Semi-con Industries is a global semiconductor manufacturer with operations in the United States, Europe, and Hong Kong. Revenue for the past fiscal year was approximately US $5 billion. The company specializes in component parts for electronic devices such as cell phones, PCs, video game consoles, and routers. The company has experienced rapid growth during the past decade- primarily through acquisitions of foreign competitors. The company is based in San Jose, Calif., where its founder, Alexander Pameta, started the company in 1982. Mr. Pameta, a European immigrant, is the CEO and chairman of the board for Semi-con and is engaged heavily in all aspects of the company. While Mr. Pameta is a visionary and is highly regarded in the industry, his hands-on leadership style typically undermines decisions of his key lieutenants. There is high turnover at the vice president level. The company's manufacturing operations are heavily decentralized, which is primarily a result of acquisitions that have not been fully integrated. The ERP system installed last year was significantly over budget and had many implementation problems resulting in some modules, such as payroll and purchasing, being cut from the initial release. These functions continue to use legacy systems for transaction processing. The legacy systems process enormous amounts of data and rely heavily on manual input processes. Because of the implementation issues with the ERP system, some automated controls have had to be turned off to allow the system to function properly. There is also significant manager override of controls.
Semi-con Industries is a global semiconductor manufacturer with operations in the United States, Europe, and Hong Kong. Revenue for the past fiscal year was approximately US $5 billion. The company specializes in component parts for electronic devices such as cell phones, PCs, video game consoles, and routers. The company has experienced rapid growth during the past decade- primarily through acquisitions of foreign competitors. The company is based in San Jose, Calif., where its founder, Alexander Pameta, started the company in 1982. Mr. Pameta, a European immigrant, is the CEO and chairman of the board for Semi-con and is engaged heavily in all aspects of the company. While Mr. Pameta is a visionary and is highly regarded in the industry, his hands-on leadership style typically undermines decisions of his key lieutenants. There is high turnover at the vice president level. The company's manufacturing operations are heavily decentralized, which is primarily a result of acquisitions that have not been fully integrated. The ERP system installed last year was significantly over budget and had many implementation problems resulting in some modules, such as payroll and purchasing, being cut from the initial release. These functions continue to use legacy systems for transaction processing. The legacy systems process enormous amounts of data and rely heavily on manual input processes. Because of the implementation issues with the ERP system, some automated controls have had to be turned off to allow the system to function properly. There is also significant manager override of controls.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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identify ethical issues across business functions.
Transcribed Image Text:Semi-con Industries is a global semiconductor manufacturer with operations in the
United States, Europe, and Hong Kong. Revenue for the past fiscal year was
approximately US $5 billion. The company specializes in component parts for electronic
devices such as cell phones, PCs, video game consoles, and routers. The company has
experienced rapid growth during the past decade- primarily through acquisitions of
foreign competitors. The company is based in San Jose, Calif., where its founder,
Alexander Pameta, started the company in 1982. Mr. Pameta, a European immigrant, is
the CEO and chairman of the board for Semi-con and is engaged heavily in all aspects
of the company.
While Mr. Pameta is a visionary and is highly regarded in the industry, his hands-on
leadership style typically undermines decisions of his key lieutenants. There is high
turnover at the vice president level. The company's manufacturing operations are
heavily decentralized, which is primarily a result of acquisitions that have not been fully
integrated.
The ERP system installed last year was significantly over budget and had many
implementation problems resulting in some modules, such as payroll and purchasing,
being cut from the initial release. These functions continue to use legacy systems for
transaction processing. The legacy systems process enormous amounts of data and
rely heavily on manual input processes. Because of the implementation issues with the
ERP system, some automated controls have had to be turned off to allow the system to
function properly. There is also significant manager override of controls.
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