Royal Ahold N.v : A Large International Company Based Out Of The Netherlands Essay
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Royal Ahold N.V., is a large international company based out of the Netherlands. In the early 1990 's Royal Ahold went through a huge corporate change and hired an entirely new management team with aggressive hopes to expand. Royal Ahold expanded operations by purchasing different grocery chains all around the world and within a short amount of time Royal Ahold rose to being the third largest food retailer in the world. With no signs of slowing down, Royal Ahold decided to diversify and enter the wholesaling segment of the food industry by purchasing U.S. Foodservice; a large food wholesaling company based in Columbia, Maryland. Royal Ahold 's new management team 's aggressive tactics didn 't just stop here; there was a large corporate push to do more all around creating a hostile tone at the top. Management set extreme earnings and revenue goals each year and there was extreme pressure from top management for their subordinates to reach these goals. To couple with these high demands there was also an incentive compensation plan set in place that awarded huge bonuses. With these high expectations set and a decentralized work environment at Royal Ahold, fraud flourished quickly.
With Royal Ahold 's fast paced rise to the top of the industry, everything came to a halt when Deloitte (Royal Ahold 's auditors) suspended the 2002 audit of the company when Royal Ahold’s fraud finally came to the surface. The massive fraud affected many different parties. Ahold