MediGO Drugstore: Investigating Cash Variances Through Action Research Inquiry in an Early-Stage SME
For early-stage SMEs, every cent counts. In retail pharmacies, where margins are often thin and transactions are frequent, even small cash variances can quickly become a managerial concern.
At a glance
Location
The Philippines
Year Founded
2021
Industry
Community Pharmacy
Employees
17 (2026) 3 (2021)
Abstract
One month into the operation of his newly established community pharmacy in September 2021, Christian Timoteo faced a critical operational challenge. Recurring cash variances between recorded sales and actual cash on hand began to emerge, with a consistent pattern of overages. Despite investing in a point-of-sale (POS) system and providing initial staff training, these discrepancies persisted, raising concerns about financial accuracy and potential risks to customer trust.
Adapted from Christian Timoteo’s Master’s thesis, Managing Sales and Inventory Variances in a Community Pharmacy (De La Salle University, 2022), this case study follows Christian as he employs an internal action research inquiry approach to systematically investigate the root causes of these variances. Through data analysis, staff discussions, and process mapping, the inquiry reveals that the issue stems not only from individual human errors but also from broader systemic weaknesses, including the absence of standardized cashiering procedures, insufficient documentation, and limited process controls. Following the implementation of corrective measures, the pharmacy recorded a 99.11% reduction in cash variances within one month, demonstrating the effectiveness of a structured and evidence-based approach, highlighting the importance of systematic problem-solving and the interplay between systems and human behavior in SME operations.
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