The solution that they did was only temporary. The Special Purpose Entity created by Andy Fastow and his assistant Michael Kopper served to very important purposes, by selling troubled assets to the partnerships to fund new investment activities and sell of the troubled investments to the partnerships then use to make its quarterly earnings commitment to Wall Street. As Enron's share price plummeted in the early fall of 2001, the equity in the SPEs would no longer meet accounting guidelines for remaining off balance sheet. 3. People
Leading Change at Simmons (A) Case Analysis 1. What are the challenges faced by Simmons in December 2001? How has Charlie Eitel’s leadership affected the company in his first six months as CEO? The company needs to survive financial crisis in U.S economy. Especially three main customers announced bankruptcy during this period.
“Conspiracy of fools” book report 1. Discuss how the top leadership, specifically Ken Lay, Jeff Skilling, and Andy Fastow, contributed to the collapse of Enron. The executive leadership was the main cause for Enron’s collapse. Their dishonesty, greedy and selfishness made them do things that changed Corporate America forever. Kay Lay was the CEO for many years.
It cost Aaron considerable amount of money to rebuild the factory. He took on huge debts to rebuild the factory. Although the productivity of employees soared high immediately after Aaron rebuilt the factory, the subsequent three warm winters caused the company to go bankrupt, with Aaron struggling to pay the debts. The key question here is if Aaron blinded himself to the realities and practicalities in the business world then and went ahead with the huge decision to rebuild a factory and continue paying salaries to his workforce. Did his decision cause more harm to the communities in the long run?
Perhaps I missed something, but what quality is it in Willy that should make us regret his departure? Arthur Miller, who is one of the last unrepentant Marxists, obviously sees Willy as a victim of capitalism. Willy has bought into the American Dream and it has destroyed him; after a lifetime of toil in the system, he is being disposed of now that he is no longer productive. The problem with this is that, much like Jay Gatsby (see Orrin's review), Willy has simply failed to understand the promise of that dream. He believes that the recipe for success is to be "impressive" and "well-liked" and for your children to be identical to you in manner and aspiration.
ACRC: CORPRORATE GOVERNANCE FAILURE AT SATYAM 1. What are the reasons for the inadequate corporate governance at Satyam? The fall of Satyam can be attributed to many causes as mentioned below: * Raju had been manipulating Satyam’s financial books for a period of seven years and the major corporate governance issue was that the Board of Directors and the auditors were unable to catch hold of the issue for so long. * Raju and his family founded a group of companies called Maytas. It was owned by his sons and to ensure billion dollar targets for Maytas, Raju inflated cash and bank balances in Satyam’s financial records.
For instance, after worldcom collapse, Mr. Ebbers was recalled as saying that the project to write a code of ethics was “a colossal waste of time. All those failures ended up putting pressure on the accountants to make improper accounting entries to present a good image of the company. For instance, Mr Sullivan
However, once the company demonstrated its inability to deliver, the launch date for the website was constantly put back. The failure to deliver on time linked with the stock market crash meant the end of Boo.com. The success of other businesses such as lastminute.com was reached because they grew steadily and adopted strategies to grow with precise objectives unlike boo.com who wanted to become a global business from day one. 2- Use the framework of the marketing mix to apprise the marketing tactics of Boo.com in the areas of product, pricing, place, promotion, process, people and physical evidence 2- Product: Premium brands were used, leading to premium prices. There was a mix between sportswear and high street fashion.
- 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. - Pressure was placed on personnel who did not support the aggressive targets. - A great deal of focus was put on “team work” and being a strong “team player”, which is said to have been a strategy to reduce dissenting opinions, eventually leading the organisation to follow a “groupthink” attitude. - In 2000, the telecommunications industry entered a downturn and WorldCom‟s aggressive growth strategy suffered a serious set back. However, due to the accounting measures used, by Q3 in 2000, the company managed to meet the Wall Street expectations.
BP otherwise known as British Petroleum started out in 1909 as the Anglo-Persian Oil Company, by 1914 the oil company was struggling and facing bankruptcy until Winston Churchill persuaded the British government to purchase 51 percent of the oil company to have a dedicated oil supply for its country as a whole. Once again after Great Britain sold its part of the company in the late 1970’s leaving BP close to bankruptcy. By 1992 BP lost about 811 million dollars causing them to take cost cutting measures. British Petroleum faced issues when it came to its organization structure, strategy, decision making with closing the Macondo Well, safety among the BP refineries within the United States, and how BP handled the Deepwater Horizon disaster. As things seemed as an all time low for BP in 1992 by the mid 1990’s BP got a new CEO who started to make changes starting with a new aggressive growth strategy.