Group 5

Confetti Shoes

I. Point of View
● Edna Perez

II. Problem
● How can she improve the control system of all the Confetti Shoes outlet?

III. Areas to Consider

1. Employees and their individual job descriptions (in each outlet)
2. Opening of the other outlets
3. "Trust level" of Mrs. Bello to her employees esp. cashiers
4. Inventory system used by the company
5. Recording of sales system used
6. Handling of the Petty Cash Fund
7. Discount on sales
8. The frequency of replenishment of the stocks
9. Peak seasons and in demand designs

IV. Assumptions
1. Mrs. Bello will follow the suggestions of Edna Perez
2. The company have enough cash to implement changes
3. Other outlets are smaller than the mother branch in Greenbelt
4. The relationship of the employees and Mrs. Bello is good.
5. Mrs. Bello knows when the peak seasons are and what the in-demand designs are every
season.
6. Mrs. Bello doesn’t have a problem with getting the inventory stocks from her suppliers.
7. Employees from the first store (Greenbelt) are proven to be loyal and honest to Mrs. Bello.
8. There is a need for a control system to be implemented in all the stores.

VI. Alternative Course of Action

1. Use an organized system in recording sales and inventory
2. Avoid stocking up too much inventory during slow seasons so that storage and counting won’t
be a problem.
3. Make a definite system on how discounts should work (ie discount cards)
4.Re-evaluate job descriptions and job assignments of the employees in each store.
VII. Recommendation
Combine all of these ACA.

Though it might be costly at first to use an organized system (could be the latest computerized
system liked printed receipts and punch counters available during 1987), it can be considered
as an investment since it will be a very effective control tool. Not only it is very efficient in
recording the sales, it can also greatly avoid fraud and dishonesty of the employees.

Stocking up too much inventory can easily conceal fraud since it will take too much time to
count them every time. Given that Mrs. Bello doesn’t have a problem with her suppliers since
she’s a regular customer, it would be very much efficient if she only stocks up the limited but
enough supply for the week. This will save them a lot of effort in counting the remaining
inventory, save them the storage cost, and avoid dishonesty of employees.

Since discounts are also regularly given, they should implement a definite systems on how it
works. Discount cards or coupons could be a lot of help to them. Having a no definite discount
implementation system could also lead to fraud since the employees could just easily record
that a discount was given, when in fact, it wasn’t.

This could be one of the most important control system that she can implement. It was stated
that he cashier was also the store manager. This could mean that she can access the sales
books and other documents in the store she manages and could alter information if she desires
to. This could be a very problematic case given that she also handles the money of the store.
Reviewing each employees job description and investing in new employees or assigning other
employees to the jobs that could create a fraud when given to only one employee could be a
very good way to improve control in her business.

There are numerous pros and cons to each recommendation stated but we believe that the pros
outnumbered the cons and if implemented, will be the best way to improve the control system of
Confetti Shoes.