The history of British Petroleum (BP) is inextricably linked to innovative environmental projects aimed at changing the activities of the entire global industry. Back at the end of the 20th century, the corporation announced a program to transform the production of petroleum products in accordance with the principles of environmental protection. The campaign was called “More Than Oil” and implied the expansion of alternative energy production facilities, including the expansion of solar energy production. This policy cost the management team a large investment of over a hundred million dollars and, by the beginning of the 21st century, brought significant reputational benefits. British Petroleum became the most popular and respected supplier of petroleum products to various countries around the world. However, while actively expanding its oil fields, management encountered the first global problems, which served as the starting point for many environmental catastrophic events in the history of British Petroleum. In Continue reading
Management Case Studies
Management case studies are real-life examples of issues and problems found in particular workplaces or business organisations. Case study assignments give the opportunity to relate theoretical concepts to practical situations. Most case studies are written in such a way that the reader takes the place of the manager whose responsibility is to make decisions to help solve the problem. In almost all case studies, a decision must be made, although that decision might be to leave the situation as it is and do nothing.
Case Study: The Daimler Chrysler Failed Merger
In 1999, the Daimler Benz corporation of Germany merged with the Chrysler Corporation. In merging, the two companies aimed to create a company with a global presence and to bring the strengths that each company had to the global automobiles market. At first sight, the companies appeared to be equal partners in the merger. The companies at the time of the merger were almost equal in size. In addition, the companies appeared ideal for a merger because each had specific strengths which could be complemented by the other. Chrysler, founded and having its main operations in the US, was a company that emphasized innovation and flexibility while its counterpart, Daimler Benz, was a company characterized by structured, hierarchical management and German engineering excellence. These apparent equal partners were thus ideal for a mutually beneficial merger. In addition, the two companies were among the market leaders in their areas of specialization, and their Continue reading
Case Study: The Strategic Alliance of Fiat And Chrysler
Corporations, firms, and companies implement stringent measures to improve operations during periods of severe financial constraints. Many livelihoods depend on their stability and it would be unethical to fail to take action. In addition, it is necessary to protect the investments and interests of stakeholders who would be affected if the businesses collapsed. Therefore, it is crucial for organizations and companies to take necessary steps to safeguard interests of stakeholders. The 2009 strategic alliance between Chrysler and Fiat was a bold move towards saving Chrysler, a company that had operated for many years. The merger was a major setback for Chrysler to a certain degree. Chrysler lost a lot of money when it allowed Daimler to relinquish its portion of the company to Cerberus because the offer price was less than a quarter of the initial capital. However, the merger saved Chrysler because it was in a financial crisis that Continue reading
Case Study on Business Ethics: Olympus Corporation Financial Statement Fraud
Olympus is a Japanese company that specializes in medical imaging tools and photo/video cameras. Back in the 1980s, when the operating income of the company decreased due to the sharp appreciation of the yen, the Olympus executives started an aggressive financial assets management in order to shift losses off the company’s balance sheet. As a result, Olympus has managed to hide $1.7 billion of investment losses for more than a decade. The case of Olympus is the example of the financial statement fraud in which an employee intentionally causes a misstatement or omission of material information in the organization’s financial reports that eventually results in median loss of $1 million. To conceal the losses, the company has developed a tobashi scheme in which they booked the company’s assets at historical cost instead of fair market value. In 1997, the Japanese legislation was reformed, and since then all the assets should Continue reading
Case Study: McDonald’s Entry into the Chinese Market
The history of the McDonald’s Corporation dates back to 1954 when a man by the name of Ray Kroc heard about Mac and Dick McDonald, two brothers who were running a burger and shakes joint in San Bernardino, California. Kroc paid the two brothers a visit and this visit culminated in a franchising agreement to use the McDonald’s name limitlessly. Seven years later and with more than one hundred and thirty McDonald’s restaurants across the United States, Ray Kroc bought the chain from the McDonald’s brothers for 2.7 million dollars. The growth of McDonald’s Corporation continued in the United States and soon Kroc set his eyes on markets away from home. Today, the McDonald’s Corporation is the leading fast-food chain globally, and owns the restaurants in different continents: South America, Europe, Asia, Middle East, and even Africa. McDonald’s Entry into the Chinese Market Due to the diverse cultural beliefs and practices Continue reading
Case Study: Fiat Automobiles Survival From Turbulent Times
Fiat is a manufacturer and a seller of the common Fiat brand vehicles based in Italy and with many sales branches around the world. It has been successful for many years in the production of its vehicles and has made a lot of returns from that. However, the company has faced a lot of challenges, especially the effects of the global financial crisis, factors that have caused it to undergo a recession and a great fall in its business resulting to very low returns. On the other hand, the company has undergone a lot of pressure from its competitors in Italy and also other car manufacturers from prominent countries like Germany and Japan and this has resulted to a lowered competitive advantage. All these factors have contributed to what has been referred in the vehicle business world as the fall of Fiat. In addition, the company suffered a lot of Continue reading