Corporate transparency
Opening case study: Apple
In the early 1970s, Xerox developed world-changing computer technology, as well as the mouse and the graphical user interface. (Modern GUIs include Microsoft Windows and Mac OS X.) One of the devices was called the Xerox Alto, a desktop personal computer that Xerox never concerned to market. A decade later, several Apple employees, including Steve Jobs, visited the Xerox PARC research and development capability for three days in exchange for $1 million in Apple’s still– privately held stock. That educational field trip was well worth the price of admission (Apple stock was worth $3.5 billion in 2008), given that it assisted Jobs build a company worth $110 billion in 2008. In the late 1980s, Xerox …show more content…
Transparency Is Assurance
Fewer information means a reduced amount of certainty for investors. When financial statements are not transparent, investors can never be sure about a company's real fundamentals and true risk. For instance, a firm's progress scenarios are related to how it deploy. It's not easy, if not impossible, to evaluate a company's investment presentation if its investments are channelized through investment companies, hiding from view. Be short of transparency may also unclear the company's debt level. If a company hides its debt, investors can't guess their revelation to bankruptcy risk.
2. Blurry vision
Many operate in multiple businesses that often have little in common. For example, analyzing General Electric - an enormous conglomerate with dozens of businesses, is more challenging than examining the financials of a firm like Amazon.com, a pure play online retailer.
When firms enter new markets or businesses, the way they structure these new businesses can result in greater complexity and less transparency. For instance, a firm that keeps each business separate will be easier to value than one that squeezes all the businesses into a single …show more content…
Cultural fixedness is disturbed. Basically it is an issue with regards to strategic management
Because of following reasons,
• In terms of cost which has to be extracted is reflected in their strategy.
• Cultural fixedness is disturbed.
• Resistance from top level management.
• Threat of outflow of business secret.
• Development and pressure posed by external user for more extensive data which is impracticable to provide.
• Causes unattainable demands if case of full fledge acceptance.
• Above facts prove that in case they needed to be fulfilled its obvious that strategy needs some makeover.
• Resistance from top level management.
• Threat of outflow of business secret.
• Development and pressure posed by external user for more extensive data which is impracticable to provide.
• Causes unattainable demands if case of full fledge acceptance.
• Above facts prove that in case they needed to be fulfilled its obvious that strategy needs some makeover.
Corporate transparency burdens
Opening case study: Apple
In the early 1970s, Xerox developed world-changing computer technology, as well as the mouse and the graphical user interface. (Modern GUIs include Microsoft Windows and Mac OS X.) One of the devices was called the Xerox Alto, a desktop personal computer that Xerox never concerned to market. A decade later, several Apple employees, including Steve Jobs, visited the Xerox PARC research and development capability for three days in exchange for $1 million in Apple’s still– privately held stock. That educational field trip was well worth the price of admission (Apple stock was worth $3.5 billion in 2008), given that it assisted Jobs build a company worth $110 billion in 2008. In the late 1980s, Xerox …show more content…
Transparency Is Assurance
Fewer information means a reduced amount of certainty for investors. When financial statements are not transparent, investors can never be sure about a company's real fundamentals and true risk. For instance, a firm's progress scenarios are related to how it deploy. It's not easy, if not impossible, to evaluate a company's investment presentation if its investments are channelized through investment companies, hiding from view. Be short of transparency may also unclear the company's debt level. If a company hides its debt, investors can't guess their revelation to bankruptcy risk.
2. Blurry vision
Many operate in multiple businesses that often have little in common. For example, analyzing General Electric - an enormous conglomerate with dozens of businesses, is more challenging than examining the financials of a firm like Amazon.com, a pure play online retailer.
When firms enter new markets or businesses, the way they structure these new businesses can result in greater complexity and less transparency. For instance, a firm that keeps each business separate will be easier to value than one that squeezes all the businesses into a single …show more content…
Cultural fixedness is disturbed. Basically it is an issue with regards to strategic management
Because of following reasons,
• In terms of cost which has to be extracted is reflected in their strategy.
• Cultural fixedness is disturbed.
• Resistance from top level management.
• Threat of outflow of business secret.
• Development and pressure posed by external user for more extensive data which is impracticable to provide.
• Causes unattainable demands if case of full fledge acceptance.
• Above facts prove that in case they needed to be fulfilled its obvious that strategy needs some makeover.
• Resistance from top level management.
• Threat of outflow of business secret.
• Development and pressure posed by external user for more extensive data which is impracticable to provide.
• Causes unattainable demands if case of full fledge acceptance.
• Above facts prove that in case they needed to be fulfilled its obvious that strategy needs some makeover.
Corporate transparency burdens