Case Study question

The errand that Eileen and Jack are doing on a different level has set up what is by all accounts an individual relationship with one another. Jack utilizes Eileen more like a collaborator or friend than one of the standard workers. In spite of the fact that Eileen is t a similar level as different laborers she does various undertakings as them. The cooperation among Eileen and Jack is what is making the remainder of the group have a negative assumption towards Jacks administration. They don't consider Jack's to be as fitting or deserving Of their trust.If both Of them keep on isolating themselves from the remainder of the group, it will make different specialists bring down their work execution since they will feel neglected and that their work isn't being taken note. Another difficult that could emerge is that they could report Jack to Human assets and blame him for uncalled for retirement since Eileen is getting downtime and particular treatment. Applying Path-Goal and Attainment- Schmidt Continuum of pioneer conduct Jack needs comprehend he is causing the hatred towards Eileen.He needs to build up each colleague with the style that is best for them. Jack is by all accounts utilizing an Achievement-arranged initiative style with Eileen, and needs the others to simply be progressively similar to her. Trust Jack should be strong in discovering why the other detest Eileen, by doing this he will find that they feel he is giving particular treatment to Eileen. At that point he will have the option to recognize where his group is and change his administration conduct as indicated by the individual member.According to Attainment and Schmidt, Jack ought to be increasingly popularity based in his choices. In the event that he needs the gathering to work like a group, at that point he should be not so much tyrant but rather more popularity based. This could constrain the special treatment given to any worker in the gathering. Jack will have the option to explain the ob jectives that should be accomplished and clarify that Eileen is the best to remain late, or the group will be in understanding another colleague would be better for the assignment.

Management in a Global Business Environment- myassignmenthelp

Question: Talk about theManagement in a Global Business Environment for Ford. Answer: Presentation While starting another business in any nation, it is significant for the administration level specialists to consider all the elements identified with the business and tasks. The correct and precise investigation of the Ground states of any new nation gives an away from of the chances and extensions that can be profited by that organization in that specific nation. Initially, the accompanying examination is about the difficulties that are probably going to be looked by an American Automobile Giant named Ford while starting a business in India. Besides, this examination depicts the various components like political, monetary and Technological elements that can possibly impact the activities of tasks of Ford Company in India. Thirdly it has likewise incorporated the Socio Economic components that has talked about the way of life of Indian individuals in provincial just as urban regions. At last, the proposition explanation of this investigation is to break down and talk about the effects of various variables including Political, Technological, Socio-social and Economic of Indian culture and market on the tasks of Ford. Body Business Expansion in India The Ford Automobile perceives that India is a perfect market for starting another business on account of numerous ideal components. As per Collings (2014), the quickest developing economy on the planet, which is India, is probably going to give an incredible stage to the associations from outside to remain and introduce their business. The compelling components like Political and Economic conditions are agreeable to outside financial specialists in the present situation when contrasted with the conditions that were available prior. Slope, Cronk Wickramasekera (2013) have expressed that the new government in India has expanded the Foreign Direct Investment for Automobile parts in India have been expanded to 89% under the rule of current government. What's more, the development in urbanization and expanding pattern of utilizing private vehicles by individuals can give a decent market to Ford in Indian Markets. Political components Portage has chosen to grow their business on a worldwide field and India is among the numerous universal markets that Ford is intending to enter. Mainela, Puhakka, Servais, (2014) opined that, in India, political components contain a pivotal hazard for a major brand like Ford that works universally. World of politics in India is unpredictable since changes in the Government are all the more frequently. This unstable condition can bring about a monstrous disturbance in the flexibly chain the executives arrangement of Ford just as their conveyance organize. This is an extreme awful impact for a business that is entering another market. According to CPI (Corruption Perception Index) in 2015, among 178 nations India has positioned 87th position in straightforwardness, confronting a downgrade from rank 84. Passage can get a thought regarding the level of debasement pervasive in India from this observation and business investigator of Ford can suggest the figuring of a proper business methodology that is should have been trailed by Ford to make due in such fierce and corruptive world of politics (blog.euromonitor.com, 2017). It has been recognized that a thorough and helpful arrangement of tax collection common in a nation advances exponential development in neighborhood, rising just as worldwide business. As upheld by OECD (2017), viable and on time execution of Goods and Services Tax (GST) in India, have helped the ventures, intensity just as huge development in economy. In any case, as referenced by Sarasvathy et al. (2014), pace of corporate annual assessment are being diminished by the Government that can hamper the infrastructural necessities. Every one of these elements identified with charge framework pervasive in India can are considered by Ford before enter the Indian market to change their business arrangements according to the tax collection rules. Legislature of India has as of late centered around eco agreeable just as eco-friendly vehicles to be worked in the nation. In this point of view, passage of Ford in the Indian market can be beneficial for the association as they produce vehicles that require less fuel. In this way the organization has an extraordinary open door in picking up help from the common Government that would significantly affect on productivity just as income of the substance. Anyway enactments in India greatly affect the universal business that is working in India. Cheng et al. (2014) referenced that Companies Act, 2013, subjects to arrangements that are identified with acquisitions and mergers, CSR and shareholding of the worldwide business working in India with the nearby and national business elements. Passage should be set up to face such outcomes on entering the Indian market as they worked as a free association in US. What's more, financial strategies that are drawn out by the Indian government brings about progress of macroeconomic structure, supportability, opening up of economy, by and large improved wellbeing result as far as business (Amritt, Inc., 2017). Portage will have the option to recognize the results of their business procedure on breaking down the impact of these approaches. Monetary Factors As far the monetary states of India is concerned, the nation is developing at a gigantic pace of 7.8% which is significantly more noteworthy than the Republic of China that used to be at the top position (Wild, Wild Han, 2014). It very well may be said that the Automobile market of India has likewise been developing fundamentally. The Make in India crusade that was begun by the Indian Prime Minister in 2015 joined by raising the hindrance of Foreign Direct Investment in Automobile area of the country has cleared ways for some organizations to begin their business in India. Nonetheless, Ambos Hkanson (2014) have contended that the gigantic financial development of Indian Society has additionally brought about the development and origin of new Car Companies in India that have figured out how to make a solid hold in the Automobile Sector. This incorporates Tata Automobiles just as Mahindra Auto. It can likewise be said that the swelling rates and Interest rates gave by Indian Banks to the individuals is of essentially monetary worth. According to Glavas Mathews (2014), the present swelling rate and financing costs for vehicle advances gave in India is 1.91% and roughly 9.35% separately. Hence, Ford can present its new forms of family vehicle at less expensive rates to draw in the clients. Besides, the work and vitality costs are relatively low in India than in different nations. The real figures continue fluctuating, however it is in every case not exactly different nations. As referenced by Munyon et al. (2015), the normal joblessness rate in India is about 4%. This incorporates various Engineering Graduates that can't land positions because of absence of chances. Subsequently, it very well may be said that there can be number of applicants that will contend among one another for the open doors will positively permit the Fords Human Resources Management Department to pick the best and most potential individuals for the Jobs. It is to be noticed that the World Bank said something in 2014 in regards to Fiscal Policies where it has been referenced that the debilitating economies of significant markets on the planet can be the explanation behind business disappointment if another speculation is done in any nation (World Bank, 2017). Be that as it may, according to the Annual reports of Ford Automobiles, the Ford has figured out how to keep up a noteworthy Operating Margin of 6.7% in its Automotive Segment (Corporate.ford.com, 2017). Likewise, the Operating Cash stream has been very impressive with ostensible pace of development regardless of having exceptionally severe monetary arrangements in China. Nonetheless, if there should be an occurrence of Indian Societies, the Income Distribution doesn't exist in some particular example that will assist Ford with developing in India (Jr, 2017). Social Factors Social elements like the way of life of the network of the nation impact the purchasing choice of the clients and influence the business volume of the organization like Ford Motor Company. So as to grow business in India, Ford Motor Company has examined social patterns and way of life of individuals in India. In India way of life of individuals is improving with an expansion into GDP, individuals are tending to buy four-wheeler. This guarantees an enormous client base in the Indian market for the car area. Passage can get this market openings in India by making a market section in Indian vehicle area. In India, family size is most extreme 4 which decide the appropriateness for choosing four wheelers. As contended by Monga, Chaudhary Tripathi (2012), According to PPP record India has fourth biggest urbanization that alludes huge potential client base in India for Ford. In Indian culture, the family unit pay level is encountering an upward movement that guarantees a potential open door for Ford making a market passage in Indian car area. It very well may be counter contended that among these high populace the vast majority of the individuals are white collar class individuals who have less moderateness of vehicles (Thestatesman.com, 2017). Another social point of view that Ford needs to consider while extending its business in Indian market is that in India the vehicle cost under USD 12000 is available in 80% (approx) of Indian market (Autocarpro.in, 2017). Subsequently, thus, Ford needs to reevaluate its evaluating technique, as social and social set-up the USA is not the same as India. Individuals in India are profoundly qualified and recognizing. Indeed, even they are a lot of value touchy and require the item to be an incentive for cash. It very well may be counter contended that Ford needs to contribute more assets to guarantee both maintainability and cost effectiveness for Indian clients (Thestatesman.com, 2017). As India is a creating nation, financial entanglements are available that lead the client to lean toward organization and little vehicles. The way of life among Indian individuals is a lot of condition touchy in this manner, they require condition maintainability. Because of cost sensitivit

Chaucers Canterbury Tales Essay - Marriage in The Wife of Baths Pro

Marriage in Geoffrey Chaucer's The Wife of Bath's Prologue and Tale The divergence in the results of the witch's marriage and Alison's relationships in Geoffrey Chaucer's The Wife of Bath's Prologue and Tale depends to a limited extent on the ladies' contrasting desires for their spouses. The witch's modus agendi relies upon a knight's commitment to respect his promise, while Alison's business as usual relies upon her spouses' lead after marriage, for example on her conditions. Having spared the knight's life, the witch requests that the knight grant her to be his better half. Besides, she needs to be his affection. The knight must wed, since wedding the witch exists in his strength. Since the witch's meaning of being his better half incorporates her caring him, he is compelled by a sense of honor to endure the witch's affection. Her affection for him requires he demonstrate sympathy to her. Perforce of her line of thinking of the benefits of being hitched to her, he acknowledges her power to have her will. The chains of her charm broken, the witch t urns excellent in the knight's eyes. He becomes hopelessly enamored with her, and she understands the option to manage in he...

Throwing Life on a Wheel... free essay sample

Shoulders throbbing, eyes hurting, I hung on. I continued revealing to myself let go, yet I couldn’t. Was it time as of now? My muscles were sobbing for help. I at last did it. I at last let go: of both air and the vessel readily available. I had done it at last†¦ I had tossed life on a wheel. The initial step, similar to the case in anything, was to get ready. Comparable to the bit of dirt expected to toss, life should have been balanced. Much to my dismay that the huge number of classes, and exercises taken and track rehearses joined in, would set me up forever. In the end, the opportunity to focus came. So as to focus, with however much power as could reasonably be expected, I needed to toss a balanced circle of earth as near the middle as could be expected under the circumstances. Like mud being fixated on the wheel, it was basic that at one point in my life I tossed myself with full power towards something I knew my energy wouldn’t pass on for: Pharmacy. We will compose a custom paper test on Tossing Life on a Wheel or on the other hand any comparable theme explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page Much the same as the bit of mud, here and there the objective is hit, now and then it misses. In any case, much the same as the bit of mud that can be guided back to the middle, if need be, these interests can be diverted too. The third step in tossing is â€Å"opening† the mud. With the wheel on max throttle, I utilized my fingers to â€Å"open† the circle of earth. When the earth is opened, the capacity to make is grasped exclusively. Freeing myself up to alternatives in life is like opening a bit of mud on the wheel, since choices like picking a profession and the school I am to go to are exclusively my obligation. Activities like these â€Å"force† me to be â€Å"open† to alternatives that were once never reasonable. I accept a profession in drug store offers me an ace key that â€Å"opens† the ways to numerous unforeseen chances. Continuously in the wake of opening, comes an opportunity to pull. With a wheel on moderate speed, I should work to shape the earth into an ideal shape and size. Pulling is generally the hardest part. It includes making creative mind a reality. Now and again it works, at times it doesn’t. Thus, seeking after a vocation includes carrying a plan to presence. What happens is resolved at that exact instant. At the point when life is pulled open, an extraordinary hazard is undoubtedly taken. Getting a demonstrating device, I cut away any overabundance mud that could detract from the tasteful magnificence of the vessel. In like manner, life should be cut too. The previous four years of my secondary school vocation was spent cutting the overabundance, which removed time from the exercises that made a difference the most. Cutting helped me focus on exercises, for example, chipping in at the neighborhood library, and partaking in clubs, for example, Interact, and the Asian Cultural Society. I understood significantly more with the goal that quality issues more than amount. My last advance was utili zing a wire shaper to discharge the recently framed vessel. As I get ready to graduate, and free myself from secondary school, I understand that â€Å"throwing† life is a cycle. I might be nearly accomplished until further notice; notwithstanding, my school vocation is another section of my life that merits another vessel to be thrown†¦

Writing an Excellent Press-Release

Writing an Excellent Press-Release Tips for Writing a Great Press Release Home›Education Posts›Tips for Writing a Great Press Release Education PostsHow to Write an Excellent Press-ReleaseWhat is a press release and why do we need them? A press release is needed when an organization wants to communicate to the press and to highlight a newsworthy piece of information. Writing a press release is not a difficult task as it has a standard structure. The most important thing when writing a press release is to know your audience and to have a clear focus on the key message that this press release should convey.The main goal when writing a press release is to attract to your story as many journalists as possible.Top 4 things you need to know before writing a press release:Journalists are always busy.  It means that they don’t have time for poorly written press releases. Send them a press release that they can use right away.Most probably, journalists don’t understand your subject well.Don’t expect them to understa nd the peculiarities of your business. Be ready to explain everything and turn difficult into simple.Journalists don’t care about your product or your company.You can only get them to write about you if you have an interesting story to tell.Sometimes your press release will be eclipsed with bigger events.  That happens because something is constantly going on in the world and one piece of news tends to eclipse others.These four things mean that:Press release needs to be no more than one pageIt should contain all the necessary information on the subjectIt should be written in simple and easy-to-understand languageIt should tell a story and if it doesn’t, journalists will make up their ownIt should include your contact informationTo understand what your press release should include, answer the following questions:Who are the main players?Where is this happening?When is the timing?Why is this important?What’s new?Turn your answers in short, punchy and smart sentences that convey your message and tell your story. Try not to write sentences, which contain more than 25 words. Now, as we perfectly know what a press release is, let’s look at its structure.Headline, which makes people understand why your story is importantIntroductory part, that summarizes your key messageAdditional paragraphs,  which uncover the details behind the story and include a quote of senior staff member of the organization concerning the subjectClosing paragraph,  that sums up the main message once againNotes for editors,  should include contact informationSpeaking about the structure of the press release it is crucial to mention that you should include the most important information in the introductory paragraph in order to catch the attention of the journalist form the very beginning.When e-mailing your press release to a journalist:Carefully select the subject of your e-mail.  A good headline is the key to getting your press release noticed.Avoid sending the release as an attachmen t.  Insert the press release in the body of the e-mail so that journalists can immediately see what it is about.Follow it up with an e-mail or phone call.Knowing these tips and tricks, your press releases are bound to get noticed.Professionally written papers here

How to Ace the MCAT in 3 Steps!

Step 1: Exposure, 2-4 months The MCAT is not a memorization test. Let me be more specific: it’s much more about recall than it is about recognition. When you’re prepping for the Psych/Soc section of the MCAT, you’ll learn about different types of memory—sensory, working, procedural, episodic—how memory is stored, and how it’s retrieved. You can retrieve stored memories through recall—rattling off everything you remember about ADH—or through recognition—noticing that aldosterone is one of the answer choices and remembering you read about its role in the renal system. So don’t worry about memorizing every single detail in your prep books. You do, of course, need to memorize some things for the MCAT, but by and large, the MCAT is about recall and association: drawing the connections between subjects. This format actually mirrors how memories are organized in the brain: in semantic networks. Semantic networks connect memories whose meanings are related, and ultimately, the goal of your studying will be to strengthen those networks. Ultimately, you will be increasing your fluency in a number of areas, appreciating how the speak to one another, and noticing the patterns that underlie the details. The MCAT tests your ability to associate much more than it does your capacity to memorize. So, What’s the Best Way to Prepare? The hardest part of taking the MCAT happens before you walk into the test center. There is so much material and so many ways to approach it all. How will you learn it all? After scoring a 522 on the MCAT and tutoring it for two years, I have developed a simple structure for approaching the test. It takes work, but it’s straightforward. And it works. There are three steps: Exposure, Encoding, and Focused Review. Step 1: Exposure, 2-4 months You might not need to memorize everything, but you should be aware of what’s out there. First things first, buy a set of test prep books. Do a bit of research, but don’t worry: the top selling test prep books will all get the job done. These books are very important. They will be the basis of your studying for Steps 1 and 2. For the next couple months, your books will be your best friends. The goal of this step is to get a sense of what could be on the test. It’s a lot, but right now your focus is not to internalize everything. Highlight, underline, write notes in the margins. Work through some of the practice problems (but in pencil or in a notebook so you can go back to them later). But don’t worry if you can’t remember what you read three weeks later. That part comes next. If you’re like me and you get bored when you’re reading too much physics, switch it up! I generally recommend reading two or three books at a time. You should read every word, but feel free to read through chapters more quickly if you think you’ve got a good handle on the subject. I budget a decent amount of time for this because spreading out the information is much more helpful than cramming it all in. That’s it! But before you start Step 2, it’s time for you to take your first practice test: AAMC Practice Test 1. AAMC writes the MCAT; they know it better than any of the companies. Take a look at how you do, highlight general areas you know you’re weak on, and see how you handle the test taking aspects of the exam: the length, the way questions are phrased, and how you eliminate answer choices. You should WAIT to take your first test until you’ve finished Step 1 because now you can more clearly see what was a content issue and what was a test-taking skill issue. Step 2: Encoding, 1-2 months You’ve seen everything, highlighted a bunch, and you’ve taken your first practice test. Now it’s time to hunker down and get it all in your head. You don’t have to read through every chapter again, but skim through them and write up the key points, somewhere between five and fifteen for each chapter. Feel free to sketch out a diagram or graph if it’s helpful. This isn’t comprehensive, but at the end of it, you’ll have study guides for each subject. You can read over those instead of your books. This process of consolidation will both show you what’s really important and further facilitate memorization. As you’re writing all this up, you’ll start to see some connections. Focus on those links between subjects. Think about the more general concepts like feedback and equilibrium in organ systems, cellular respiration, and genetics. There are a couple of extra steps for some subjects. Make sure you memorize your amino acids. They WILL appear on your MCAT and you WILL need to know them. For Gen Chem, Physics, and Biochem, you’ll write up two extra sheets. One will be an equation sheet: include every equation. The other will be a units sheet. Write down the unit, its symbol, how it’s used, and what it is comprised of in its most basic SI units (e.g. N = (kg*m)/(s^2)). Writing this last bit out will help you get the right answer even if you don’t fully understand the concept. If you end up with the right units at the end, chances are you got it correct. For Psychology and Sociology, don’t bother with an outline. Unfortunately the Psyc/Soc section is much more memorization-heavy than the rest of the test. So for these subjects you should write out flashcards for every bolded term in your book. Yes. Every. Bolded. Term. It may not be the most fun you’ve ever had, but it will be useful. Now that you’re done writing everything up, go through your notes and your flashcards. Don’t beat yourself up for not remembering everything. You’ll have forgotten a lot, but you’ll remember more and more. And again, you don’t have to remember everything. To complement what you’ve understood from the books, check out some Khan Academy videos. Khan Academy has an MCAT specific section of their website. Take advantage of it! Reading and writing are great ways to learn, but it’s always good to learn in as many ways as you can. Plus, they’ll offer different explanations and give different examples. I’d especially recommend the Psychology/Sociology videos. Pop some earbuds in and listen on your way to class, on a run, while you’re doing laundry. Increase it to 1.5 or 2x speed if you want. It’s all about getting the info in your head. Now it’s time for you to take AAMC Practice Test 2. Step 3 – Focused Review 1-2 months Take a careful look at how you did, distinguishing between areas of content you need to review and test-taking skills you’ll want to work on. Write this up in a document and create a schedule for yourself to review both the specific areas you don’t understand well and improving your ability to test well. In this last phase, you’ll alternate between test questions and studying. After you take an exam or go through a Section Bank, you’ll see what you’re still having trouble with and review that subject. Maybe you’ll have to go back to your old physics textbook and read about optics for it to really click. Maybe you’ll decide to write out a specific study guide just for the different types of reaction in organic chemistry, complete with oxidizing and reducing agents. Maybe you’ll have a lot of trouble with CARS and you’ll go through AAMC’s resources, Jack Westin’s CARS passages, and even SAT Reading sections (it’s all about building up your ability to carefully read in the way standardized tests want you to). This is the most flexible stage because it’s all about honing in on what you need to work on. Here are my recommendations for what you should have accomplished by the end of Step 3: Finish all four full-length AAMC practice tests Complete the AAMC Section Banks and Q Packs for the sections you struggle with most Take a couple more practice tests (Kaplan, Princeton Review, NextStep) By the end of Step 3, you should be able to point randomly to any page on any of your study guides and explain it. Throughout this phase, focus on relating material in Biochem to organ systems and physics to chemistry. Notice how the practice tests force you to do this and start getting into that mindset yourself. And that’s it! Well, there’s on more thing The Final Step It’s the day before the test. You’ve worked hard. Real hard. You read everything that goes into those three steps: it’s a lot. You’re not going to cram anything more into your brain in one more day. Take this day for yourself. Read a book. Hang out with some friends. Bake dozens of chocolate chip cookies. Do something that makes you happy. You’ll need it. Tomorrow is a lot, but don’t worry, you’ve been preparing for a while. It’s all in there. Are you interested in getting connected to an MCAT tutor? ; Here's more on the topic! Your Medical School Timeline Checklist - Planning Ahead How long does it take to study for the MCAT Test?

Study And Analysis Of The Scandal From Worldcom Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 2853 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? WorldCom (WCOM) was United States second largest long distance phone company. WorldCom grew largely by acquiring other telecommunications companies. It owned Tier 1 ISP UUNET, major part of Internet backbone. Don’t waste time! Our writers will create an original "Study And Analysis Of The Scandal From Worldcom Finance Essay" essay for you Create order It was in Mississippi. On November 10, 1997, WorldCom and MCI announced their US$37 billion merger to form MCI-WorldCom, making it largest merger in US $37 BILLION merger to form MCI-WorldCom, making it largest merger in U.S. history. MCI, Inc. was American telecommunications subsidiary of Verizon Communications that is headquartered in Ashburn, unincorporatedLoudounCounty,Virginia.Thecorporationwasoriginally formed as result of the merger of WorldCom and MCI Communications, and used the name MCI WorldCom followed by WorldCom before taking final name on April 12, 2003 as part of the corporations emergence from bankruptcy. The company formerly traded on NASDAQ under the symbols WCOM pre-bankruptcy and MCIP post-bankruptcy. Corporation was purchased by Verizon Communications with deal closing on July 7, 2006, and now identified as that companys Verizon Business division with local residential divisions slowly integrated into local Verizon subsidiaries. CORPORATE FOUNDING Long Distance Discount Services, Inc. (LDDS) began in Hattiesburg, Mississippi 1983. In 1985 LDDS selected Bernard Ebbers to be its CEO. The company went public in the1989 through a merger with Advantage Companies Inc. Company name was changed to LDDS WorldCom in the1995, and later WorldCom. Companys growth under WorldCom was fueled primarily through acquisitions during the 1990s and reached its apex with acquisition of MCI in the 1998. Major companies acquired Advanced communication corp.(1992) Metromedia communication corp.(1993) Resurgens communication group(1993) IDB communication group,inc(1994) Compuserve from its parent company HNR block Digex (DIGX)in june 2001 on november 10,1997 MCI acquisition IN November 10, 1997, WorldCom and MCI Communications announced their US$37 billion merger to form the MCI WorldCom, making it largest merger in the US history. On September 15, 1998 the new company, MCI WorldCom, opened for the business. Sprint Merger In October 5, 1999 A Sprint Corporation and MCI WorldCom announced the $129 billion merger agreement between two companies. The deal did not go because of the pressure from the US Department of the Justice and EU on concerns of creating a monopoly. In July 13, 2000,Board of Directors of both the companies acted to terminate merger. Later, in 2000, MCI WorldCom renamed itself WorldCom without the Sprint being part of a company. Accounting scandals CONDITION OF AMERICAN CORPORATE FIRM IN THE 90S In early 1990 s the us economy went trough the phase of consolidation, of which many major companies acquired or merged with weaker companies to strengthens their own position in the market The share price of the companies play a vital role during mergers and acquisitions,and the companies try to maintain the prices of their shares. If they fail to do they can easily become target for the takeover or acquisition Moreover the company wish to raise capital from a market, its performance in the stock exchange is considered to be important .The companies are generally valued on a basis of cashflows they could generate in the future. As the financial performance of the company is important factors affecting the share price,companies were under constant pressure to show the positive revenue Downturn of the telecom industry BRAINS BEHIND THE FRAUD OF $11bn ACEO Bernard Ebbers A CFO Scott Sullivan A Former controller David Myers The Accounting director Buford Yates The Accounting managers betty Vinson and troy Normand Arthur Andersons auditing firm s Ebbers angle borrowed $1billion for personal purposes from the various banks. He pledged the WorldCom stock as the collateral. Bernard Ebbers became wealthy from the rising price of the holdings in WorldComs stock.However, after the MCI acquisition in 1998,the telecommunications industry entered the downturn and the WorldComs growth strategy suffered a serious blow when it forced to abandon their proposed merger with sprint in the late 2000.At that time ,WorldComs stock is declining and Ebbers came under increasing pressure from the banks to cover a margin calls on his WorldCom stock that was used to finance the other businesses (timber,yatching,etc) In 2001, Ebbers persuaded the WorldComs board of directors to provide corporate loans and guarantees in the exces s of $400 million to cover margin calls. The board hope that loans would avert the need for Ebbers to sell the substantial amounts of worldcom stock.His doing would put further downward pressure in stocks price .This strategy failed and Ebbers was as ousted as CEO in April 2002 and replaced by the John Sidgmore,former CEOof NET TECHNOLOGIES INC. In1999 and continuing May 2002, Company under direction of A Scott Sullivan (CFO),David Myers(Controller)and Bufford (Director of general accounting)used the fraudulent accounting methods to mask the declining earnings by painting the false picture of the financial growth and the profitability to prop up a price of WorldComs stock. HOW FRAUD TOOK PLACE IN 1998-2000, WorldCom reduced the reserve accounts held to cover the liabilities of the acquired companies WorldCom added $2.8 billion to revenue line from reserves. An e-mail was sent in December 2000, to the division in Texas directing misclassification of the expenses. CF O ordered key staff members to the mark operating costs as the long-term investments. To a tune of $3.85 billion. Operating Expenses to Assets -CFOs direction affects a income statement: Revenues xxx (no change) COGS xxx (no change) Operating Expense: Fees paid to the lease other thecompanies phone networks: xxx(large Decrease) The Computer expenses xxx(large Decrease) NET INCOME xxx (large Increase) Operating Expenses to Assets -CFOs direction affects the balance sheet: Assets: Computer asset xxx (LargeIncrease) Leasing asset xxx (Large Increase) Liabilities xxx (no change) Stockholders Equity: Retained Earnings xxx (large Increase) Operating Expenses into Assets A WorldComs journal entry for $500 million in the computer expenses: Computer Assets 500 million Cash 500 million A Huge losses turned into the enormous profits. $1.38 billion in net income in 2001 Inflated a companys value in the assets HOW FRAU D WAS DISCOVERED AObscure tips were sent to the Internal audit team MCI audit and review of the books uncovered the accounting irregularities During March 2002, John Stupka complained to the Internal audit about $400 million he set aside the Sullivan wanted to use to boost theWorldComs income. In March 7, 2002 the SEC requests the information from the WorldCom WorldCom make much when the ATT is the losing money. Internal audit started the digging. Found $2 billion the company announced for capital expenditures. Found the undocumented $500 million in the computer expenses that recorded as assets. Searching the WorldComs computers, Mr. Morse found $2 billion in the questionable entries During June 14, 2002 Internal audit team contacted the WorldComs audit committee Internal auditor, Cindy Cooper, asked for the documents supporting the numerous capital expenditures. No supporting documents was found Controller admits to the internal auditors tha t the accounting treatment was wrong No accounting standards support the accounting 9.during June 20, 2002 -A Internal audit explains the irregularities to the Audit committee. 10.during June 25, 2002 WorldCom announces the inflated profits by $3.8 billion over a previous five quarters 11.During June 26, 2002 the civil suit filed, a stock trading halted Ultimately, stock is delisted by Nasdaq During July 21, 2002 WorldCom filed for the bankruptcy METHODS Underreporting the line costs by capitalizing the costs on balance sheet rather than the properly expensing them in the balancesheet. Inflating revenues with the bogus accounting entries from the corporate unallocated revenue accounts. During 1998-2000, worldcom reduced a reserve accounts held to coverthe liabilities of acquired the companies. Worldcom has added $2.8 billion to revenue line from the reserves. FINAL COUNTDOWN The media, legal and investor unrest intensified against the WorldCom, there was a little hope left for a company. Company was required to pay the $172 million in the interest and the debt in 2002, was to increase further to $1.7 billion and $2.6billion as a part of the repayment schedule in 2003 and 2004. Negative cash flow of $871 million in the 2001. Generated only $564 million in the free cash in 2002 and $1 billion in 2003. The company admitted that it had resorted to the fraudulent accounting practices for five quarters . IMPACT OF WORLDCOM FALL DOWN CEO Ebber was sentenced 25yrs imprisonment. The Standard and the poors reduced WorldComs credit rating to a junk status and worldcom was removed from prestigious SP500 index. Share price fell over by 80%. On june 26, SEC filed a suit alleging securities fraud against worldcom in the district court in a Newyork. 17000 employees lost their jobs. Ordinary in vestors were put into the several loss. Worldcom changed its name to MCI,and moved the corporate headquarters from clinton to dulles,virginia,on april14,2003. Under bankruptcy reorganisation agreement,the company paid $750 million to the SEC in cash and stock in a new MCI,which is intended to be paid to the wronged investors. ATT is seen as the potential gainer in a aftermath of worldcoms inevitable collapse. Bankruptcy During July 21, 2002, WorldCom filed Chapter 11 bankruptcy protection in a largest such filing in a United States history . None of criminal proceedings against WorldCom and their officers and agents were originated by referral from Gonzalez or Department of Justice lawyers. WorldCom change its name to MCI, and moved its corporate headquarters on Clinton, Mississippi, to Dulles, Virginia, on the April 14, 2003. Under a bankruptcy reorganization agreement, a company paid $750 million to SEC in cash and stock in the new MCI, which was intended to be paid to the wronged investors. During May 2003, Company was given the no-bid contract by a United States Department of Defense to build the cellular telephone network in the Iraq. A deal has been criticized by the competitors and others who cite a companys lack of experience in area. Post-bankruptcy The company emerged from the Chapter 11 bankruptcy in 2004 with $5.7 billion in the debt and $6 billion in the cash. It had to pay many of the creditors, who had waited for the two years for the portion of the money owed. Many of a small creditors included former employees, primarily those who was laid off in the June 2002 . About half of the cash were intended to pay the various claims and settlements. The Previous bondholders ended up the being paid 35.7 cents on dollar, in bonds and stock in a new MCI company. previous stockholders stock was valueless severance and the benefits were withheld when WCOM filed for the bankruptcy. During August 7 2002, the exWorldCom 5100 group is launched. It is composed of former WorldCom employees with the common goal of seeking the full payment ofa severance pay and benefits based on a WorldCom Severance Plan. The 5100 stands for number of WorldCom employees laid off on June 28, 2002 before WorldCom filed for the bankruptcy. During Febr uary 14, 2005, Verizon Communications agreed to acquire the MCI for $7.6 billion. During March 15, 2005 Bernard Ebbers is found guilty of all the charges and convicted of the fraud, conspiracy and filing false documents with a regulators all related to a $11 billion accounting scandal at telecommunications company . He is sentenced to 25 years in prison. Other former WorldCom officials was charged with criminal penalties in relation to companys financial misstatements include former CFO Scott Sullivan , controller David Myers, accounting director Buford Yates and accounting managers Betty Vinson and Troy Normand. During July 13, 2005 Bernard Ebbers received sentence that would keep imprisoned for 25 years. During March 2005, 16 of WorldComs 17 former underwriters reach settlements with investors. During December 2005, Microsoft corporation announce that MCI will joined it by providing Windows Live Messenger customers Voice Over Internet Protocol (VOIP) services to make telephone calls. This is MCIs last new product MCI Web Calling. After a merger, this product is renamed Verizon Web Calling. RESULTS FROM WORLDCOM SCANDALS First , A negative perception of corporate America has been reinforced. Investors have developed the destructive sentiment corporate management, a accounting firms, the lawyers and the investment banks. CEO no longer stands for the Chief Executive Officer, but the Chief Embezzlement Officer and that EBITDA now means Earnings Before I Tricked Dumb Auditors. Banks, which lent the money to all of the companies, are under scrutiny by the nervous investors. Second result of WorldCom scandal is that government is moving to re-regulate the economy. It is the Republican administration that is moving to the tighten controls over accounting, corporate governance and the transparency and a disclosure. To reduce chances of a corporate wrongdoing, it will also the add layers of regulations on a businesses that will be more costly in terms of time and money. The WorldCom scandal is likely to become election issue in upcoming fall 2002 congressional races, with Democrats seeking to paint the Republicans as friends of big sleazy business. The third result was WorldComs customers was likely to leave it in the large numbers. ATT is the most likely first choice for the most enterprise customers seeking a relatively sophisticated network. After ATT, the mostly likely candidates are the Sprint and the Qwest . The fourth result will be the reexamination of the U.S. telecom policy. The Securities Exchange Commission take WorldCom as the worst accounting scandals in the history and will take the enforcement action of a considerable harshness. The Federal Communications Commission was to be the more open to letting the company be sold to the rival, including one of the former Baby Bells. It remove WorldCom as the ongoing crisis. The Department of Justice is involved because of anti-trust issue. Several Bells at buyi ng WorldCom, largely for the position in a Internet backbone and enterprise markets. In bankruptcy proceeding, those assets be attractively priced for the Bell. Other long distance companies are in no condition to buy the WorldCom, leaving the Bells as the only real possibility. The fifth result is WorldCom and the other scandals are weakening dollar. One, foreign investors, with an eye to the slumping value of the dollar, could demand the premium to hold U.S. securities. Two, they could demand the premium for credit risk. Both the trends would accelerate the dollars declining value in the international markets. Foreign funds flow into the United States is not to be the casually dismissed considering that the U.S. needs to it help finance its current account balance of payments deficit, which is the expected to be around of 5% of GDP. The sixth factor is the impact of WorldCom beyond U.S. shores. Firstly, the sleaze element is giving impetus to the greater regulation and a bet ter corporate governance in the countries such as the Canada and the United Kingdom. Second, WorldCom as well as Enron scandal, are hurting the attractiveness of the so-called Anglo-American model of de-regulated capitalism and giving greater credence to a capitalism modified by a larger state role in the economy . Third, the WorldCom weakens foreign investor sentiment on the U.S. securities, this feeds into weaker dollar. ARTICLE WITH INTERPRETATION WorldCom Scandal: A Look Back at One of the Biggest Corporate Scandals in U.S. History INTERPRETATION During I998 telecommunications industry slow down and WorldComs stock is declining. CEO Bernard Ebbers is under increasing pressure from banks to cover margin calls on WorldCom stock is used to finance his other businesses endeavors (timber, yachting, etc.).A Companys profitability took another hit when it is forced to abandon their proposed merger with Sprint late 2000. Im 2001, Ebbers persuade the WorldComs board of directors to provide him the corporate loans and theguarantees totaling more than $400 million. Ebbers wanted to cover the margin calls, but strategy ultimately failed and Ebbers is ousted as CEO in April 2002. In 1999 and through May 2002, The WorldCom used accounting methods to mask its declining financial condition with falsely professing financial growth and profitability to increase the price of WorldComs stock. The fraud is accomplished in two main ways. First, WorldComs accounting department underreported theline costs by capitalizin g the costs on the balance sheet rather than a properly expensing . Second, company inflated revenues with the bogus accounting entries from the corporate unallocated revenue accounts. The discovery of possible illegal activity is by WorldComs internal audit department who uncovered approximately $3.8 billion of a fraud in June 2002. Companys audit committee and the board of directors was notified of the fraud and was acted swiftly: Sullivan is fired, Myers resign, and Securities and Exchange Commission launch investigation. By end of 2003, it was estimated that companys total assets had been inflated with around $11 billion . CONCLUSION The companys share- and bond-holders were left holding practically worthless assets. With assets below the companys debt of $30 billion, creditors were unlikely to get money back. WorldComs 80,000 employees were likely to pay with the jobs. According to athe mutual fund advisory group, 539 mutual funds own 400 million of the three billion i n the outstanding shares of WorldCom. Ordinary investors in the funds were likely to suffer heavy losses. There are 401(k) plans of ordinary workers in the mutual funds. In contrast to the losses that were immediate for the ordinary people hooked to the shares and investments in mutual and pension funds, corporate laws provide the far better cushion to the top executives. On July 8, Ebbers and former Chief Financial Officer Scott Sullivan refuse to testify before congressional Financial Services Committee inquiring into a WorldCom scandal. The Committee is keen to investigate links between the the company and an investment analyst who is believed to have had prior knowledge about the dubious accounting methods employed by the WorldCom. The telecom major ATT is seen as the potential gainer in aftermath of WorldComs inevitable collapse.