The environmental influences are described below: Political / Legal Different countries have different rules relating to business. E ltd needs to consider the relevant consumer laws e.g. customers rights to return products, company laws and common laws of the relevant country as well as any medical laws relating to dental products. Eleonora will also need to consider the type of financial reporting required by a foreign country, how financial statements are set out and how often do accounts need to be presented. They will need to understand the tax law e.g.
The offenses are harmful to not only businesses in the United States of America but to the world of business as a whole and are unacceptable. If the law had been in place, many shareholders would have been safeguarded but numerous investors lost their lifetime savings by company insiders. The corporate world is a much more secure place with regards to investing with all of the changes and modifications which are now enforced. I still think there are other actions which can be taken to protect shareholders even though the modifications have significantly improved the procedure. Businesses must develop an ethical balance so as not to take advantage of unknowing shareholders who have invested their lifetime
Suppose that Cornelius believes that Elliot is not a good hire for Pharma. Can he fire Elliot? Although Adams may have had the legal right to hire Elliot without the consent of the others, it was a morally wrong decision not to seek the consent of the other shareholding partners. As a privately held corporation which is small in size, the promotion of business efficiency is an objective best served by enabling the owners to arrange the organization of the enterprise as they choose unless such decisions are outside the scope of the partnership business which would make it impossible to
Failure Analysis and Change Strategy LDR531 September 2, 2013 Failure Analysis and Change Strategy Failure and Success Indicators One of the causes of the economic downturn that the United States experienced was individuals defaulting on mortgage loans that they either could not afford or had little intention of actually paying for in the first place. However, the reason they were able to secure these loans in the first place was because of banks like Countrywide decided to approve everyone they deemed willing to make a mortgage payment, regardless of their credit history. In fact, the former co-founder and CEO, Angelo Mozilo, even described his company’s loan approval process as “arduous […] and cumbersome,” especially where the manual approval process was concerned (Englund, 2008). The truly disturbing thought process which should have portended failure was that Mozilo states that many people are approved through the manual process because the “human underwriter, has analyzed non-traditional factors such as the borrower’s rent and utility payment history” (Englund, 2008), but he wants to do away with the human underwriters in favor of an entirely automated system that would have to have inherently lower standards for approval. Ultimately, what caused Mozilo’s, and subsequently Countrywide’s downfall can be attributed to greed and other unethical behaviors.
The amount of the lawsuit was $5 million. The Ethical Dilemma The ethical dilemma is that one of the principle owners of this corporation decided to move forward and not disclose the $5 million litigation for a patent infringement lawsuit against Linex Corporation. Bob Jason was instructed by the primary accounting firm that he and his partner had hired that it was proper to report the material of the lawsuit in the financial statements based on the most recent audit. Bob Jason was displeased with this because he wanted to generate capital for the corporation and felt that reporting the lawsuit material could jeopardize the confidence the corporation needed to get the capital they needed. Jason accepted bids from three other accounting firms and ultimately selected a firm that was priced lower with the understanding that they would be awarded consult work for the corporation at a later time.
1. From your understanding of the Sarbanes-Oxley Act, explain how you feel it may negatively affect America’s stock exchanges. The higher than expected costs for many public companies caused some companies to abandon their public status. The costs of SOX compliance negatively affect companies, markets, investors, and economic growth. Fewer companies are willing to enter the market because of the SOX requirements that make going public too costly.
o A tendency to avoid reversing changes even if it was not the best choice o In reality, past expenditures are sunk costs and the organization should use a clean slate to look at new choices, but to the manager, this will come at great personal loss. • This relates to strategy because it is important to understand the effect management has on it. o If a manager will suffer personal embarrassment or a loss by adopting a new (although better) strategy, they are more likely to simply stick with the current course of action. o This can be avoided by assessing and addressing the problems of an organization prior to major investments being made o Implication on strategic choice, as they can act for the betterment or detriment of the organization. o Differences in manager’s preferences are specific to their individual personalities, experiences and situations.
(Still think we are in a Depression not a rescission) Also the CEO of Enron for conspiracy and multiple counts of fraud is one example of dishonesty, fraud, disregarding one professional responsibility by given themselves Astronomical salaries and enormous benefits this reduces profits of the stockholders, who own the company. (Per the book Bus. 309 pages
They create the fictitious purchases of equipment which form a potential inherent risk for the company. Moreover, it would cause an overstatement of equipment; Finally, I found another inherent risk is inflated assets or overstate inventory. Hebding instructed Medlin to artificially reduce operating expenses and increase inventory. They want to inflate inventory, in order to they can make adjustments to costs and inventory in the financial statements without documentation or support. It cause overstate inventory and understate the cost.
Disadvantage: * Technical evaluation after price negotiation causes an unfair price competition during auction between high quality suppliers and low quality suppliers. Suppliers with low quality may have lower cost structure comparing to high quality suppliers. Without setting the quality standard before the auction, it is likely that the auction winner may not be able to meet Casturn’s technical evaluation. * The cross-function time at step 5 have veto power. Even though this practice reduces the chance of making a bad re-sourcing decision, it wastes lots of time and energy from CMC and engineer team, and may discourage nominated supplier.