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Global Crossings. Global Crossing Ltd. ... Global Crossings rose to greatness quickly,
and just as quickly fell. What was the cause of its fall? ...
... industries. This is when the trouble began for Worldcom, as well as other
telecommunications companies like Global Crossings. Wall ...
... From Martha Stewart to WorldCom, from Arthur Andersen to Global Crossings, allegations
of impropriety have shaken the trust of stockholders and the general ...
... He apparently took much advice from Jack Grubman, the Wall Street brains behind
the short lived success of both WorldCom and Global Crossings. ...
... In other words, the ITSP could have a better rate to Switzerland via AT&T,
yet have a better rate to Japan via Global Crossings. ...
Submitted by anniew on December 15, 2007
Category: Business
Words: 1179 | Pages: 5
Views: 130
Popularity Rank: 78,344
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Global Crossing Ltd. was founded by Gary Winnick and three business associates in 1997. (Wikipedia, 2007) The company than when public in August of 1998, and seven months after going public Global's shares jumped threefold. Global Crossings rose to greatness quickly, and just as quickly fell. What was the cause of its fall? Was it bad planning, or poor management? How did it emerge after filling for Chapter 11 bankruptcy? What social, legal, and ethical problems did it face, and what were the three factors that influenced this companies planning.
Gary Winnick was the chairman of the company from 1997 to 2002. Some say that he was the reason for its fall others say that Winnick can't blamed, as it was his fortune that fell so quickly. Winnick sold somewhere around $420 million of Global Crossings stock. Winnick's office was said to furnished with $1 million dollar furnishing and was called the oval office. Winnick also reportedly gave over $148 million to charities during the time that he was the chairman of Global Crossings (Wikipedia, 2007)
While Winnick's spending might have been a reason for Global Crossings quick fall, one must look at the spending of the entire company. Four of Global's CEO's were giving personal loans totaling of about $23 million. These loans were also forgiven while bankruptcy was on Global's horizon. This same four CEO's were give bonuses of about $13.5 million. The office space of Global Crossing was very pricey and the renovations do on the rented space were extravagant. Global also operated five corporate jets and spent of $150 million on accounting software. (Wikipedia, 2007)
Poor planning was definitely a factor in this company's quick fall. One area that the company showed poor planning in was it seemed to go through CEO's rather quickly. John Scanlon became the first CEO in 1998 and was only the CEO until February of 1999. Then came Robert Annuziate. Robert Annuziate was the CEO through two of the...
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