leo's four plex theater
Marshall School of Business
College or university of El monte
Leo's Four-Plex Theater
Reason for Case
This case is intended since an in-class, " warm-upвЂќ case. It really is particularly useful on the 1st day of class where learners cannot be built to prepare a for a longer time case just before class. The truth motivates the students (1) to think about the meaning of good control; (2) to look at a number of different forms of controls; (3) to think about the style vs . the implementation with the various varieties of controls; and (4) to consider costs in their recommendations. Questions
1 . Where is a theater's control system inadequate? Are the regulates themselves fragile or incomplete, or are the theatre's complications caused mostly because of not enough discipline in using the existing controls?
2 . What control improvements would you suggest for Leo's Four-Plex? Analysis
I suggest starting the topic by asking students to list the controls reviewed in the case and the purpose of every single. That will cause the preparing of the graph shown in Exhibit TN-1 below. Then a discussion can move into the analysis with the problems and possible alternatives:
1 . The cashier's collect less cash compared to the value of the tickets sold (or missing). The common remedy is to make the cashier's spend on the lack, or at least possess shortages comprise a significant portion of the employees' overall performance evaluation.
installment payments on your Some refreshment stand revenue seem to be lost because the family and friends do not collect cash from your customers (perhaps their friends). There are several opportunities here. Is better immediate supervision. An additional is separating of tasks between the individual who rings in the sale and the person who provides the drinks to the customer. (The delivery will not be made unless of course the customer had a receipt. ) A third is to hire more attendants via a different area because they can be less likely to know, and so to collude, with the customers.
Professor Kenneth A....