Case Study 4 - Red Spot Markets Company.docx - Case Study 4.1 Red Spot Markets Company How should Fosdick respond to the immediate situation Fosdick

Case Study 4 - Red Spot Markets Company.docx - Case Study...

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Case Study 4.1 – Red Spot Markets CompanyHow should Fosdick respond to the immediate situation? Fosdick should respond to the immediate situation of pilferage by the distribution employees byrefusing the sandwich, then sternly letting them all know that there is no such thing as “noncontract fringe benefits” and what they are doing is theft. He should then contact their union rep and Mr. Easter and make them aware of the situation and take their advice on how to proceed. What controls, of the types discussed in this chapter, might have been used by Red Spot Markets to reduce or eliminate the problems discussed in the case?Controls that could be used by Red Spot Markets to reduce or eliminate problems discussed in this case could begin during the hiring process. One of the best ways to manage pilferage is to avoid hiring people who are predisposed to steal, such as people with drug, alcohol, or credit problems.Another way to is to keep products constantly moving. Goods that are just sitting there are more vulnerable to theft than ones that are moving. The company could do this by implementing different lunch times for employees so that not everyone is eating at the same time so that there are continuous operations throughout the day. What longer-range steps should Fosdick take to control the operations of the Providence distribution center’s productivity?Longer – range steps Fosdick could take to control the operations of the Providence distribution center’s productivity would be driving accountability by setting schedules and ensuring
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