Case 14-1 Pet Boom And Loan
CASE 14-1 PET GROOM & CLEAN (PG&C)
SUMMARY
David Green is the manager of Store 88 of Pet Groom & Clean (PG&C). Bonus program of PG&C will reward store managers who improve their performance over that of the budget 20% or more. In 2010, David implemented some changes in price and promotion in order to cut costs and increase revenue. He decreased price on Tuesday, Wednesday, Thursday to get more customers and increase price on Friday, Saturday, and Monday to balance the promotion price he offered in other days of the week. As a result, actual number of customers visits the store increase from 20% to 30%. In term of costs, David saved the labor costs through his careful scheduling and effective management. Actual labor-hour …show more content…
Having a quick look at the statement, we can see that the actual expenses in Advertising, Service development, accounting and insurance, taxes are higher than budgeted costs. However, these costs are not related to David performance since it depends on the company strategy and governance. Training expenses was much less than the budgeted because David was able to make decision about the training time for each staff. A details analysis to see actual contribution of David performance will help the management board to decide if David would be awarded the
SUMMARY
David Green is the manager of Store 88 of Pet Groom & Clean (PG&C). Bonus program of PG&C will reward store managers who improve their performance over that of the budget 20% or more. In 2010, David implemented some changes in price and promotion in order to cut costs and increase revenue. He decreased price on Tuesday, Wednesday, Thursday to get more customers and increase price on Friday, Saturday, and Monday to balance the promotion price he offered in other days of the week. As a result, actual number of customers visits the store increase from 20% to 30%. In term of costs, David saved the labor costs through his careful scheduling and effective management. Actual labor-hour …show more content…
Having a quick look at the statement, we can see that the actual expenses in Advertising, Service development, accounting and insurance, taxes are higher than budgeted costs. However, these costs are not related to David performance since it depends on the company strategy and governance. Training expenses was much less than the budgeted because David was able to make decision about the training time for each staff. A details analysis to see actual contribution of David performance will help the management board to decide if David would be awarded the