Arthur Andersen LLP Case Study Example | Topics and Well Written Essays - 1250 words

Arthur Andersen LLP - Case Study ExampleStrategic changes that occurred in the governments life include development of a reputable character that established it in the accounting and auditing market. Later changes that suggest unethical practices such as collaborationism with Enrons accountants however transformed Andersen to its downturn and collapse. Application of soft strategies is another change that occurred in the organizations life. Conflict between departments into integration in addition identifies strategic change in the companys environment. Organizational changes that Andersen realized are change from a centralized management to a disintegrated organization with item-by-item managerial authority at branch level. Administrative policies for higher profits and disgrace costs are another organizational change in the organization and identified punitive reward and punitive measures depending on an employees level of success. Expansion to new areas of specialization and a shift form ethical set are other organizational changes that are evident from the organizations life. Evaluation of Andersens claim that their problems on the Enron audit were due to a a couple of(prenominal) bad partnersAndersons claim that its problems were caused by a few bad partners is not valid. This is because the problem was a culmination of bad decisions that failed to resolve the organizations problems such as need to maximize profits. The decision to set high targets for employees and punish in case of failure to meet the target is an example of causes of the problem because it forced the employees to explore all possible alternatives to avoiding the punishments. Integrating Enrons accounting personnel into the organization is another indicator the management was aware of the practices at Enron because it never reacted. Duncans decision to move Enrons $ 30 million ao a $ 50 million account is another indicator that Anderson was aware of a malevolent practice because it took no action against the bad decision. If the problem had been a few individual then the organization could have been moved to correct malpractices before the terminal fall. 3. Possible actions as the Andersens managing partner in the early 1990s If I were a managing partner at the time, I would have preferred a different strategy. I would have explored a gradeing strategy towards retaining the organizations existing clients and for attracting more clients. Developing on the already popular brand of quality services that are based on integrity would be my basis. Increased number of clients towards higher cumulative profit margins, even at lower margins, would then help the organization into a more competitive competition. This would at the same time care for employees interest in their income and job aegis and maintain an ethical culture. 4. Relationship between what happened at Andersen