Exercise 1 9 Zoya Arbiser Regional Manager Of Gold Medal Spo
Exercise 1 9 Zoya Arbiser Regional Manager Of Gold Medal Sports Sho
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. 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 words.
Paper For Above instruction
The scenario presented by Zoya Arbiser raises concerns about potential managerial misconduct, particularly around manipulation of financial data and performance metrics. Store 9’s unusually low personnel training expenses and cessation of community engagement, despite having previously contributed to the store’s visibility and profitability, suggest efforts to artificially inflate the store’s contribution margin. Such actions may indicate that the store manager is selectively minimizing costs or hiding unfavorable results to present a more favorable financial picture, which could be a form of earnings management or financial misrepresentation to guarantee future promotions or bonuses.
On the other hand, it is possible the store manager of Store 9 is an exceptional performer who has innovatively optimized operations, perhaps reducing certain expenses without compromising service quality or community involvement. However, given the context—discontinuing community activities that historically boosted visibility and considering the absence of personnel training expenditures—these actions are suspicious and merit further scrutiny.
Ethically, the regional manager has a responsibility to ensure transparency, accuracy, and honesty in financial reporting. If the store manager is manipulating figures, the regional manager must investigate and address potential unethical behavior. Failing to act risks endorsing misconduct, damaging the company's reputation, and undermining ethical standards. Therefore, the regional manager should review detailed financial data, speak directly with the store manager, and verify whether the reported figures reflect the true performance. Upholding ethical standards is paramount to maintain organizational integrity and foster trust within the company.
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