Magnet is an online and in-store Corporation that sells a wide variety of products from fashionable clothing for all members of the family, electronics and your everyday essential needs such as toiletries and cleaning supplies. Customers can choose contactless pickup or delivery services which makes life easier for customers during this pandemic. Behind every wildly successful corporation is a strong organsational structure. Magnet has an extensive organisational structure that helps them provide the amazing products they do at even better prices. Magnet’s organisational structure begins with the CEO, Marsha Samms. From there it breaks down into five different departments each having a manager. The departments are finance, distribution, stores, marketing and human resource. After the CEO, Marsha Samms there is an Executive Vice President, Derrick Johnson. After that point Magnet is broken down into four regions throughout the Caribbean. Each region has a regional manager that is in charge of the stores and distribution centers in their region. This corporation employs over 25 000 employees spanning all regions. The company has placed a continued emphasis on giving back and making the communities it operates in better for all. The company donates 10 percent of all profits to local communities and they have been doing it for over 10 years. Magnet also allows customers using its credit card, to choose a school to which they donate 5 percent of the person’s purchases. Another thing to note is that their employees volunteer hundreds of thousands of hours in local communities every year to assist with social issues and other activities. With all the good deeds that this company has done over the years, it is now left with a stain that has tarnished the brand. A scandal broke in 2019 which resulted in the theft of over 35 million credit and debit card numbers used by Magnet customers in 2019. In addition to the stolen credit card numbers, the CEO admitted that thieves had possibly stolen the personal information (addresses, phone numbers, etc.) of over 22 million additional customers. This scandal has not only called Magnet's security protocols into question but has potentially tarnished the company's reputation for not putting its customers' needs and comfort first. Two months before hackers infiltrating Magnet's security system, the company had begun installing a $2.3 million malware detection tool it purchased from a computer security firm called Deadlock Sting. The company employed 250 security staff and had installed a 5 billion-dollar IT infrastructure. This was much more extensive than other retailers. While Magnet was therefore seemingly prepared for hacking attacks, the best technology and security team in the world cannot do much if the company fails to act on its findings. On September 13, 2019, the hackers then sent malware designed to steal credit card numbers to cashier stations in every Magnet store and Deadlock Sting was alerted to the presence of the malware. Magnet’s security teams were immediately notified of the potential breach. Deadlock Sting had the ability to automatically disable the malware, but Magnet had turned this feature MGMT1101 21/05 The Council of Community Colleges of Jamaica Page 3 off. Deadlock Sting also alerted Magnet on November 8 after hackers released a new version of the malware. If Magnet had immediately reacted to the warnings, very little damage would likely have occurred. However, Magnet reportedly did nothing to respond to warnings from Deadlock Sting. It had also received warnings from its own antivirus system, Symantec Endpoint Protection, regarding suspicious behavior, the company did not directly respond to the attack until federal investigators alerted the retailer of the massive data breach. By this point, it was nearly impossible to trace the passwords or user names of the hackers. On December 23, 2019, the company removed the hackers' malware, but the damage had been done. Magnet also waited six days after it was informed to tell consumers about the hacking attack, and about two months before it revealed the extent of it. More than 500 lawsuits have been filed against Magnet by both customers and banks, and Magnet's profit during the holiday shopping period dropped 53 percent from the previous year. A. Describe the ONE (1) form of departmentalisation found in the case and give evidence from the case to support your response. B. Explain the type of decision-making condition that the CEO took when the company installed a $2.3 million malware detection tool it purchased from a computer security firm called Deadlock Sting. C. Explain what the CEO should have done when she found out that the security system was breached.
Magnet is an online and in-store Corporation that sells a wide variety of products from
fashionable clothing for all members of the family, electronics and your everyday essential needs
such as toiletries and cleaning supplies. Customers can choose contactless pickup or delivery
services which makes life easier for customers during this pandemic. Behind every wildly
successful corporation is a strong organsational structure. Magnet has an extensive organisational
structure that helps them provide the amazing products they do at even better prices. Magnet’s
organisational structure begins with the CEO, Marsha Samms. From there it breaks down into
five different departments each having a manager. The departments are finance, distribution,
stores, marketing and human resource. After the CEO, Marsha Samms there is an Executive Vice
President, Derrick Johnson.
After that point Magnet is broken down into four regions throughout the Caribbean. Each region
has a regional manager that is in charge of the stores and distribution centers in their region. This
corporation employs over 25 000 employees spanning all regions. The company has placed a
continued emphasis on giving back and making the communities it operates in better for all. The
company donates 10 percent of all profits to local communities and they have been doing it for
over 10 years. Magnet also allows customers using its credit card, to choose a school to which
they donate 5 percent of the person’s purchases. Another thing to note is that their employees
volunteer hundreds of thousands of hours in local communities every year to assist with social
issues and other activities. With all the good deeds that this company has done over the years, it
is now left with a stain that has tarnished the brand.
A scandal broke in 2019 which resulted in the theft of over 35 million credit and debit card
numbers used by Magnet customers in 2019. In addition to the stolen credit card numbers, the
CEO admitted that thieves had possibly stolen the personal information (addresses, phone
numbers, etc.) of over 22 million additional customers. This scandal has not only called Magnet's
security protocols into question but has potentially tarnished the company's reputation for not
putting its customers' needs and comfort first. Two months before hackers infiltrating Magnet's
security system, the company had begun installing a $2.3 million malware detection tool it
purchased from a computer security firm called Deadlock Sting. The company employed 250
security staff and had installed a 5 billion-dollar IT infrastructure. This was much more extensive
than other retailers. While Magnet was therefore seemingly prepared for hacking attacks, the best
technology and security team in the world cannot do much if the company fails to act on its
findings.
On September 13, 2019, the hackers then sent malware designed to steal credit card numbers to
cashier stations in every Magnet store and Deadlock Sting was alerted to the presence of the
malware. Magnet’s security teams were immediately notified of the potential breach. Deadlock
Sting had the ability to automatically disable the malware, but Magnet had turned this feature MGMT1101
21/05 The Council of Community Colleges of Jamaica Page 3
off. Deadlock Sting also alerted Magnet on November 8 after hackers released a new version of
the malware. If Magnet had immediately reacted to the warnings, very little damage would likely
have occurred. However, Magnet reportedly did nothing to respond to warnings from Deadlock
Sting. It had also received warnings from its own antivirus system, Symantec Endpoint
Protection, regarding suspicious behavior, the company did not directly respond to the attack
until federal investigators alerted the retailer of the massive data breach.
By this point, it was nearly impossible to trace the passwords or user names of the hackers. On
December 23, 2019, the company removed the hackers' malware, but the damage had been done.
Magnet also waited six days after it was informed to tell consumers about the hacking attack, and
about two months before it revealed the extent of it. More than 500 lawsuits have been filed
against Magnet by both customers and banks, and Magnet's profit during the holiday shopping
period dropped 53 percent from the previous year.
A. Describe the ONE (1) form of departmentalisation found in the case and give evidence from the case to support your response.
B. Explain the type of decision-making condition that the CEO took when the company
installed a $2.3 million malware detection tool it purchased from a computer security firm
called Deadlock Sting.
C. Explain what the CEO should have done when she found out that the security system was
breached.
D. Examine the type of social responsibility found in the case above.
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