grew primarily through an aggressive merger and acquisition growth strategy. In 1997 WorldCom had emerged within the telecom industry and caught the eye of many on Wall Street when it issued a bid to acquire the much larger and better-known company, MCI. While WorldCom’s growth skyrocketed throughout the 1990s, the telecom market was saturated by 2001 and WorldCom’s earnings began to fall. WorldCom executives began to feel tremendous pressure to maintain their stellar track record of financial performance
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storm when it began a frenzy of acquisitions in the 1990s. The low margins that the industry was accustomed to weren't enough for Bernie Ebbers, CEO of WorldCom. From 1995 until 2000, WorldCom purchased over sixty other telecom firms. In 1997 it bought MCI for $37 billion. WorldCom moved into Internet and data communications, handling 50 percent of all United States Internet traffic and 50 percent of all e-mails worldwide. By 2001, WorldCom owned one-third of all data cables in the United States. In addition
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Running head: Socio-Geographic Factors. Socio-Geographic Factors University of Phoenix Socio-Geographic Factors Companies face many factors that affect the ways management can operate the business. In the United States companies are becoming global and facing challenges of attracting and retaining employees. This paper entails Verizon Communications’ policies and procedures that the company uses to address new and old issues that management faces. In today’s society many people come
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thousand dollars. (WorldCom, 2010) By 1994 the long distance service revenues reached $2.2 billion and the company’s name was then changed in 1995 to WorldCom to reflect its growing global business. Then in 1998 WorldCom completed a takeover of MCI so it became MCI WorldCom. The company was doing so good but then hit rock bottom for Bernie Ebbers when he had to resign in 2001 due to loan scandal. (WorldCom, 2010) Now that I explained a little about the company I would like to get into evaluating the planning
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WorldCom WorldCom was a telecommunications giant that failed and was forced into bankruptcy. WorldCom was America’s second-largest long-distance telephone company and was the largest mover of internet traffic. The company started as a small-town Mississippi company that behemoth more than sixty acquisitions in the span of fifteen years (Trans). WorldCom managed to commit the largest accounting FRAUD in history. Bernard Ebbers, WorldCom’s CEO, 63 years old, was convicted of orchestrating this 11
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Communications that is headquartered in Ashburn, Virginia. The corporation was originally formed as a result of the merger of WorldCom and MCI Communications. For a time, WorldCom was the United States's second largest long distance phone company (after AT&T). WorldCom grew largely by aggressively acquiring other telecommunications companies, most notably MCI Communications. It also owned the Tier 1 ISP UUNET, a major part of the Internet backbone. It was headquartered in Clinton, Mississippi,
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Home Page» Business and Management World Com In: Business and Management World Com 9-104-071 REV: SEPTEMBER 14, 2007 ROBERT S. KAPLAN DAVID KIRON Accounting Fraud at WorldCom WorldCom could not have failed as a result of the actions of a limited number of individuals. Rather, there was a broad breakdown of the system of internal controls, corporate governance and individual responsibility, all of which worked together to create a culture in which few persons took
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WorldCom’s Culture Numerous individuals—most of them in financial and accounting departments, at many levels of the Company and in different locations around the world—became aware in varying degrees of senior management’s misconduct. Had one or more of these individuals come forward earlier and raised their complaints with Human Resources, Internal Audit, the Law and Public Policy Department, Andersen, the Audit Committee, individual Directors and/or federal or state government regulators
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by using the stock of WorldCom. To accomplish this buying spree, the stock had to continually increase in value. "... WorldCom pursued scores of increasingly large acquisitions. The strategy reached its apex with WorldCom's acquisition in 1998 of MCI Communications, a company with more than two-and-a-half times the revenue of WorldCom. Ebbers' acquisition strategy largely came to an end by early 2000 when WorldCom was forced to abandon a proposed merger with Sprint (NYSE: S) because of antitrust
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provided more than just sales for all types of consumers. Even more importantly, with the purchase of MCI, they ushered in a new segment in Verizon Business that would bring even more to the table, shifting orientation toward global markets. The acquisition of MCI also helped with the transitioning culture jumpstarted by the growing wireless market, which was faster in nature than the wireline culture. MCI was entrepreneurial in culture, which helped Verizon adapt to the changing conditions of the business
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