First, the decreasing subscription of land-line telephone service due to the proliferation of cellular technology. Since 2001, there has been a steady decline in market share of land-line telephones as more and more users chose to use cell phones as their permanent phone provider. WorldCom, with its specific focus still on land-line services has created a multitiered strategy to promote land-line use. They emphasize new packages that are more affordable than older packages, with shorter time commitments, as well as more land-line services than previous offers. WorldCom believes that this strategy promotes greater diversification of land-line services across many different platforms that will increase the overall usage and service provision for American consumers. The second major issue that impacts WorldCom's future strategic vision is the emergence of VOIP services as a mode of land-line phone services. VOIP (Voice over IP) are internet-based telephone services that utilize the internet connections to create a virtual land-line platform. This service has become increasingly popular because it is low-maintenance and much cheaper than traditional landlines. In order to decrease the market share erosion for VOIP providers, WorldCom has created a long-term strategy that attempts to destroy the credibility of VOIP through attacking its inconsistency. WorldCom, at a corporate level, believes...
The final strategic challenge to WorldCom is the proliferation of smaller and decentralized landline providers throughout the United States. When WorldCom dominated the marketplace of landline telephones, there were only four major competitors for overall market share. Today there are more than dozen popular services that all compete with WorldCom and at&T for overall market share. WorldCom has used a leaning approach with their current corporate strategy to cut costs. They believe that if they provide more efficient servicing platform they can maintain their current user base and expand into competitor strength regions that have less flexibility and more tenuous infrastructures.
The first three organizations in line to recuperate their funds were Citigroup, J.P. Morgan and General Electric Group. They had been offering financial solutions and encouragement to purchase the WorldCom stock based on a favorable business relationship. However, at the time when bankruptcy procedures were commenced, the three organizations recognized their losses and intended to recuperate them. A succinct presentation of the period surrounding the crisis could be reveled by
WorldCom Noose Getting Tighter: Bankruptcy Tough to Avoid" illustrates dramatic business news, relevant to current issues in the telecommunications slump. The WorldCom bankruptcy declaration is also personalized because it reminds the reader of the fragility of the economy as well as the possibility of individual financial ruin. The fact that the $3.9 billion fraud disclosure was a "record" indicates controversy and drama, no doubt conflict-filled. Because this dollar amount is
WorldCom: The Ethics of Whistle-Blowing In recent years, it has not been easy for employees to completely trust the corporations for which they work. Accounting scandals have made the average employee question business practices unlike before. The large corporate American framework built in culture; vision, core values, accountability and self-worth seem to have gone out the window with a certain degree of worry. Is it risky to work for a big
Madoff Investment Securities LLC (BLMIS) committed one of the greatest financial frauds in U.S. history. Investigations revealed that Mr. Madoff operated an elaborate "Ponzi Scheme" that started operating in 1980s.Even though Madoff was initially supposed to invest all of his clients' money in the securities markets, he never did so. Instead, he deposited the whole amount in a certain bank account that he held with the Chase Manhattan Bank.
The reality was that a company which aspired to be "the No. 1 stock on Wall Street" was instead steadily bleeding money while claim growth in the billions. The pressure placed upon accountants at WordCom was reflective of the pressure facing accountants throughout the economy during this period of widely absence securities oversight. Indeed, the relationship between regulation and accounting is essential, and this diminished link would have catastrophic implications
The first was the motivation on the part of Ebbers and Sullivan. The second was the complicity of employees within WorldCom's accounting department. The third was the complicity of the external auditor, Arthur Andersen. In order to prevent such frauds from occurring, these different factors should be addressed. With respect tot Ebbers and Sullivan, two problems occurred that should be prevented in future. The first is the heavy emphasis on
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