Leo’s Four-Plex Theater

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Strategy of company
1. Management level should do their job (Bill- managing, Leo – owner, authority passer) 2. Training should be provide for all employees (focus on conduct of business, ethics, and operation procedures like how to sell tickets, collect cash, sell foods and check tickets before customers entering the theater) 3. Segregation of duties

4. If company can reach to enough funding, it should consider using automatic system for tickets selling to control the theatre operation. Management Control System Issues & Recommendations

* Issue – Free theater passes with Bill Reilly’s signature on them Reason – Bill distribute free pass on his own
Recommendations – Find out the reasons whether Bill signed them, for what reason Bill signed, and to whom Bill distribute these tickets. A question mark on Bill’s management ability: Can he handle the theatre management? Does he have sufficient knowledge to manage the business? Should he be supervised? How can he be motivated to run business in a good way? To prevent this from happening, set up a higher authority for free theater passes which is only Leo and Bill co-sign can be valid.

* Issue – Tickets sales do not match with cash collected Reason – Tickets were sold but cash did not collected; Tickets were sold but improper amount of cash was collected; Cash was stolen (fraud). Recommendations – Expensive way: Introducing electronic ticket issuing system. Tickets will be printed accordingly when payments made for different movies, categories of customers, and time for movies. Inexpensive way: two cashiers per ticket booth, one cashier is responsible for two types of tickets (adult matinee and adult evening or child matinee and child evening). In this way, they are more organized to sell the tickets and we are easily tracking their cash collection by calculate the total number of tickets sold x per price compared to the cash on hand. Segregation of duties – having another person other...
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