University:
Massachusetts Institute of Technology
Course:
15.501/516 | Accounting
Academic year:

2023
Views:

151

Pages:

4
Author:

epodeunpurified

Cambridge Technology Partners ? ? ? 1998: Stock drops from $58 to $13 January 1999: $7-9million write-off for “repositioning and retention” Spring 1999: Sims replaced by Messman “James K. Sims, who built the business to more than $ 600 million in annual sales but was ousted after failing to manage the company's explosive growth. Without strong systems in place, the company floundered. Internal spats pitted division against division, earnings suffered, and the company failed to shift its focus to the booming Web, say a dozen former and current employees.” (Boston Globe, May 31, 1999) ? ? Summer 1999: Rumored takeover candidate Fall 1999: Executive turnover Cambridge Technology Partners ? December 1999: NEWCO (incubator) strategy incubator “Cambridge also reported its first losses as a public company in last year's fourth quarter and in first-quarter 2000, reflecting mounting costs to retain employees and redirect resources to e-business.” ? ? 1999-2000: turmoil and turnover July 2000: mounting financial trouble “reported a larger-than-expected loss in the second quarter because of losses from equity investments and bad debts from ailing dot-coms.” ? Fall 2000: downsizing, layoffs Cambridge Technology Partners ? March 13, 2001 NOVELL TO ACQUIRE CAMBRIDGE TECHNOLOGY STRUGGLING CONSULTANT TO GO TO UTAH FIRM IN DEAL WORTH $266 MILLION “Cambridge Technology Partners Inc., a fallen high-tech star that struggled with internal problems and slumping revenue, said yesterday it will be acquired by Novell Inc. in a stock deal valued at $266 million.” Four Key Design Decisions Specialization Division of Labor High Low Basis Departmentalization Homogeneous Span of Control Authority Heterogeneous Number Narrow Wide Delegation Centralized Decentralized