...Case Study: Lincoln Savings and Loan Association In 1978, Charles Keating, Jr. began focusing his time and energy on his business endeavours when he founded the real estate firm, American Continental Corporation (ACC). Six years later, ACC acquired Lincoln Savings and Loan Association, which was headquartered in Phoenix, although its principal operations were in California. In his application to purchase Lincoln, Keating pledged to regulatory authorities that he would retain the Lincoln management team, that he would not use brokered deposits to expand the size of the savings and loan, and that residential home loans would remain Lincoln's principal line of business. After gaining control of Lincoln, Keating replaced the management team; began accepting large deposits from money brokers, which allowed him to nearly triple the size of the savings and loan in two years; and shifted the focus of Lincoln's lending activity from residential mortgage loans to land development projects. On 14 April 1989, the Federal Home Loan Bank Board (FFILBB) seized control of Lincoln Savings and Loan, alleging that Lincoln was dissipating its assets by operating in an unsafe and unsound manner. On that date, Lincoln's balance sheet reported total assets of $5.3 billion, only 2.3 percent of which were investments in residential mortgage loans. Nearly two-thirds of Lincoln's asset portfolio was invested directly or indirectly in high-risk land ventures and other commercial development projects. At...
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...Running Header: Special Interest Special Interest Jermall Cuffee Professor: Dr. Jane El-Yacoubi POL 110 03/03/13 So, when the election is all over. What can the average American do to stay involved in the political arena and not have to wait for the next election? There is one significant way of influencing American government and that is through an Interest Group. Interest Groups also known as advocacy groups, lobbying groups or special interest, are in place to persuade or prevent changes in public policies. They exist for the solemn purpose of conveying the views and defending the interest of a part of society to public officials. There are all types of interest groups in America from animal rights groups to public interest groups to citizen groups. Interest groups get there start when James Madison developed the theme in “The Federalists (No. 10). In it he discussed factions, which was his term for interest groups and Madison believed that will always have diverse interest especially when it comes to economic circumstances and property ownership. Even though interest groups can be found deeply rooted in many different traditions and cultures such as Germany, they are common threads that can be observed in the development of interest groups mostly in Western industrial societies. There are about four phases in which the development of interest groups can be viewed. In what is called the first phase or the preindustrial phase beginning in the 1830s to the 1870s, there...
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...Home Page » Business and Management Lincoln Electric Case Analysis In: Business and Management Lincoln Electric Case Analysis Lincoln Electric case 1. Explain how the human resource (HR) policies of Lincoln Electric are linked to its overall corporate strategy. Would you say that HR is a source of competitive advantage at Lincoln Electric? Lincoln Electric’s competitive advantage is in manufacturing of quality products at a lower cost than their competitors. As stated in the case, their strategy was to concentrate on reducing costs and passing the savings through to the customer by continuously lowering prices. This resulted in expansion of both market share and primary demand for arc welding equipment, primary demand for arc welding equipment and supplies, and encouraged exit of major companies from the industry. The management system also incorporated an incentive compensation method. The reward system was premised on the belief that one’s fullest potential can be realized through an effective incentive system that is designed to build teamwork but at the same time encourage individual competition among team members. Through this system, the company is able to build employee loyalty but even more importantly match the HR policy with their overall strategy of high quality products produced at the lowest possible cost to the company. The company endeavors to share in the cost saving by the employee bonus system and low cost of the final products to the...
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...Lincoln Electric case 1. Explain how the human resource (HR) policies of Lincoln Electric are linked to its overall corporate strategy. Would you say that HR is a source of competitive advantage at Lincoln Electric? Lincoln Electric’s competitive advantage is in manufacturing of quality products at a lower cost than their competitors. As stated in the case, their strategy was to concentrate on reducing costs and passing the savings through to the customer by continuously lowering prices. This resulted in expansion of both market share and primary demand for arc welding equipment, primary demand for arc welding equipment and supplies, and encouraged exit of major companies from the industry. The management system also incorporated an incentive compensation method. The reward system was premised on the belief that one’s fullest potential can be realized through an effective incentive system that is designed to build teamwork but at the same time encourage individual competition among team members. Through this system, the company is able to build employee loyalty but even more importantly match the HR policy with their overall strategy of high quality products produced at the lowest possible cost to the company. The company endeavors to share in the cost saving by the employee bonus system and low cost of the final products to the customers. This is essentially the hallmark of the competitive advantage of Lincoln Company in the USA. This approach combined with an open door policy...
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...For over 30 years Phillip Shaw Paludan was a history professor at the University of Kansas before he accepted the opportunity to become a distinguished chair member in the Lincoln studies at the University of Illinois, Springfield. Paludan is the author of “Victims: A True Story of the Civil War (University of Tennessee Press, 1981) and A People’s Contest: The Union and CIvil War, 1861-1865 (Harper and Rowe, 1988)”. Not only was Phillip Shaw Paludan a professor and author he was also the winner of the the Lincoln Prize for his study of Abraham Lincoln’s presidency. (Page 180) In the article “Was Abraham Lincoln America’s Greatest President?”, Paludan wrote a section titled “The Presidency of Abraham Lincoln”, and the purpose of the article...
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...Lincoln Savings and Loan 2. The high audit fee is a direct financial interest that can cause bias. The larger the amount of audit fees paid by the audit client company to the audit firm, the more likelihood that it will impair. The auditor may have to compromise their independence in many ways to ensure that they maintain that particular client, since that client provides them with relatively larger revenue. To address this, the regulators should impose a new requirement that the total fee from one single client should not exceed a certain percentage (<15%) of the total turnover of the audit firm. The regulation could decrease financial dependency and self-interest threat to independence. 4. Control environment also called “internal control environment. It is a term of financial audit, internal audit and Enterprise Risk Management. It means the overall attitude awareness and actions of directors and management regarding the internal control system and its importance to the entity. Control environment is the first of the 5 components of the COSO framework for the management of internal control. The control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure. Weakness: 1. Rather than admit to company’s insolvency, Charles Keating and the management team invented creative accounting strategies that turned their business that...
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...LINCOLN COUNTY HOSPITAL HAWKEYE (Telemedicine program) Overall idea: We plan to propose that the hospital continue its quality initiatives and advertise to patients via low-cost options. We think the hospital could market telemedicine to in-home users, cardiac patients and a range of inpatients (expanding services offered to inpatients). Our assessment differs from others in that negotiating with payers (where possible) is also a consideration. 1. Background/Situation Assessment SWOT Analysis Strength: Strong partners (providence sacred heart) Physician alignment Competition is less First telemed program there 24 hours (ER, helipad) Low cost Funding from local club organizations Advanced technology (detailed monitoring) Weakness: Limited resources Community is small Unknown community reaction to new technology Single service line (cardio, one machine) Accurate assessment of internal buy-in? Threats: Competition can be there (other telemed program Valley or Deaconess or other national chains/organizations) Patient can lack confidence, as it’s new Policy critical access status Poor outcomes Opportunities: With ACA, re-admissions can decrease, patient satisfaction can increase Reducing costs, shared savings programs with 3rd party insurers Expand service lines/ inpatient Increase in revenue and reimbursements InTouch Reduces cost for patient Improving community good-will Increased appeal for Physician recruitment Federal...
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...The purpose of this case analysis is to analyze the culture of Lincoln Electric Company. According to Harvard Case Study by Arthur Sharplin, this company is the world’s largest manufacturer of welding machines and electrodes. Let’s look at the Continuing Influence of the Founders of the Company. John C. Lincoln business was incorporated but in 1906 and he expanded his workforce to 30 and sales grew to over $50,000 a year. James F. Lincoln joined the company still small and he became the General Manager and Vice –President of the company. Employee morale and productivity remained with higher profits and bonuses and Lincoln’s market share is stable. When the advisory Board came into power, between 1915 and 1917, a paid-up life insurance policy was given by the company to the employee and a welding school was begun. In 1918, an employee bonus was attempted. In 1919, the Lincoln Electric Employees’ association was formed. In addition, the Board of Directors voted to start a suggestion system in 1929. The legendary Lincoln bonus plan was proposed by the Advisory Board and accepted on a trial basis by James Lincoln in 1934. The golden rule emphasizes on James Lincoln’s Christian ethics which he says “Treat People as you would like to be Treated” “In his words, he says if the Christian ethics control our acts, the savings in the cost of distribution will be tremendous.” In his view, the customer should always come first. Lincoln’s Incentive Management Plan was defined by the company’s...
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...Lincoln: The Nation’s Strongest President The word “strong” has a different meaning to each individual. Some think of someone who can bench-press 500 pounds, others think of a tree that can withstand even the strongest hurricane. Rarely do people realize that true strength comes from within, and there is no better example of this than former president Abraham Lincoln. Morally sound, humble, and honest, Lincoln possesses the qualities of someone who is truly strong. Some may argue that a man who never physically fought in a war or never procured a document that saved the nation couldn’t be considered strong. While it’s true that Lincoln never did any of these, he did help America heal from the Civil War, handle debates with words and not fights, and spark the addition of three...
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...May 16, 2015 Was Lincoln Worthy of His Title Abraham Lincoln was known to be the 16th president of the United States. He also had helped during the civil war by bringing the emancipation of the slaves. Many can agree and also disagree with these two statements, was he worthy of the title the greatest president. In my opinion he was known to be one of the greatest presidents of all time, not only did he save the nation, he embraced a new birth to freedom, and made America worth preserving. Lincoln still remains one of the greatest presidents of all times in my eyes, and even though to many this may have caused many controversies, he helped in repairing a nation and did what he knew was right in order to fix it. He knew that a change was needed and the people of the south believed in him to make this change. Although many viewed this as just being just a myth, he did go above and beyond to meet everyone’s expectations. He grew up being a very humble young man, which due to his roots led him to meet many great challenges he had to face. He was very much against slavery or at least this is what we were taught at a very early age in school. Many scholars may argue that he was indeed an radical racist and he had used his political powers as an opportunity for freeing the slaves as a way to win his election. Although now he is viewed for plainly being an opportunist, he did embrace a breath a breath of freedom for he was indeed a savior of that time for saving the blacks from slavery...
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...Scheduling a free consultation with a seasoned attorney can be extremely helpful, especially in matters involving child custody. Whether you need to establish legal rights as a parent or are going through a divorce, a consultation can provide you with the information and direction you need to obtain a desirable outcome. Below, a lawyer from Payne Law Office in Lincoln, NE outlines a few of the many benefits. Importance of a Free Consultation in a Child Custody Case Building a Connection A legal consultation provides you the opportunity to meet with an attorney face-to-face and gain a general feel for their personality. This is important, as you do not want to work with an attorney you do not trust or respect. The meeting should serve as...
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...Econ-301 LINCOLN ELETRIC COMPANY 1. Based on the readings of quota restrictions & gold bricking it shows how employees banned together to battle against the firm by lowering their output and wasting time, causing the firm profits and production time. Based on this payment system the slope is positive for low performance, but there is no gain for superior performance. The employees have no incentive to go beyond the required minimum. This pay system was a disadvantage to the workers if they went beyond the expected the firm would have changed the rates against them. They would have to work harder for an even lesser pay. The easiest way to solve this problem is to introduce the performance pay plan. The switch would increase the workers performance and raise the competition level between the Employees. The incentive for moving from fixed rate to piece rate is the average output will rise. Output would be affected in a positive way, because this pay method would raise the standard and encourage speed and productivity. 2. Roy’s machine shop is facing many problems such as low production due to unmotivated employees. The employees have no incentive to cooperate with the firm because of its bad payment system. This firm lowers the money earned for over producing. It means that if a worker is going over his hourly limit, the management will have to pay workers more since earnings are relative to the amount of work completed. Thus the...
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...Tice Davids established this process for runaway slaves in the early 1800’s. It was a very treacherous process as conductors and station masters put their lives and their families’ lives in danger. The slaves also risked their lives by running away from their slave masters. Abraham Lincoln was a major part of the end of this process, and contributed to the cause to set slaves free. The Underground Railroad was an intricately planned operation involving conductors and station masters that freed many slaves and that involved the mastermind behind it all, Tice Davids, and, in the end, the President of the United States ended the ceaseless suffering of thousands of slaves. In 1831 a slave by the name of Tice Davids fled from years of torment....
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...Memo: Why do Audits Fail? Evidence from Lincoln Savings and Loan This study done by Merle Erickson, Brian Mayhew, and William Felix describes and examines the audit procedures applied to a set of material transactions from the Lincoln Savings and Loan audit failure. They suggest alternative procedures, based on information available to the auditors at the time of the LSL audit. The study also provides a starting point for future research to evaluate the conclusions reached using more controlled settings or larger data sets. The five main points given in this research study are: 1. The authors noted that the LSL auditors had apparently followed standard audit procedures yet they still failed to discover major misstatements in the financial statements. They concluded that the auditors would have done a better job if they had more of an understanding of the business, the economic trends affecting the client, and the risks inherent in the client’s transactions. 2. The study shows to major reasons that led to their conclusion. First, auditors are unlikely to receive reliable evidence from a client, especially in cases of management fraud. Second, if the auditors understand the business they can provide reliable audit evidence even in the presence of management fraud. They believe that economic data and information in the financial press provided reliable evidence that the LSL auditors could have used to develop expectations about LSL’s operations. 3. The study...
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...Atticus represents Lincoln’s beliefs by not giving up the fight. In the Gettysburg Address, Abraham Lincoln challenges the american people to continue the civil war so that the men who have died will not die in vain. Atticus tells his children something similar. Atticus tells them that even if you know you will lose, you must try your best for justice. In the book, Scout says this, “Atticus had used every tool available to free men to save Tom Robinson, but in the secret courts of men's hearts Atticus had no case. Tom was a dead man the minute Mayella Ewell opened her mouth and screamed.”(Lee 266). This shows us that Atticus does his best to uphold justice for Tom Robinson against racism. Tom Robinson’s verdict did not represent the ideas expressed by Lincoln. He was convicted because he was black. Under the 14th amendment, Tom Robinson should have equal protection under the law and in the poem it says that “justice is a blind goddess.” In this case it was not. Tom got the guilty verdict because he was black. "Atticus, you must be wrong.... How's that? Well, most folks seem to think they're right and you're wrong....”(Lee 178). This shows how people...
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