Continental Computer Corporation Case Study

Continental Computer Corporation (CCC) is a $9 billion a year organization that for years has allow their three division to implement different sets policies. According to Ed White, vice president for engineering, “This poses a problem for us at corporate headquarters because career opportunities and administrative policies are different in each division” (Harold Kerzner, 2004, p. 655). Each division has implemented different organizational structures, administrative policies and their own career opportunities. The three divisions are the Eton Division, the Lampco Division and the Ridge Division. Continental is now trying to implementation of a project management as a profession in hope that it would help them to work together and to use the
Continental Computer Corporation experienced challenges while attempting to consolidate projects under a single project manager if the fundamental practices of project management are not in place. “One of the biggest mistake made is developing a different methodology for each type of project” (Harold Kerzner, 2004, p. 95). Proven project management ethics should be used in order to achieve a successful project outcome, therefore the use of different project procedure will just complication and errors. “Project management is accomplished through the appropriate application and integration of the 47 logically grouped project management processes, which are categorized into five Process Groups. These five Process Groups are:” (PMI, 2013, p.
Decentralizing R&D will only take way the companies competitive advantage allowing productivity, sale and moral to go down. “The risk is too great that the stream of new innovations within the company becomes too narrow and that the business units use the inadequate supply of innovations from the central innovation department as the perfect excuse for an unsatisfactory business performance” (Wentz, 2012). It is a good idea to continue R&D, however limiting the dispersing of seed money, which is initially used to cover expenses for research or product development. It is also important for the company to stay competitive, they should continue to motivate grass roots projects because of the continuance change in technology.
2.4 Accounting Books
The Lampco division of CCC keeps two set of books for cost accounting and reporting. This is not common practice for a company to maintain more than one set of accounting books. According to Connolly, “One set of books is for the financial statements that they present to shareholders when they file their quarterly reports with the U.S. SEC, and that set is prepared according to GAAP (generally accepted accounting principles). The other set is the books they keep to pay their taxes to the IRS” (Timothy P. Connolly, 2012). This is consider to be acceptable as long as it is well documented for company