Tuesday, April 17, 2012

Chapter 1 - Case Study 1: Computer Assoicates: A Firm with Scandal-Riddled Past

by: Elvin Uy (986)



1. CA executives involved in the accounting scandal were not accused of reporting bogus contracts or hiding major problems in the business. The contracts that were backdated were real sales agreements. Was this really a crime? Should the individuals have been punished so harshly?

Based on the acts that CA executives involved it is definitely a crime, it was started if Honeycutt will not take the    offer that is given and the Computer Associates executives will be harm CSC and for all reason it was proven guilty. Being involved in this offense it is indeed to do punishment for all individuals that was been involved in this crime.


2. In December 2004, CA appointed Patrick J. Gnazzo as senior chief compliance officer to demonstrate to the government and shareholders that the firm would take measures to operate ethically. Gnazzo served in this role at United Technologies for 10 years and had been a member of the board of directors of the Ethics Officers Association. Gnazzo reported to a new executive vice president and general counsel at CA as well as the board’s Compliance Committee. Outline some of the actions Gnazzo might have taken in his first six months on the job.

Patrick J. Gnazzo were appointed as senior chief compliance officer during his first six months of work, he must be a good example as a worker for their company as being in a right way of an ethical procedures that must company wanted. Gnazzo checks CA’s performance also government and shareholders which ended to do lot of actions in his jobs.


3. John Swainson, a 26-year veteran of IBM, joined CA in November 2004 as CEO and president. His first few months with the firm were rough—major customers threatened to dump the firm; some products were behind schedule and were of poor quality; executives had to be fired for breaking company rules; accountants continued to find past mistakes; and many newly hired executives had to be brought on board. What sort of leadership could he have demonstrated to show that he was determined to avoid future scandals at CA?

Swainson must charged his advocacy to the company as a CEO and president he must protect the CA to avoid another mistakes and future scandals and demonstrate as a leadership for the company like way back when CA’s was in a right govern.


4. CA has been hit with numerous scandals since the late 1990s. These scandals raise questions about how successful the firm might have been if not for the amount of time its executives had to spend on these distractions. Compare the revenue growth and stock price of CA to that of some of its competitors over the time period 2004–2008. (Be sure to use CA’s
corrected figures!) Can you detect any impact of these scandals on CA’s performance? What else might explain the difference in performance?

As being mention based on the previous question, there is a huge impact of the scandals that CA’s been involved, it will affect the numerous problems of the company encountered, these sort of situation will might be the cause of the company for being closed permanently, by this situations those executives of the board might explain every scenario that has been performed in regards to the company matter.







2. Dell Inc. Merely Tough on Suppliers or a Bully?

1. Identify at least two other companies that mange their suppliers in a manner similar to Dell computers. do these companies have anything in common with Dell?

I think the Avon and Herballife companies similar to Dell because they are also selling products directly to the customers.


2. Can you Identify any disadvantages for dell in taking the approach to managing suppliers?

·         Have to pay supplier first before getting paid from customers,Need to hold the inventory at each step in value chain,Stuck with excess inventories of slow selling products and Caught with short supplies of hot products- lost sales.


3. Do you think that this approach to managing suppliers is unethical, or is it acceptable and ethical? explain your reasoning.


Yes it is an ethical because they only want to do business to the people, Dell company emphasis on direct sales and as a rule they committed they do not allow returns on orders from re-sellers of provide price protection on market prices and also offered for the re-sellers to have their incentive promotions up to 20 percent discount from the advertised prices.



4. Would you recommend any changes to the way Dell manages suppliers? Defend your position.


I’ll better recommend for more understanding to their suppliers, dealers, workers and customers for much improvement of their company.  







3. Is There a Place for Ethics In IT?

1. Discuss how a CIO might handle Schrage's Scenarios using the suggested process for ethical decision making presented in this chapter.

CIO might handle schrage’s scenacios by handling them how to make and suggest right decisions making ethically. It is a good example for every employees to do oriented in part of their ethics when providing each decisions, by the regards to the business to be develop and sustain the parallel process of meeting the standards of the company.






2. Discuss the possible short-term losses and long-term gains in implementing ethical solutions for each of Schrage's scenarios.

In having the short-term losses failed the standards of quality that the company have. This may cause in a serious part of most common company problems have this may loss a part of the profit and a part of ethically issues encountered, but if the worst scenario might be change, then this will be the part of a business will be grow much respect to the ethical values of the people involved and it will gain much for the company profit.



3. Must businesses choose between good ethics and financial benefits? explain your answer using Schrage's scenarios as example.

By choosing this between good ethics and financial benefits make help to evolve every trials that may have in having a good ethics which help as what you have and financial benefits as help towards you up.
This two part of example will manage every characteristic of certain business individuals have. 

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