Evaluating Impact of Corporate Culture and Pressure to Meet the Case Study

Evaluating Impact of Corporate Culture and Pressure to Meet the Numbers in Accounting Reporting Environment - Case Study Example This was a move to counter-to-counter competition from J&J. Another approach was also the routine of frequently rolling over unpaid bills to ensure that customers did not return surplus goods in addition to offering numerous promotions for clients who purchased or ordered large lenses packages. The managers also shipped unordered lenses and glasses to clients such as doctors. Some managers, such as Johnson in U.S, forced their local distributors to take extremely large stocks of older Optima lenses by deceiving them that they would not be required to pay for the unsold lenses. The excess glasses ended up being stuffed in the warehouses. The actions taken by B&L managers were both unethical and illegal. The overall impact was eventual dropping of profits since the sales were phony and resulted in deceitful profits. The B&L shares dropped to 30 shillings in 1994. Another likely long-term effect was the loss of trust on the companies by customers hence decline in the shareholder value (Maremont and Bamathan Web). The corporate pressurized B&L managers to achieve illogical target since the culture lacked ways to monitor and alter its objectives Environmental variations can make existing policies and objectives inappropriate thus top management should ensure the plans are adjusted constantly to fit the fluctuating environment. B&L top management did not alter the targets even when the constraints in the external environment demanded so thus the managers invented inappropriate ways to meet the incongruous targets. B&L corporate culture and pressure to meet the numbers in accounting reporting environment numbers drove B&Ls manager some reasonable degree to engage in the malpractices (Maremont and Bamathan Web). The managers came up with strategies to maintain phenomenal records which enabled them to get bonuses and compensation. They