Andersen shunted aside accountants who failed to adapt to the firm's new direction. In their place, Andersen promoted a slicker breed who could turn modestly profitable auditing assignments into consulting gold mines. Repeatedly, Andersen rewarded those involved with the firm's most troubled clients, while guardians of the company's legacy were shown the door. The quiet dilution of standards and the rise of auditor-salesmen at Andersen are central to the scandals that have cost investors billions of dollars. Even though the leaders contended that conflicts between its auditing and consulting missions had no impact on the quality of its work but actually they do.
The case of Enron is said to be a “smoke and mirrors” act dictated by top executives presenting the positive financial wealth of the company. Shareholders, lower executives, employees, and most American’s were not aware of the grieve financial trouble the company was enduring. Company Culture Enron’s motto was “respect, Integrity, Communication and Excellence” and along with that its Vision was “Treat other as we would like to be treated ourselves…” Both the motto and vision were inconsistent with the actual company procedures. Enron had a much different approach to the company culture and reward system they actually used. Competition was the main concept; which led to numerous financial mistakes in future years.
As mentioned above, Willy reflects Biffs’ failure in business as a reflection of his own dreams of succeeding although he only succeeded for a short while in his life. Also, the affair that Willy was in might have affected Biff and made him unable to keep a job. Willy has such insecurities with betrayal and himself that not only does he believe his family betrays him but also people on the outside too. His boss, for example, just because his boss fired him, Willy takes it as a form of betrayal even though he tells him, “there’s no room for betrayal in the business
I think that the error in decision making came because the CEO didn't know the terrible status of the company. I think that he thought he was alright to do what he did financially, even though spending that kind of money just to upgrade your office is absolutely ridiculous. The only thing that could've prevented that situation is for the CEO to have some common sense about how to spend your money or even know the company's standing. 3. I think that both CEO's should've let their employees know the status of what was going on, because it seemed that they had no idea of the things that were occurring.
For example, Bernard Madoff was a respected financier who “helped” secure people’s money and put in a savings account. But what people didn’t know was that he would commit fraud by taking their money and fooling them it was all still there. He roughly took about $65 billion dollars in total from people. This hurt many people not only financially but emotionally as well. These people felt betrayed by someone who seemed so innocent can do such a crime.
It is trust that makes the business world possible…Business is all about trust. Dishonesty violates trust and raises suspicions”(Ciulla，36). Here is a dishonest leadership example about the CEO of Yahoo. Scott Thompson the CEO of yahoo cheated to the public that he had earned a bachelor’s degree in computer science when in fact he only had a degree in accounting. What was even worse was that he tried to cover it up by first claiming innocence.
Goldstein's success in his initial performance led him to take a different approach in 1996. Instead of being passive investor and simply waiting for discounts to close naturally he decided to take a more active role and become the catalyst to close the discounts. As an active investor Goldstein's objective was to convince enough shareholders of the fund that closing the discount was in their best interests and that electing him to represent the fund was the best way to achieve these goals. Gaining enough influence over shareholders to gain control of the strategy used was very difficult as managers of the fund would oppose most initiatives put forth by Goldstein as it was typically against their interests. However, if everything came together appropriately, Goldstein could forcibly close the discount and earn an exceptional return wen he has free reign over the fund's strategy.
Corporate loyalty was once the prevailing attitude in GE, in fact, Welch considered the idea was obsolete. When Welch decided to precede chaotic changes in the workforce, as Business Week concluded, “the old social contract between employer and employees was nullified.” (Byrne) In order to increase the value of the corporation, Welch had ignored GE‘s social contract with the society by laying off employees. Furthermore, Jack Welch waged a fierce fight against the dredging during his tenure as CEO. At the center of the conflict was whether the GE could be forced to clean up the Hudson River, which had became the nation’s biggest toxic site on the Superfund list of the EPA.
Some companies make an decision that stop providing the service to these unprofitable customers. It can be considered as a customer divestment strategy. In fact, divesting unprofitable customers is risky in some situations. To make right decisions, managers need to analyse the major characteristics of unprofitable customers then find the risks of divesting unprofitable customers. Unprofitable customers can be understood simply as people who bring nothing and even make bad debt for your company.
“The Resolution of Conflict by Mutual Compromise” In today's competitive business environment, an absence of negotiation - or negotiation skills is perhaps the single largest contributor to the lack of success. The changing nature of the buyer/supplier relationship in this increasingly challenging marketplace means all business people need to be ultra sophisticated negotiators. Of course good negotiation isn't about you Winning and someone else Losing. A satisfactory outcome leaves both sides feeling that they haven't compromised too much, felt threatened or unnecessarily pressurised, or made sacrifices that they didn't want to. It is about reaching a Win-Win resolution.