Wong’s Pharmacy
To study this case, we use the S.W.O.T. model.
S_Strength:
Experiences: The store had operated for 30 years, the managers could gain many
experiences in controlling their business.
Customers’ Loyalty: Because of the long-time operation, Wong’s Pharmacy should
have a stable number of loyal customers. This help maintain the stability of the
store’s revenue and profit.
Flexibility: Wong is a small drugstore so it may be easier for them in case of need
to change the infrastructure.
Employees: All the employees are family members and all of them are hard
workers so the manager can have more confidence in the store’s operation.
W_Weaknesses:
Small: As a result of being a single-location business, Wong’s Pharmacy may not
be able to gain more popularity.
Structure: Being a small drugstore may limit Wong’s services and products.
Resulting in weaknesses in competition with other stores.
Changing in Business: Due to the small structure, Wong may deal with difficulties
in changing/expanding their business.
O_Oportunities:
Expanding Operation: Since the store has thrived in its early years, it may have
enough finance to expand the business into a chain of pharmacy.
Launching new fields: In order to expand their operation, Wong’s managers can
choose to launch some new fields to reach new type of customers and increase
their income.
T_Threats:
New Entrants: As discussed in the paragraph, Wong’s Pharmacy’s performance
seemed to have begun at the time when a large drugstore chain opened a branch
nearby. This new competitor has less weaknesses and more popularity than Wong
does. This is a threat to their business.
Conclusion:
This is a Control problem. It refers to Strategic Control rather than Management Control.
Thomas should consider investing in a new branch or launching new services and
products in order to expand their business and get better at competing.
Leo’s Flour-Plex Theater
This is a Management control problem.
Problems:
General Admission seating and not assigned (first come, first served).
This may cause discomfort for customers, they may have to face overcrowding
when trying to buy a ticket.
Invariable cash counts, less than expected. Shortage up to $100, before
observation.
This shows that there are problems in controlling the collection of cash.
Attendants are young and unexperienced. They also have a large network and
often fail to collect cash.
This is a direct cause of the discrepancies above.
Screening rooms are manned by attendants. The counts of customers entering and
leaving did not reconcile either with the number of tickets sales or the stub counts.
Wrong color tickets and free passes with Billy’s signature were found.
This is a result of the unexperienced and unethical employees.
Recommendations:
Leo should set up basic principles for his employees, including his nephew to
understand what is expected and follow the rules. He should also hold his
employees accountable for the actions they take and have punishment/reward for
their behaviors.
The managers can also hire someone to supervise the employees’ work, especially
at the ticket booths and turnstiles.
Separate the cashier duty and the one who will collect the cash.
Proper training should be provided.
Hire qualified staffs/employees who committed to behave ethically.
