Every organization faces problems sooner or later; thus, valuable experience can be gained. By choosing between the available options, the members of an organization learn to make decisions, analyze their mistakes and learn valuable lessons. Applying the COSO and COBIT frameworks to specific cases, one can understand the problems within the companies and draw important conclusions concerning the specifics of the companies’ assets.
The Groupon Company had an issue of severe money loss due to the miscalculation and putting their trust in the wrong companion (Johnson, McMillan, and Womack). This issue was related to a COBIT area called Acquire and Implement (Program Development and Program Change); as well as the COSO component of Developing and maintaining policy and procedures and Managing changes because the leaders of Groupon have put their trust in the wrong service.
The Groupon Company also had another issue of planning the company strategy, since the company did not have any backup plans, relating to the COBIT area of Planning and Organizing ad COSO component of Managing changes because starting the implementation of a new plan requires a thorough analysis of the possible threats.
In its turn, the Kerviel Company faced a similar problem concerning the failure to get high income; in this case, the low revenues were the result of the company’s shady deals, which should be related to the COBIT area of Controlling Environment and Risk Assessment, and the COSO component of IT strategic planning, because the company aimed only at getting high revenues quickly without caring about the legality or, for that matters, the morality of their business (Smith).
To make matters even worse, the Kerviel Company had to deal with the problem of knowledge sharing. The above-mentioned problem could be associated with the COCO area of Control Activities and Information and Communication and the COBIT component known as Communications of management plans and direction since the company focused on a one-time gain.
Both of the specified problems are quite solvable, though rather complex. It seems that there are good reasons for the Kerviel Company directors board, as well as the leaders of Groupon to change their attitude towards what business and organizational values are. Once the heads of the companies realize the necessity to introduce corporate values, they will learn to provide people with decent services and decently run their own business.
Therefore, with the help of the COO and COBIT frameworks, the analysis of the Groupon IPO and the Kerviel has shown that the true value of a company, its goals, and its leader is revealed when the company faces a crisis. In addition, the examples described above show in a very graphic way that the true value of the organizational leadership strategy becomes clear not when the company lands at the top of the charts, but when the true company values are discovered and the real motivations of the company leaders are exposed for everyone to see. Even though both of the companies seemed to have been successful over the past few years, the first complexities that they encountered showed that financial gain at any cost was the only goal of the company leaders.
Works Cited
Johnson, Cory, Douglas McMillan and Brian Womack. Groupon Founder’s Remarks May Cause New Filing. 2011.
Smith, Heather. Kerviel Says SocGen Was Complacent’ on His Trades (Update2). 2008.