Full name: Mai Thị Quỳnh Hoa

Student number: 11212284

Case 1: Leo’s Four-Plex Theater

- What is the problem with Leo’s Theater?
In my opinion, this situation belongs to management control due to the weakness and
incompleteness in the operating system. There are some issues that the theater had to face:
employee and management issues, ticket issues, missing cash.

Employee and management issues:

The staff are young and most of them know the customers due to it being a small town. Moreover
there is a lack of good management oversight to supervise employee actions.

Ticket issues
Some customers are allowed free admission by some employees, including the manager sigining
off on free tickets. In addition, the number of stubs doesn’t match the daily revenue numbers from
the supposed ticket sales

Missing cash issues

Cash is missing either due to thft or miscount. Some customers don’t purchase tickets or input
sales on the cash register.

- How to solve this problem?

+ There is necessary in restructuring the operation system. Managers need to supervise employee
actions and employees need follow own obligations.
+ Because the refreshment stand suffered from a lack of cash collection for sales, the manager
should segregate the duties and have separate employees responsoble for delivering the snacks and
collecting cash. This woould ensure that employees can not give special to their friends.
+ At the ticket check are, it should have camera system to control the numbeer of customers
entering the cinema room.

Case 2: Wong’s Pharmacy

- What is the problem with Wong’s pharmacy?
The problem is that sales and profits are declining probably due to the opening of a drugstore chain
a branch of blocks away. Therefore, this Pharmacy had to face the increased competition.
- How to solve this problem?
This is a strategic problem, not management control because he can not control the competition.
Thus, there are some options Wong’s Pharmacy can do to run pharmacy with good resuts in the
future:
+ He could reevaluate his employees. If they are not fit with task in hand, he can replace them by
more suitable person.
+ He could expand pharmacy’s operations bt launching new fields. For example, combining
medicaine sales with health consulting services.
+ He could redecorate the pharmacy to attract new customers.