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Managerial marketing
week 1
BUS 630 Week 1 DQ 1 Ethics in Cost Control

BUS 630 Week 1 DQ 1 Ethics in Cost Control

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Ethics in Cost Control 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 stores. • 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.

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