Worldcom

The Accounting Fraud at WorldCom Summary of Case Background LDDS (Long Distance ignore Services) began in 1984 after the breakup of AT&T in 1983. This allowed other companies access to long distance phone lines at a discount. The company started providing services to local retail and mercantile customers in the southern United States. Its operation began with about $650,000 in capital, but soon got into high debt of $1.5 million, mainly due to inadequacy on technical expertise to handle accounts of large companies. In 1985, the company elected Bernard J. Ebbers to be its CEO and within a year he made it profitable. Ebbers began a strategy of focal denominate the company of internal growth with the acquisition of small long-distance carriers with big limited geographic service areas, consolidating third-tier long-distances carriers with larger grocery shares. This strategy delivered economies of scale: LDDS unit cost lowered with larger bandwidths. The company made further acquisitions in Europe and Latin America. By the end of 1993 LDDS became the fourth largest long-distance carrier in the United States. In 1995, the company name was changed to LDDS WorldCom, and later to WorldCom.

The prime strategy of Ebbers was acquisition and merger, and this continued till the failed merger with dah due to Government intervention. This was a major turning point in the history of WorldCom as their strategic policy and oddly Ebbers was no longer viable. There was a lack of a plan B and it was stated, Ebbers appeared to lack a strategic intellect of direction and the Company began drifting Corporate Culture The main incarnate culture employed was a culture of do what I say and an attitude of dont tell me what I dont want to hear. It was almost as if they had their heads in the ground and wanted them left there. This very despotic top down approach led to poor conference at the highest level a sort of corporate dictatorship. With a lack of adequate... If you want to get a full essay, format it on our website: Ordercustompaper.com

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