ISSN 1940-204X Koss Corporation Corporate Governance, Internal Controls, and Ethics: What Went Wrong? Melanie O. Anderson Slippery Rock University INTRODUCTION THE ACCOUNTING FUNCTION Koss Corporation is a Milwaukee company whose principal business is the design, manufacture, and sale of stereo headphones and related accessories. Michael Koss is the CEO; his father, John Koss, founded the company in 1958. The company has trademarks and patents for its products to differentiate itself from the competition. Koss Corp. has a six-man Board of Directors, including Michael and his father. John is 81 years old and serves as chairman of the Board. Michael is 57 years old and serves as vice chairman, president, CEO, COO, and …show more content…
Sue served on several charity boards, organized lavish parties for their events that cost millions of dollars, and purchased all items that did not sell at the charity auctions she organized.6 Sue also had a reputation as a demanding boss: Her assistants were required to help her with the charity events, and Sue took them out to lunch almost daily. Julie and Tracy also went to Sue’s house to help her unpack and store the many expensive items she purchased. Sue loved designer clothing, shoes, and accessories and purchased over 20,000 items in a five-year period from 2004 to 2009. She purchased so many items that they did not fit in her house. So, she rented a storage unit and a two-office suite to store her unused purchases. In addition, Sue made some purchases that she never picked up from the retailers.7 Table 1: Financial Data from 2008 and 2009 June 30, 2009 Net Sales Net Income June 30, 2008 $ 38,184,150 $ 46,943,293 1,976,668 4,494,289 Basic Earnings per Common Share: Basic: 0.54 1.22 Diluted: 0.54 1.22 $ 28,470,352 $ 29,977,077 Total Assets Cash Dividends per Common Share $ 0.52 $ 1.52 IM A ED U C ATIO NA L C A S E JOURNAL 1 VOL. 6, N O. 1, ART. 3, MARCH 2013 PAYMENTS BY CHECK OR WIRE TRANSFER Sue could not pay for all of these purchases with her $200,000 salary or her physician husband’s $600,000 salary.8
Kathryn McNeil’s was recently hired and her undertakings as an IBM product manager were complex and extensive. She dealt with the stream of stock for all IBM PCs across the nation, which arrived at the averaged to $40 million every month. To do this, she spoke with the IBM Corporate Headquarters Team regularly to place requests and ensure that each retail outlet had a six-week supply of PCs available. The procedure included arranging conveyance dates and guaranteeing that conveyed items met client details. When IBM reported another product, McNeil evaluated the plausible effect it would have on current items and decided the amount of the new change that ought to be bought. She additionally gave the Sayer administration staff with every day, week by week, and month to month examinations of the product offerings as reports and spreadsheets. At last, McNeil remained in near contact with the field delegates who sold the PCs at the different Sayer-claimed retail outlets all through the nation. She issued declarations to the field delegates when there was a change or an issue with an item, and her phone was an open line for any illustrative who had a question or consumer loyalty issue that required McNeil 's consideration. Her reports were dependably on time and sensibly elegantly composed, great
AAA Office World, a company with $40 billion in total sales volume, owns the Filex brand of file folders. In addition, AAA Office World’s largest customer, Business Center Incorporated, requests to purchase AAA Office World’s Filex folders. According to the case, Business Center Incorporated’s vice president seeks a line of “file folders similar in quality to AAA’s Filex brand,” as it holds “over 60 percent of the market” (Perreault). However, this becomes a tough situation for Stasia Acosta, marketing manager to AAA Office World. Acosta is concerned of Business Center Incorporated’s intention to sell AAA’s Filex brand, but under their own name. Understandably, Acosta must recognize several factors before making her decision: how this transaction by Business Center Incorporated could affect her business-should she accept-as well as Business Center Incorporated’s history with her company at the same time. According to the case, this situation is not the first time that Business Center Incorporated has approached AAA Office World about the matter. Moreover, Acosta had previously refused Business Center Incorporated’s offers to buy the Filex brand in the past, as it conflicted with her company policy- which does not allow them to make and sell exclusive brands. Ultimately, AAA Office World must not only decide what to do about the offer, but also determine if they need to develop a new policy, if they are to accept Business Center Incorporated’s proposal. Thereupon the
This case analysis will focus on the issues surround the lifestyle product company Holey Soles. Psychologist Ann Rosenberg founded the company in September 2002. She initially operated in her garage and backyard, until she recruited Joyce Groote (now current CEO of Holey Soles) and expanded the company into other parts of North America. Holey Soles focuses on creating innovative footwear made from their trademarked technology SmartCel and SoleTek, which is an injection-molded foam technology. As of July 2007, sales had grown at 300% in each of the last two years and the company was ranked number four in the 2006 Profit magazine ranking of Canada’s Emerging Growth Companies. However as they continue to operate, they
Belle Montaseur’s Inc. is a high-end shoe company (firm) with a reputation for integrity, quality craftsmanship, and excellence in management. In the final year our Game-to-Date (G-T-D) Score came to eighty five. Belle Montaseur’s Inc. was formed by Michael P. Blattner as an entity in September 2013. In Year Eleven our Net Revenues were $253,670,000. In Year Eighteen our Net Revenues were $273,077,000. We had a couple of down years from not allowing a forty percent markup in prices which was one of our major downfalls (this led to bad numbers for those Years). We did not earn a Gold Star Award like Dashing Shoes did every year.
11 Leadership Financials/Form 10-K Brands and Trademarks 1 Selected Financial Data 12 Financial Statements 27
Royal Phillips Electronics drastically suffered from poor performance and as a result filed bankruptcy. Many couldn’t believe that they have filed bankruptcy based on great sales. They were very innovative with their products including the head shaver, compact cassette, and the CD. Despite, being Europe’s largest electronic company, Phillip’s profits were not up to par and sales were drastically declining. While the company was on a downward spiral, Gerald Kleisterlee took over as company President and made some adjustment and daring decisions that put the company on the forefront. The company went through a substantial restructuring that allowed for growth and an increase in profits within the company. The new President allowed for the company to revamp and allow for not only growth to occur but a shift in the mission and values of the organization. With the vast change in the company the business was simplified and made even smaller, which allowed for the top level executive to focus solely on the business and employees at hand. This in turn allowed for a substantial amount of strategic planning and implementation of new ideas that caused the company to reevaluate what caused sales to decrease in the first place, and allow for drastic change. Once Kleisterlee developed strong new innovative ideas, which would cause substantial change throughout the organization as a whole, the organization started to develop. The atmosphere and culture shifted, which in turn
The main issue of the article is that the company, Abercrombie and Fitch, is no longer a popular trend and it declining rapidly in sales. One of the main reasons is the CEO of the company, Mike Jeffries. Mike Jeffries has his own unique style of representing the company’s product; this style is not in favor of any business ethics, thus causing the sales of Abercrombie and Fitch to decline.
Presented below is Mills’ Company financial data as of December 31, 2012: Sales 5,230,000 Sales Discount 310,000 Sales Salaries 311,000 Sales Returns 158,000 Sales Commissions 60,000 Freight-out 41,000 Office Salaries 123,000 Office Supplies Expense 23,000 Gain on sale of Investment 120,000 Rental Revenue 80,000 Loss on disposal of division 385,000 Interest expense 50,000 Ordinary Shares dividends 80,000 Beginning Inventory 960,000 Preferred Shares dividends 130,000 Ending Inventory 100,000 Freight-in 120,000 Purchases 218,000 Purchases Discounts 35,000 Depreciation understated due to an error (net of tax) 26,000 Tax rate 25% Beginning Retained Earnings 2012 420,000
CASE 7: Herman Miller Inc.: The Reinvention and Renewal of an Iconic Manufacturer of Office Furniture
The organization I have selected to analyze is Bensussen, Deutsch & Associates, LLC (BDA). BDA began in 1984 in the garage of co-founder, Jay Deutsch. Along with his best friend Eric Bensussen and their love of sports they had the idea to create products that would be an extension of a company’s brand. Their first product was a sweatshirt that featured the Seattle Seahawks. Today BDA employs more than 400 employees in the US, China and Canada. BDA has gross profits in excess of 500 million annually.
Section 1: DELUXE Corporation 1.1. 1.2. 1.3. 1.4. Company Business Overview Macro-Evironment & Industry SWOT Analysis Porter's Five Forces
In 2015, The Japanese company owned Toshiba Corporation’s scandal lead to the CEO, Hisao Tanaka’s resignation after an independent financial audit revealed accounting discrepancies totaling 58.9 million dollars. Well known for various home electronics (TV, VCRs, etc.) and household appliances (dishwasher, washing machines, etc.) the Toshiba Corporation has been operating since 1875. An analysis of what happened to Toshiba demonstrate a lack of ethical standards in leadership, transparency, and finance.
As you know, our firm has been selected to perform the Apollo Shoes audit. The planning process has been the most delicate stage as we want to ensure we have a solid audit approach. The team I select will be dedicated in meeting the objectives and strategies for completing the audit. I will briefly explain to you how I plan to begin the audit process.
Background Eastman Kodak Company, headquartered in Rochester New York, was founded in 1889. The corporation, now multinational and focusing on imaging and photographic equipment, posted revenues in excess of $6 billion in 2011. During most of the 20th century Kodak was dominant in the photographic film industry in 1976 it held 90% of the market but began a downward slide once the Internet, digital cameras and computer processing grew. By 2007, Kodak ceased making a profit and in January 2012 filed for bankruptcy protection and ceased making cameras, video cameras and began to focus on the corporate digital imaging market (De La Merced, 2012). In evaluating Kodak's corporate strategy from the mid-1980s onward, we find that there four major management paradigms in place during this transitional period:
Allentown Materials Corporation was established to manufacture specially glass and ceramic in Allentown, Pennsylvania in 1800s and manufactured high quality electronic components in 1990s (Ellet 2007 p183) .The case focuses the leadership problems of the EPD in 1992 and the action of Roger to solve the problem. The case also deals with the effective leadership of Don Roger. After the death of Roger’s predecessor Bennett division had been facing a lot of difficulties past two years and business was declined in 1991 and 1992. According Don Roger, because of the business down EPD had to fire the number of people to control the management. There were lack of trust and confidence between key manager groups. It was