McBride Financial Services Problem Solution

Essay by rlundayUniversity, Master's September 2010

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Problem Solution: McBride Financial Services � PAGE \* MERGEFORMAT �7�


Problem Solution: McBride Financial Services


Problem Solution: McBride Financial Services

Corporations such as Enron, WorldCom and Tyco forced Congress to enact the Sarbanes-Oxley Act (SOX) because of mismanagement and fraud. This new law requires financial reporting and disclosure within corporate governance. McBride Financial Services, Inc. (MFSI) is a start-up regional "One-Stop Mortgage Provider", headquartered in Boise, Idaho. The company is controlled by the chief executive officer, Hugh McBride. Accordingly, Chew and Gillan (2004, p. 284) state, "The role of top management is no longer just control and coordination; it is anticipating, leading, and managing change-and articulating the rationale for such change to employees as well as to securities analysts." McBride needs to accept the board of directors as an independent oversight committee, instead he wants the board to follow his lead, displaying lack of corporate governance, (University of Phoenix, 2010).

To meet the expectation of investors, the company needs to develop a corporate governance and find solutions that will address any issues of noncompliance that could hurt their reputation. To create the best practices in corporate governance, In this paper I will address the issues and opportunities, stakeholder perspectives and ethical dilemmas, problem statement, end-state vision, alternative solutions and analysis, risk assessment and mitigation techniques, optimal solution, implementation plan, and evaluation of results.

Situation Analysis

Issue and Opportunity Identification

MFSI specializes in conventional, FHA, and VA loans for home purchasing and refinancing, offering mortgages to homebuyers, specializing in first time buyers and problem credit clients. The company wants to be the preeminent provider of low cost mortgage services using state-of-the-art technology to let the customers sell themselves on the mortgages they want. The company intends to expand its operations into Wyoming,