1. Where is the theater’s control system lacking?
The main problem of theater’s control system is in Management control, especially in Motivational problems. Employees are not motivated enough to generate profit. Moreover, you shouldn’t forget about strategic control, because as said in the book “strategy may have become obsolete… in more dynamic environments” p. 8. which will cause even more problems in the future.
2. Are the controls themselves weak or incomplete, or are the theater’s problems caused primarily because of lack of discipline in using the existing controls?
In my opinion, heather’s controls themselves weak and incomplete. That leads employees to fraudulent operations ...view middle of the document...
2. Solve problem of “Motivation”.
Leo should think of “ how MCSs can be employed to motivate positive and productive behavior”p. 11 of his employees. This could be reached by implementing bonuses to avery employee, which are going to be based on sales. Or provide commission-based addition to salary, which will motivate employees to generate as much profit as they could and to be more responsible for Leo’s Four-Plex.
3. Solve problem of absence of “Automation”
1) The way that Leo’s Four-Plex selling and recording customers is too old. Computers help eliminate “the human problems of inaccuracy, inconsistency and lack of motivation” p. 14. Leo can invest into scanners that will be used by employees to scan their tickets, which will help to record sales and keep tracking in better way.
2) Put video cameras on each entrance to movie room and have manager who is counting people entering the room. In this way Leo will have information of how many people attendant movie room and how many tickets were reordered and sold on that day.
4. Use “Risk Sharing” as solution to some problems that exist.
By renting a place for another business, that is going to sell soft drinks in Leo’s Four-Plex, Leo can guarantee constant cash inflow without worrying about stand’s attendants failing to collect cash from the customer, and keep more attention on Theatre business.
While thinking about and implementing all these solutions Leo should not forget that better MCSs should be implemented only if the benefits by which they would reduce the control loss exceed the cost.