FINAL EXAMS PROJECT Pekum and vraj dave

FINAL EXAMS PROJECT Pekum and vraj dave - FINAL EXAM...

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FINAL EXAM PROJECT FOR GROUP ONE MEMBERS (PEKUM, PETRO PAUL AND VRAJ DAVID) CAPSTONE CASE STUDY ON ORGANIZATIONAL ARCHITECTURE ARTHUR ANDERSEN LLP1 Q1) the environmental, strategic and organizational changes that occurred over the life of Andersen in the context of figure 11.1 can be analyzed as bellow . For the environmental (business environment), we will talk about technology which has to do with computers, Telecommunication and production methods. For Markets, we will talk about its competitors, customers suppliers and for its regulation, we are going to talk about its international and mention antitrust not much about taxes because it also provides major tax services. Technology: when it comes to technology, Andersen underwent through dramatic changes due to the huge development in computers and the dramatic improvement and development in telecommunication in the just like the Andersen engineer Joseph Glickauf demonstrated in the 1950’s that computers can be used to automate bookkeeping. also, when it comes to its production method’s which in this case of Andersen is service provision, it really saw a lot of changes because the company was originally created as an auditing firm in 1914 by Arthur Andersen but was expanded to also include a consulting department due to the improvement and adoption of the technological changes as realized and adopted by Joseph Glickauf in the 1950’s of which this technological change and adoption and inclusion of the consulting part of the business also later on led to the split of the firm into Andersen Consulting and Arthur Andersen. So, technology really brought about a great change in the Arthur Andersen Company due to the improvement in computers, telecommunication and service provision methods. For its strategy, this had to do with Andersen’s choice of industry and the basis for its competition which involves its pricing, quality and service. for its choice of industry, Andersen was first involve just in the auditing service as the original aim and purpose of the firm s creation by the founder Arthur Andersen was to provide quality audit to its customers. This choice later change when the consulting part was included later on
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into the firm that constituted a great part of the company’s business and also added and or contributed significantly to the firm’s profits. This choice of business or industry was even more expanded due to the fact that the company also did perform tax services and later on become even more when Andersen started to provide accounting and bookkeeping services to its clients whose books it was supposed to be auditing. For the basis of its competition, Andersen partners started behaving poorly on pricing due to the fact that it started overpricing its clients just like in the case where it priced a client $50 million for a service it could collect $30 million from it just as suggested and said by an auditor who was later on fired for his sincerity. Also, it started losing it grounds on it audit quality as it
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