I. Introduction
A. About the company:
Ernst & Young is a global leader in assurance, tax, transactions and advisory services. The company is based in London, UK, with 709 offices in 140 countries, over 70 of which are in the United States. It employs 152,000 people worldwide. Global revenue in 2011 was $22.9 billion. Ernst & Young was founded in 1989 when Ernst & Whinney and Arthur Young & Co. merged. The company's roots go back to 1849. To ensure they are efficient and effective, they have organized their legal entities into 29 similarly sized business units, called Regions, in terms of both people and revenues. These Regions, almost all of which are purposely no single countries, are grouped into four geographic Areas:
•Americas
•Asia-Pacific
•Europe, Middle East, India and Africa
•Japan
This structure is streamlined – it allows them to make decisions quickly, and ensures that they execute their strategy and provide exceptional client service wherever in the world their clients do business. The Global Executive is their highest management body and focuses on strategy, execution and operations. Its membership brings together all the elements of their global organization, including the leaders of their geographic Areas and service lines.
B. Operation – Execution of Strategies:
Ernst and Young as a company is dedicated in carrying out its piece of work to build a better working society. They believe that there are a lot of good things that happens in a better working world such as the confidence between the businesses grows which leads to more money flow thus increasing the responsibility of investors to be aware of information before making decisions. As a result of investments made by investors the companies are better su...
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The overall idea that Nadar, Green and Seligman present is that we need to allow the board to play its original role and to remove the excessive amounts of power that are current held by the highest company executives. Their goal is to make companies democratic just like the American system government and to make all who participate accountable for the actions they take.
Globalisation is the process where a business will expand and operate over international boundaries. In doing this, wider communication with the world can be established, the potential to explore new markets can occur and employment opportunities can be created for residents of the countries in which International businesses are situated. Qantas has entered the global airline market successfully since 1958 when it offered the first “round the world” air service, in 1999 joined the Oneworld Alliance which consists of eight of the world’s top airlines (Aer Lingus, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia and Lan Chile). When travelling to Europe, we experienced globalisation when purchasing airline tickets through Qantas’ website which were later discovered to be affiliated w...
General Motors is knocking on the door to world class business performance. Ohmae’s five stages of global operation support General Motors aspirations. From stage one to stage five there are significant differences to becoming a global organization. For instance, stage one, states that a company supports arm’s length customer export activity by a domestic company that links up with local and distributors to function. This stage represents the entry level global corporation. General Motors is at stage 4 of Ohmae’s five stages of becoming a global corporation, because it has exemplified the following traits: Systems and tools used globally not just at headquarters, R&D, Engineering and other business operations have a global focus, and all support functions are applied globally. (MFGO 601, WK. #2 Lecture Notes) An example of Ohmae’s, stage ...
In the late 1800s' economy there were many Americans who considered themselves to be business affiliated, but really didn't understand the full meaning of a business or knowing any financial obligations within a business. However, there was one peculiar man John Pierpont Morgan also know as J.P. Morgan who stood out to be a triumphant entrepreneur of many Americans in the late 1800s U.S. Economy.
The Board of Directors is consisted of 11 members: James M. Elliot, the Chairman of the Board, 3 inside members and 7 outside members. The economy is stable and profitable, but that also means a lot of competition in the market. This poses a great opportunity for the company to grow and gain more of the market share. The only foreseeable real threat that the company will face is new competitors in the market.
John Pierpont Morgan is considered one of the founding fathers of the modern United States economy. He was an industrial genius that is accredited with the founding of many companies including General Electric and AT&T. However, Pierpont is looked upon as a saint and demon the same. He received a honorary degree from Harvard university that read: "Public citizen, patron of literature and art, prince among merchants, who by his skill, wisdom and courage, has twice in times of stress repelled a national danger of financial panic." But Robert LaFollette, the Wisconsin progressive, saw him as "a beefy, red-faced thick-necked financial bully, drunk with wealth and power." Despite conflicting opinion on his persona, his influence and character shaped the business world more so than any other person at the turn of the century. Morgan was a banker, railroad czar, industrialist, financier, philanthropist, yachtsman, and ladies' man. He was king to a handful of millionaire barons who controlled the country's wealth in an era of little government regulation.
Global companies play an important role in the business environment, because they connect their business together around the world. A good example of a global company is Dell Inc., an American computer-hardware company, headquartered in Austin Texas, which develops, manufactures, sells and supports a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. They design, build and customize products and services to satisfy a range of customer requirements: from the server, storage and Premier Services needs of the largest global corporations, to those of consumers at home. According to the Fortune 500 2006 list, Dell ranks as the 25th-largest company in the United States by revenue.
Organizations that only have top management as the board members are more susceptible to accounting malpractices. Members of the board should preferably own shares in the company to ensure diligence when it comes to the interests of the company. Apart from the Board of Governors, there should also be an audit committee in place to oversee the financial dealings of the bank. Members of the board and the audit committee should have basic financial knowledge. Some of the members should also be experts in finances so that they can detect any anomaly that may take place in terms of financial reporting. An overhaul of the regulatory framework is required to empower authorities to intervene immediately, and make improvements. New technology is required. Manual antiquated processes should be eliminated because this causes greater human error and poor
The oversight responsibilities of the board, the CAE lacking of expertise or broad understanding of financial controls and responsibilities, and the understaffed internal audit functions lacking of independence and direct access to the board of directors contributed to the absence of internal controls. To begin with, the board should be retrained to achieve financial literacy to review financial reporting. Other than attending formal meetings, the board of directors should be more involved with the management. For the Audit Committee, the two members who were recruited as acquaintances to Brennahan need be replaced with experts who are more sufficiently knowledgeable about accounting rules beyond merely “financially literate”. Furthermore, the internal audit functions need to expand with different expertise commensurate with the expanded activities of the organization, testing financial reporting rather than internal controls from an operational perspective. The CAE should be more independent and proactive to execute audit plans, instead of following orders from the CFO, and initiate a direct and efficient communication between internal audit and audit
Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...
In today's business environment, there is sustained pressure for companies to maximize productivity in order to be competitive in the marketplace. Many businesses are moving a variety of activities, such as manufacturing and product development, to countries with low labour costs. They are also opening up sales channels in many new markets. The resulting global organizations need to structure themselves, so that they can effectively manage operations across numerous locations. This paper looks at how the organizational structure of a global company influences decision-making at the regional level, and how this can affect the business performance. This paper will:
Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.
As a conclusion international business best described as a Globalization. A globalizing business sector advertises viability through rivalry and the division of the work it permits individuals and economies to keep tabs on what they specialize in. It also allows people to go globally. Globalization has stretched the assets, items, administrations and markets accessible to individuals. The increasing set of reliant connections around individuals from distinctive parts of a world that happens to be separated into countries
PricewaterhouseCoopers (PwC)is the world’s largest accounting firm and ranks as one of the giants in the global professional services arena. PwC employs over 146,000 people with 766 offices in 150 countries. The Firm is led by Samuel A. DiPiazza, CEO, and is headquartered in New York City on Madison Avenue. Its clients include 84 percent of the Fortune Global 500 companies. Price Waterhouse and Coopers & Lybrand merged in 1998, which made the combined firm the top player in public accounting. In the 2007 fiscal year, PwC had gross revenue of over $25 billion. Structured as a limited liability partnership (LLP), the private company would rank in the low 300s on the Fortune 500 companies.
In July 2011, the company structure was categorized into two Global Business Unit. P & G is also a member of the US Global Leadership Coalition, a Washington, DC based coalition for over 400 majors companies & NGO's that advocates for a...