Case Study on Leo's Four Plex

In: Business and Management

Submitted By far312
Words 684
Pages 3
Leo’s Four Plex Theater
1. Lack of motivation: * Discrepancies in the cash counts of the ticket booths – the cause behind this situation is the lack of motivation that leads to employee theft and neglecting of duties. * Failure of the cash collection from known customers – Employees are not motivated enough to perform their jobs sincerely and also do not know why they should collect cash, though there is no reason for personal limitation. * Unethical practice at ticket collection - Bill Reilly, the manager, gives out a significant number of free tickets with his signature on them. Due to lack of motivation among employees, this fact has created a scope to do unethical practice and thus ticket collectors might be giving free passages to friends/known customers.

2. Lack of direction: * Taking advantage of family relationship – Being a relative of the Theater’s owner, manager is not maintaining any organization hierarchy and exploiting his power by giving free tickets to friends. This is because of lack of direction from the owner – Leo Antonelli. * Discrepancies revealed in test count – The attendants at the turnstile are not checking the tickets carefully enough since tickets with wrong dates and colors go into the wrong stub boxes. Inadequate direction on job responsibility leads them to not understanding the value of counter check.
1. Owner of the Theater should give proper direction to manager to set specific objectives to overcome low profit situation. Thus, in turn manager would be able to give right directions to employees to achieve organizational objective. 2. Establishment of code of conducts within the organization may help each employee to understand what is expected from them within specific rule and regulation. Thus it may solve unethical behavior at the work place. 3. Different schemes of…...

Similar Documents

Case Four Star Analysis

...Team M Team M Four Star Industries Case Study Case Study Anaysis Four Star Industries Case Study Case Study Anaysis Table of Contents Background Current Situation * Market * Production * Manufacturing * Order Process * Inventory Management Issues * Model Proliferation * Inventory and Demand Mismatch * Poor Order Management Analysis * Safety Stock Analysis * Warehouse Rent Analysis * MOQ v/s EOQ * Production /Assembly Line Analysis Recommendations Conclusion Background: Four Star Industries Private Ltd is the manufacturer and wholesaler of the renowned Four Star Pocketed spring mattresses which was founded by Neo Gim Sin in 1966. Its business is aggressively and exclusively focused on servicing the local market and until recently, the company has enjoyed tremendous growth and recognition – becoming a leading manufacturer of pocketed spring mattress (PMS) and winning the Grand Prix for International quality. Four Star sells directly to large dealers (LDs) and small dealers (SDs) who then sell to consumers. Current situation: Market: Mattress models grew rapidly from 13 to 230 models between 1996 and 2002, while sales has been experiencing steady decline within the same period. Decline in mattress sales can be attributed to various factors such as; increased competition, seasonality and volatility of the mattress market, supply and demand mismatch, poor production scheduling and focus on high-end......

Words: 2361 - Pages: 10

Acc 803: Leo’s Four-Plex Theater Case

...Leo’s Four-Plex Theater Summary & Issues Leo Antonelli runs a theater out of a small town in west Texas called “Leo’s Four-Plex Theater’ which he has found to be less profitable than first expected. He hired his nephew, Bill Reilly, to manage the theatre in his absence which has proven unsuccessful. Cash is missing, theater employees are incompetent and ticket counts don’t match the supposed sales numbers. Park Cockerill, professional accountant, was brought in to assess the complications with the business and the main issues pinpointed were of these sorts: 1. Employees and Management: * Young, incompetent employees are the main staff and it being a small town, most know the customers coming in. * Free admissions have been authorized by manager, Bill Reilly, for customers on occasion. * Lack of good management oversight or policies in place to govern employee actions. 2. Movie Ticket Issues * Customers are let in free of charge by employees, including management signing off on free tickets. * Amount of stubs don’t match daily revenue numbers from supposed ticket sales. 3. Missing Cash * Miscounts happen with cash as lack of care is taken, and potential theft, with handling. Not enough MCSs in place to counteract potential thefts or miscounts. * Regular cash discrepancies per cashier and the occasional large cash shortage (e.g. $100). Park noticed that employees either failed to collect cash from the customers or failed......

Words: 434 - Pages: 2

Leos Four-Plex

...Delprov 1 1. Inledning 1.1 Problem Vid en genomgång av caset Leo’s Four-Plex Theaters räkenskaper fann professorn att det fanns vissa problem inom verksamheten. Professorn noterade att det fanns en differens mellan försäljningsintäkterna och värdet av de sålda biljetterna. Skillnaden var de flesta gånger liten, men denna gång saknade en kassör 100$ i försäljningsintäkter, vilket måste tolkas som mer än en differens som uppstår på grund av svinn. Ett annat problem var att kassörerna som sålde förfriskningar var unga, och kände många av kunderna eftersom de var jämnåriga. Detta gjorde att det ibland hände att de inte tog betalt, eller inte slog in köpet på kassaapparaten. Det hände även att kunder med utgångna biljetter släpptes in på föreställningarna, vilket troligen skedde på grund av att biljettkontrollanten kände kunden. Professorn noterade även att ett stort antal gratisbiljetter utfärdats av en viss kassör vid namn Bill Reily. 1.2 Bakomliggande orsaker till problemen Vi identifierade bakomliggande orsaker till problemen som att det inte fanns någon tydlig företagskultur. Dessutom fanns det för lite styrning i verksamheten, vilket gjorde det oklart för personalen vad som förväntades av dem. Detta i sin tur resulterade i att medarbetarna saknade motivation att utföra sitt arbete på ett tillfredsställande sätt. Vi drog slutsatsen att det huvudsakliga styrproblemet var bristen på vägledning, de anställda verkar inte förstå vad som förväntas av dem. 2. Styrformer 2...

Words: 936 - Pages: 4

Leos Four Plex Theater

...Marshall School of Business University of Southern California Leo’s Four-Plex Theater Teaching Note Purpose of Case This case is intended as an in-class, “warm-up” case. It is particularly useful on the first day of class where students cannot be made to prepare a longer case prior to class. The case motivates the students (1) to think about the meaning of good control; (2) to consider a number of different forms of controls; (3) to think about the design vs. the implementation of the various forms of controls; and (4) to consider costs in their recommendations. Questions 1. Where is the theater’s control system lacking? Are the controls themselves weak or incomplete, or are the theatre’s problems caused primarily because of lack of discipline in using the existing controls? 2. What control improvements would you suggest for Leo’s Four-Plex? Analysis I recommend starting the discussion by asking students to list the controls discussed in the case and the purpose of each. That will lead to the preparation of the chart shown in Exhibit TN-1 below. Then the discussion can move into the analysis of the problems and possible solutions: 1. The cashier’s collect less cash than the value of the tickets sold (or missing). The common solution is to make the cashier’s pay for the shortage, or at least have shortages comprise a significant portion of the employees’ performance evaluation. 2. Some refreshment stand sales seem to be lost because the attendants do not collect......

Words: 621 - Pages: 3

Case Study Based on Four Management Functions.

...Case study based on four management functions. Nowadays in a time of heightened expectations, principals are in a hot seat to improve management functions. The four principle functions are planning, organizing, leading and controlling. In my previous job I was working as a dispatcher in a trucking company and I believe that management of this company had no idea about two of these functions which are leading and controlling. They had no management skills, what they were good in was only counting money in a bank. Most of the time drivers were not staying with a company for longer than a year, because there was no motivation from management side. If there was something done wrong, owner of the company was attacking an employee, instead of leading him towards the right decision. Because they forgot to lead their employees, our work was less effective and this had an impact on our company. From legal point of view they should control their drivers so they drive correctly with DOT regulation all the time. This business depends on many customers so without leading and controlling drivers they were making their customers less happy. In this industry competition is huge, business is moving from one company to another and this most of the time thanks to poor management functions. After reading about four principle functions I have learned that each of these functions has its own important role in business. Planning is an important managerial......

Words: 560 - Pages: 3

Acc 803: Leo’s Four-Plex Theater Case

...Accounting, Organizations and Society 28 (2003) 127–168 Management control systems design within its organizational context: findings from contingency-based research and directions for the future Robert H. Chenhall Department of Accounting and Finance, Monash University, Clayton, Victoria 3168, Australia Abstract Contingency-based research has a long tradition in the study of management control systems (MCS). Researchers have attempted to explain the effectiveness of MCS by examining designs that best suit the nature of the environment, technology, size, structure, strategy and national culture. In recent years, contingency-based research has maintained its popularity with studies including these variables but redefining them in contemporary terms. This paper provides a critical review of findings from contingency-based studies over the past 20 years, deriving a series of propositions relating MCS to organizational context. The paper examines issues related to the purpose of MCS, the elements of MCS, the meaning and measurement of contextual variables, and issues concerning theory development. A final section considers the possibility that contingency-based ideas could encompass insights from a variety of theories to help understand MCS within its organizational context. # 2002 Elsevier Science Ltd. All rights reserved. 1. Introduction The three purposes of this paper are to provide a review of empirical, contingency-based research as it has......

Words: 26957 - Pages: 108

Leo's Four-Plex Theater

...Leo’s Four-Plex Theater To address the issue of cash receipts, the owner would be well advised to create a control making the cashiers more responsible for any shortages by either having to pay for their shortfalls or linking their salary to the shortage that occurs. Furthermore, additional data should be printed on the tickets to address from which ticket booth each sale took places and have a designated schedule to cross reference which employee was responsible for selling the tickets associated with the shortfall. As the refreshment stand suffered from a lack of cash collection for sales and failure to process sales for many items, the management should segregate the duties and have separate employees responsible for delivering the snacks (only after payment with a receipt) and entering sales/collecting cash. This would ensure that any one employee couldn’t give special treatment to their friends or preferred customers. Another option would be to hire employees from a different town where they would be less likely to provide free food to customers with which they are unfamiliar. The ticket collectors should be instructed to focus on the existing control system regarding the ticket dating and coloring and be held accountable for any deviations between those who view the movies and the number of tickets received along with their respective ticket colors. Additionally, security cameras or other surveillance techniques should be implemented to reduce the number of non......

Words: 306 - Pages: 2

Four Seasons Case Study

...Four Seasons Response Paper Scott Pearce The Four Seasons' approach to transferring its practices to other cultural contexts is aligned with their overall business strategy. They want to be known as the best of the best in luxury hotel service. What this translates to is not too dissimilar from Starbucks: a customized customer experience. That's not to say there aren't specific expectations and standards. But its how the customer experience is delivered within those standards that tailors the Four Seasons experience depending on where you are. If a firm expects to establish a sustainable business model in foreign nations, the firm best be a cultural chameleon, where the brand doesn't uniquely identify the company or product as one particular nationality. This particular case study calls attention to the Disney model as the antithesis of Four Seasons. While Disney is successful, it is interesting to note that Euro-Disney was a failure and it wasn't until it changed to Disneyland Paris, with a decided turn towards a more French culture, that it finally turned around. Even the comparison to McDonald's is a little tenuous, as the McDonald's experience and brand is known for the clean restaurants and cheap fast food. But, the menu does chance depending on the region and what the culture demands. Eating in a McDonald's in Thailand was very different than eating in McDonald's in Australia, or even Switzerland. By making sure the Paris hotel was a Paris experience, the Four Seasons......

Words: 463 - Pages: 2

Cha[Ter Four Case Study

...Chapter Four Case Study Scenarios Edgar Martinez Ashford University Interdisciplinary Capstone Benjamin Hegedish June 24, 2013 One of the many gifts a teacher must possess in order to be successful in the classroom, is the inherent ability to be able to make quick assessments and provide guidance based on individual students’ performance traits. Again, like I have stated before, one must be able to accept daily challenges and face them with a smile. Chapter four of our book, “The final step: A capstone in Education” teaches us the importance of assessment in our classrooms and makes us question exactly what do know about assessments? We are exposed to theories behind assessing that vary from feedback to monitoring and a teacher’s required ability to be able to record, observe analyze and respond to their student’s responses in the attempt to improve student learning. The importance of descriptive feedback is once again enforced by its innate effect on student learning. Taking a look at Andre’s social studies class and how his minor dilemma is trying to figure out what to do with the last 10 minutes of his class’ time. At the end of the unit, his students face a 50 question test that will assess their knowledge of his student’s textbook reading of the French Revolution. One activity that Andre can incorporate into his last ten minutes of class is to engage the students in a question-answer comprehension round. Without giving the students a clear heads up that......

Words: 1316 - Pages: 6

Four Loko Case Studies

...reference that Cisco is not a single serve beverage ( This is a situation where Caveat Emptor is appropriate. Manufacturers often mimic packaging of more popular brands and I am fairly confident that the high dose of caffeine in Four Loko was a sought after characteristic by it consumers. In this case, Four Loko became the whipping post for overzealous parents and politicians, upset because their child was irresponsible. 2. Four Loko had a socially redeeming purpose apparent by the consumer demand. From a libertarian standpoint, individuals collectively coalesce with others who share similar values and interest to form a culture in which they choose their own socially redeeming qualities. Products often become synonymous with communities, a group of people bound by a common interest; therefore, Four Loko had the potential to represent a sub-culture, just as Harley-Davidson exudes the image of roughness for its riders. The redeeming social quality standard should only be applicable in cases where harm is done to someone else. The interference by the government in this case was unwarranted. The free market system elucidated a demand for Four Loko and beverages with high caffeine content have grown exponentially over the past decade. According to Beverage Industry Magazine, “the energy drinks category increased 15.7 percent for $6.9 billion in sales,......

Words: 306 - Pages: 2

Chapter Four Case Study

...Chapter Four Case Study Edgar French South Florida State College Chapter Three Case Study 1. In your experience, have you found that decision-making groups tend groupthink? If so, what factors contributed to this tendency? If not what factors helped to prevent it? By and by, I have been included in a few situations in which components of mindless compliance started to happen, however one occasion specifically emerges among the others. I was taking an interest in an undertaking "Clairvia" throughout two weeks, in which participants where gathered in gatherings of 5 and tasked with creating one of a kind critical thinking and investigating procedures for specialized issues. Part of the way through the first day, I saw that a focal "leader" was starting to rise – not on account of the man was especially splendid, but rather in light of the fact that he was louder and more obstinate than the others. As we endeavored to all in all comprehend complex booking profiles, the "leader" affirmed his convictions around a potential arrangement, and quickly, whatever is left of the gathering started to rally behind him. It was as though unique, individual thought had become terminated inside of a matter of 10 minutes, as my colleagues turned out to be progressively baffled by the current workload. By and large, the fundamental persuading component behind the mindless obedience that happened that day, was Mitchell and Eckstein's “High stress from external threats/low hope of a......

Words: 1186 - Pages: 5

Four Seasons Case Study

...Four Season Goes to Paris Four Seasons is one of the biggest midsized luxury hotels in the world. Although it is Canadian-based, it currently operates across different continents. Despite the fact that they operate in different parts of the world, they are known for its high standards of quality and providing good experience. Wherever they operate they bring their corporate culture, traditions and standards with them. Sometimes it is difficult to come and implement your corporate culture, because people are different, cultures are different, and lastly laws and regulations are different. Four Seasons faced these problems when trying to launch their hotel in Paris. When entering hotel market in Paris, Four Season faced number of problems both legal and cultural. France had its own laws regarding working hours, hygiene issues, and French people had their own moral, culture, attitude toward work, which differed from North American one. For a building they chose the building of old “George V” hotel. They tried to keep outside façade and change inside a bit. According to French hygiene laws, trash and food had to be carried via different corridors and elevators. Because of that Four Seasons had to create additional ways just for food and trash. “Right to light” law, which stated that each employee must work at least several hours a day by the window. Four Seasons management had to arrange schedules so that, no one was working all day in the basement. ...

Words: 703 - Pages: 3

Case Four

...Case 4 MTV NETWORKS: THE ARABIAN CHALLENGE A litmus test for mtv’s localization strategy Launches in 2007 as part of its global expansion strategy Its prescence would provide the region with an international music brand, in return the region promised to offer growth opportunities to MTVN given to its huge youth population. MTV’S success in the middle east was contingent upon a tactical balancing between delivery of international quality music and the culturally sensitive environment in the region Arabic version, (supposed to act as a culturally unifying force by propelling Arabic music to the global forefront, and vice versa. Had a lot of hopes in this project MTV BACKGROUND Launched in 1981 12-24 yrs Heavy metal, and rap music Started airing non-music reality shows In 1987 was launched in Europe which marked its global expansion “Think Globally, act locally” (MTV Australia, MTV Asia, MTV India, MTV China, etc) 179 countries ------------------------------------------------- 130 channels in 25 languages Success was credited to the channel adopting a decentralized structure and gave commercial and creative autonomy to the local staff. Minimal interferences in local operations led to innovation and expansion Chanel depended on the local cultures 3.PREPARING FOR THE LAUNCH Similar channels across the world Only middle and upper classes whho had been exposed to the west MTV Arabia was formed as a result of a liscencing arrangement between MTV and......

Words: 500 - Pages: 2

Leo's Theater

...Leo’s Four-Plex Theater Elaine Sanders ACC 6003 Spring 2016 What is the problem? Leo Antonelli owns a single theater with four screens in West Texas. While Mr. Antonelli owns the theater, he does not manage it. Mr. Antonelli, who was concerned about the profitability of the theater, engaged the services of a local accounting professor to observe the processes at the theater and report on the effectiveness of the internal controls in place. The analysis and recommendations presented below are based on the internal control report. Question 1. Where is the theater’s control system lacking? 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? Leo’s Four-Plex has four internal controls in place. These controls are presented in Table 1. Even though there are internal controls in place, the controls are not rigorously applied and are insufficient to control the flow of cash in the theater. Mr. Antonelli asked a local accounting instructor, Mr. Cockerill, to observe the theater and provide comments. Table 2 presents the internal controls in place and Mr. Cockerill’s findings. Question 2. What control improvements would you suggest for Leo’s Four-Plex? I suggest some definite and immediate changes be made to the internal control of cash at Leo’s Four-Plex Theaters. The most obvious deficiency is the focus on non-monetary controls. There are three internal controls......

Words: 903 - Pages: 4

How Could Leo's Four-Plex Theater Avoid Control Problems?

...In some cases it can be better to avoid control problems instead of implementing a management control system (MCS). Kenneth A. Merchant & Wim A. Van der Stede [11] describes four strategies for control problem avoidance; Activity elimination, Automation, Centralization and Risk sharing. Under are examples given on how Leo, from the case Leo´s Four-Plex Theater [12], could apply these strategies for existing control problems in the organization. Activity elimination means that a control problem caused of a certain activity within an organization is avoided by they stop doing the activity themselves and instead letting a third party taking over the risk and profit associated with it. The persons working in the refreshment stand don´t register and collect cash for all sales, so it is not as profitable as it could be. If the cost for implementing a MCS to deal with the problem is too high Leo could lease the space. By arranging such a deal he will get a certain regularly payment from the contractor, eliminating the control problem associated with the activity, but he will loss the profit from the refreshment stand. Automation is a way to avoid control problems by using technology like computers, machines and robots, instead of humans. By using automation it is possible to eliminate certain problems related to humans, like lack of motivation, inconsistency and dishonesties. Leo could solve the problem with employees sometimes let people enter the screening room that......

Words: 597 - Pages: 3