Business Case Study: Groupon Company

Decent Essays
Financial fraud is a significant problem faced by organizations of all types, sizes, locations and industries. Groupon company is trying to shed its image as a failed email-based daily-deals website after a lot of allegations of false financial accounting about their profit to the public. In this case, Groupon has to go through again its business model about the spending and earnings for its company. It is expensive to hire 15,000 workers that works for the company in sending email to Groupon subscribers, customer service teller and writers who have to come up with astonishing words to impress customers on the coupon deals via the internet all over the world to more than 46 countries. But this is one of the ways to prevent such scandal…show more content…
What we recommend is that, Groupon needs to separate its financial duties once the company go public on the stock market, it has to go out and make quarterly earnings meaning to say it will be transparent. Because one company has to go on transparent to the public as this plays a big role in the growth of the company, stock market where investors would want to decide whether to buy Groupon stock or not. Groupon as a middle person between it’s customer and the merchants who offers a deal. When all of these happens, the least thing that could occur is that the stock goes down and Groupon’s stock lost about 85% of its value which is really bad that it’s worth was a little more than $2 billion. Nevertheless, awareness affects all employees. Everyone within the organization in Groupon should be aware of the fraud risk policy including types of fraud and the consequences associated with them. Those who are planning to commit fraud will know that management is watching and will hopefully be deterred by this. Possible signs of fraud or theft should be made aware of to employees. Hence, by setting up a reporting system in the company may give less chance for financial fraud to likely
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