Tuesday, July 21, 2015

Corporate Culture brings down Toshiba CEO

Corporate Culture makes Toshiba CEO and President Hisao Tanaka to resign, due to overstated profits of $1.2 billion.

In times when there has been much debate over what role Corporate Governance plays in the functioning of a business, we have come across another major shock which underpins much of the work done over the years. Thinking on how ethics may have been dished out by Toshiba while achieving a corporate status of a profitable company, financial reporting finally brings forward a deep hole in the pockets of Toshiba.  

After appointing a panel to work out any of the current financial irregularities at the company, there has been a regretting event that the company thinks it is sorry to report to many of their shareholders and stakeholders. The company said, "It has been revealed that there has been inappropriate accounting going on for a long time, and we deeply apologize for causing this serious trouble for shareholders and other stakeholders,". 

"Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors"

Many believe that the current corporate culture at Toshiba is the biggest reason of this accounting scandal. Over the past many years and decades, the need to overstate profits has been seen as a major failure of risk management and damages to shareholder value due to creative accounting measures.

"Therefore, when top management presented 'challenges', division presidents, line managers and employees below them continually carried out inappropriate accounting practices to meet targets in line with the wishes of their superiors."

Hence, Toshiba now is part of the many financial reporting disasters that have made the financial crisis a reality with hyped profits and valuations. Much of the favorite brand for many over the years, it now stands at a unfortunate situation.

Mr Tanaka and his predecessor Mr Sasaki are seen as the eight high-level executives who after the issue have resigned from the company. After the scandal faced by Olympus in 2011 of $1.7 billion, Japan has been trying hard to win back the confidence of global investors. However, it still lacks a more robust approach that can stop senior managers from using unrealistic performance targets and inflating profits for higher valuations.

Toshiba stated in 1873 to develop telegraphic equipment for Japanese Government. It adopted the name of Toshiba Corporation in 1983, while choosing the abbreviation of "Toshiba" replacing Tokyo Shibaura Denki. The stock of Toshiba is currently down more than 20 percent after it reported major financial irregularities in April. 

Wednesday, May 30, 2012

Windows Phone 8 on Nokia Lumia 900 - Is it true

I was just going through seeking alpha, and just came across Mark W. Bertolin article on  Nokia: In A Little Early, But Not Too Late.  Lumia 900 and the awaited info on suspense everyone is waiting for, can a Nokia Lumia 900 run Windows Phone 8, and i guess i have found an answer, if nothing goes wrong with my readings and understandings. As per Mr Mark, this is what he wrote:

"Last month, I had the good fortune to be invited to review Windows 8 on a Samsung tablet and the Nokia Lumina 900 while in Seattle. Nokia had been on my watch list since Microsoft (MSFT) announced its funding and support of Nokia. I left that meeting very impressed with both Windows 8 and most importantly the Lumina 900 with the new operating system."
I think this is the answer to all the questions we are going through,.

Nokia was trading at $2.95 at NASDAQ when the markets opened today, and has been ending in positive trend in past 2 trading sessions. But this won't happen today as the European Debt crisis and the Spanish bank woes have already taken a toll on the world financial markets. Nokia is trading at $2.75, being down 6.8%. This might be a turning info for all those waiting to see Windows Phone 8 running on a Nokia Lumia 900 or the existing Windows Phone generation that runs 7.5 Mango OS on them.

Nokia has also announced that they are going to start selling a limited edition Nokia Lumia 900 Batman edition, but might be only 900 lucky people would be able to grab their hands on them. Nokia expects to return to profit in 3Q of 2012, while they still have a below average 2Q 2012 result, which might be a result of falling Symbian sales.