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.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
icon
Related questions
Question
100%

identify ethical issues across business functions.

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.
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.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON