Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 13 pages
Data source: Published sources
Share a link:
https://casecent.re/p/66309
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Since 2002, after the class action lawsuits against it and the investigation by US Securities and Exchange Commission on its accounting irregularities, Interpublic Group, the world''s third largest marketing services company, has been struggling to make its records consistent with the US GAAP (generally accepted accounting principals). In September 2005, Interpublic restated its earnings for the period 2000-2004, which led to the reduction of US$514 million in its earnings. The accounting woes stemmed from reckless global expansion initiatives of Interpublic in countries like Azerbaijan, Bulgaria, Kazakhstan, Ukraine, and Uzbekistan, where accounting practices are different from those in the US. The company lost clients like General Motors, Unilever and Bank of America, which affected its brand equity and increased its debt burden. The case study, while highlighting the rapid international expansion initiatives of Interpublic, offers scope to discuss the perils of reckless global expansions.
About
Abstract
Since 2002, after the class action lawsuits against it and the investigation by US Securities and Exchange Commission on its accounting irregularities, Interpublic Group, the world''s third largest marketing services company, has been struggling to make its records consistent with the US GAAP (generally accepted accounting principals). In September 2005, Interpublic restated its earnings for the period 2000-2004, which led to the reduction of US$514 million in its earnings. The accounting woes stemmed from reckless global expansion initiatives of Interpublic in countries like Azerbaijan, Bulgaria, Kazakhstan, Ukraine, and Uzbekistan, where accounting practices are different from those in the US. The company lost clients like General Motors, Unilever and Bank of America, which affected its brand equity and increased its debt burden. The case study, while highlighting the rapid international expansion initiatives of Interpublic, offers scope to discuss the perils of reckless global expansions.