Question

managerial accounting case

Wong's Pharmacy Thomas Wong was the owner /manager of Wong's Pharmacy, a small single-location drugstore. Thomas's father founded the store and operated it in the same location for 30 years. All of the employees who worked in the store were family members. All were hard workers, and Thomas had the utmost trust in all of them. Although the store thrived in its early years, performance in the last few years had not been good. Sales and profits were declining and the problem was getting worst. The performance problems seemed to have begun approximately at the time when a large drugstore chain opened a branch two block away. Analyze Wong's Pharmacy

Answer 1

Wong's Pharmacy don't have a good managerial leader. That is the only reason for the worst performance of this pharmacy. Thomas Wong was never a good leader. He don't give any contribution to the business.

Managerial accounting is designed to help managers plan for the future, makes decisions for the comapny, and determine if their plans and decisions were accurate. Thomas Wong never plan for their future, never takes a good decision for the company.

The pharmacy was set up by Wong's father and running it in a single location for around 30 years. Wong never try to establish their business or never wants to grow up the business. The technology changes day to day. Inorder to thrive in the modern world, every business have technological updation. Wong never tries to make technological updation and he only wants to continue his father's business. He don't make any alteration to the business. He uses conventional techniques and beliefs.

A good managerial leader never follow the business in conventional model, he always plans for the future, try to make the business to compete with the modern world etc