Problem Solution: Mcbride Financial Services

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Problem Solution: McBride Financial Services “The Sarbanes-Oxley Act (SOX), which was enacted in the summer of 2002, mandated a number of changes in corporate governance for publicly traded companies. The NYSE and NASDAQ also mandated corporate governance changes for firms listed on their respective exchanges. In this section, we discuss the likely effect of these changes on U.S. corporate governance” (Chew & Gillman, 2004, p. 79). Because business ownership in today’s market is a scary concept, to survive, business owners must be innovative and competitive to meet the demands of its stakeholders. To survive in today’s market, corporate culture is essential and must have the longevity to withstand corporate compliance because without a clear conscience, the government will shut the company down. McBride Financial Services Incorporated (MFSI) is discovering that corporate compliance is not as easy as it seems. MFSI is attempting to break into the mortgage business and is beginning a financial relationship with an investment firm called Beltway Investments. Beltway Investments wants to ensure that Hugh McBride is ready for this relationship by inspecting his business processes. McBride will need to ensure that changes are made, compliance is researched and built-in the strategic plan, and the shareholders will be satisfied with the new MFSI. Situation Analysis Issue and Opportunity Identification The first issue facing MFSI is the need to implement a strategic plan to ensure that the company is complying with all the corporate governance bylaws. MFSI has the opportunity to turn the company around and make sure that they are applying all regulations with honesty and integrity, thus letting their customers trust the way they conduct business. MFSI also faces the issue of a lack of ethical compliance. MFSI has the opportunity to attract more companies

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