MGT 202: BUSINESS ORGANIZATION AND MANAGEMENT

CAPITOL UNIVERSITY
Cagayan de Oro
First Semester, S.Y. 2019-2020

JGA CAR RENTAL: Before the Next Tear Drop Falls

Case #4

For fourteen months, Mr. Jonathan Avisha acted as general manager of JGA Car Rental. The company
has branches in Gingoog City, Butuan City, and Davao City. The main office is located in Cagayan de Oro City.

Jonathan succeeded his brother Rey who founded the company and was well-liked by his subordinates. The
car rental company was very lucrative when Rey left it to establish another business.

Jonathan was very enthusiastic during the first few months of his stewardship. At the fifth month, his staff
members began losing confidence in his abilities to run the firm. One time, when a purchase order for three units
of Isuzu car was presented to him by the office manager for his signature, he signed it immediately. The manager
filed the order with a dealer on the same day. The next morning, however, Jonathan instructed the office manager
to cancel the order. He also directed the manager to buy three units of Toyota cars from a dealer.

When the position of branch manager for Butuan City became vacant, he appointed someone whom his
immediate staff thought to be the least deserving of 3 candidates. After 3 months, his staff members were proven
right: the revenues of the branch drastically reduced. Compared with a competitor in the area, the performance
of the brand was dismal.

When Jonathan decided to establish another branch he asked his staff to identify three potential sites for
him to choose from. He picked Surigao City. It turned out that Surigao has the weakest potential sites. In
contrast, the competitor who put up a branch in General Santos City in the same year was registering substantial
revenues. General Santos City was one of the potential sites forwarded to Jonathan for consideration.

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