CAPSTONE CASE STUDY ON ORGANIZATIONAL ARCHITECTURE: ARTHUR ANDERSEN LLP 1. Discuss the environmental, strategic and organizational changes that occurred over the life of Andersen in the context of Figure 11.1. Architectural design of firm may vary among companies. There are most common categories are business environment, strategy, and organizational architecture. Business environment of Andersen includes technology that was used effectively; structure of its markets, regulations which helped
Words: 2128 - Pages: 9
Enron Corporation Overview: The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was attributed as the biggest audit failure. Issue: Enron, once the countries seventh-largest
Words: 323 - Pages: 2
Olympus cameras began business in 1919 as Takachiho Seisakusho, a thermometer and microscope manufacturing company in Tokyo. It was renamed Takachiho Optical Co. in 1942 and later Olympus Optical Co in 1949, taking its name from its trademark logo, and reflecting the fact that optical products had become the core of company. Today, Olympus’ key business segments include medical imaging equipment, consumer electronics, industrial imaging equipment and scientific devices, including microscopes. Olympus’
Words: 860 - Pages: 4
The general attitude I feel is that of mistrust, and underutilization of benefits due to the wealth of information. The type of attitude is determined by economic needs, education on the benefits and the history of the employee relationship with previous companies. If something sounds too good to be true more often than not, it is .The economy has left a lot of people more cautious with their money and investments especially after the ENRON scandal. Every day we see an employee paying into benefits
Words: 323 - Pages: 2
lose trust in the business leaders. Many cases of accounting fraud were reported in the year 2002. The public policy had no significant changes implemented even though such unethical practices had been taking place. The public was not aware of what had been happening in their financial and other corporate institution because the cases were well hidden and these dirty games were well played. The case of Enron was an eye opener to the public. The case brought to attention the issue of the regulation
Words: 438 - Pages: 2
to the Securities and Exchange Commission, the free fall began for Enron. The shares dropped from 90$ to 1$, the company was in bankruptcy, and was brought before a court. Many members of the Board were found guilty and punished and the Audit firm Andersen which tried to cover Enron was dissolute. All in all, that scandal triggered new ideas of regulation systems which would try to make the situation of firms more transparent and avoid creative and cheating accounting systems. However opacity remained
Words: 365 - Pages: 2
Scandals Ethics in accounting has been highlighted by the reports of several high profile accounting scandals over the years, such as WorldCom, Phar-Mar, AIG and Enron. The Enron scandal resulted in both the energy giant and their auditor, Arthur Andersen to collapse.[3] This is a classic example of what Gregg Easterbrook describes as “an ethic of service is at war with a craving for gain”.[4] This means that ethics is competing against greed as there is more bribery and
Words: 587 - Pages: 3
responsibilities impacted Arthur Andersen’s management planning. Arthur Andersen, LLP In 1913, Arthur Andersen and Clarence De Lany, accounting professors at Northwestern University, formed Andersen, DeLany & Co. A few years later, DeLany left the company; therefore the company’s name changed to Arthur Andersen. During Andersen’s control, the company’s mission statement focused on building a solid corporate culture among all Andersen employees. In 1947, after Arthur Andersen’s death, the company almost
Words: 1240 - Pages: 5
Enron the Fallen Tiffany Califf Professor: Karina Arzumanova LEG100014VA016-1116-001Business Law I July 24, 2011 Describe how Enron could have been structured differently to avoid such activities. Enron’s leaders had the work ethic of only fighting for themselves and if others got hurt it was no big deal hurting. Enron had that it’s a dog-eat-dog thinking. This type of thinking would, in the end, be the demise of Enron. Enron focused on short-term gains. The accounting tactics of Enron
Words: 1052 - Pages: 5
Synopsis: Hiring for Mr. Arthur Andersen is real a big mistake to the company due to his misconduct about preparing financial statements. Mr. Keneth lay as the head did not check all the papers he was signing due to its trust to Mr. Anderson. And because of that, the latter got that opportunity to falcificate documents and other malicious work with the financial statements. Due to their increasing dept., company even hides the true result of financial statements to portray it was favorable. They’re
Words: 341 - Pages: 2
