagayan's comments?
2. What do you suggest?
Managerial Accounting Decision Making and Performance Management
ISBN: 978-0273764489
4th edition
Authors: Ray Proctor