Restructuring / Turnaround Strategies Case Study

John Swainson's Turnaround of Computer Associates International Inc : Setting IBM Standards?

Abstract:
In 2000-2001, Computer Associates, the third-largest independent software company in the world, was involved in a $2.2 billion accounting scandal, which led to the resignation of its chief executive officer (CEO). John Swainson, an IBM veteran, was appointed as the CEO of Computer Associates in November 2004. Following a change in the name of the company to CA, with an improvement in customer relations and enhanced focus on research and development, the company witnessed an increase of 9% in its revenue for the quarter ending September 2005.

Pedagogical Objectives:

• To discuss the reasons behind the slack performance of the company and discus the accounting scandal
• To discuss various strategies implemented by John Swainson to turn Computer Associates around and overhaul its tainted image.

Keywords : CA (Computer Associates); Computer software market; Acquisitions and licensing agreement; Accounting scandal; Sanjay Kumar; John Swainson; Turnaround strategies; US Securities and Exchange Commission; Restructuring / Turnaround Strategies Case Study; Employee compensation plan; Accounting practices; Customer relations; Global distribution and service networks; Licensing of software products; Corporate governance; Bureaucracy