Arthur Andersen & Co.

Essay by mtzerepUniversity, Bachelor'sA+, August 2008

download word file, 5 pages 0.0

This paper will evaluate the planning function of management within Arthur Andersen & Co. In addition, I will analyze and give examples for the impacts that legal issues, ethics, and corporate social responsibility have had on the management planning. Furthermore, I will analyze three factors that influence the company's strategic, tactical, operational, and contingency planning.

Arthur Andersen had a vision to create not "just another accounting firm," his plan was to build an organization "based upon knowledge, information, and education" (University of Texas at El Paso, n.d., p.2). "Andersen's goals were set beyond standard practices of accounting, and his business approach was strongly related to auditing" (University of Texas at El Paso, n.d., p.2). According to Goff, Andersen "was known for encouraging his employees to think straight and talk straight" (2002, ¶ 1)Arthur Andersen was an accounting firm with an otherwise impressive history. "The reputation of Arthur Andersen, the company, is irredeemable.

The reputation of Arthur Andersen, the man, is untouched" (Grace, 2002, ¶4). Founder and guiding force, Arthur Andersen at the age of 23 became the youngest accountant in Illinois. Following his graduation, Andersen worked for two years as senior accountant for Price Waterhouse in Chicago; followed by one year as the comptroller for the Schlitz Brewing Company, in Milwaukee. In 1913 Andersen served as chairperson of Northwestern University's accounting department. "Andersen's educational affiliation bolstered his image of authority in accounting. In 1917, for example, he published his instructional materials as a textbook titled Complete Accounting Course" (Miranti, 2000, ¶3). At the age of 28, Professor Arthur Andersen and Clarence DeLany formed the public accounting firm of Andersen, DeLany & Company in Chicago. Five short years later DeLany left the company and in 1918 the firm was renamed to Arthur Andersen & Co.

Following the death of Arthur Andersen...