Because of these economics times that the world is currently in, the company found its business in disarray subsequently an action plan was put in place for the company could be saved. More than 34,000 of jobs were lost in the US and Canada alike at that time. As of January 16th 2009 a week after the motions were initiated in court, Circuit City decided to close all 567 remaining stores in the United States. The lost of these jobs have not only affected the company but their employees have suffered irreversible damage in these economic times. The communities were these jobs were lost have been devastated.
Chapter2 - GOVERNANCE FAILURE AT ENRON 1. Enron share price continued to rise dramatically throughout the 1990s but eventually, because of major accounting fraud and questionable ethics of business as well as the executives looting the firm, it resulted to bankruptcy of the firm. The Enron business failed most in internal forces because they are directly responsible in determining both the strategic direction and execution of the company. Enron's collapsed mainly due to massive incompetence of the management. It also affects the externally because of the deceit corporate governance culture practices, it also fails as an outcome.
This was a reactionary move spurred by the need to get sales off to a quick start. The second cut they made was to workforce. They cut their global workforce by about 50,000 jobs in reaction losing profits. I will also say I struggled with whether or not to also say that GM has shown traits of being analyzers. I think that by looking at what other companies have done with lowering platforms (Ford and Volkswagen) and by changing the plan with the incentives they were really taking
| Customers | Customers can stop buying products displaying the john Lewis logo, word of mouth means that john Lewis can be seriously damaged by customer shifts. They have a huge influence on the aims and objectives of john Lewis. However john Lewis may feel that it has sufficiently strong, brand loyalty to ignore customer input. | Employees | Employee can make john Lewis alter their aims and objectives to include staff needs and wants, john Lewis altered their company objectives to include the working conditions of its staff, however a set time when unemployment is high, employers are in a position of greater power as employment is harder to find. | Trade union | Unions mainly focus on the treatment and pay of the employees.
General Motor's decision to close 11 factories allowed the corporation to gain more money but put thousands out of work, devastating the workers and the towns they lived in. The corporations should think of how their decisions affect people. Although this move may provide Americans with cheaper jobs, it has added thousands more to the already high unemployment. After watching the movie "Roger and Me," directed by Michael More, one would notice the changes in the town of Flint after the closing of the factory. While senior management is getting raises and expanding their corporation, people are living in misery because of the lay-offs; this could change if the corporations gave those unemployed some compensation.
In combination with this, upper management pressured employees at every level to participate in shady transactions, with one employee even testifying that he thought he was simply “doing his job.” Also, it was determined during investigations that CUC had weak internal controls for a company of its size. Cendant actually reported that 60% of reported net income by CUC in 1997 did not exist (BusinessWeek). Another example of this was its lack of an automated accounting system in areas such as recording revenue. Such a system would have helped record revenue in the correct time intervals instead of all at once as they were doing, vastly inflating current revenues (BusinessWeek). In regards to internal controls, auditors have a responsibility to obtain an understanding of the design and implementation of internal control in order to assess the control risk of the company.
onsumers by increasing the price of products sold to make up for the products lost. Increased prices may now cause consumers to travel and go elsewhere to purchase comparable items at a cheaper rate. Honest shoppers now fall into the same mistrust category as shoplifters because they cannot be distinguished easily from one another by the retailer. If a store has to close down because they can’t make any money then that cuts jobs. One store may not seem like a big difference, but when stores are closing every day because they can't maintain a stable business because of shoplifters it changes a lot for families everywhere.
Pacific Brands decided to cut costs by moving its operations offshore. Following this decision, 1850 workers lost their jobs. Pacific Brands failed with most of the managerial skills: communication, planning, social responsibilities and ethical behavior. Not only did the management fail to communicate with the workers and the media, but while closing the factories and cutting their Australian workforce, they increased executive salaries by up to 170%. The raise for Sue Morphet was very unethical, damaging Pacific Brands’ reputation.
“Irrational exuberance in the housing market led many people to buy houses they couldn't afford, because everyone thought housing prices could only go up.” (useconomy.com). During 2006, housing prices started to decline. Many people took out loans with very little money down, and they had to foreclose on the house because if they sold it, they would not get enough money back. With the foreclosing rate increasing, many banks began to freak out because they were going to face huge losses. Around August of 2007, banks become afraid to loan money out due to the fact that they did not want to suffer from losing money yet again.
A growing international competition has also impacted union importance amongst the industries. Product oriented markets were deeply impacted by the competition brought on by international counterparts. Inadequate wage adjustments and demands have accelerated the decline. Almost 66% Americans feel that unions do not benefit the economy, but in turn, hurt the economy, especially during an economic crisis. As of August 2008, labor union approval was at 38% and it fell to 25% in August 2009.