Babson Case Number: BAB095 | Length: 31 Pages

Abstract

This case explores the challenges facing the new investor relations manager of a publicly traded customer relationship management software company, Mark Hanson, as he rethinks his company’s disclosure strategy amidst new regulatory and competitive pressures and following a cease and desist order from the Securities and Exchange Commission.

This case can be used and is intended for interdisciplinary use in the general area of management strategy. As such it can be used in courses focusing on corporate communication or reputation management and is ideal for courses dedicated to investor relations and governance as well as organizational structure.

This case is designed to help students learn the pitfalls of certain disclosure practices while maintaining a firm understanding of SEC regulation of material information (e.g. Regulation Fair Disclosure and the Sarbanes-Oxley Act. See exhibits below). It is also intended to heighten students’ awareness of various organizational structure and communication issues while grappling with changes in management strategy in a company that currently leads an industry about to undergo a major transformation.