Explore BrainMass

Durango Manufacturing Company

- Predict the economic and business environment over the next five (5) years, indicating at least two (2) ways it may impact Durango Manufacturing Company's ability to achieve the desired 10% growth in revenue. Provide support for your prediction.

- Formulate a strategy to improve the opportunities for Durango to reach its revenue goals (i.e., increase revenue by 10% within five [5] years).

- Use the Internet to research a company similar to Durango that has been accused of committing fraud. Determine the specific internal control that was defective, along with aspects of corporate cultural environment that contributed to the fraud or unethical behavior. Based on these findings, determine how improving this internal control failure can mitigate future risks.

Please show your references.

Solution Preview

According to the Congressional Budget Office, the economic growth will remain slow this year. After this year the Congressional Budget Office feels that the economic growth will speed up. The unemployment rate is expected to remain above 7 ½ percent through next year. After the economy adjusts this year to the fiscal tightening inherent in the current law, the economic factors will lead to more rapid growth. The projections of the Congressional Budget Office are that there will be a 3.4 percent growth in 2014 and an average of 3.6 percent a year from 2015 through 2018. It feels that the effects of housing and financial crisis will decline and that an upswing in housing construction and increasing availability of credit will lead to faster growth in employment, income, consumer spending, and business investment. The economic and business environment over the next five years is expected to improve gradually. There are two ways in which it will impact Durango's ability achieve 10% growth in revenue. First, there will be an increase in demand for the products manufactured in the US market. Second, ...

Solution Summary

The answer to this problem explains how the challenge of achieving growth can lead to frauds. The references related to the answer are also included.