Disadvantages of Decentralisation free essay sample

The success of decentralization will depend upon the quality of personnel manning the decentralized units. In those cases where the training, experience, education etc of the employees are inadequate, decentralisation of authority and of decision making would be harmful for the enterprise. There will be wrong decisions, confusion, contradictions etc. (2) Decentralisation becomes uneconomic and unwieldy unless the organisation is large and strong enough at the top to cope with a decentralised structure. Particularly for a small organisation decentralisation is not at all desirable because it would be easier and more economical to administer the enterprise on a centralized basis. (3) When an organisation expands through internal growth, decentralisation is not necessary and may be harmful. Unlike external expansion, in this situation no desire for absolute autonomy pre-exists. (4) In situations of emergency or trouble, decentralised administration is ineffective. It is costly and time consuming to control an emergency situation which affects a vital business area under a decentralised plan. Such decisions have to be taken at the top, and excessive decentralisation may lead to too much of consideration and delay before the problem is brought to the attention of the central or top authority. (5) In the absence of adequate information, decentralised administration tends to become weak. Decentralised decision making depends upon the quick availability of information pertaining not only to the particular decentralised unit but also to the other related activities and unit. In the absence of this ancillary information decisions will lack coordination and unity amongst the different organizational units. 6) If it is not possible to break up the business suitably into profit centers or investment centers, then decentralisation may result in inadequate appraisal and control. In conclusion we may quote H. A. Simon, that some measure of centralisation is indispensable to secure the advantages of organisation, coordination, expertise and responsibility. On the other hand, the costs of centralisation must not be forgotten. Decentralization in Organizations: Learning Objectives: 1. Define and explain the term decentralization. 2. What are the advantages and disadvantages of decentralization in business organizations? 3. What are business segments? 4. Define and explain cost, profit, and investment centers. Definition and Explanation of Decentralization A decentralized organization is one in which decision making is not confined to a few top executives but rather is throughout the organization, with managers at various levels making key operating decisions relating to their sphere of responsibility. Decentralization is a matter of degree, since all organizations are decentralized to some extent out of necessity. At one extreme, a strongly decentralized organization is one in which even the lowest-level managers and employees are empowered to make decisions. At the other extreme, in a strongly decentralized organization, lower-level managers have little freedom to make decisions. Although most organizations fall somewhere between these two extremes, there is a pronounced trend toward more and more decentralization. Advantages/Benefits of Decentralization: Decentralization has many advantages/benefits, including: 1. Top management is relieved of much day-to-day problem solving and is left free to concentrate on strategy, on higher level decision making, and coordinating activities. 2. Decentralization provides lower level managers with vital experience in making decisions. Without such experience, they would be ill-prepared to make decisions when they are promoted into higher level positions. 3. Added responsibility and decision making authority often result in increased job satisfaction. Responsibility and the authority, that goes with it makes the job more interesting and provides greater incentives for people to put out their best efforts. 4. Lower level managers generally have more detailed and up to date information about local conditions than top managers. Therefore the decisions of lower level management are often based on better information. 5. It is difficult to evaluate a managers performance if the manager is not given much latitude in what he or she can do. Disadvantages of Decentralization: Decentralization has four major disadvantages: 1. Lower level managers may make decisions without fully understanding the big picture. While top level managers typically have less detailed information about local operations than the lower level managers, they usually have more information about the company as a whole and should have a better understanding of the companys strategy. 2. In a truly decentralized organization, there may be a lack of coordination among autonomous managers. This problem can be reduced by clearly defining the companys strategy and communicating it effectively throughout the organization. 3. Lower-level managers may have objectives that are different from the objectives of the entire organization. For example, some managers may be more interested in increasing the sizes of their departments than in increasing the profits of the company. To some degree, this problem can be overcome by designing performance evaluation system that motivate managers to make decisions that are in the best interests of the organization. 4. In a strongly decentralized organization, it may be more difficult to effectively spread innovative ideas. Someone in one part of the organization may have a traffic idea that would benefit other parts of the organizations, but without strong central direction the idea may not be shared with, and adopted by other parts of the organization Read more at http://www. accounting4management. com/decentralized_organizations. htm#kX2TyKXfLDTQ2pML. 99 Decentralization: Inspecting the Tradeoffs Decentralization generally comes into account to accouterment the disadvantages of centralization. Although a decentralized command anatomy does advice to affected the cons of absolute administration such as abridgement of buying and authority, as you go bottomward the hierarchical alignment structure, it has its own different set of pros and cons. Let us analyze these claim and demerits of decentralization and put into angle the tradeoffs complex back adopting this administration concept. Advantages of Decentralization * The top administration and promoters of the close accept broadcast the controlling ascendancy and are therefore, larboard with added time to accompany the action for acumen the organizations abiding vision. Day-to-day botheration analytic is no best the better affair for the higher-ups. * Operational ability makes it easier for the alignment to abound overall. Activities such as franchising, about-face and hiring of advisers at the authoritative levels do not charge connected action from the top management. Consequently, amplification becomes easier, adopting basic and inducting added workforce become beneath time-consuming. Decentralization abundantly allowances huge organizations advance over several thousand advisers and geographic locations. Increased controlling ability anon translates into greater accountability. Bounded managers and alike added advisers added bottomward the accumulated ladder are motivated to booty buying of their work. Leadership qualities acquisition announcement alfresco the boardroom aural the silos and cubicles as well. The all-embracing atmosphere tends to addition agent assurance arch to greater job achievement than the austere borders of a centralized set up. Grooming approaching leaders is additionally abundant easier in such an atmosphere. Theres no best aloof one centermost of arete in the alignment but several pockets of arete abounding of accomplished bodies advance out beyond the organization. Ascendancy is delegated at the bounded level, which agency decisions are added abreast and accelerated admitting not consistently strategic. * Decentralized ability agency greater accuracy which in about-face ensures that beneath mistakes are made. A accommodation is usually a autonomous and participative aftereffect and if theres a fail up in progress, affairs are abundant that addition will atom it. While theres buying of success, decentralized ascendancy additionally ensures that there are beneath scapegoats. A aberration cannot be mapped to one distinct being (this can be a bankrupt beneath some added circumstances). * Perhaps, one of the best able outcomes of decentralization is the achievability of accessible innovation. With aptitude advance out beyond all levels and locations and the consistent networking possibilities, ablaze minds get calm with ideas, arch to addition rapidly. There are no authoritative bottlenecks or hindrances to barter of ideas. In a decentralized setup, it becomes accessible to atom the anemic links that are consistently affecting the basal lines. Therefore, it becomes easier to bung the leaks in time and accomplish abiding that the acquaint abstruse are finer conveyed to all added subunits aural the organization. * The acceptance of authoritative standards and best practices is additionally facilitated by a decentralized setup. Accuracy in action en sures that it is accessible for the assorted bounded teams to challenge and accept the methods and processes that brought success to a aggregation amid elsewhere. One of the above advantages of decentralized way of demography decisions is witnessed during a abrupt change in the bounded business ambiance such as the access of recession or bill devaluation, etc. Businesses are able to acknowledge and acclimate bound to these changes back ascendancy is decentralized. * Retail businesses like Walmart and auberge chains generally account from accepting a decentralized appearance of management. Businesses, area quick decisions amidst fast-paced changes in ambiance are the adjustment of the day, angle to account from decentralization. Disadvantages of Decentralization * Too abundant accent on localized way of demography decisions may end up abashing the bigger picture. As you go bottomward the accumulated ladder, advisers assume to lose afterimage of the authoritative vision. * A awful decentralized alignment can be the battlefield for ailing antagonism amid bounded managers arch to abridgement of co-operation and coordination. As a result, commutual functions may ache and absolute interdepartmental conflicts is difficult back ascendancy has been delegated. In addition, there is cher duplication of assignment (activities, processes and outcomes) that may appulse abridgement of scale. * Decentralization is not consistently a acceptable action to activate with, abnormally back the alignment is still to acquisition its basement in the market. Pushing decisions bottomward the bureaucracy after assessing if those levels in actuality accept the appropriate abilities and capabilities, is a aberration that could prove to be costly. * While decentralization promotes the advance of standards and best practices, altered managers apperceive them differently. Therefore, accomplishing of compatible organization-wide constant behavior becomes problematic. In case of emergencies that crave acceptance of organization-wide standards, the circulation of ascendancy and absolute opinions and accomplishments affectation a above hindrance. * Decentralization generally gives acceleration to an agent citizenry composed mainly of generalists and actual few specialists. External specialist consultants generally charge to be approved back the charge arises, added abacus to the costs. Assignment allocation and achievement appraisal are not constant in a acerb decentralized establishment. A subunit that is a amount centermost ends up accepting a raw deal, admitting acquirement breeding units acquire the allowances of a acceptable achievement by their subunit. It is difficult to admeasurement the achievement of amount centers and the associated advisers as they do not accomplish profits. * Businesses like fast aliment chains such as McDonalds area speciali zation is important and bendability in account is vital, angle to account from a added centralized assignment culture Source: http://www. shvoong. com/business-management/business-ideas-and-opportunities/2263925-advantages-disadvantages-decentralization/#ixzz2Oc5y6AfP Advantages of Decentralization The top management and promoters of the firm have distributed the decision-making authority and are therefore, left with more time to pursue the strategy for realizing the organizations long-term vision. Day-to-day problem solving is no longer the biggest concern for the higher-ups. Operational independence makes it easier for the organization to grow overall. Activities such as franchising, diversification and hiring of employees at the departmental levels do not need constant intervention from the top management. Consequently, expansion becomes easier, raising capital and inducting additional workforce become less time-consuming. Decentralization greatly benefits huge organizations spread over several thousand employees and geographic locations. Increased decision-making power directly translates into greater accountability. Local managers and even other employees further down the corporate ladder are motivated to take ownership of their work. Leadership qualities find expression outside the boardroom within the silos and cubicles as well. The overall atmosphere tends to boost employee morale leading to greater job satisfaction than the strict confines of a centralized setup. Grooming future leaders is also much easier in such an atmosphere. Theres no longer just one center of excellence in the organization but several pockets of excellence full of talented people spread out across the organization. Authority is delegated at the local level, which means decisions are more informed and accelerated though not always strategic. Decentralized power means greater transparency which in turn ensures that fewer mistakes are made. A decision is usually a democratic and participative outcome and if theres a goof up in progress, chances are great that someone will spot it. While theres ownership of success, decentralized authority also ensures that there are fewer scapegoats. A mistake cannot be mapped to one single person (this can be a demerit under some other circumstances). Perhaps, one of the most powerful outcomes of decentralization is the possibility of open innovation. With talent spread out across all levels and locations and the resulting networking possibilities, bright minds get together with ideas, leading to innovation rapidly. There are no bureaucratic bottlenecks or hindrances to exchange of ideas. In a decentralized setup, it becomes easy to spot the weak links that are consistently affecting the bottom lines. Therefore, it becomes easier to plug the leaks in time and make sure that the lessons learned are effectively conveyed to all other subunits within the organization. The adoption of organizational standards and best practices is also facilitated by a decentralized setup. Transparency in process ensures that it is easy for the various local teams to emulate and adopt the methods and processes that brought success to a team located elsewhere. One of the major advantages of decentralized way of taking decisions is witnessed during a sudden change in the local business environment such as the onset of recession or currency devaluation, etc. Businesses are able to respond and adapt quickly to these changes when authority is decentralized. Retail businesses like Walmart and hotel chains often benefit from having a decentralized style of management. Businesses, where quick decisions amidst fast-paced changes in environment are the order of the day, stand to benefit from decentralization. Disadvantages of Decentralization Too much emphasis on localized way of taking decisions may end up blurring the bigger picture. As you go down the corporate ladder, employees seem to lose sight of the organizational vision. A highly decentralized organization can be the battleground for unhealthy competition between local managers leading to lack of co-operation and coordination. As a result, interdependent functions may suffer and resolving interdepartmental onflicts is difficult when authority has been delegated. In addition, there is costly duplication of work (activities, processes and outcomes) that may impact economy of scale. Decentralization is not always a good strategy to begin with, especially when the organization is still to find its footing in the market. Pushing decisions down the hierarchy without assessing if those levels in fa ct have the required skills and capabilities, is a mistake that could prove to be costly. While decentralization promotes the spread of standards and best practices, different managers perceive them differently. Therefore, implementation of uniform organization-wide consistent policies becomes problematic. In case of emergencies that require adoption of organization-wide standards, the diffusion of authority and independent opinions and actions pose a major hindrance. Decentralization often gives rise to an employee population composed mainly of generalists and very few specialists. External specialist consultants often need to be sought when the need arises, further adding to the costs. Work allocation and performance evaluation are not consistent in a strongly decentralized establishment. A subunit that is a cost center ends up getting a raw deal, whereas revenue generating units reap the benefits of a good performance by their subunit. It is difficult to measure the performance of cost centers and the associated employees as they do not generate profits. Businesses like fast food chains such as McDonalds where specialization is important and consistency in service is vital, stand to benefit from a more centralized work culture. We have seen both the advantages and disadvantages of decentralization that hopefully makes clear what the tradeoffs could be in adopting this concept in an organization. However, most disadvantages of decentralization can be overcome by controlling the degree of authority delegated to the lower levels of the organization. Both centralization and decentralization have their extremes which is why, the key is to avoid those extremes and take the middle road. A combination of both concepts and a conscious deviation from the autocratic management style is recommended as a plausible strategy. Striking a balance between how much independence is given to individual business units and what kind of decisions remain under the central command could lead to a successful strategy. By Preeti Sunil Published: 2/13/2012

Intentional Criminal Liability Management

Question: Discuss about the Intentional Criminal Liability Management. Answer: Under Irish law Assault will attract criminal liability one actually inflicts harm on another person through the application of force. Pursuant to section 2 of Non-Fatal Offences against the Person Act (1997) an assault has been defined as an intentional or a reckless act where one applies force which causes an impact on another persons body. The bodily impact that has been caused must either be caused directly or indirectly. The second limb of the assault definition suggests that one will also be guilt of the offence of assault if he causes someone to reasonably believe that he will he likely to make an impact on the body of the other person using force. It bears noting that the expectation of the force must be immediate. For criminal liability to attach only one limb must be satisfied. Further under section 3(1) of the Non-Fatal Offences against the Person Act (1997) a person will be held to be criminally liable for an assault that eventually caused harm to the other individual. It is instructive to note that if the person uses force but does not necessarily cause harm they will be liable to pay a fine which shall not exceed 1500 pounds or serve a term in imprisonment which shall not exceed 6 months or may be subjected to both fine and imprisonment (S 2(4) Non-Fatal Offences against the Person Act, 1997)). If the assault caused harm the person will be criminally liable upon summary conviction to an imprisonment term which shall not exceed 12 months or a fine which shall not go beyond 1500 pounds or both (S 3(2b) Non-Fatal Offences against the Person Act 1997). Upon conviction the person will be liable to a imprisonment term of not more than 5 years. It is worth noting that the actus reus and mens rea element of a crime must be present to prove a crime of assault. The mens rea must be a general intent. In the case in point Michael punched Sean and therefore he has applied force directly against another person. In R v Thomas (1985) it was held that the degree of force used against the other person is immaterial. If the civil action is brought first the claimant must prove there was apprehension of an imminent attack on him (Dullaghan v Hillen, 1957). The defendant must have had the intention to cause the harm on the claimant. It is not necessary to show that there was contact or injured was suffered in a civil action for assault. The claimant must only show that he had reasonable grounds to believe that the attack was imminent (Thomas v National Union of Mineworkers, 1985).On the other hand, it may be easier for Sean to pursue a civil action against Michael if he is held guilty of the crime of assault. The causal link between the act and the harm caused will have already been determined by the criminal court. In criminal law the main goal is usually to punish the accused and the remedy is imprisonment or a fine. However, the chief goal of civil law is to put the claimant in the position they were in before the civil wrong had occurred. This is usually done by way of compensation. Sean can th erefore claim special damages in the civil court and this will be awarded based on the economic losses or expenses that he incurred. Therefore, Sean can claim to be compensated fro the medical expenses and the loss of income that due to the fact that the injury caused him not to attend his daily job where he is self employed. It is imperative to note that even though the court may declare that the defendant, Michael is entitled to pay the compensation most civil cases that are conducted immediately after a criminal conviction, defendants argue they are not able to pay the compensation. It may be advisable to only pursue a civil action for compensation although in this case the police had already taken the matter up for investigation and therefore a criminal case was bound to occur. It should be borne in mind that the burden of prof in a criminal case rests on the prosecution and not the complainant. However this is just the general rule but pursuant to section 29(2) of the Misuse of Drugs Act (1977) where the accused has been found in possession of a drug, the burden of prof shifts to the defense (People (DPP) v. Byrne, 1998). In the case Sean, the prosecution will have the burden of proofing that the accused Michael is guilty of the act. The standard of proof that shall be applied in the criminal case by the prosecution is thus one which is beyond reasonable doubt. In the People (AG) v. Byrne (1974) the court affirmed that in a criminal case the jury must come to a conclusion after the case has ben proven beyond reasonable doubt. However, the accused should be aware that he has been accorded the benefit doubt depending ion the evidence that is adduce in court. In a civil case the burden of proof rests on the plaintiff to show that he apprehended an imminent at tack. The claimant has the burden of proving that the defendant had the intention to commit the act. The defendants duty will be merely that of defense and not a burden of proof in the strict sense. The burden of prof in this case cannot shift to the defendant. However, in a civil case the standard of proof is on a balance of probabilities. It will be the duty of Sean to prove that ion a balance of probability Michael committed the civil wrong and that he suffered harm therefore he is entitled to compensation. All in all it may be conceded that Sean has a stronger criminal case although he has to pursue a civil action for compensation due the medical expenses he may have incurred and the loss of income that was caused by the injury which made him stay at home References R v Thomas (1985) 81 Cr. App. R. 331 Dullaghan v Hillen [1957] IR Jur Rep 10. Thomas v National Union of Mineworkers [1985] 2 All ER The People (Director of Public Prosecutions) v. Byrne [1998] 2 I.R. 417 The People (Attorney General) v Byrne[1974] IR 1 Misuse of Drugs Act (1977) Thomas v National Union of Mineworkers [1985] 2 All ER 1 Dullaghan v. Hillen [1957] IR Jur Rep 10. [35]. Non-Fatal Offences against the Person (1997 Act)

Parcc Essay Student Samples Grade Ideas

Parcc Essay Student Samples Grade IdeasIt is a fact that when students are studying the English literature in high school, they need to have access to popular high school student samples to help them to obtain good grades. For any student that wants to be successful and go to college or university, it is a must that they use the materials to write their essay.This is so because every student should write an essay. There is no point in reading a good book if you do not have the knowledge of how to write. You need to master this skill before you can begin to work on your assignments.There are various students samples that are available online. These student samples consist of essays and some essay questions. It is a good way for students to get into a good mood, to relax and to get their mind off the hard times that they are going through. By working with these student samples, students are able to get them thinking and writing something well.Most of the websites that provide student s amples also offer free versions. The writers can look at the works and try them out. Most of these essays contain creative and interesting topics that will definitely catch the attention of the reader.It is important for students to write an essay. They need to show how they read a book or the latest newspaper article. They need to show the readers how they analyze the events and decisions of the world.Essays are the first step in the process of preparing for exams. The essays are basically their way of studying and determining the answers for their exams.Writing essays is a process that takes a lot of time. Students are advised to write essays as soon as possible.There are lots of time constraints when preparing for examinations.If you are struggling to write essays and want to study the techniques of writing, then check out an online writing course. They will help you overcome the many issues that you are facing in writing an essay.

5 Things We Wish Wed Been Told When Starting College

5 Things We Wish Wed Been Told When Starting College 5 Things We Wish We’d Been Told When Starting College Starting college can be tough. You’ve got new ideas to wrestle with, new friends to make, and you have to get used to looking after yourself. Here are 5 things we wish someone had told us when we first started college. 1) Don’t Buy Books! You might have been told to go out and buy all the books on your reading list, but this isnt usually necessary. Any college library worth its salt will have plenty of the required books. Just make sure you get there before the other students snap them up! And if you get really stuck, you can always get cheap hand-me-downs from last years students. 2) Choose One Club It’s really easy to get sucked into signing up for 10 clubs in the first week at college. Sure, archery, salsa dancing, the Russian food club and white water rafting all sound great, but will you really have the time? Better to wait a few months before buying any expensive equipment to make sure you are really committed, rather than spending loads of money on a wetsuit and sailing shoes in your first week only to use them about four times. 3) Start Writing Your Papers Early It’s so tempting to put off writing a paper until a week before it is due. However, you’ll save yourself a lot of stress and time if you start writing as soon as the title is set. If you get into the habit now, you’ll be an expert when you get into your final year. 4) Save the Introduction until Last Another great writing tip is, once youve planned your paper, to skip writing the introduction until last. This will help you help you write a really strong opening, since youll have a much better sense of what the paper is about. 5) Take it Easy on the Drink College is a time for partying, sure, but you will find that relentless drinking will take its toll sooner than you think. There’s so much to get used to in your first year of college, so it’ll be a hell of a lot easier without a constant hangover! Try alternating alcoholic drinks with soft drinks and having a few alcohol-free nights a week. It’ll help you stay emotionally balanced and make life much easier!

Ethics, No Secrets Policy and Counselor Values Essay Example

Ethics, No Secrets Policy and Counselor Values Essay Example Ethics, No Secrets Policy and Counselor Values Essay Ethics, No Secrets Policy and Counselor Values Essay Bullet Point Responses Julie Sanders * I believe it is unethical for the counselor to reveal anything said in individual counseling with the husband. She didn’t address a â€Å"no secrets† policy in the informed consent. Sharing this information with the wife without his permission is unethical. In marriage counseling the â€Å"no secrets† policy needs to be addressed and explained in the informed consent. Since she did not have a policy concerning this, she is bound by confidentiality which should have been in her informed consent. It is not the job of the counselor to instill his/her values onto a client. The counselor shold try to remain as neutral as possible. Even if the husband feels the extra-marital relationship is enhancing the marriage, his wife still doesn’t know about it, and he seems to be the only one benefitting from the affair. The counselor should remain as neutral as possible when discussing this with the husband and encourage him to brin g this up in a conjoint session. It is not the therapist’s decision to make since she did not have a â€Å"no â€Å"secrets policy in place. I don’t think the therapist should â€Å"persuade† the husband to give up the affair or bring it up in joint counseling. In my opinion that is still imposing her values on the client. With that said, I do think, in a sense, that the therapist is colluding with the husband. However, she is responsible for the situation by not clearly stating confidentiality and â€Å"no secrets† in her informed consent. * According to Corey (p. 98) counselors should have a process of self-examination to discover their own biases, beliefs and values. I think it is unethical to refer a client because of a therapist’s personal beliefs. Saying that, if the counselor has strongly held beliefs and values, they should be addressed in the informed consent and explained to client’s before the counseling process begins. This would give the counselor basis for referral. Since the counselor is bound by confidentiality, she cannot tell the wife of the husband’s affair, but if the counselor addressed value’s bias in the informed consent, she can offer that as a reason for referral. It is not the counselor’s job, nor is it ethical for the counselor to inform the wife of the affair. * I don’t believe it is in the best interest of the original client (the husband) for the counselor to offer marriage counseling to the couple. The scenario does not address the training of the counselor in this field. If I were the counselor, I would continue to see the husband, dealing with his issues and refer the couple to a marriage counselor. Assignment Questions Julie Sanders ii) I want you to read over the informed consent and make sure you both understand the guidelines we will be operating from. There are several important sections that I would like you both to understand before signing the form. I’ll be happy to discuss and answer any questions regarding these areas. In the beginning of the consent for is a section I would like to bring your attention the purpose of therapy, procedures, the possibility of a negative outcome, possible benefits, fee structures, your rights and responsibilities and also either one of you can withdraw at any time (Corey, p. 474). I have a â€Å"no secrets† policy. Since you are here for couple’s counseling I feel you need to be open and honest with each other. If one of you shares a â€Å"secret† with me individually that I might feel necessary to share, I will decide if it needs to be shared with your spouse. iii) I will not share my values with you regarding marriage or extramarital affairs I don’t think it would be ethical because it could sway your decision making, and how I personally feel about an issue is not the problem being addressed. For your best interests, I feel it is best that I remain as neutral as possible. v) In the beginning of the counseling process along with informed consent I would address the issue of blindsiding a partner. The clients and I would address the issues involved in being honest as opposed to being â€Å"brutally† honest in a way that could cause harm. If after discussing the effects of an ambush, it happens anyway, I would ask the â€Å"ambushee† how that made them feel an d the ambusher the reasoning behind the â€Å"attack. † Hopefully this would encourage a rational, honest and meaningful dialogue between the two.

Lessons Learned from the Enron Scandal Term Paper

Lessons Learned from the Enron Scandal - Term Paper Example The bankruptcy of such a big organization is regarded as the greatest setback in American history. The dissolution of Enron was the result of its own false practices illegal dealings of projects and not showing their debts on their company’s accounts. (Project 2000_25_Corporate) It was regarded as the greatest failure in terms of audit. Enron was established in 1985 by Kenneth Lay after the merger of Houston Natural Gas and Inter North. This merger created the largest gas pipeline system in America. In the 1990’s Kenneth Lay took an initiative to sell the electricity at market prices and the resulting markets helped him to sell the electricity at higher rates as a result increasing their income. Enron not only delivered natural gas but also became a market middleman for energy and brought the buyers and sellers of energy on one platform. Enron in just 15 years reached such a position where it became America’s seventh biggest company which employed 21,000 employee s in more than forty countries. (Enron scandal-at-a-glance, 2002) Enron became dominant in the trading of energy contracts and financial instruments known as Derivatives. By 1992, Enron became the largest seller of natural gas in North America with earnings of $122 million. In the late 1990’s Enron was considered as the best in the world as it controlled twenty five percent of all electricity and natural gas contracts. In November 1999, Enron’s online website was established which helped the company to manage its contracts more efficiently. This website of the corporation in no time became the largest e-business site of the world. Enron also invested in physical facilities. Enron in the beginning was an insurance company. For further development of the company, Enron purchased a number of assets which included gas pipelines, electricity plants, water plants and broadband services all over the world. The company also incurred revenue by dealing in the same products and services in which it had been involved. The stock of Enron rose from the beginning of the 1990’s until 1998 by 311% which was a remarkable increase in the rate of growth. Apart from that Enron was rated as the most innovative corporation in America, in the survey of Fortune’s most Admired Companies. After many years Jeffery Skilling was hired who developed the idea of using such an accounting system which could hide debts in billions from the failed deals. Not only him but Andrew Fastow Chief Financial Officer and many other executives misguided the board of directors of the Enron company. The shareholders of the Enron Company lost 11$ billion which was as high as US$90 per share in the middle of 2000 but fell to less than 1$ at the end of Nov 2001.As a result of which the U.S. Securities and Exchange Commission started to investigate the matter. The decline of Enron started when its investors became known of the â€Å"off balance sheet† partnerships that were h iding billions of dollars of debts. One of the deals with Blockbuster Inc. which was a video rental company to provide movies on the internet was also cancelled in March. Moreover the rival company Dynegy offered to purchase the company and the deal was finalized on December 2, 2001. The Enron Company finally filed for the bankruptcy of the company. In the U.S. history Enron was the largest corporate bankruptcy until WorldCom’s was declared bankrupt the next year. Moreover there were many executives who were blamed for a number of charges and were then sentenced to prison. Moreover, Arthur Andersen the auditor of the corporation

Corrections Corporation of America Company Essay

Corrections Corporation of America Company - Essay Example Ethical Factors The ethical factors surrounding the current changes in the justice and correction departments in the US regard the moral consequences and the general good of the nation. The early release of incarcerated individuals may have an impact on the recidivism and security of the country at large. Rehabilitation and correctional efficiency of criminals reduces even with an increase of cost in public prison facilities. The effect of the current state policies affects all individuals, from individual citizens to the individuals incarcerated. Company’s Current Strategy The CCA is planning to expand its market to Europe and other countries. In Europe, the market for private prison services in increasing, a change attributed to the changing justice policies in those nations. In the US, the company has remained behind its competitors in expansion, preferring to wait for clarity on the current situation and its expected-persistent duration (Tella and Winig, 2010). The current adoption of cost control policies by states will result in leniency in law and justice, which will further result in increase in crime nationwide. Additionally, CCA suffers economically if its correction facilities do not maintain an acceptable level of incarcerated criminals. ANALYSIS EXTERNAL ANALYSIS The history of private prison industry dates back to 1984, with CCA taking over the management of a prison facility in Tennessee. The company has since grown to become the leader in the industry, commanding nearly 50% of the prison beds under private correctional services (Tella and Winig, 2010). Industry Structure & Trends The private prison services industry offer correctional services to the nation, the main customers being federal and state... The paper tells that the history of private prison industry dates back to 1984, with CCA taking over the management of a prison facility in Tennessee. The company has since grown to become the leader in the industry, commanding nearly 50% of the prison beds under private correctional services. The private prison services industry offer correctional services to the nation, the main customers being federal and state governments in the US. These companies work on a contractual basis, typically three to five years, but most of the contracts incorporate clauses that allow the government to terminate their agreement. The growth of the industry depends on a number of uncontrollable factors, which include sentencing patterns in different jurisdictions, crime rates, and acceptability of prison services privatization. Specialists in the industry argue that business is headed downwards for new comers as more states try to reduce prison overcrowding and expenses. According to the article, almost half of the new inmates were sent to private prison facilities in 2009. The article cites one analyst suggesting that established firms in the industry who have focused on their competencies will continue to grow despite the budget crisis. The policies regulating private prison use varies from state to state, with some states banning the private prison altogether, like New York, Louisiana, and Illinois. Outside the US, privatization of prison services has not been embraced fully. Nonetheless, countries, especially in the European region, are adopting the system, with Australia having a record 17%.