...multiple suppliers. Sourcing the equipment from multiple suppliers would Type approval which would add uncertainty to the project and the approval itself would take 3 months. If multiple suppliers are involved clear demarcation points are required to avoid potential conflict of interest. There were internal objections from other division MDs. MD of Radio and Television Programming was of the opinion data & voice was the business of China Post & Telecom. Another MD, of the Radio & Television Broadcasting was of the opinion Alcatel equipment was more robust than Nortel’s. Budget was a key constraint as RMB 110 million was sanctioned but the initial estimates suggested it might cross the same. JBC needed in-house expertise to remotely monitor the network which was lacking. Zhou was not sure if reselling of long distance capacity was permitted by the Chinese government. - - Trace the history of decisions made in the data and voice project. 1) What were the decisions made? What were their implications? Decisions made and their implications are as follows - To launch the DVP by January 2002 – This decision was made without keeping in mind the time required to implement a project of this magnitude. - Budget allotted to the project RMB 110 million – Preliminary estimates indicate higher budgetary requirement. The scale of initial deployment maybe trimmed if the budget is rigid and cannot be increased. - Decision to go ahead with the DVP without clearing potential conflict of interest...
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...1097961 Nortel Networks was once a Canadian telecommunications corporation worth $300 billion dollar that nearly employed 90,000 people during its height on operations in the 90’s (The Canadian Press 2014). In 2009 Nortel networks had to file for bankruptcy. Nortel’s bankruptcy is considered one of Canada’s largest bankruptcy cases in Canadian history (The Canadian Press 2014). In 2007 the Securities Exchange Commission files a lawsuit against Nortel for accounting fraud. Nortel was accused of not following the Generally Accepted Accounting Principles. The two main principles that Nortel executives were accused of were going against the revenue recognition principle and the provisions principles. Nortel broke the revenue recognition principle for the sole purpose of meeting budgeted sales and revenues (Cullen 2007). What Nortel would do was to not recognize expenses right away and to recognize unearned revenue (Cullen 2007). The reason for breaking these rules was to magnify their revenue and profits. Nortel broke the provisions principle by recognizing their expenses later on causing profits to increase (Cullen 2007). While breaking these rules managers and executive members of Nortel would still collect their yearly bonuses and benefits based on the profits the company would make that year. Nortel on paper was showing that it had made more revenue than it should. The managers in the financial departments all had their ethical issues. Maybe Nortel needed more...
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...been 110 Million, but the Proposal from Postal/Nortel has come for 107.5 million. Including engineering, installation and maintenance, the project is over budget by 37.4 million dollars. 2. Non Availability of in house telecommunications Engg Expertise at JBC which makes them completely dependent on Postal/Nortel which again leads to Risky Situation as far as Short term span of the Project is considered. 3. The director of the Services division, who is an influential stakeholder preferred a comparison between Nortel and Alcatel before deciding on the equipment provider for the project. However Postal (who will ultimately deliver the solution to JBC) positioned the deal in such a way that including bids from Alcatel and Nortel would delay the project, and got the project scope only from Nortel for the data equipment. Though Nortel agreed to be compatible with Alcatel voice equipment as part of the turnkey solution, Zhou will have to convince his stakeholders as to why the comparison was not done for data equipment 4. Han has to look into the Regulatory Issues Like whether data and voice services can be sold by non-government entities or not, and the Project can also not be Delayed as this will affect the Timely Completion of the Project. Q 2. What were the decisions made? What were the implications? 1. Postal was selected for implementation of the DVP project. He had a good working relationship with Nortel and the implication of this deal was that he...
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...Sarbanes Oxley Companies Abstract Sarbanes oxley act 2002 was passed on July 30, 2002 and only the public companies are now feeling its impact. This act frequently called the “most significant accounting or auditing legislation since the securities exchange Act of 1934”. After the implementation it has established its demands to the companies for proper management and disclosure of risk. Nortel networks is a giant corporate in telecom industry and as it is expected they also have faced the challenges come from the SOX act. Some of them are in favor and some are against the Nortel. ‘SOX’ has manipulated a larger impact on Nortel internal employee and external customers as well as their financial statement. The outcome of the Nortel is clearly different from before implementing the SOX. This paper is to find out the deeper understanding of SOX, how it governs the public corporate, financial disclosure and practice of public accounting in general sense. Besides this it will focus on the outcomes of Nortel network after implementation of SOX and its financial statement. Introduction There have been found a number of corporate financial scandals (e.g. Tyco International) that provides various type of weakness in the governance and auditing practice in the organization. It represents the failures in controlling the reliability and integrity to the stock markets. The scandals cost billions of dollars for the investors when the affected companies were collapsed. As a result, these...
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...This essay will outline events that lead to the fall of Nortel network, a very successful Canadian maker of telecoms equipment in the late 1990’s. Nortel was huge and ranked as one of the largest firms of the world. This success did not last long as acquisitions of fraud, misalignment of funds among other unethical behavior were occurring. Small investors and stakeholders incurred the biggest loss. Nortel Network, a Canadian technology company was considered a fast-moving giant. The company was quick to integrate acquisitions and developed and built innovative telecom products. It seems as if nothing could stop the growth and uprising price of shares. The downfall of Nortel began when the top executives were accused of falsifying reported earnings. Top-notch executives were buying and selling stock within their retirement plans and massive accounting discrepancies were discovered. These suspicious outcomes let the United States Securities and Exchange Commission (SEC) to launch an investigation in April 2004. The company continued to plunge and deteriorate. In January 2009, Nortel filed Chapter 11 bankruptcy protection in the United States, and Companies' Creditors Arrangement Act (CCAA) in Canada. The rise of Nortel was due to innovation and timing. In July 2000, at the height of its success, with a market capitalization in excess of $350 billion Canadian dollars, Nortel accounted for 37 percent of the Toronto Stock Exchange Composite Index Value (Collins, 2012). This fast...
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...Our case study discusses the rise and fall of one of the largest telecommunications corporations in the world, Nortel Networks Corporation. Nortel was one of the many early 21st century telecommunications companies that failed due to upper echelon management, a dysfunctional board of directors, inflated costs and earnings, and a smoke and mirrors illusion of stability. There were many avenues that could have been taken that would have prevented the demise and fall of the organization, but those roads were not traveled. Many argue that government intervention could have prevented the backlash and whitewater effect of Nortel’s bankruptcy, but due to corporate ties within the government and the Securities and Exchange Commission the many CEO’s continued to elude the government auditors and the stakeholders. From an ethical perspective, there were several factors that contributed to the rise and fall of Nortel. The initial CEO and founder of Nortel, John Roth, demonstrated altruistic behavior because he did want the company to profit, the investors to profit, as well as their primary stackholders. Nortel’s fall from grace came swiftly and on many fronts. Its market capitalization climbed to an all-time high of $398 billion in September 2000. Two years later, in August 2002, the amount had plunged to just $5 billion (Collins, 2011, pg. 536). In 2000, Nortel was Canada’s largest producing company and employed 93,000 people worldwide. Their research and development team was renowned...
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...storage units. The Pontiac factory manufactures the customized plastic parts. China plant manufactures the plastic fan parts. The company’s Research and Development is carried out at the corporation head office in San Jose. The main clients are automobile parts producers, aircraft manufacturers, the Department of Defense, beverage producers and bottlers, and appliance producers (UOPX, 2004). Current Systems Each factory is currently using various telecommunication systems. The head office in San Jose has 35 IP telephones. Additionally they use a VOIP/Data router; two 24 port switches Cisco 5950, 24 Port Hub Linksys EF2H24, Ethernet 100 base T as well as a WIN network Server. The Albany factory using a Kentrox Datasmart 658 CSU/DSU links to the head office. They are also using a Cisco Router 1750, two 24 port 100 Mbps Nortel Baystack 45024T Enet Switch, as well as a 48 port Patch Panels which links the 20 Compaq Presario computer systems. The Pontiac factory links to head office using a Blackblox CSU/DSU V35 Mt 100A-35 R2. The router is a Cisco 2500. The factory has in use...
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...Riordan Manufacturing now has a few different locations; Albany, Georgia; Pontiac, Michigan; Hangzhou, China and the corporate office in San Jose (Riordan Manufacturing, 2003-2006). Riordan Manufacturing would like a more sophisticated, state-of-the art, information system to help benefit the Human Resources department. Our goal is to analyze the HR system to integrate the existing variety of tools in use today into a single integrated application. The current Human Resource system does not function the way the company needs it to. When Riordan Manufacturing expanded the company to more locations, they tried to do their due diligence to acquire the proper items they would need to function. These items include, but are not limited to, network infrastructure, operating systems, hardware and software. The current situation they are facing affects Riordan’s Human Resource System. The current set up is as follows: San Jose is licensed for a fully integrated Windows based ERP manufacturing, distribution and financial management software application; however, this license does not include application source code. Michigan purchased a vendor developed software application and the attendant source code for their F & A and process application yet, the vendor is no longer in business. This application runs on a pair of DEC Alphas, using the VMS operating system, VAX4000 work stations and programmed in C. Georgia has a different vendor than Michigan. Riordan’s systems run on a pair of AS400’s...
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...J’nan Broadcasting Student: Assignment: Case Study Professor: Spring Semester 2014 Ji’nan is a broadcasting corporation. The company supplies the region with broadcasting stations, and obtains three television channels. The content is created in-house, and purchased from government-run networks. In response to competition from foreign companies the government announces that JBC will be privatized. The company was anticipating new growth within the establishment. This growth would provide provincial and national advertising, telephone, and Internet services. They had been granted a lump sum of RMB150 million and their deadline of January 1,2002. The company was anticipating a growth; therefore, Guang laid out a recognition plan. Zhou was promoted to project manager after a year and because he was the only one with both Internet and electrical engineering experience. The project primarily was a data and voice project. It would provide voice and data services to a province without them. They would be providing service to ninety percent of Shandong’s businesses and inhabitants. There was a deadline of January 1, 2002. The strategic issue for the company is the lack of support and knowledge to complete the project. The company didn’t receive approval from the manager director. Foremost the company should have received approval in all of the sectors of the business. By obtaining the approval from all of the employees, the company would have demonstrated responsible behavior...
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...Technology:..........................23 IP Videoconferencing IPCommunications Voice-over-IP is changing the way we think of,and manage,communications. Compliments of Computerworld Executive Bulletin IP Communications 2 Converged IP networks allow for a wide variety of new applications to ride on the network and interact, including IP telephony,audioconfer- encing,videoconferencing,unified messaging and presence technolo- gies (like chat). Getting Started Corporate America is just starting down the road to voice-over-IP (VoIP)communications,though every analyst says it¡¯s just a matter of time before it becomes main- stream.¡°By 2009,the installed base of IP [communications]equipment will dominate the enterprise land- scape,but that¡¯s still a few years away,¡±says Robert Rosenberg,presi- dent of Insight Research Corp.in Boonton,N.J. There are several reasons why VoIP hasn¡¯t been an overnight suc- cess.Companies started testing the waters of VoIP in 2001,but there were serious concerns about voice sound quality that slowed the mo- mentum (those concerns have been largely resolved).Moreover,one of the key reasons for implementing VoIP was to reduce the long-distance charges associated with the tradi- tional phone networks,yet those charges have dropped so low that those cost savings are less dramatic. The cost...
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...Reseller” (VAR) was the most successful indirect sales channel strategy at that time. In later 1990s, Cisco had ever been the world’s most valuable company, its market capitalization exceeded $500 billion in 2000, and sales reached $18 billion. With the telecom and dot-com crash in 2001, Cisco’s business was hugely affected; $1 billion loss was reported in 2001. The shrunken market made Cisco’s management completely review and revamp its go-to market strategy. Market and Products: Cisco’s major products are switches and routers. A switch is used to connect workstations within a local-area network (LAN). The switch directs data only to the destination for which it is intended, and increases the efficiency of networks by reducing traffic and the number of “collisions” of data headed in opposite directions. Routers are the devices that connect networks to other networks in a wide-area network (WAN). Switches and routers are classified along a layer 1 to layer 7 continuums in technical point of view. Cisco competes on layer 2 onwards in the switches and routers market. With the explosion of the Internet in 1990s, Cisco achieved great success in the high tech industry, from basic...
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...WFL: Strategic IT Implications Stephan Fenty D03246578 Spring Semester A 2011 Section S The Information Technology (IT) landscape changes at a rapid pace. For businesses, both public and private, this can have a vast impact and can affect whether a company has a sufficient IT business strategy in place to compete, and even survive. The many versions of Moore’s Law that have developed over the years teach us that the speed of technology will double, while the price will be cut by one-half, every 18 months. This rapid pace has forced companies to re-evaluate their IT infrastructure and their related business processes much more often and to look for ways to do things better, faster and cheaper. Reducing costs while increasing revenues is vital in business today and Government agencies are no exception to this rule. With Federal deficit out of control the Government has been forced to limit budgets for its agencies and to put in place accountability measures. The Company we will analyze in this paper is a Federal agency called the Western Federal Lands Highway Division (WFL), a child agency of the Federal Highway Administration. We will look at a number of technologies with the potential of reducing business costs while increasing productivity, and which may result in a flattening of the organization hierarchy. Forefront in all this is Telecommuting and its related technologies such as Teleconferencing, VPN, VoIP, and Cloud Computing. We will also analyze...
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...CA Technologies Cloud Confrontation Cloud computing has been talked about so heavily the last few years it almost made you believe that 100% adoption would happen almost immediately. What is somewhat amusing is that using services in the cloud isn’t really as new as some people believe. Many consumers and business folks are now just being made aware that they are using cloud services. Also raising awareness is the fact that today’s network speeds are facilitating the possibility of widespread cloud adoption by consumers and businesses when before it was not possible. CA Technologies found itself in a position that many IT shops and vendors have struggled with over the past few years. Deciding between trying to keep intact what you had worked so hard to build and introducing a quantum shift in your IT business model was quite the conundrum. CA had a profitable balance sheet built on thirty plus years of accrued knowledge and experience. However, their management was savvy enough to realize that they couldn’t rest on their laurels. They identified that they had to position themselves for the move to cloud computing or possibly get left behind by competitors and the industry. CA did react quickly by acquiring companies to enhance their cloud portfolio offerings. While some may have viewed this as a reactionary move by the company, I believe their strong leadership did so based on facts and a new company strategy. In the years prior to the cloud acquisitions, CA had...
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...WFL: Strategic IT Implications Managerial Applications of Information Technology IS535 Professor Martin Ramsey October 10, 2010 The Information Technology (IT) landscape changes at a rapid pace. For businesses, both public and private, this can have a vast impact and can affect whether a company has a sufficient IT business strategy in place to compete, and even survive. The many versions of Moore’s Law that have developed over the years teach us that the speed of technology will double, while the price will be cut by one-half, every 18 months. This rapid pace has forced companies to re-evaluate their IT infrastructure and their related business processes much more often and to look for ways to do things better, faster and cheaper. Reducing costs while increasing revenues is vital in business today and Government agencies are no exception to this rule. With the Federal deficit out of control the Government has been forced to limit budgets for its agencies and to put in place accountability measures. The company I will analyze in this paper is a Federal agency called the Western Federal Lands Highway Division (WFL), a child agency of the Federal Highway Administration. I will look at a number of technologies with the potential of reducing business costs while increasing productivity, and which may result in a flattening of the organization hierarchy. Forefront in all this is Telecommuting and its related technologies such as Teleconferencing...
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...Operating Systems most favored by fortune 500 companies are Windows, Red Hat Linux and AIX. Operating Systems perform basic task that supports the use of input, the printers, drivers, keyboard and the display screen. The operating systems support different programs and users running on it at the same time. It also supports the security and user abilities. Operating systems provide software platforms on top of applications, like Java, Visual Basic etc. These applications have to be written to run operating systems. There are several choices of operating systems DOS, OS/2, Windows, AIX, and Linux. The two main operating systems are Windows and Linux/Unix. “And they have a competitive history and future” (Haas). Before we get into the technicalities of either operating system, let’s examine the environment that these two systems evolved from, or the culture from whence they came, if you will. “Corporate culture pertains to the identity and personality of the company we work with, either in the private or public sectors. All companies have a culture; a way they behave and operate. They may be organized and disciplined or chaotic and unstructured. Either way, this is the culture the company has elected to adopt” Brice, (2012). “Microsoft may appear to some people as a company without culture, but that impression changes upon entering the Sigma Building, which houses Microsoft Research Asia. Chatting with the great minds at Microsoft Research Asia, one is reminded...
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