The article is on the Olympus A scandal DescriptionDescribe the main issue in this case as well as the main players and their roleAnalysisWhat are the main issues in this case that have led to the collapse of Olympus? Discuss each issue and clearly explain how it contributed. Remember to include accounting-related shenanigans used by managers.Options/AlternativesWhat options did Woodford have?Prescriptions/RecommendationsWhat recommendations would you make for the company, the accounting profession, and the government?ActionsWhat action/s would you want the company, the accounting profession, and the government and other relevant bodies to take immediately? All tools Edit Convert SignleAAssignment_OLYMPU...100kalollabolalalX+ CreateCameras and Audio Products. The company's products captured images, "from the microscopic tothe panoramic" and were “instrumental in furthering scientific research, travel inside the humanbody to help diagnose, treat and prevent illness, and document your life with artistic freedom.”5 Thecompany's major business activities consisted of its medical business, including gastrointestinalendoscopes and medical equipment for diagnoses and treatments; its life science business, focusingon microscopes; its industrial business, including industrial microscopes, industrial scopes, and non-destructive testing; and its imaging business, including digital cameras, IC recorders and otherperipheral products. In addition to these four segments, the company continued to focus on newbusiness creation and research and development. For financial performance see Exhibits 2, 3, 4, 5 and 6.Michael WoodfordMichael Woodford joined Olympus over thirty years before the 2011-12 events unraveled, as amedical equipment salesman in the UK. He began his career at Olympus, and over the course ofthirty years worked his way up through the ranks, taking on different positions and proving hisability in various roles. Woodford considered himself to be like a traditional Japanese “salary man”(see Exhibit 1). After a year or so as a salesman for the company Woodford became a top salesman,and then was promoted to the company's sales manager, setting up the medical surgical business inthe UK. By the time he was 30, he was the president of the company's UK business. He then becameresponsible for overseeing a turnaround in the surgical business in the United States, where Olympuswas suffering losses. In January 2005, Woodford took responsibility for the entire European medicalbusiness, making the region the biggest contributor to group profits. Then, in 2008, he tookresponsibility for all of Olympus' businesses in the UK, Europe, Russia, the Middle East and Africa.During his leadership this segment became, by far, the most profitable and successful part ofOlympus. Woodford explained, "It was that performance which led to me being asked to becomepresident. I was called to Tokyo in November 2010 and was asked whether I would take over.”7arIn February 2011 the Chairman of Olympus, Tsuyoshi Kikukawa, publicly announced that hebelieved Woodford could change the company and put it on the road to future success. Woodfordwas the company's first non-Japanese president; the Englishman was one of only a handful ofWesterners, or "gajin,” to hold a major leadership position at a Japanese company. Woodford becamean overnight celebrity in Japan after the Chairman named him president and later, CEO. He assumedhis new position in April 2011. He was brought to Japan to instill the type of rigorous streamliningthat had boosted earnings in Europe on Olympus as whole. The company was losing money in itsconsumer business, particularly in the highly competitive digital camera market.83Woodford soon realized that while the company had exceptional strength in engineering, it hadpoor general management. “The company was run by people who were in a sense, bureaucrats.Japan is not a meritocracy. So there was a weakness in the general management, but that was a void Itv♫ I AAUG11 QFind text or tools QAXWPO&10DOCXSign inប00224

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The article is on the Olympus A scandal DescriptionDescribe the main issue in this case as well as the main players and their roleAnalysisWhat are the main issues in this case that have led to the collapse of Olympus? Discuss each issue and clearly explain how it contributed. Remember to include accounting-related shenanigans used by managers.Options/AlternativesWhat options did Woodford have?Prescriptions/RecommendationsWhat recommendations would you make for the company, the accounting profession, and the government?ActionsWhat action/s would you want the company, the accounting profession, and the government and other relevant bodies to take immediately? All tools Edit Convert SignleAAssignment_OLYMPU...100kalollabolalalX+ CreateCameras and Audio Products. The company's products captured images, &#34;from the microscopic tothe panoramic&#34; and were “instrumental in furthering scientific research, travel inside the humanbody to help diagnose, treat and prevent illness, and document your life with artistic freedom.”5 Thecompany's major business activities consisted of its medical business, including gastrointestinalendoscopes and medical equipment for diagnoses and treatments; its life science business, focusingon microscopes; its industrial business, including industrial microscopes, industrial scopes, and non-destructive testing; and its imaging business, including digital cameras, IC recorders and otherperipheral products. In addition to these four segments, the company continued to focus on newbusiness creation and research and development. For financial performance see Exhibits 2, 3, 4, 5 and 6.Michael WoodfordMichael Woodford joined Olympus over thirty years before the 2011-12 events unraveled, as amedical equipment salesman in the UK. He began his career at Olympus, and over the course ofthirty years worked his way up through the ranks, taking on different positions and proving hisability in various roles. Woodford considered himself to be like a traditional Japanese “salary man”(see Exhibit 1). After a year or so as a salesman for the company Woodford became a top salesman,and then was promoted to the company's sales manager, setting up the medical surgical business inthe UK. By the time he was 30, he was the president of the company's UK business. He then becameresponsible for overseeing a turnaround in the surgical business in the United States, where Olympuswas suffering losses. In January 2005, Woodford took responsibility for the entire European medicalbusiness, making the region the biggest contributor to group profits. Then, in 2008, he tookresponsibility for all of Olympus' businesses in the UK, Europe, Russia, the Middle East and Africa.During his leadership this segment became, by far, the most profitable and successful part ofOlympus. Woodford explained, &#34;It was that performance which led to me being asked to becomepresident. I was called to Tokyo in November 2010 and was asked whether I would take over.”7arIn February 2011 the Chairman of Olympus, Tsuyoshi Kikukawa, publicly announced that hebelieved Woodford could change the company and put it on the road to future success. Woodfordwas the company's first non-Japanese president; the Englishman was one of only a handful ofWesterners, or &#34;gajin,” to hold a major leadership position at a Japanese company. Woodford becamean overnight celebrity in Japan after the Chairman named him president and later, CEO. He assumedhis new position in April 2011. He was brought to Japan to instill the type of rigorous streamliningthat had boosted earnings in Europe on Olympus as whole. The company was losing money in itsconsumer business, particularly in the highly competitive digital camera market.83Woodford soon realized that while the company had exceptional strength in engineering, it hadpoor general management. “The company was run by people who were in a sense, bureaucrats.Japan is not a meritocracy. So there was a weakness in the general management, but that was a void Itv♫ I AAUG11 QFind text or tools QAXWPO&10DOCXSign inប00224<с1:1Q All tools Edit Convert SignleA8,50 x 11,00 inAssignment_OLYMPU... X000kalollabolalal+ CreateKATHLEEN DURANTEOlympus (A)As 2012 approached the woes of the financial crisis seemed to be fading, companies wereresuming business as usual and some of the scrutiny on corporate governance practices began torecede as well. That is until another major financial scandal emerged in Japan in the fall of 2011. Itwas slowly revealed that the 92-year-old camera and medical photo-imaging company, Olympus,had been hiding its losses for more than a decade - to the tune of $1.7 billion - long before the currenteconomic pressures, slow job growth, and poor investor confidence plagued the global economy. Thefraud renewed the focus on corporate governance policies world-wide, but especially in Japan, wherethe lack of board independence and a deep-rooted corporate culture entrenched in personal loyaltiesfostered an environment that made it difficult for scandals such as this to be unveiled, let alone forwhistleblowers to come forward about them.orThe Olympus fraud was revealed in October 2011 by its then newly appointed president andCEO, Michael Woodford, who discovered the billion-dollar accounting scandal after only a fewmonths in his new position. After revealing the fraud, Woodford was fired and fled Japan for the UK,fearing for his life and his safety.Olympus: Company BackgroundBased in Tokyo, Japan, most people were familiar with Olympus for its cameras,but the company,founded in 1919, was a world leader in research and clinical microscopes as well. The companystarted as a microscope and thermometer business; Olympus produced its first camera in 1936, and apredecessor to the modern-day endoscope in 1950, the first camera to allow doctors to look inside thehuman body to help detect disease.¹ From there, the company continued to introduce life-changingimaging technologies and devices for the healthcare industry; they were a top manufacturer ofmedical endoscopes, controlling about 75% of the global market share in 2011.² As a &#34;precisiontechnology leader”³ in the manufacturing and sales of precision machines and instruments, Olympusdesigned and delivered &#34;innovative solutions&#34; in its four core business areas: Medical and SurgicalProducts, Life Science Imaging Systems, Industrial Measurement and Imaging Instruments and1Olympus, &#34;Company Profile,&#34; Olympus Company website, http://www.olympus-global.com/en/, accessed June 2012.2 Ibid.3Ibid.3NotesProfessors Jay W. Lorsch and Suraj Srim ſasan and Research Associate Kathleen Durante prepared this case. The authors thank Nobuo Sato sndAUG11tv♫ I AFind text or tools QAXWPOO&10DOCXSign inE88√124<<с1:1Q

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