Assess the controls related to our topic this week at the New Century Financial Corporation.

Anonymous
timer Asked: Feb 5th, 2018
account_balance_wallet $25

Question description

Case Study Analysis – New Century Financial Corporation

Knowing how to analyze a case will help you attack virtually any business problem. A case study helps you learn by immersing you in a real-world business issues — and makes you a decision-maker. A case presents facts about a particular organization and you must focus on the most important facts and use the information to determine the best (of multiple alternatives) course(s) of action to deal with the problems you identify.

A case study analysis must not just summarize the case. It should identify key issues and problems, and outline and assess alternative courses of action.

In this Assignment, you will assess the controls related to our topic this week at the New Century Financial Corporation.

  • Case: Palepu, K., Srinivasan, S., & Sesia, A. (2008). New Century Financial Corporation. Harvard Business School.

Unit 3 [AC553: Development and Evaluation of Internal Controls] Assignment Details and Rubric Unit 3 Assignment: Case Study Analysis – New Century Financial Corporation Knowing how to analyze a case will help you attack virtually any business problem. A case study helps you learn by immersing you in a real-world business issues — and makes you a decision-maker. A case presents facts about a particular organization and you must focus on the most important facts and use the information to determine the best (of multiple alternatives) course(s) of action to deal with the problems you identify. A case study analysis must not just summarize the case. It should identify key issues and problems, and outline and assess alternative courses of action. In this Assignment, you will assess the controls related to our topic this week at the New Century Financial Corporation. • Case: Palepu, K., Srinivasan, S., & Sesia, A. (2008). New Century Financial Corporation. Harvard Business School. Provide a 4–6 page case study analysis using the following format: Format: Must include these headers 1. Title page 2. Company and Situation: Describe the Company and Situation • To begin your case study analysis, discuss the critical incidents that have contributed to the current position of the company. Here you must identify the most important facts surrounding the case. • Does the problem or challenge facing the company come from a changing environment, new opportunity, a declining market share, or inefficient internal or external business processes? 3. Strengths, Weaknesses, and Alternatives: Identify Strengths and Weaknesses as well as Alternatives • Examine the value creation functions of the company and specify alternative courses of action. • List the courses of action the company can take to solve its problem or meet the challenge it faces. What changes to organizational processes would be required by each alternative? What management policy would be required to implement each alternative? Remember, there is a difference between what an organization “should do” and what that organization actually “can do.” Some solutions are too expensive or operationally Page 1 of 5 Unit 3 [AC553: Development and Evaluation of Internal Controls] difficult to implement, and you should avoid solutions that are beyond the organization’s resources. Important: Identify the constraints that will limit the solutions available. Is each alternative executable given these constraints? 4. Implementations: Analyze Implementations This portion of the case study analysis requires that you identify and analyze the structure and control systems that the company is using to implement its business strategies. Evaluate organizational change, levels of hierarchy, employee rewards, conflicts, and other issues that are important to the company you are analyzing. 5. Recommendations: Make Recommendations The final part of your case study analysis should include your recommendations for the company. Every recommendation you make should be based on and supported by the context of your case study analysis, e.g., what you have already written. 6. References: Reference page Access the case study template. The case analysis should be a minimum of 4 pages, double-spaced. Check for correct spelling, grammar, punctuation, mechanics, and usage. Citations should use APA style. Your analysis of this case and your written submission should reflect an understanding of the critical issues of the case; integrate the material covered in the text and present concise and well-reasoned justifications for the stance that you take. Make sure your document includes: • Your Name • Date • Course Name and Section Number • Unit Number • Case Name • Page Numbers Directions for Submitting your Assignment Compose your Assignment in a Microsoft Word document and save it as Username-AC553 Assignment 1-Unit#.doc (Example: TAllen-AC553 Assignment 1 Unit 3.doc). Submit your file by selecting the Unit 3: Assignment 1 Dropbox by the end of Unit 3. Page 2 of 5 Unit 3 [AC553: Development and Evaluation of Internal Controls] Grade Content, Focus, Use of Text/Research, and Organization Analysis and Critical Thinking Writing Style, Grammar, and APA Format % 50% 30% 20% 90100% Response successfully answers the Assignment question(s); thoroughly uses the text and other literature. Includes a strong thesis statement, introduction, and conclusion. The main points of the paper are developed clearly. All arguments are supported well (no errors in logic) using outside sources as assigned. Response exhibits strong higher-order critical thinking and analysis (e.g., evaluation). Paper shows original thought. Grammatical skills are strong with typically less than one error per page. Correct use of APA when assigned. Sources are primarily academic journals, with thoughtful use of web sources. References are applied substantively to the paper topic. Skillfully addresses counterarguments and does not ignore data contradicting its claim. Refers to sources both in-text and in the reference page. Analysis includes proper classifications, explanations, comparisons, and inferences. Critical thinking includes appropriate judgments, conclusions, and assessment based on evaluation and synthesis of information. Appropriate to the Assignment, fresh (interesting to read), accurate, (no far-fetched, unsupported comments), precise (say what you mean), and concise (not wordy). Assignment is in 12-point font. Narrative sections are doublespaced. Assignment is free of serious errors; grammar, punctuation, and spelling help to clarify the meaning by following accepted conventions. Page 3 of 5 Unit 3 [AC553: Development and Evaluation of Internal Controls] 80-89% Response answers the Assignment question(s) with only minor digressions; sufficiently uses the text and other literature. Provides a good thesis statement, introduction, and conclusion that require some revision but that form a good basis. Response generally exhibits higher-order critical thinking and analysis (e.g., evaluation). Paper shows some original thought. Analysis includes adequate Supports most arguments concretely classifications, (no logical errors) using outside explanations, sources as assigned. comparisons, and inferences. Some sources are non-academic with over reliance on web sources. Critical thinking References not always clearly tied to includes adequate development of ideas. Does not judgments, conclusions ignore data contradicting its claim, and Develops the main points clearly. though the refutation may need additional support. Refers to outside sources in the text and reference page. assessment based on evaluation and synthesis of information. Internally, each section has good organization. Transitions found between and within sections are mostly clear and effective. Generally appropriate to the Assignment, accurate (no farfetched, unsupported claims), precise, and concise. Includes a title page and reference page. Assignment is in 12-point font. Assignment contains some generally minor grammatical and punctuation errors. Few misspellings. Citations generally follow APA guidelines (perhaps one or two minor errors). Page 4 of 5 Unit 3 [AC553: Development and Evaluation of Internal Controls] 70-79% Response answers the Assignment(s) with some digression; sufficiently uses the text and other literature. Provides a thesis statement that needs revision. The introduction and conclusion do not set up or close the paper very effectively. Shows too little original thought (strings of citations that are not developed to support the thesis). Main points are adequately defined in only some areas of the paper; points may be over-emphasized or repeated. Some arguments are supported with outside research, but others may not be. Relies too heavily on personal experience or one source. The paper does not meet the source requirements. Some obvious counter-arguments are ignored or not well refuted. Response exhibits limited higher-order critical thinking and analysis (e.g., application of information). Analysis includes limited classifications, explanations, comparisons, and inferences. Critical thinking includes limited judgments, conclusions, and assessment based on evaluation and synthesis of information. Sentences are occasionally wordy or ambiguous; tone is too informal. Grammatical skills are adequate with no more than 2– 3 errors per page. The paper is not well organized. Sections lack transitions, and several sentences may be monotonous or confusing. The overall structure of the Assignment is not effective. Appropriate in places, but elsewhere vague writing interferes with the development and clarity of the main points. Numerous grammatical and punctuation errors. Misspellings are more frequent, but they are the sort spell checkers do not catch, such as “effect/affect.” An attempt at APA citation was made, but there are multiple errors larger than a misplaced period. Narrative sections are not double-spaced. 60-69% Response answers the Assignment question(s) but digresses significantly; insufficiently uses the text and other literature. Response exhibits simplistic or reductive thinking and analysis but does demonstrate comprehension. Sentences are generally wordy and/or ambiguous; tone is too informal. Grammatical skills are inadequate, clarity and meaning are impaired, typically 3–5 errors per page. Inadequate use of APA format 0-59% Response insufficiently answers the Assignment question(s); insufficiently uses the text and other literature. Response exhibits simplistic or reductive thinking and analysis and demonstrates limited knowledge on the subject matter. Sentences unclear enough to impair meaning; tone is inappropriate and/or inconsistent. Grammatical skills are incompetent for college level; typically 6 or more errors per page. Unacceptable use of APA format. Page 5 of 5

Tutor Answer

benwamonicah
School: Boston College

Attached.

Running Head: NEW CENTURY FINANCIAL CORPORATION

New Century Financial Corporation
Institution Affiliation
Date:

1

NEW CENTURY FINANCIAL CORPORATION

2

The new century financial corporation is one of the companies that operated in the
mortgage industry in the U.S. The corporation indulged in numerous activities including selling,
retaining, servicing and originating home mortgage loans. These loans were designed
specifically for individuals that were not eligible to get the prime mortgage loans such as
subprime borrowers. The firm’s ability to respond to respond to the increase in demand for the
subprime mortgage made it possible to generate significant revenue and sales. On the contrary,
irrespective of the significant growth in sales and revenue of the company, new century financial
corporation had some serious problems including deterioration in underwriting standards, loans,
and earnings quality (Sikka, 2009).
The company’s problems are believed to have started in 2007 as a result of some
discrepancies identified in accounting section. New Century Financial Corporation had identified
a decline in underwriting in 2007. Further, the firm is said to have concluded that the
deteriorations in underwriting and loan quality could have been the cause of the liquidity crisis
experienced in March 2007. The firm had reported bankruptcy in April within the same year due
to the problem of liquidity caused by a decline in underwriting.
New century financial corporation faced the crisis as a result of its inefficient business
processes. The company’s internal and external processes were inefficient thus resulting in the
deterioration in loan quality, earnings quality, and underwriting. For instance, the company had
misevaluated its financial statements reports. The cause of the misevaluation was due to the
company’s u...

flag Report DMCA
Review

Anonymous
Excellent job

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors