Fiasco Report - WorldCom - Free Essay Example

Sample details Pages: 6 Words: 1720 Downloads: 10 Date added: 2017/06/26 Category Marketing Essay Type Analytical essay Did you like this example? Fiasco Report WorldCom The team members do not have any relationship with WorldCom Overview of WorldCom (WC) WC started its journey as a small company known as Long Distance Discount Services (à ¢Ã¢â€š ¬Ã…“LDDSà ¢Ã¢â€š ¬Ã‚ ) in 1983, based in Clinton, Mississippi. In 1985 LDDS selected Bernard Ebbers, one of the major investors of the company, to be its CEO. The company went public as a corporation in 1989 after merging with Advantage Companies Inc. Don’t waste time! Our writers will create an original "Fiasco Report WorldCom" essay for you Create order The company name was changed to LDDS WorldCom in 1995 and MCI WorldCom in 1998. During the 1990s, the firm acquired a number of telecommunications firms that helped it to grow from $154 million in 1990 to $39.2 billion in 2001, placing it 42nd among Fortune 500 companies[i]. Significant acquisitions included the 1998 takeover of MCI, which made it the second largest U.S. long distance carrier, and the purchases of UUNet, CompuServe, and America Onlineà ¢Ã¢â€š ¬Ã¢â€ž ¢s data network, which put WC among the leading operators of Internet infrastructure. In 2001 the company had an employee base of 85,000 workers with a presence in more than 70 countries. From the outside, WC appeared to be a strong leader of growth. In reality, the appearance was nothing more than a perception. On June 25, 2002, the company revealed that it had been involved in fraudulent reporting of its numbers by stating a $3 billion profit when in fact it was a half-a-billion dollar loss. After an investigation w as conducted, a total of $11 billion in misstatements was revealed[ii]. As a result investors in WC have suffered major losses: the market value of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s common stock plunged from about $150 billion in January 2000 to less than $150 million as of July 1, 2002[iii]. WorldComà ¢Ã¢â€š ¬Ã¢â€ž ¢s Product Market Focus Initially, it was a provider of long distance phone services to businesses and residents. Later the company diversified its business to internet service and solution, Data and IP Services, IT Solutions and Hosting, Networks management, Premises Equipment (PE), Security, Voice, VoIP, and Wireless network to reach a customer base of 20 million. However, increase in the number of services and the products are mainly attributed to the new acquisitions and mergers with new companies. During the pick of the business, WC provided mission-critical communications services for thousands of businesses around the world, owned and operated a global IP (In ternet Protocol) backbone that provided connectivity in more than 2,600 cities and in more than 100 countries. In 2001 it carried a significant amount of the worlds Internet traffic, specifically 50% of total worldwide e-mails and 50% of US Internet traffic. It also owned and operated 75 data centers on five different continents. Merger and Strategy was the key for WorldCom growth strategy Throughout its journey since the inception WC choose merger and acquisition strategy for its growth. The company evolved into the second largest long distance telephone company in the United States and one of the largest companies handling worldwide Internet data traffic through the successful completion of 65 acquisitions. [iv] Between 1991 and 1997, WC spent almost $60 billion in the acquisition of many of these companies and accumulated $41 billion in debt[v]. Two of these acquisitions were particularly significant. The MFS Communications acquisition enabled WC to obtain UUNet, a major su pplier of Internet services to business, and MCI Communications, thus providing them one of the largest providers of business and consumer telephone service. By 1997, WCs stock price grew from pennies per share to over $60 a share[vi]. During those days of the internet boom, WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s strategy seemed to be perfect to everyone and investment banks, analysts and brokers recommended WC as a strong buyà ¢Ã¢â€š ¬Ã‚  to investors. The analystsà ¢Ã¢â€š ¬Ã¢â€ž ¢ recommendations, coupled with the continued rise of the stock market, made WC a very demanding and desirable stock to the investors. The top management explored this advantage (high stock price) to use WC stock as the vehicle to continue to purchase additional companies. The acquisition of MFS Communications and MCI Communications were, perhaps, the most significant in the long list of WC acquisitions. With the acquisition of MFS Communications and its UUNet unit, WC suddenly had an investment story to offer about the value of combining long distance, local service and data communications.[vii] In late 1997, WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s offer of $35 billion for the acquisition of MCI was 1.8 times more than the nearest offer made by British Telecommunications Corporation ($19 billion). MCI took WCs deal making WC a truly significant global telecommunications company[viii]. Issues affecting WordComà ¢Ã¢â€š ¬Ã¢â€ž ¢s Growth Strategy WC growth strategy was solely focused on mergers and acquisitions, not product development, innovation and customer satisfaction. It engaged in nearly 70 merger and acquisition deals in less than five years but did not focus on integrating organizational culture, structure and appropriate management control mechanisms. As a result, it was observed that by the early 2000s, the revenue of the company was diminishing. Furthermore, it was facing an emerging problem in 1990s of oversupply in telecommunications as the industry rushed to build fibre optic networks and o ther infrastructure based on overly optimistic Internet growth projections. WC and other telecommunications firms had experienced reduced demand as the internet boom ended and the economy entered recession. Their revenues had fallen short of expectations, while debt taken on to finance mergers and infrastructure investment remained. In this circumstance, the desire to conceal the bad news on company earning from the stock market investors created a powerful incentive for the top management to engage in fraudulent accounting reporting[ix]. The Management Controls Failure Fraud began at WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s corporate headquarters, in the late 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s[x]. Several employees were involved, including: Bernard Ebbers CEO, Scott Sullivan CFO, David Myers à ¢Ã¢â€š ¬Ã¢â‚¬Å" Senior VP Controller, Buford Yates, Director of General Accounting, Betty Vinson à ¢Ã¢â€š ¬Ã¢â‚¬Å" employee under Yates, and Troy Normand à ¢Ã¢â€š ¬Ã¢â‚¬Å" employee under Yates[xi]. WC paid various fees to use or lease facilities belonging to third parties. Normally, these fees were reported as an expense on the income statement, which were filed with the other financial statements on a quarterly and annual basis. The financial statements also included commentary and guidance from WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s senior management regarding future earnings. Typically this guidance pointed toward continued positive growth in earnings. In July 2000, WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s expenses as a percentage of total revenue had begun to increase above historic averages[xii]. The fees paid for leasing were the primary drivers of this increase. This resulted in a decline in the rate of growth of WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s earnings. The risk of missing investor analystsà ¢Ã¢â€š ¬Ã¢â€ž ¢ forecasts had increased, and with that the possibility of stock declines also increased. By October 2000, Sullivan believed that expenses as a percentage of revenue were too high to meet analystsà ¢Ã¢â€š ¬Ã¢â€ž ¢ exp ectations, and that expenses were higher than previous guidance statements suggested they would be[xiii]. With Ebberà ¢Ã¢â€š ¬Ã¢â€ž ¢s approval, Sullivan instructed Myers, and those working under him to make entries in WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s general ledger that credited (and therefore reduced) expenses, and debited reserve and capital accounts (increasing these accounts)[xiv]. This series of transactions had the effect of increasing net income. This activity continued until June 2002[xv]. During this time, WC did not disclose these transactions to their external auditing firm, Arthur Anderson. The transactions were also not reported in SEC filings[xvi]. The fraud committed at WC was uncovered by a team of internal auditors in 2002[xvii]. The discovery was brought forward to the internal audit committee and board of directors. Once the board knew, several executives at WC were either fired by the board, or resigned, and the SEC began their investigation. Research Plan Outline To efficiently and effectively conduct our research on WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s corporate scandal, we split the research into two areas: The WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s fiasco itself, and an academic understanding of the control systems in place (and the ones that were missing). The first stage of the research component involves becoming familiar with the WC scandal from archives of reputable newspapers and business magazines. Secondly, we will examine the allegations brought upon WC by the SEC. We will also seek peer-reviewed academic journals for more details and insights into the incident allowing us to conduct an analysis of the role management controls played in the fiasco. In order to best understand WCà ¢Ã¢â€š ¬Ã¢â€ž ¢s corporate scandal, we have to be familiar with well-known frameworks to analyze fraud, corporate governance, managerial controls, and compliance. As the purpose of this research is to seek for academic standard or frameworks in the above mentioned areas, we sh ould rely on information or publications from regulators, or generally accepted principals, such as US-GAAP. We may obtain information from academic, peer- reviewed journals. This research will be conducted concurrently with the studying of the WC fiasco as it does not require any sequence and therefore, can be conducted independently. End Notes [i] Lyke, Bob Jickling, Mark, WorldCom: The Accounting Scandal CRS Report for Congress,P-2, Updated August 29,2002 [ii] Ashraf, Javiriyah, The accounting fraud at WorldCom: The causes, the Characteristics, the consequences, and the lessons learned [iii] Ibid,p-2 [iv] Eichenwald, Kurt (2002). For WorldCom, Acquisitions Were Behind its Rise and Fall, New York Times (August 8), A-1 [v] Romero, Simon, Atlas, Rava D. (2002). WorldComs Collapse: The Overview. New York Times (July 22), A-1 [vi] Browning, E. S. (1997). Is the Praise for WorldCom Too Much? Wall Street Journal (October 8), p. C-24. [vii] Eichenwald, Op. cit., p. A-3 [viii] Ibid [ix] Lyke, Op Cit. P-2 [x] à ¢Ã¢â€š ¬Ã…“MCI Inc.à ¢Ã¢â€š ¬Ã‚  Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. 10 January 2014. Web. 2 February 2014. à ¢Ã¢â€š ¬Ã‹Å"https://en.wikipedia.org/wiki/MCI_Inc.à ¢Ã¢â€š ¬Ã‚  [xi] à ¢Ã¢â€š ¬Ã…“Sullivanà ¢Ã¢â€š ¬Ã‚  United States Department of Justice, Office of Public Affairs. 2 March 2004. Web. 2 February 2014. https://www.justice.gov/opa/sullivan.pdf [xii] à ¢Ã¢â€š ¬Ã…“WorldCom Scandal: A Look Back at One of the Biggest Corporate Scandals in U.S. Historyà ¢Ã¢â€š ¬Ã‚  Yahoo Voices. Yahoo Incorporated. 8 March 2007. Web. 2 February 2014. https://voices.yahoo.com/worldcom-scandal-look-back-one-biggest-225686.html [xiii] à ¢Ã¢â€š ¬Ã…“Sullivanà ¢Ã¢â€š ¬Ã‚  United States Department of Justice, Office of Public Affairs. 2 March 2004. Web. 2 February 2014. https://www.justice.gov/opa/sullivan.pdf [xiv] à ¢Ã¢â€š ¬Ã…“Worldcomà ¢Ã¢â€š ¬Ã¢â€ž ¢s ex-boss gets 25 yearsà ¢Ã¢â€š ¬Ã‚  BBC News. 13 July 2005. Web. 2 February 2014. https://news.bbc.co.uk/2/hi/business/4680221.stm [xv] à ¢Ã¢â€š ¬Ã…“Prepared Remarks of Attorney General John Ashcroftà ¢Ã¢â€š ¬Ã‚  Attorney Generalà ¢Ã¢â€š ¬Ã¢â€ž ¢s Office 2 March 2004. Web. 2 February 2014. https://www.justice.gov/archive/ag/speeches/2004/030204agweb.htm [xvi] à ¢Ã¢â€š ¬Ã…“Sullivanà ¢Ã¢â€š ¬Ã‚  United States Department of Justice, Office of Public Affairs. 2 March 2004. Web. 2 February 2014. https://www.justice.gov/opa/sullivan.pdf [xvii] à ¢Ã¢â€š ¬Ã…“MCI Inc.à ¢Ã¢â€š ¬Ã‚  Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. 10 January 2014. Web. 2 February 2014. à ¢Ã¢â€š ¬Ã‹Å"https://en.wikipedia.org/wiki/MCI_Inc.à ¢Ã¢â€š ¬Ã‚ 

Analyze the film Blade Runner Essay Example For Students

Analyze the film Blade Runner Essay In this essay I will be analyzing the film Blade Runner, discussing the narrative techniques, representations, use of stereotypes and the genre used. I will look at the different techniques the director used to create his vision and its impact on the audience. Although the story is set in the future, Ridley Scotts Blade Runner is firmly rooted in the classic film noir genre. It has all the necessary components for this in the characters portrayed in the film. There are three female characters in the film and all of them play the part of the femme fatale of film noir to some degree. They use their sexual attractiveness and ruthless cunning to manipulate men to gain what they want or what they need to survive. Zhora (Johanna Cassidy) uses her sexual guiles to gain employment as an erotic dancer as a means to enter society and try and blend in with the humans. Her clothes could be seen as a sign of the femme fatale, while getting changed into her normal clothes after work you see her slip into a bra styled top and a coat that is completely transparent she leaves nothing to the imagination also she happily strips for a shower in front of Deckard (Harrison Ford) in order to lure him into a false sense of security. Another of the femme fatales is Pris (Daryl Hannah); she uses her sexual guiles in much the same way. She plays a scared and harmless and harmless but beautifull in order to ensnare J. F. Sebastian (William Sanderson), lulling him into a false sense of security. She cuddles him and calls him her friend so she can manipulate him and again like Zhora wears dark tight clothes that cling to her body and leave little to the imagination. The last of the femme fatales is Racheal (Sean Young); she is introduced as the perfect example of the quintessential femme fatale. Her clothes make up and hair is always pristine. She is presented as an object of desire, beautifull but slightly cold at the same time. Its not until she learns that she is a replicants that she turns her charms on Deckard in order to survive. Although she is manipulative she is easier to like and seems more innocent than the other two female characters giving you both sides of the story, the Madonna and the whore. The film noir aspect is backed up further by our hero Rick Deckard, the protagonist. He is introduced to the film in such a way that the camera gets to focus on him for a short while as he waits for a seat at a food stop. This gives the audience a chance to take him in rather than just see him appear on screen. He wears the clothes of the classic detective; the long trench coat is an obvious sign. When he is arrested you get to see the other qualities the protagonist has, he has the verbal wit of a hard boiled cop, the kind of wit they use as a security devise to help protect him in world dominated by crime, corruption and cruelty and you can see the city that he lives and works in is a dark and scary metropolis with de-humanising environments, dark gloomy and rainy with desolate buildings In the establishing of the film the mise-en-scene and non diagetic sound create a very vivid vision of the future; this shot of the film is a panorama of a dark city. The title Los Angeles, November 2019 appears telling us where and when the film takes place. The use of night and shadow emphasizes the cold and the darkness. The city is a silhouette of skyscrapers and lights against grey sky, smoke stacks shoot flames into the sky and lightning and spinners shatter the horizon. What appears next is an extreme close up of Holdens (Morgan Paull) eye filling the entire screen and reflecting the cityscape. Another shot of the city shows a pyramid at the bottom of a column of light and again Holdens eye, it shows us reflections of the city as if it was the viewers eye. While all this is going on the camera moves forward very slowly giving the viewer not on the chance to see the setting of the film but also a chance to see the type of visual effects in store for the viewer giving him/her a heightened sense of excitement and anticipation. Movie Comparison - Romeo and Juliet EssayWhile everyone else lives in squalor, he lives in a palace and is extremely confidant. You can tell this from his first seen with Deckard and Racheal. He stares strait into Deckards eyes as he talks to him, with a thoughtful but menacing smile, almost as if he is enjoying playing with him. While he talks to Deckard, using a language that is fast and precise, you get the sense that every time he speaks, the director has written so he seems to question the intelligence of whoever he is talking to and push them a little as if to see what will happen next. He is also quoted by Roy Batty to be his maker. There are some underlying plotlines in the film that help keep the viewer entertained. The blossoming love story between Deckard and Racheal blends together with the replicants fight for survival and Deckard trying to survive one last job. There is also the humanity factor to the film; a large part of the film is dedicated to a separate idea of what it is meant to be human. Ironically Deckards life is saved twice by the replicants he is employed to retire (kill), once by Racheal and in the final fight with Roy Batty. He feels sympathy for Deckard as he watches him slipping of the rooftop and realizes that he is about to die decides to save his life even though Deckard has killed his friends and tried to kill him. There is a scene when you see Batty release a white dove, symbolizing freedom, and sits down to explain to Deckard just what it is like to be a replicants, a life of great wonder with sights and memories most people will never have and finally a life wasted, ending too soon. He dies with dignity and shows more humanity than any other character in the film. Gaff also shows a sign of humanity, at the end of the film he shouts to Deckard its too bad she wont live, but then again who does. Gaff has decided to let Racheal live so she and Deckard can be together for the short time they have, he knows it wont last forever. Blade Runner is an extremely well written and directed film and would have been new and more than exciting enough to hold the audiences attention. Ridley Scott managed to create a believable vision of the future along with a story within a story. Not only that the film is so well put together that there is the possibility of further story lines within the film e.g. is Deckard a replicants, how could he love a machine if he wasnt or maybe they were all replicants, there was no real sign of life in the city, al the humans have left for off world colonies, maybe they were just left there to die while Tyrell plays with his toys or maybe even Tyrell has made replicas of himself. The possibilities are endless. The film itself was made produced before the use of digitally enhanced special effect were readily available which to my mind says that whether the viewer liked or disliked the film, Ridley Scotts accomplishments have to be recognized and applauded.

Second Language Advantages free essay sample

What are some important advantages to learning a second language and how can a second language be used By mob There are many different languages in the world, continent, and our country. Knowing a second language can give a person an edge in our multilingual world. This advantage could be used almost anywhere. These places include the work place, in a foreign province or country, and even in our schools. Today there are many jobs and occupations that either require or would benefit from a second language. Even simple every day Jobs can profit from knowing a new engage.For example grocery clerks benefit from their knowledge of a second language by being able to help customers that do not no English and need help finding what they need. Taxi drivers also need to know numerous languages to communicate with the customer and to know the destination they Intend to go. We will write a custom essay sample on Second Language Advantages or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page These are only two examples of speaking a different language and there are many more. In todays modern transportation age we are able to travel to other cities, countries and continents. This does create a problem because with traveling to different entries the languages you may travel to a country that does not speak your language.Knowing another language would help you find where you want to go, how to get there, and what you need. There are many languages in the world so next time you travel research what language that country speaks and learn a little Just enough to get your point across. Finally language In the schools. In school the most common use of the second language Is to use It In class. However there are other uses Including: If you want to say something private to a teacher or friend, find out want your teachers are talking bout, and for the really talented use it to write notes to your friends Oust make sure its not a language the teacher knows). The other way to use your knowledge is to do an exchange program. It is a good way to fine true your verbal speech of the language and is a great way to travel for free. Also some universities are requiring the knowledge of a second language to enter the facility. In closing a second language is not something to laugh at or make fun of but to learn. A second language can open doors to you that were shut before. So get out there and learn.