Discussion 200 words with 3 Responses reply

Discussion 100+ WORDS WITH CITIATIONS

Discussion Forum Chapter 13

Read Ethical Dilemma:  This is a Good Investment – Be Sure the Numbers Show That It Is!

What should Oliver do?

What would you do if you were Oliver?

Would your answer change if you knew Mrs. Wilson had recently sold much of the Cybercomp stock?

Need Responses for Below Posts minimum 50 words

POST1 - PAUL

Oliver is in a position where he has to make the decision of whether to evaluate NetWare as he would any other investment, or go along with the CEO of the company just because she tells him to.  If I were Oliver I would continue to treat this investment as any other, and base my recommendation upon the findings from my research.  Oliver should perform a risk-adjusted return to help determine the rate of risk with NetWare.  There are too many red flags that come up about NetWare such as Oliver not being able to find any financial information on the company, and the fact that Mrs. Wilson wants Oliver to ‘doctor’ the numbers to make NetWare look good.  The textbook tells us, “You should always consider risk when evaluating investments.” (Pg. 529)  Oliver is under the impression his job may be on the line, and it may be.  However, if Oliver does as Mrs. Wilson wants, and Cybercomp loses millions of dollars, his reputation will be affected because he made the recommendation.  He could also be used as Mrs. Wilson’s scapegoat if the investment goes bad, as the company relies on him for recommendations when it comes to investments. 

My answer wouldn’t change if I knew Mrs. Wilson had sold some of the Cybersomp stock recently.  This would be irrelevant to my decision, as she may be in a situation where she needs money for personal reasons.  However, it does make one wonder if she is selling her stock to raise money to invest in NetWare

POST2 – Tiffany

Oliver should carefully process the due diligence required towards Netware. Also all the relevant standard operating procedures need to be followed so as to maintain the best trust level among all stake holders of Cybercomp Inc and not just the CEO. 

I would have done the same as things mentioned in the first paragraph because trust and integrity are two of the most important underlying components for the growth of the company and the associated stakeholders. My answer would remain the same, as the due diligence and the analysis would be based on company operating procedures and not on CEOs personal stock portfolio structure.

Selling and buying of the company stock by the CEO should not be viewed as a suspicion and should not be correlated with any operations of the firm unless and until it involves insider trading. The research and analysis should be focused but limited to the  target company's operational and financial stability and performance and the possible synergy. The findings should be neutral and should be specific to Cybercomp's requirement.

POST3 - Kayla

Oliver is faced with the ethical dilemma of whether to follow orders from his superior or to do his job unbiased to evaluate NetWare like any other investment opportunity.  If I were him, I would treat this proposed investment like any other that were to come my way and base my recommendation for Cybercomp upon the findings from my full investigation and financial risk analysis.

There are some red flags that Oliver should pay attention to including NetWare missing crucial financial data provided in the background information, as well as discovering that Mrs. Wilson may have stake in NetWare (Besley et al., 2015, p. 527).  Being bullied into making a quick decision that Oliver knows isn't right by the CEO telling him that "it's your job to make the numbers work - that's why we pay you the big bucks" (Besley et al., 2015, p. 527) is an HR disaster waiting to happen. There is a chance if he does not follow orders, his job is in jeopardy. On the contrary, if Oliver is peer-pressured into making a rash decision which is a conflict of interest, it could impact the company's overall financial well-being and also could negatively impact his reputation at a future company.  Oliver could also ruin the trust of the stakeholders in his company.  My answer would not change if I knew Mrs. Wilson had recently sold much of the Cybercomp stock. Based on the earlier information, I would not recommend Netware as a future investment opportunity and it is unrelated and irrelevant with Mrs. Wilson's actions.