(Exercise 1-9) Zoya Arbiser, regional manager of Gold Medal Sports Shops, is
reviewing the results of 15 stores in her region. Store managers are moved
annually. Each store manager's income is very dependent on the direct
contribution margin of that store. For the past year, Store 9 has been
managed by a person who has operated several other profitable stores in
recent years and is about to be promoted to a larger store. Zoya notices
several items that bother her.
Store 9 has almost no personnel training expenses relative to other
Store 9 has stopped participating in numerous community events that
gave the store significant visibility but did incur substantial expenses.
Store 6, where this store manager worked the prior year, has had a
severe drop in profits due to higher operating expenses.
The advertising budget was spent almost entirely in the first four
months of the year, with almost nothing spent in the last several months.
Discuss a possible negative managerial scenario that the regional manager
may be sensing. Might the manager of Store 9 be an exceptional manager?
What are the ethical implications of the scenario? What is the regional
manager’s ethical responsibility in this scenario? Explain and support your
position with evidence from the text. Your initial post should be 200 to 250
Negative Managerial Scenario & Ethical Considerations?