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.
During the audit of Marcell, the inventory was the focal point of concern for the audit staff, and the crumbling financial standing of the company made the inventory more of a concern. The audit staff was aware that any material overstatement in the inventory account would lead to the company
Stock-out incurs a cost that is associated with the loss of opportunities as a result of the stock exhaustion. In target supply chain, defective replenishment of shelf is among the common causes of stock-out. This challenge has proven to be very costly for the organization. It has caused uproar from the customers as reported in the press since customers are forced to forego their usual supply to other organizations. In worst case scenarios, frustrated customers can switch their loyalties to other brands after a series of frustrations.
The paper will also compare and contrast how leadership, management, and organizational structure contributed to the company failure. Organizational behavior theories Organization behavior is defined as a “field o study that investigates the impact of individuals, groups, and structures within an organization” (Robbins & Judge, 2007). Which organizational behavior definitely pertains and includes leadership and management. The Boeing Company has a few issues with organization behavior, especially with leadership, management and employees not communicating. The company engineers are blaming the outsourced supply chain for the poor quality parts arriving from subcontractors which are not in the Boeing view.
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.).
Part I Case Study: The Lodge Bistro Chain To: Patricia Lodge, CEO From: Part (a) This report is based on Study Session 2. The Lodge Bistro chain is currently experiencing problems in a number of areas. These problems are: • The company is facing growing competition from similar businesses and the concept is seen as outdated. • There is a threatening external environment (the economy is in recession). • Stakeholders are nervous about the future and the CEO is under pressure to respond to challenges.
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).
Boeing Case The Boeing case posed several examples of questionable decisions being made. The first instance of questionable behavior included a blatant example of conflict of interest with Darleen Druyun and Mike Sears. The next instance was when Boeing executive, Larry Satchell, was caught stealing trade secrets of a competitor and violating U.S. procurement laws. Another example of questionable ethics from the case was Boeing’s lack of transparency when they manipulated financial statements to ensure a merger would go through. Next, Boeing’s knowledge of pay discrimination was revealed.
This would be very difficult to keep unbiased. b. Executive search services: One threat associated with this service is that if they help find potential executives for a company that they audit, they might overlook some problems that those executives could be involved in. c. Internal audit services: One threat associated with this service is that it would be too tempting to falsify information if you are only accountable with yourself. An outside auditor is ALWAYS necessary.
This may create some conflict of interest and duplication of work. Between the priority group and executive management, that performs the work of the processing management. 8. Was there an increased resistance to change? There was resistance to change from the corporate banking and consumer banking divisions who had the fear that most of their responsibilities would shift to the corporate marketing division.