Budheting

In: Business and Management

Submitted By summersee69
Words 785
Pages 4
Who is responsible for the cost of the biscuits? At what level is the cost controllable?
The cost of the biscuits is usually the responsibility of the purchasing agent, and usually controllabled by the Central Warehouse. However, in this scenario, Janet (the cook) has taken the responsibility for the cost of the replacement biscuits from the purchasing agent by making a purchasing decision from the local grocery store which costs Barney's franchise three times the cost of the Central Warehouse frozen biscuits.

Do you agree that Barney should be angry with the purchasing agent? With Janet? Why or why not?

I do agree that Barny should be angry with the purchasing agent since he already holds the purchasing agent responsible for biscuit costs not Janet (the cook). And presuming that Janet knew this, Janet should have discussed her decision with the purchasing agent before sending the kitchen helper to the store. Assuming the Central Warehouse does not consistently have problems with their freezer, there is no way the purchasing agent could expect the biscuit shortage and plan accordingly. Also, the problem only lasted three days, which, in the course of the year (or even the month) will not seriously harm the profits of a restaurant that sells a variety of foods course. However, had they run out of biscuits for three days, this could have long term implications for customer satisfaction and customer loyalty, and in the long run could harm profits as customers find other restaurants in which to eat breakfast. so we agree that the initiative that Janet took kept Barnys’ customers happy and might not cause the organization any lose if the same was discussed with the purchasing department.

Which manager’s style do you think is most effective? Why? I believe that manager of Hair Suite III has the most effective style of managing the faced issue. By…...

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