Zenefits Case Summary

This case focuses on David Sokol, an executive who has made a “name” for himself in recent years within the energy industries. After becoming recognized as a successful “turnaround” agent for troubled companies, Sokol was hired in 1992 to serve as the chief operating officer of JWP, Inc., a large, New York-based conglomerate. At the time, JWP had an impressive history of sustained profits and revenue growth that was being threatened by the company’s far-flung operations and unwieldy organizational structure. Unknown to Sokol, JWP’s impressive operating results over the prior few years had been embellished by the company’s

The major dilemma at hand is avoiding a takeover. The economy was bad at the time, and the company's stock price was thought to be undervalued, as their low P/E ratio of 13.3 indicated. Management needs to find out why their stock price is so undervalued.

After reviewing “The smartest guys in the room”, it is readily apparent that once this company stepped off the path it was doomed to self-destruction. The charismatic leadership of Ken Lay and Jeff Skilling was a compelling factor, propelling this company to epic proportions prior to its demise. The PRC implementation, made an environment that pushed social facilitation and social learning theory to the outer limits. The focus of the company was to bring conceptual ideas to market and to garner immediate profits from them. The employees became disciples of Lay and Skilling and sought only results and profits, they never questioned the moral implications of their actions.

They still might need to work on the Management team. The Founder has not identified apt people , rather she has just included people on the move. Now that they ruined their present distribution channel, they have to look afresh at marketing the product and relaunching it in the market. But the $9.5M buy out on the table seems like a fair price to their efforts , even though some minor adjustment in the Business plan could have brought them more.

When Knudstorp became the CEO, the company was with negative cash flow and the real risk o which would have even led to a breakup of the company.

This company is currently facing financial issues predominantly due to the fact that there is no real structure in the company for anything. For example, the CEO makes all decisions himself, though decisions are based on his current temperament at the time (Long, 2010, p. 512). When an employee wishes for a wage increase he does more often then not grant it, however rather than conducting an employee evaluation his decision is based on his mood, and/or how wells he knows the employee and their family circumstances (Long, 2010, p. 512) As a result, this has lead to pay inequity as all employees receive a different wage regardless of whether or not they perform the same job, have different credentials, and/or experience; furthermore this company is highly lacking distributive justice. Additionally, it also appears that there are no clearly defined roles within the company. For example, the firm has few supervisors, and because their roles are not clearly spelled out they often end up contradicting each other (Long, 2010, p. 512). Similarly, there is no system for scheduling production; thus these factors add to the company’s financial crisis, because there are no efficient processes in

Corporate reorganization is definitely an available option. The company should be structured as a parent-subsidiary controlled group. The restructuring should be performed in conformance to any and all tax-saving codes and provisions.

The founders hired a CEO to continue guiding the company on the path towards success but realized too late that they overlooked an important component. The CEO lacked the character and traits needed to positively develop and lead the company and its people. After facing a major decline in customer

On the morning of 10/13/17 at approximately 10am Facility Manager Aisha Ransom called for Mr. Donald Zigler Case Manager Ms. Fawziyyah Ijelu to notify her Mr. Zigler wasn’t allowing her or central Maintenance to gain access into the unit. Ms. Ijelu explains to Mr. Zigler staff members have access to the unit and also informed him who Mrs. Ransom was the Facility Manager and she was doing her job. Mr. Zigler didn’t want to hear anyone out. Mr. Zigler still did not want anyone to enter the unit. Mr. Zigler reports he just entered the facility from work and he needed an hour is clean up and feed his daughter. Ms. Ijelu explains to Mr. Zigler the maintenance worker have to enter the unit that their not worried about the state of his unit and he

In a recent interview with Steve Kroft of CBS News (60 Minutes), Barry Minkow, the founder of ZZZZ Best Carpet Cleaning Company said "I started with the best of intentions, really I can say that. And when economic pressure reared its ugly head and I couldn't make payroll, I lied and stole and cheated." Prior to declaring bankruptcy, ZZZZ Best was one of the hottest stocks on Wall Street and Barry Minkow was known as the boy wonder of Wall Street. As the youngest CEO of a $300 million company Barry Minkow was the American Dream come true: a self-made teenage millionaire, the subject of flattering magazine profiles and a guest on Oprah Winfrey Show. At its peak, ZZZZ Best had 1400 employees at 23 locations in three states. What went

Only in America could you fail to rescue a dying company and still make millions from it. If you need proof of this, look no further than Yahoo CEO Marissa Mayer. Somehow, two huge security breaches, barely any revenue and several major setbacks didn't stop her from making $186 million. How did Mayer do it? Let's find out.

The “HP CEO Affair Scandal” video reflects on unethical behavior displayed by the CEO, Mark Hurd. He was forced to resign, due to using $20,000 dollars of the company’s money to conceal a relationship with a business associate. Because Hurd had a contract with the company, he was able to exit with a severance package of $35 million dollars. However, this caused the company to lose $9 billion dollars in stock. Although the businesses stock plummeted, they have the potential of bouncing back, but planning and creating viable resources are in order.

2) Failure to communicate the corporate strategy to people who has authority. Understanding and following corporate strategy is important to making a right decision. By deploying a honeycomb structure Shady Point empowered its employees to make important decisions including “not to encourage rotations across families” [5]. However the company did not communicate to the employees the corporate strategy. Unlike the Themes Plant practice, where people were visible and had extensive trainings during first month’s of their job, in Shady Point the plant manager “might not even meet the hire until he or she had been on the job for several month”. It is obvious from this and the previous example that the manager did not understand the corporate strategy and importance of values, and did not deliver them to the employees.

As I walked (stumbled is a more apt term) from the front door of my startup’s office building to the waiting group of equally stunned co-workers, my thoughts were “why did this happen?” Just fifteen minutes earlier, our CEO unceremoniously relieved us of our duties and a team of hired security. Shock, dismay, fear, and a little anger coursed through my body. After all, this was my baby. I had started and grown this biotech company with a close friend, three years prior, from nothing. We were its founders. A feeling akin to being a parent. It was our idea brought to life in the form of hardware and software. At that moment, staring blankly into the distant hills of Whiting Ranch and running past events through my mind on fast forward, I knew I had to be smarter. Furthermore, each past event melded together into a single narrative in my mind and a focused picture began to emerge from the blurriness. My partner and I made a deal with the devil of Venture Capitalists. Naive and unaware, we were easy prey for a silicon valley shark.

Other significant stakeholders that deserve priority are Enron’s employees. The employees present threats to Enron in two ways: they can form coalitions to exercise their legal rights, and they can also leave the company. They will most likely sue the company as they have lost vast amounts of their retirement savings (Moscoco and Deans, 2002). The urgency in this situation matters a lot as some employees are reaching their retirement age. When it comes to employees leaving the company, it is important to note that these employees have the necessary skills and are essential for the business to succeed. Here is where we see the opportunity. How is Enron going to recover without them? That being said, Enron has to do something to retain its employees.