Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors. The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D. The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue. The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017. To discuss: The general lessons in terms of corporate governance and business ethics that could be drawn from company H.

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Answer 1

Question

Chapter MC, Problem 20.4DQ

Summary Introduction

Case summary:

Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D.

The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017.

To discuss: The general lessons in terms of corporate governance and business ethics that could be drawn from company H.

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Answer 2

Question

Chapter MC, Problem 20.4DQ

Summary Introduction

Case summary:

Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D.

The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017.

To discuss: The general lessons in terms of corporate governance and business ethics that could be drawn from company H.

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Answer 3

Question

Chapter MC, Problem 20.4DQ

Summary Introduction

Case summary:

Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D.

The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017.

To discuss: The general lessons in terms of corporate governance and business ethics that could be drawn from company H.

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Answer 4

Question

Chapter MC, Problem 20.4DQ

Summary Introduction

Case summary:

Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D.

The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017.

To discuss: The general lessons in terms of corporate governance and business ethics that could be drawn from company H.

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Answer 5

Chapter MC, Problem 20.4DQ

Summary Introduction

Case summary:

Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D.

The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017.

To discuss: The general lessons in terms of corporate governance and business ethics that could be drawn from company H.

Answer 6

Chapter MC, Problem 20.4DQ

Summary Introduction

Case summary:

Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D.

The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017.

To discuss: The general lessons in terms of corporate governance and business ethics that could be drawn from company H.

Answer 7

Chapter MC, Problem 20.4DQ

Summary Introduction

Case summary:

Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D.

The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017.

To discuss: The general lessons in terms of corporate governance and business ethics that could be drawn from company H.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. MC - Prob. 1.1DQ Ch. MC - Prob. 1.2DQ Ch. MC - Prob. 1.3DQ Ch. MC - Prob. 1.4DQ Ch. MC - Prob. 2.1DQ Ch. MC - Prob. 2.2DQ Ch. MC - Prob. 2.3DQ Ch. MC - Prob. 2.4DQ Ch. MC - Prob. 2.5DQ Ch. MC - Prob. 3.1DQ

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Chapter MC Solutions