...Xerox's Dilemma Oldair J. Silva, Anthony Chavez, Steven Garcia, Marybelle Apuan 351/RES April 23, 2015 Victor Ornelas Xerox's Dilemma Xerox has long been known for the copiers and printers they manufacture, but in recent years they have branched out to other endeavors. One such endeavor is call centers. The call center located in El Paso, Texas has a contract with COX Communications. They handle billing, technical, and retention calls for the cable, Internet, and phone provider. The call centers are normally a lucrative operation for Xerox. Under certain conditions though, Xerox can lose money in the call centers. The biggest revenue killer is overstaffing. “Whatever the purpose of research, a problem must exist in order to justify an investigation of the phenomena within the environment” (Trewatha & Holliday, 2015). Xerox’s loss of revenue due to overstaffing is a substantial issue that merits research to find a solution. To understand how Xerox loses money in overstaffing situations, we must first discuss how Cox Communications pays Xerox and how Xerox pays its call agents. Xerox pays their agents whenever they are logged into their phones, whether they are actually on a call or just waiting for a call to come in. Arden Pease, an operations manager at Xerox, mentioned “Cox Communications only pays Xerox when an agent is actually on a call. So when an agent is on a call, COX pays Xerox and Xerox pays the agent. When an agent is not on a call Xerox is paying the agent...
Words: 822 - Pages: 4
...Xerox’s Comeback Kim Luttman Bus 390 Instructor Suzanna Chavez National College November 01, 2009 Abstract Big business for years has been for the most part a man’s world. While women may have been part of the organization, the power, responsibility and leadership mainly rested in the hand of men. As for Xerox a multi-million dollar business, they were no different. A company that was founded in 1906 had several men at the helm, running a top notch company. As the years passed, profits soared and held that position for some time. Xerox was a great company, yet it gradually started to lose their momentum. As the profits turned into losses, the only thing growing was their debt. Xerox stepped out of 1990’s and into the 2000’s placed Anne Mulcahy (the first woman CEO of the once multi-million dollar company Xerox) into the struggling, over extended and drowning position of CEO. Xerox was now in the hands of a very capable woman. Mulcahy now known as a very powerful player in the business world has become one of the top leaders not only in Xerox but in America. The leadership of Mulcahy turned Xerox around and restored not only to the great company it was but only better. The powerful leadership of Mulcahy has set the precedence for yet another woman to take her place in the Xerox family. Ursala Burns has taken over the CEO position where Mulcahy ended with high expectations to continue, only to propel the Company farther into the future. A company was founded...
Words: 2250 - Pages: 9
...Xerox Corp, Case 4.5 1. Comparing HP’s products to Xerox’s, one can observe that HP offered a wide variety and range of products whereas Xerox provided more depth with regards to print and copy merchandise. While comparing financial ratios of the two companies for the year 2000, the following ratios clearly stood out: HP had a return on equity of 0.23, while Xerox’s return on equity was -.09. A negative return on equity would be extremely alarming. HP’s profit margin was .08 while Xerox’s was -.02; another alarming figure. Although the books made it seem like Xerox had more financial leverage and a better current ratio, the case explained why that was not the case after all, considering the flaw in Xerox’s financials. Another important factor to consider is that HP was reporting positive cash flow, while Xerox was not. The difference in reported earnings versus cash flow should have also raised a major red flag as far as Xerox’s financials. 3. Incentives: * Maintain high stock price. * The business environment was changing faster than Xerox could keep up. They needed to make it seem like they were keeping up just fine. * Overseas competition was getting stiffer and Xerox again was unable to keep up. Opportunities: * Leases may be a rather complex subject and may also be subject to differing estimates. This presented a loophole for Xerox. * Even though KPMG may have been uncomfortable with Xerox’s doings, Xerox was able to pressure KPMG to allow them to...
Words: 602 - Pages: 3
...results and results reported to the investing public from 1997 through 2000. The fraudulent scheme allowed Xerox to claim it met performance expectations of Wall Street analysts, to mislead investors and, consequently, to boost the company's stock price. The KPMG defendants were not the watch dogs on behalf of shareholders and the public that the securities laws and the rules of the auditing profession required them to be. Instead of putting a stop to Xerox's fraudulent conduct, the KPMG defendants themselves engaged in fraud by falsely representing to the public that they had applied professional auditing standards to their review of Xerox's accounting, that Xerox's financial reporting was consistent with Generally Accepted Accounting Principles ("GAAP") and that Xerox's reported results fairly represented the financial condition of the company. There was no watchdog at Xerox. KPMG's bark sounded no warning to investors; its bite was toothless.2. KPMG's foreign affiliates in Europe, Brazil, Canada and Japan, and even KPMG auditors at Xerox's U.S....
Words: 17525 - Pages: 71
...consumer provider for laser printers, copiers, and publishing documents. The increased trends of documental technology via digital media has affected the business overall. A SWOT analyses conducted in 2012, identified strengths, weaknesses, opportunities, and threats for the company in this increasing digital era. Strategic and operational plans will be discussed to reach two goals. SWOT Analysis In 2012, Xerox Corporation conducted a SWOT Analysis determining these results. Xerox’s strengths included their document technology situation in the current market in the area of multifunctional peripherals, transforming their business model into services for the business, and possessing a solid cash flow and annuity model. Xerox’s weaknesses included decrease of application in the technological area. Xerox’s opportunities included an increase in printing production, making their presence known in SMB segments, and offering services to produce an increase in mobility, cloud, and analytics. And Xerox’s threats included increased trends in technological advances in digital documents, economic interferences from businesses, and new competitors in the business (Xerox Corporation SWOT Analysis, 2012). Strategic Goal and Plan Strategic planning assists the company to choose the general direction to move toward and addresses the financial, managerial, and physical resources over an allotted time (Anderson, 2001). A strategic goal for Xerox to increase their presence in the technological...
Words: 763 - Pages: 4
...PLEASE REVIEW THIS ARTICLE BASED ON EMBEDDED COMMENTS/QUESTIONS. Harvard Business Review January 1987 / February 1987 How to Measure Yourself Against the Best Frances Gaither Tucker; Seymour M Zivan; Robert C Camp ABSTRACT: The Logistics and Distribution unit of Xerox's Business Systems Group was gaining 3% to 5% a year in productivity not good enough in light of industrywide price cuts in business machines. One solution, benchmarking, measures L&D's warehouse and distribution performance against comparable activities in other industries. Comparing oneself with competitors (as well as with internal units) is useful, but doesn't necessarily get the benefit of the best practice, not to mention the benefit of cooperation. Benchmarking against non-competitors is the answer. After a search, L&D found the best warehousing and materials handling organization was at L.L. Bean, the outdoor-clothing retailer and mail-order house. With Bean's cooperation, L&D benchmarked its operation against the best and learned a lot. By looking closely at the operation of Bean and other noncompetitors, L&D has raised its productivity 10% each year and gained a better position against its real competition. BODY: One way to judge the performance of an organization is, of course, to compare it with other units within the company. But these measurements often merely reinforce complacency or generate "not invented...
Words: 1952 - Pages: 8
...Jonathan Temporal UNSW ASB Student number 3413771 Xerox’s actions are reminiscent of ethical relativism. As derived from Donaldson’s (1996) article, ethical relativism holds that no single code of ethics is superior than others, and so there is no absolute right and wrong (Donaldson, 1996). Ethical absolutism holds that regardless of one’s location or environment, there is only one correct set of ethical principles (Donaldson, 1996). As a business, Xerox’s main concern is making a profit. As long as it profits, it doesn’t see anything unethical in selling machines with capabilities greater than what customers actually need. Even if Xerox did see this as not being completely ethical, it compensates for this by doing a good deed – donating a percentage of its profits to charity. Hence, Xerox’s standards of what is ethical behaviour is very flexible and changes depending on its other actions. Donaldson (1996, p. 7) enumerates three core values that define “minimum ethical standards for all companies”. Evaluated against these core values, I believe Xerox’s actions are not unethical. These actions do not physically harm the customers, nor do they deny them of basic human values (Donaldson 1996). For every sale made, Xerox donates to charity. To me, this reciprocity satisfies the “Golden Rule” (Donaldson 1996, p. 7). Finally, Xerox did not force or deceive customers into buying their more expensive machines. Xerox can be said to have encouraged customers to “up-size”...
Words: 259 - Pages: 2
...About Xerox Xerox is an American multinational document management corporation founded in 1906. Besides being the largest supplier of toner based photocopier machine and associated supplies, Xerox’s researchers and its Palo Alto Research center invented several important elements of personal computing which was eventually shared with Apple and IBM. The company was listed on New York Stock Exchange in 1961 and on the Chicago Stock Exchange in 1990. Assessing unethical practices and poor internal control On April 11, 2002, the Securities and Exchange Commission (SEC) filed a complaint against Xerox that between 1997 and 2000 Xerox deceived the public by employing several accounting maneuvers, the most significant of which was failed to compliant with US GAAP by recognizing equipment rentals or leases as sales revenue which improperly classified over $6 billion in revenue, leading to an overstatement of earnings by $1.4 billion over four years. SEC also alleged that Xerox’s senior management was aware of, either by directing or approving, the accounting actions that were taken for the purpose to meet revenue and profit goals. KPMG, Xerox’s auditor, silenced the accounting fraud in order to keep the relationship with Xerox that had lasted for nearly 40 years and to protect the $82 million in audit and non-audit fees . Settle of this corporate scandal caused six former top officials of Xerox more than $22 million. However, Xerox reimbursed the executives for all but $3 million...
Words: 387 - Pages: 2
...only from the traditional competitors such as Canon and HP, but also from the new entrant of information technology such as portable document format (PDF). The developing in IT is the major negative impact of the whole copier industry. In today’s business world, most of the companies seeking a low-cost strategy in order to increase companies’ profit. The digital document requires less paper that can lower the cost in paper. Also the PDF document is easier to store compare to the traditional way that using folder to store paper document. PDF can send by email, and people can view PDF documents on the screen. The traditional copier no longer a necessary office equipment in today’s business world. According to the Porter’s competitive model. Xerox’s network rivals: Canon and HP are facing the new challenger (new entrant) PDF. PDF also the substitute product and service, which impact the whole copier industry. The bargaining power of buyers is rising. Xerox has several response activities in this matter. The company started to focus on business service market since 2003. Today’s Xerox becomes the world’s leading enterprise for business process and document management company. The company provides Business Process Outsourcing (BPO), Information Technology...
Words: 602 - Pages: 3
...how organizational profits can be sheltered it will make top organizational leaders think twice about not following laws and rules that are set before them. A basic awareness of what is expected of leaders will motivate them to implement programs and policies that will demonstrate that the organization has a strong working relationship in place to protect workers. Discuss how hiring women and minorities improved Xerox’s profitability. The CEO of Xerox David Kearns knew that hiring women and minorities would allow Xerox to select from a larger labor pool; this would allow Xerox to be in an improved position to beat out the competition. Being in a better position to compete increased Xerox’s profitability and gave employees something to strive for. Xerox also received large government contracts because of their plans to hire women and minorities. Another reason for Xerox’s profit increase is the fact that, because women and minorities found Xerox to be a friendly, family, and fun place to work the retention rate is very low. There is evidence to suggest that Xerox’s hiring of women and minorities contributed to increased staff retention and productivity. Identify the changes that Xerox made to become a more attractive employer for women and minorities. Xerox started allowing workers to take work home so that they could have...
Words: 763 - Pages: 4
...Xerox Corporation was founded in 1906 in Rochester, New York. Xerox manufactures and sells a wide range of color and black-and-white printers, multifunction systems, photo copiers, digital production printing presses, and related consulting services and supplies. Xerox is headquartered in Norwalk, Connecticut. Barry D. Romeril, Xerox’s chief financial officer (CFO) and Paul Allaire, Xerox’s chairman and corporate executive officer (CEO) were leading Xerox through a difficult period in the late 1990’s. During this time Xerox was faced with tough competition from foreign markets while losing a large portion of their small copier business to desktop printers. During this period, Xerox also lost millions of dollars on their diversification effort into insurance and financial services. In spite of that, Mr. Allaire and Mr. Romeril continued to keep Xerox’s stock prices and earnings high. By the mid-1990s Xerox management had decided they were going to have their accountants come up with creative accounting if they were going to continue to show the Wall Street and their stockholders that they were still able to meet their earnings expectations (SEC Release No. 18174, 2003). Xerox revealed in 2002 that over the last five years prior to 2002 it had improperly classified over $6 billion in revenue which led to an overstatement of earnings by $2 billion. The Securities and Exchange Commission (SEC) was investigating Xerox and it charged the company with accounting manipulations...
Words: 1382 - Pages: 6
...Xerox: Adapting to the Turbulent Marketing Environment Q1 & Q2.) What microenvironmental/macroenvironmental factors have affected Xerox’s performance since the late 1990s? For many decades after its inception Xerox as a company faithfully understood its own identity, and was highly successful in the photocopying industry that it created. Around the late 1990’s a shift in the industry began to occur, as business transitioned away from the need for exclusively physical copies of documents, moving many of these files into digital databases. The internal culture of Xerox did not entirely comprehend the implications of these changes as they began to occur and subsequently did not adapt to meet their clients new needs fast enough. The resulting aftermath was that Xerox’s market capitalization fell dramatically, from an exceedingly valuable business just a few years earlier, to the point where the business was on the brink of bankruptcy. To combat the rapid decline of profitability, the internal environment of the company needed restructuring, and the focus of the entire organization was required to change. The workforce was nearly halved to 55,000 people resulting in a return to profitability within a reasonable timeframe, and concurrently a new direction was identified. Xerox acknowledged the needs of their customers in adopting their new document management and services focus, much of this approach involved delivering more value to their customers by reducing the cost of consolidating...
Words: 938 - Pages: 4
...phrase was part of the language of business, to promote a health environment. Xerox's rich heritage is based on customer-focused and employee-centered values that help deliver profitability and growth. Because of their commitment to customer-focused it has cause a diversity of culture to sustain the greater good of the company. The company does not look at the person it looks at what the person has to offer is why the company has thrives. Company Overview The company was established in 1906 as a photographic paper and related equipment company under the name The Haloid Photographic Company. In 1958, the company changed its name to Haloid Xenon and later to Xerox in 1961 (Hoover's, 2013). Joseph C. Wilson communicated a set of core values in 1960, less than a year after he launched the modern-day Xerox that focused on customers, our people, excellence, innovation and, behaving responsibly as a corporate citizen. Xenon was derived from xerography, which refers to the technology of dry printing. Through the world's leading technology and, services in business process and document management, Xerox is at the heart of enterprises small to large, giving their clients the freedom to focus on what matters most: the clients’ real business. According to Hoover's (2013), Xerox has grown from just a document company to both an information technology and document outsourcing company. Xerox's Organizational Culture Xerox has embraced the culture of diversity, opportunity...
Words: 1126 - Pages: 5
...Ursula M. Burns isn't one to savor victory—even if it's being the first African American woman to lead a major U.S. corporation and the first female CEO to take the reins from another woman. Within days of being named chief executive of Xerox (XRX) she was on a plane to Europe. The mission: a 30-day tour to meet with staff outside the U.S., where Xerox has almost half its sales, and discuss ways to get customers buying again. "I think the celebration of her announcement ended about 60 seconds after the e-mail went out," says Clarke Murphy, a recruiter at Russell Reynolds. Burns, 50, has a war to fight. Xerox, a brand so synonymous with copying that its name long ago became a verb, faces a brutal business outlook. Customers are buying less equipment. Prices keep dropping. Managers are curbing paper use for cost-saving and environmental reasons. While departing CEO Anne M. Mulcahy, 56, pulled the $17.6 billion-a-year copier giant from the brink of bankruptcy and restored profitability, her successor has much to do. Burns will find herself battling competitors with stronger balance sheets and more heft as the industry consolidates. The Norwalk (Conn.) company's sales dropped 18% in the first quarter, to $3.6 billion, producing a profit of only $49 million. The stock, trading at more than 14 a share in September, is now less than half that. And yet expectations are high as Burns ascends to the CEO post. Executives inside and outside the company speak of her deep industry knowledge...
Words: 2131 - Pages: 9
...commercial printer hardware, supplies, media, scanning device, software and services; and LaserJet, inkjet and printing, graphics, software and web services. Compare with HP’s wide range of product selections, Xerox offers more in-depth products in copying and printing area. Horizontal analysis is the comparison of historical financial data or financial ratios over a series of reporting periods. A horizontal analysis was conducted for Xerox and HP for the period of 1997 to 2000. Some noticeable differences were found in comparison of the two companies’ results. First, Xerox’s revenue decreased while HP’s revenue increased dramatically over the four years. Xerox was having difficulties in adapting to the competition driven by rapid technological advances. Second, due to the net losses and dramatic changes in net income, Xerox had negative cash flow from operating activities for the year 1998 and 2000. Third, Xerox‘s cash account increased at an abnormal rate due to huge amount of debt borrowing and sale of account receivables. A basic ratio...
Words: 1168 - Pages: 5
