WONG’S PHARMACY
Task 1: What are Thomas
Wong's options?
Thomas Wong has five
options:
1. Enhance customer
service, broaden the
product range, or open a
new store for a different
customer base.
2. Incorporate automated
machines to streamline
store operations.
3. Explore new marketing
strategies to boost
competitiveness.
4. Consider restructuring
the business model to
adapt to market changes.
5. Evaluate the possibility
of closing or selling the
store if other options
prove ineffective.
Task 2: Would you
characterize Wong's
Pharmacy problems as
control ones?
Wong's Pharmacy
appears to involve
control-related issues,
indicating a need for
better
management and
supervision to address
the problems and
enhance overall
operational efficiency.
1. LEO’S FOUR-PLEX THEATER
Task 1: Where is the theater's control system lacking? Are controls themselves weak or
incomplete, or are the theater's problems caused primarily because of a lack of discipline in using
the existing controls?
The theater's control system has several problems, such as:
1. Cashiers not collecting the correct amount of cash for sold tickets.
2. Ticket takers not checking ticket colors and dates correctly, leading to mistakes in stub boxes.
3. Both attendants and the manager giving away too many free tickets.
4. Ticket collectors reusing free tickets with the manager's signature for their friends.
These issues mainly stem from a lack of discipline in following the existing controls. People in
different positions, from the manager to attendants, are responsible for the theater's losses
Task 2: What control improvements would you suggest for Leo's Four-Plex?
Here are my recommendations for each position:
1. Cashier: Cashiers should reimburse any shortfall by promptly making payments at the end of the day or
deducting the amount from their salary at the month's end after reconciling ticket sales and earnings.
2. Refreshment stand attendants: To ensure efficiency and customer satisfaction, separate
responsibilities for delivery and sales transactions, hire new attendants from a different town to reduce
familiarity, appoint a supervisor, and install an automated payment system.
3. Ticket takers: Emphasize the importance of checking ticket colors and dates, or consider
replacing them with new hires.
4. Manager (Leo): Leo should remind his nephew Bill of his duties. If Bill proves inadequate, Leo should
consider hiring someone else for the position.
5. Ticket collectors: Ensure all machines are supervised to prevent automatic operation of stub boxes and
allow responsible individuals to assess the validity of used tickets
Controls Pros/Cons Solutions
1. Color-coded tickets; dated Ensure that the theater will not
tickets be oversold tickets of any movies
2. Serial numbered tickets Reconcillation number of ticket
sold and the money
3. Cash count Good individual control
4. Turnstile Controlled access to theater. Allow
for ticket collection
5. Locked stub box Reconciliation between tickets
collected and attendance counts
6. Cash collected less cash than - Require the cashier to pay for
the value of the tickets sold the difference between cash
count and ticket value (shortage)
- Minimum difference
7. Tickets of the wrong color or The ticket-takers must be
wrong date are found in the stub reminded of the importance of
boxes looking at the colors and dates
8. The manager is giving away - The pass policy must be
too many passes, including some Control problem clarified
for unacceptable purposes - The manager must be warned
Not to abuse the privilege
- Change the manager
9. Some refreshment stands sales - Better direct supervision.
seem to be lost because the - Separation of duties between the
attendants do not collect cash person who rings up the sale and
from the customers the person who delivers the
refreshments to the customer
- Hire more attendants from a
different town because they
would be less likely to know
2. WONG’S PHARMACY
Task 1: What are Thomas Wong's options?
Thomas Wong has five options:
1. Enhance customer service, broaden the product range, or open a new store for a different
customer base.
2. Incorporate automated machines to streamline store operations.
3. Explore new marketing strategies to boost competitiveness.
4. Consider restructuring the business model to adapt to market changes.
5. Evaluate the possibility of closing or selling the store if other options prove ineffective.
Task 2: Would you characterize Wong's Pharmacy problems as control ones?
Wong's Pharmacy appears to involve control-related issues, indicating a need for better management and
supervision to address the problems and enhance overall operational efficiency.
Control problem, but not management control. It is a strategy control problem. It is an external problem &
he needs to revaluate his strategy.
