Turnaround and down with Richard Brown : EDS 1999-2003 / Norman T. Sheehan.

Format:

Book

Author/Creator:

Sheehan, Norman T., author.

Series:

SAGE Knowledge. Cases.

SAGE Knowledge. Cases

Language:

English

Subjects (All):

Electronic Data Systems Corporation--Management.

Electronic Data Systems Corporation.

Risk management.

Brown, Richard, active 1999.

Brown, Richard.

Management.

Physical Description:

1 online resource : illustrations.

Place of Publication:

London : Institute of Management Accountants, 2009.

System Details:

text file

Summary:

The case describes how Richard Brown, EDS' former CEO and chairman, effectively manipulated EDS' management control system to encourage its employees to aggressively chase and win billions of dollars of mega-outsourcing contracts. The new contracts boosted EDS' revenues at the same time as Brown cut staff and costs, leading to exceptional short term results. Unfortunately, EDS lacked systems to competently manage the risks which accompanied the mega-contracts and was unable to sustain this performance during a subsequent economic downturn. As a result of the unexpected decline in financial performance, EDS' share price fell precipitously and in March 2003, Brown was forced to resign his position as CEO and chairman. Students are asked to employ risk management tools, including COSO's ERM framework, to help diagnose why Brown failed. The case requires students to consider how to balance a CEO's desire to maximize organizational performance with the need to manage risk when operating in environments with high rivalry, rapid technology change, and significant economic shocks.

Notes:

Originally published in Sheehan, N. T. (2009). Turnaround and down with Richard Brown: EDS 1999-2003. IMA Education Case Journal, 2(3), Article 2.

Includes bibliographical references and index.

No ILL or scholarly sharing allowed.

Description based on XML content.

ISBN:

9781526426444

OCLC:

1023535342

Access Restriction:

Restricted for use by site license.