Also, instead of paying stocks in cash, they were paid with promissory notes. And finally, over $11m was not invested which should have been. This segment really caused problems. (Brooks, L. J. (2007).
Not only were there large losses of money for both companies, but the loss of reputation as well. Penn Square Bank What were the ethical pressures on the firm concerning documentation, credit extension, and revenue recognition that lead to the final collapse? What should have been done to reduce or offset these pressures? The ethical pressures on the firm concerning documentation, credit extension, and revenue recognition leading to the final collapse of Penn Square bank is the bank could not fund the loans they were negotiating. According to generally accepted accounting principles, revenue and corresponding expenses should be recorded or matched in the same accounting period (The Houston Chronicle, n.d.).
October 25, 2011 Case Study 1.1 Enron Corporation 1. I believe most of the responsible party’s for the Enron crisis would have to be the corporate executives, individual auditors, the leadership of the Anderson firm, and the many regulatory authorities that were involved with the Enron Corporation. I said the many regulatory authorities because they failed to take any proactive measures to limit the ability of rogue corporate executives, accounts, and auditors in their professional responsibilities. Corporate executives would be responsible because they insisted on using aggressive and illegal accounting and financial reporting plans. Individual auditors are responsible because they made unprofessional decisions that tainted the integrity of auditors.
What could AIG have done differently to prevent its failure and subsequent bailout?1. Discuss the role that AIG’s corporate culture played in its downfall. 2. Discuss the ethical conduct of AIG executives and how a stronger ethics program might help the company to strengthen the ethics of its corporate culture. 3.
These aggressive targets were not supported by historical data or strategic assessments. - In order to meet these targets, WorldCom began boosting its revenue through a wide range of accounting measures, including drawing down on reserves set aside for expenses. The economic situation at the time was not taken into account when implementing these aggressive accounting measures. Other similar companies were reporting declining revenues. - It was identified that the management who were making the aggressive accounting decisions, were also posting the journals to the general ledger, and reviewing and approving the reporting.
The researcher shows how outsourcing impacts workers in a negative manner, goes against the moral and ethical standards inherent in business and proves that outsourcing will ultimately result in dissatisfaction for corporations in the long term. From an ethical view, outsourcing is wrong and has pessimistic results on both employees and corporations in the long run. Corporations that bolt to outsource job task realize little returns on investments and profit savings in the long term. The surge to outsource has left companies with little worth and no tangible assets in the production or delivery of products. Among the people most affected by outsourcing in recent years are white collar workers, whose resumes are now overwhelming the job market as enthusiastic job seekers attempts to find jobs that will pay them a fraction of what they were earning while working in corporate America (Shaw, 2004).
1) Describe the problem the TTC campaign was designed to solve. One of the principals Charles Schwab & Co., Inc issues was that the consumer of the brokerage industry did not see real differences between the low cost companies (just the price). By the past Charles Schwab & Co., Inc was the unique low cost company but with the arrival of new, more performing, low cost companies with lower commissions, customers starts withdrawing their assets and Charles Schwab loosed market share. Went they realized the BVA they saw that the differentiation of their brand decrease a lot in just three years. Furthermore, they realized that there was a gap between how the company sees itself and how the customers see the company, they was not providing good value to clients.
We've spoken with management about this. It's difficult because the acquisition and the way it was financed was so dilutive that it did permanently impair, for time horizons, it significantly impaired the ability for Southwestern to be competitive from a corporate-level returns perspective with their peers, and you can see it in the stock over a long period of time. We don't have a lot of confidence. The Chairman of the Board we believe has now bankrupted two companies, and that doesn't give us a lot of confidence. We would need to see an improvement in the balance sheet and improvement in leadership at the company level as well as the
These points are just a guideline to obtain quality from a business; however, many of these points contradict the practice of “Salesmen of the Month” awards shown in the article. Firstly, one reason Deming would not approve of “salesmen of the month” tactics would be that this idea disagrees with his point stating that businesses should “end the practice of awarding business”. This tactic awards those who obtain business, which could lead the other employees to feel as if they are inadequate to the top “salesmen of the month”. This also ties in with Deming’s other point stating that businesses should “remove barriers that rob people of pride”. In the article the top 3 salesmen of the month each are shown their own individual profiles, while the other employees are simply grouped together into one generic heading titled “The rest of sales staff”.
As time progressed customers lost that level of commitment to the stores. That loyalty that they felt was no longer present. The CEO felt that this diminished level of emotional connection to kinkos was because their services were not differentiated. They offered nothing that other stores did not. (case) Despite all the measures that kinko’s executive learn led by CEO and president Gary kusin had taken to cut cost and place the company in a position of sustained profits, revenue generation seemed to have been elusive ideal.