1. CA executives involved in the accounting scandal were not accused of reporting bogus contracts or hiding major problems in the business. The contracts were not backdated were real sales agreements. Was this really a crime? Should the individuals have been punished so harshly?
-Not totally a crime but a mistake that can be corrected.
2. In December 2004, CA appointed Patrick J. Gnazzo as senior chief compliance officer to demonstrate to the government and shareholders that the firm would take measures to operate ethically. Gnazzo served in this role at United Technologies for 10 years and had been a member of the board of directors of the Ethics Officers Association. Gnazzo reported to a new executive vice president and general counsel at CA as well as the board's Compliance Committee. Outline some of the actions Gnazzo might have taken in his first six months on the job.
-He must report to the company first then maintain the company's image and improve their profit. He create a new rules that can make CA a better company. By that he continue to gave a good name to the company and gain their trust.
3. John Swainson, a 26-year old veteran of IBM, joined CA in November 2004 as CEO and president . His few months with the firm was rough - major customers threaten to dumped the firm; some products were behind schedule and were poor of quality; executives had to be fired for breaking company rules; accountants continued to find past mistakes; and many newly hired executives had to be brought on board. What sort of leadership could he have demonstrated to show that he was determined to avoid future scandals at CA?
-First, he must be strong and face the problem, and slowly transform it to a better one to gain the trust from him.
4. CA has been hit with numerous scandals since the late 1990s. these scandals raise questions about how successful the firm might have been if not for the amount of time its executives had to spend on these distractions. Compare the revenue growth and stock price of CA to that of some of its competitors over the time period 2004 - 2008. (Be sure to use CA's corrected figures !) Can you detect any impact of these scandals on CA's performance? What else might explain the difference in performance?
-The revenue growth of the CA over the period 2004 - 2008 was less than the revenue growth of their competitor such as Microsoft. in those year CA got only 11.2% while Microsoft got 28%. The scandal really affect their sales because as they were busy fixing their problem they were out of focus on sales. Though they were trying to be on top but the idea of losing such big amount was more stressful than gaining a high revenue.
