TASK 37: A scandalous case study

STUDY AND
COMMUNICATION SKILLS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
(1) Summary of case...................................................................................................................3
(2) Comparative analysis of facts and opinions raised in these stories.......................................4
(3) Key arguments of this scandal...............................................................................................5
TASK 2............................................................................................................................................6
2.1 Analysis of the content of the different types of recorded business material.......................6
2.2 Producing the summary notes of the lecture.........................................................................6
2.3 Providing the comprehensive analysis of the notes..............................................................7
TASK 3............................................................................................................................................7
(A) General theory and focus of cases study .............................................................................7
(b) Argument supporting evidence to non routine problem........................................................8
(c) Cause and effect relationship pertaining to case study..........................................................8
(d) Application of hedging and cautious approach.....................................................................9
(f) Reasons due to which proof reading is important while preparing a report..........................9
TASK 4 Covered in PPT................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In today era scandal is a word that is often we listen when switch on television or social
networking site. There are many top companies that are identified as corrupted companies. Such
thing is done by the companies that are well reputed and have wide geographic presence. In this
report case of Toshiba is taken in this regard. Detail analysis of case study is done. Moreover,
experts’ opinions are also discussed in detail. After that technique of payback period is
calculated in order to identify time period in which project will recover investment amount. After
that case study of Lidl, Aldi and Tesco is taken in to consideration. By discussing this case study
reason are identified due to which Lidl and Aldi gives a stiff competition to the competitors. At
the end of the report, business plan is prepared and various factors are considered while
determining a cash flows and initial investment amount.
(1) Summary of case
Toshiba is Japan tenth largest company that is operating in several sectors ranging from
communication to infrastructure development. In June 2015 news came that Toshiba is making
irregularities in its accounts. As per facts Toshiba chief executive Hisao Tanaka was already
aware about these irregularities. Moreover, this thing was in practice from two previous chief
executives. Hence, manipulation in accounts does not start overnight. It was done for long time
period by Toshiba in its business practice. Under this firm exaggerate its profit and it record cost
of operations related to operations is lower value. Due to this reason company profit was
appearing too attractive to the investors. In Japan there is a securities and exchange surveillance
commission whose main work is to identify irregularities in accounts. It has suspect on the
company performance and due to this reason it decided to commence detail investigation on this
issue. By understanding seriousness of issue firm set its in house investigation committee to
declare its financial malpractices in terms of amount (Toshiba inflated profits by 780 million with
bosses knowledge investigation finds. 2015). On investigation government agency find out that
Toshiba exaggerate its profit by 152 billion Yen (1.2 billion USD).
As per facts it comes in light that in Japanese companies there is a corporate culture
under which subordinates can oppose orders of superior. Toshiba determine unrealistic
objectives and forced employees to achieve them at any cost. Due to unrealistic nature if
objectives employees failed to achieve objectives and they manipulate accounts. Top officers of

the firm also know this fact but they do not take any action because they want to manage good
image of Toshiba among people across the world. Hence, when press release issued most of top
management employees gives their resignations and conveys their regret on media for unethical
practices they do in the business practices (Zolnierek and DiMatteo, 2009).
(2) Comparative analysis of facts and opinions raised in these stories
If we compare story given on The Guardian and the Sun then it can be seen that both
evaluate company scandal from both different angels. In The guardian it is stated that corporate
culture was the main reason behind such an exaggeration in the company profitability.
Employees cannot disobey orders of their boss and due to this reason they were continuously
involved in the accounting malpractices. As per facts of The Sun Company heavily conceal facts
about its cost. Due to this reason company profitability elevate sharply. On other hand, The
Guardian stated that firm show extra profit of 152 billion Yen in its profit and loss account.
Hence, it can be said that both view this case from different angels (Robbins, et.al, 2004).
Guardian is viewing this case from angel of over profit. Whereas, Sun is paying due attention on
cost factor for evaluating Toshiba scandal. If see these factors then it can be said that both play
an equivalent role in showing fake company profitability. By passing some cost to next financial
year firm makes an attempt to show that is has good control on cost and it is performing well.
Thus, by doing so it maintains its good image among investors. By showing higher amount of
profit firm show that it is performing well even there is a recession in the market. In this way
also firm try to maintain confidence of banks and investors on its business (Kurtz, et.al, 2005).
As per fact, the real problem was not board structure. There are many companies in which
structure is different but they are performing well and no scandals takes place in those
companies. The main issue is board functioning and if it will not work properly then such kinds
of unfortunate events will takes place in an organization. In an organization independence must
be given to the employees so that they are in position to oppose the top management decisions to
some extent but in fair way (Duffy and et.al, 2004). Scandal in Toshiba happens due to lack of
such kind of independence.
In this regard writers of newspaper give different opinions. Some experts express their
concern on the fact that external auditors are acting as gatekeepers between company and
financial market. They are not playing an active role in ensuring that nothing unethical is going
on in the firm. Some of the political experts stated that company like Toshiba that have good