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106-595: CA Technologies, Inc. , formerly Computer Associates International, Inc. , and CA, Inc. , was an American multinational enterprise software developer and publisher that existed from 1976 to 2018. CA grew to rank as one of the largest independent software corporations in the world, and at one point was the second largest. The company created systems software (and for a while applications software ) that ran in IBM mainframe , distributed computing , virtual machine , and cloud computing environments. The company's primary founder

212-534: A holding company for that purpose; distributors were signed up in different European countries, some of which would then be acquired by Computer Associates. As of 1971, Computer Associates International SA was described as being based in Geneva , and Geneva would be its headquarters through the rest of the 1970s. Then in mid-1974, CA-SORT began being distributed and sold in the United States by Pansophic Systems , under

318-430: A proxy battle ensued between the board of directors and shareholders led by Wyly, who was unhappy with how CA was being run and especially with how his acquired Sterling Software was being treated. Wyly was not trying to buy the company, but rather trying to get shareholders to elect a new board of directors that would include him as chair. Wyly had hopes of appealing to Haefner, as their business relationship dated back to

424-553: A 2 percent stake in the company) as a gesture of contempt. The company was hit hard by the early 1990s recession , its stock price decreasing from between $ 18 and $ 20 per share in 1987 to between $ 11 and $ 13 in 1991. Pansophic was further hurt by migration away from mainframe systems toward large deployments of personal computers in corporate environments. In its final years, the company ramped up its budget for its workstation products and discontinued redundant products in its mainframe product range. But for 1990, it ended up having

530-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

636-406: A big financial stake in the share price, and thus an incentive to inflate results." Kumar resigned as CEO and chairman of the company in 2004, staying on as chief software architect, then two months later left the company completely. Following the change in executive leadership, the company restated its earnings for 2000 and 2001 due to the unaccepted revenues policies. Around the same time in 2004,

742-435: A bribery suit by CSC's chairman Van Honeycutt against CA's founder and then CEO, Charles Wang . By the end of the 1990s, Computer Associates was the dominant company among providers of utility software tools for the mainframe. Personal computer software firms such as Microsoft , Lotus Software , and WordPerfect Corporation were much more recognizable as names to the general public. but while this mainframe industry segment

848-454: A company, supplying computer services for several kinds of organizations; the company persisted into the 2010s, but its website does not appear to have been accessible after 2018.) It is thus to 1976 that the creation of what would become the well-known Computer Associates company is usually dated. This new venture began with four employees. One of them was Russell Artzt , who had met Wang in college, worked with him at Standard Data Corporation,

954-508: A computer scientist in his prior job at Montgomery Ward , Joe was convinced to found Pansophic only after his uncle Emil had encouraged him to start his own business in the computing industry. Pansophic was among the first wave of independent software vendors in the late 1960s. Pansophic's first product was Panvalet , a source code management software package for IBM mainframe users that stored program code on tape . The inspiration for Panvalet came from Piscopo's own anxieties delivering

1060-498: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

1166-549: A couple of years in the mid-1970s under the name Pansort. (After another transfer of rights, CA-SORT became a foundational product for the American firm Computer Associates. ) Another such product was Easytrieve , an early instance of a report generator , which was developed by Ribek Corporation but marketed and sold by Pansophic. Easytrieve became quite successful in the IBM mainframe world, so much so that Pansophic would end up acquiring

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1272-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

1378-655: A major accounting scandal in the early 2000s that led to several past executives being sent to prison. However by the 2010s, CA was ranked high by several corporate responsibility and recognition metrics. Computer Associates had its origins in both Switzerland (Zurich and Geneva) and in the United States (New York City). It was headquartered on Long Island for most of its history, at first Jericho and Garden City in Nassau County , then Suffolk County for two decades in Islandia before moving back to Manhattan in 2014. In 2018,

1484-678: A merger was announced between Computer Associates International Ltd and the Software Products Division of Standard Data Corporation, with this merger creating a new entity, Computer Associates, Inc. , with Wang as president. The newly created company would continue to market CA-SORT in the United States and in the rest of the Western hemisphere, while the existing European firm would market some of Standard Data's products such as SYMBUG. The new company had an office at 655 Madison Avenue. (The main part of Standard Data Corporation continued on as

1590-487: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

1696-403: A new level with its deal for Uccel in 1987, which valued at $ 800 million was an order of magnitude larger than any of its previous acquisitions. Uccel was a new name for UCC, which Haefner had gained control of from Wyly in 1976 and which had undergone ups and downs in the years since. Of Uccel's existing staff of 1,200 people, 550 were let go; this kind of harsh post-acquisition reduction measure

1802-521: A plan to refinance its debt after Moody's Investors Service indicated it might downgrade the company's credit rating, an action that the service soon took. Later in 2002 the U.S. Department of Justice limited CA's acquisitions. The investigation by the SEC resulted in charges against the company and some of its former top executives. The SEC alleged that from 1998 to 2000, CA routinely kept its books open to include quarterly revenue from contracts executed after

1908-606: A public company. The receipt of a $ 670 million stock grant that dated to the vesting of a 1995 stock option occurred while the company faced a slowdown in European markets and an economic slump in Asia, both of which had affected CA's earnings and stock price. The stock grants thus became quite controversial. In total, the company took a $ 675 million after-tax charge for $ 1.1 billion in payouts to Wang and other top CA executives. Computer Associates received poor marks for customer relations, with

2014-507: A reason, the company said the new name "reflects the full breadth and depth of what the company offers." Multinational corporation Most of the current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were

2120-483: A reputation of being more interested in making sales than providing support afterward. To some extent, the CA sales force regarded customers as foes. In 2001, The New York Times wrote that "Computer Associates has infuriated clients with high prices and poor technical support." Fortune wrote, "For all its ubiquity inside the tech departments of corporate America, CA had a horrendous reputation. Where Microsoft has long been

2226-460: A settlement in 1996. In 1995, Legent Corporation was acquired for $ 1.78 billion, the biggest-ever acquisition in the software industry at that time, and Cheyenne Software for $ 1.2 billion in 1996. CA executed the software industry's then-largest acquisition ($ 3.5 billion) via Platinum Technology International in 1999. In 1998, an unsuccessful and hostile takeover bid by CA for computer consulting firm Computer Sciences Corporation (CSC) prompted

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2332-475: A single morning in 1988. Similarly, at Cullinet , around 400 employees, comprising a quarter of the company's workforce were told to clear out their desks on a day in 1989. As Sam Wyly, the head of Sterling Software , reflected upon his decision in 2000 to sell that company to Computer Associates: "It wasn't easy for us because of our concern about the CA culture. It wasn't the ideal end place for our products and people. We agonized over that, but our overriding duty

2438-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

2544-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

2650-930: The British East India Company founded in 1600 and the Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

2756-524: The Silicon Valley mindset and either insulted or avoided its ecosystem of industry analysts and venture capitalists. The company's sales force was composed largely of people with blue-collar backgrounds from New York's outer boroughs and Long Island. With them, CA had a reputation for being, as BusinessWeek wrote, "smart, aggressive, and consistently profitable". Internally, as the Times wrote, "Over

2862-444: The Times noted in 2001: "To be sure, complaints about Computer Associates' prices and customer support have been around almost as long as the company, and it has always outlasted its detractors." As some industry analysts observed, the culture of Computer Associates reflected Wang's personality and background, that of an immigrant educated at the non-elite Queens College, City University of New York . Wang did not admire or belong to

2968-617: The 1960s, but Haefner stayed loyal to Wang. In the end, Wyly's two attempts failed; he gave up the struggle in 2002 and received a $ 10 million payment that was characterized as " greenmail " by some, but not all, industry analysts. Meanwhile, by early 2002 it was public knowledge that the Securities and Exchange Commission (SEC) and the U.S. Attorney's Office for the Eastern District of New York had instantiated investigations as to whether CA had engaged in accounting fraud. CA had to cancel

3074-650: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

3180-546: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

3286-526: The IBM unbundling decision by developing and marketing software products for the IBM mainframe. In January 1976, an agreement was signed whereby Pansophic Systems relinquished U.S. rights to CA-SORT and Standard Data Corporation took those exclusive rights over and in the so doing, restored the product name to its European form. Standard Data also gained U.S. rights to a report generator package called EARL (for Easy Access Report Language). Then in October 1976,

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3392-557: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

3498-505: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

3604-545: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

3710-619: The Swiss businessman Walter Haefner , and Wyly despatched Goodner to Europe to watch over it. By 1970, UCC was experiencing financial difficulties, and Goodner, who admired some of Haefner's management practices, decided to leave and start his own firm that would engage in software product development. A company by the name of Computer Associates A.G. was founded in 1970 by Goodner and was located in Zurich, Switzerland . Meanwhile, under regulatory pressure in 1969, IBM had announced its decision to unbundle

3816-458: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

3922-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

4028-527: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

4134-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

4240-609: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

4346-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

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4452-610: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

4558-687: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

4664-448: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

4770-530: The acquisition of SPSS was called off, however. Earnings reports for Pansophic were tracked by The New York Times . Joe Piscopo left the company in 1987 to enter retirement at the age of 42, at which point his net worth was $ 20 million. Eskra was named as his successor. Piscopo's subsequent attempt to leave retirement to return to Pansophic was rejected by Eskra and the board of directors, leading to public animosity between Piscopo and Eskra; in early 1991, Piscopo sold his 360,000 shares (representing

4876-658: The acquisition of four large software vendors: Professional Computer Services of nearby Oakbrook Terrace —a provider of supply chain management software (for $ 19 million); the computer graphics division of AVL, Inc., of Tinton Falls, New Jersey —makers of presentation slide graphics software for the IBM Personal Computer and compatibles (for $ 2.5 million); Fusion Products of San Rafael, California —makers of various mainframe software (for $ 7.2 million); and SPSS Inc. of Chicago—developers of statistical analysis software (for $ 32 million). In January 1987,

4982-593: The act of staffing reductions as "rationalization" of existing businesses that in some cases were not performing well. A hybrid characterization was given in 2002 by Pansophic Systems founder Joseph A. Piscopo, who said that while his company, acquired in 1991, had suffered the typical fate of CA reducing it to just the minimal staff needed to keep maintenance revenue going, in a few cases CA did actually invest in companies it acquired as part of an internal product development strategy, with Cheyenne Software being one such instance. By 2000, Computer Associates had acquired on

5088-418: The barnacle of corporate America: Once you had CA software onboard, it was so onerous and expensive to pull it out that few customers ever did. That led to a lot of steady cash flow – and to arrogance on the part of CA's management." Or as The Register wrote, "CA used acquisitions to grow its portfolio.... Along the way it acquired a reputation as the place decent software goes to die." Nonetheless, as

5194-462: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

5300-728: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

5406-650: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

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5512-552: The company a modest $ 3.2 million. Its stock traded on the NASDAQ using the stock symbol "CASI". The first significant acquisition in CA's history took place in 1982, when it merged with Capex Corporation , resulting in a 50 percent increase in CA's revenues. Both CA and Capex made software products for the IBM mainframe, but while by CA's own marketing statements CA had visibility and success in software products for IBM's DOS mainframe operating system , potential customers did not think CA

5618-462: The company avoided indictment for involvement in the 35 day month accounting scandal by reaching a settlement with the SEC and Department of Justice, in which CA agreed to pay $ 225 million in restitution to shareholders and reform its corporate governance and financial accounting controls. Eight CA executives pleaded guilty to fraud or obstruction of justice charges, and several received prison terms. Most notably, in 2006 former CEO and chairman Kumar

5724-555: The company began moving its headquarters to Islandia, New York in Suffolk County in 1992, consolidating all of the Nassau County operations. There it would occupy a large corporate campus with three office buildings. By this juncture, CA was Long Island's second largest private employer, after Grumman Aerospace , and Suffolk County politicians had given CA substantial tax abatements and assistance with construction financing to lure

5830-611: The company charged its customers for software maintenance, and improving compatibility with products from other vendors, such as Hewlett-Packard (HP), Apple Computer , and Digital Equipment Corporation (DEC). In addition, the company was not immune to the effects of the early 1990s recession , and by October 1991 the stock was down by around 70 percent from its earlier peak in May 1989. At this point, CA had some 7,000 employees, and around $ 1.4 billion in sales, In 1991, CA acquired Pansophic Systems . After 2½ years of planning and construction,

5936-483: The company had 15,000 employees. The company's original name of Computer Associates International, Inc. was changed to CA, Inc. in January 2006. The company said that the change reflected a changed focus towards helping customers "simplify the management of enterprise-wide IT"; it also came shortly before Kumar pleaded guilty to the array of charges against him. From May 19, 2008 until its acquisition by Broadcom in 2018, CA

6042-579: The company there. In 1994, CA acquired the ASK Group and continued to offer the Ingres database management system under a variety of brand names. In 1992, the company was sued by Electronic Data Systems (EDS), a CA customer. EDS accused CA of breach of contract, misuse of copyright and violations of antitrust laws. CA filed a counterclaim, also alleging breach of contract, including copyright infringement and misappropriation of trade secrets. The companies reached

6148-458: The company was acquired by Broadcom Inc. , a semiconductor manufacturer, for nearly $ 19 billion. The origins of Computer Associates International lie in a Swiss software products company and a New York data services company. Samuel W. Goodner was a Texan who was working for the American businessman Sam Wyly 's company, University Computing Company (UCC). UCC had acquired the Swiss computer services company Automation Center A.G., founded by

6254-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

6360-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

6466-567: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Pansophic Systems Pansophic Systems, Inc. , or simply Pansophic ( Ancient Greek for "universal knowledge"), was a major American software company active from 1969 to 1991 and based in the Chicago metropolitan area . A pioneering software firm, it was among the first wave of independent software vendors in

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6572-506: The easily shufflable punched cards from Montgomery Ward's headquarters to outside institutions such as NYSE Chicago . Panvalet initially sold poorly, the company only generating sales of US$ 28,000 in 1970. Joe Piscopo sought to have Panvalet bought outright to one of the large computer services companies then in business, but there were no takers; instead, he began marketing and selling the product directly to data processing development shops that were using IBM mainframes. By 1973 Panvalet

6678-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

6784-546: The first software company after Microsoft to exceed $ 1 billion in sales. Information Week listed Computer Associates ahead of Microsoft in a 1990 roundup titled "Software's Heavy Hitters." Early in the decade, Computer Associates was forced to address criticism of the company as well as a sharp decline in its stock price, which fell more than 50 percent during 1990. The ensuing changes included pushing into foreign markets (Japan, Canada, Africa , Latin America ), reforming how

6890-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

6996-611: The infusion of capital gained by the IPO, the company soon went on an acquisition binge in an effort to expand further. In November 1984, by which point it was worth $ 53 million and had 7,600 installations, Pansophic acquired Christensen Systems, Inc., of Quincy, Massachusetts . Christensen had developed TELON , an integrated development environment for business software running on top of IBM's CICS and IMS . By acquiring Christensen, Pansophic hoped to further its foothold in IBM's mainframe clientele, which numbered between 8,000 and 12,000 at

7102-516: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

7208-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

7314-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

7420-458: The late 1960s. Initially a supplier of source code and information management software for IBM mainframe computers with their flagship products Panvalet and Easytrieve , the company soon expanded into the minicomputer and personal computer markets, supplying application packages for many differing fields. The company was acquired by and absorbed into Computer Associates in October 1991 for nearly $ 300 million. Pansophic Systems

7526-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

7632-586: The mainframe business had not met with much success. CA started the India Technology Centre in Hyderabad on December 10, 2003. In 2004, CA appointed ex-IBM employee John Swainson as CEO. Swainson tried to turn things around, but was hampered by trouble that the company had in fixing its internal finance and accounting systems. During this time, the company presented its Enterprise IT Management (EITM) vision to unify and simplify enterprise-wide IT By 2006,

7738-488: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

7844-531: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

7950-463: The most feared software company, the old CA claimed the title of most despised – not by competitors but by its own customers." Detractors of CA accused it of putting newly acquired software products into maintenance mode and milking them for cash flow. The products themselves were expensive and central to what corporate IT departments were doing, and so customers found it difficult to move away from CA. As Fortune wrote, "These products made it

8056-531: The name Pansort. By 1974, the firm was referred to as Computer Associates International Ltd . In New York City, Standard Data Corporation was a company that was mainly in the service bureau business for electronic data processing. One of the first such companies, it had been in existence since 1959, and was located at 1540 Broadway in Manhattan. In 1973, Standard Data began offering the SYMBUG product for sale, which

8162-475: The order of magnitude of 200 companies. In that year, Sanjay Kumar replaced Wang as chief executive officer, with the latter remaining as chairman of Computer Associates' board of directors . Then in 2002, Wang departed completely and Kumar became chairman as well. In 2000, a shareholder-based class-action lawsuit accused CA of misstating more than $ 500 million in revenue in its 1998 and 1999 fiscal years in order to artificially inflate its stock price. In 2001,

8268-445: The overall Computer Associates International had some 300 employees across its locations around the globe and was selling 12 different products to what it said were 9,000 different customer installation sites. Sales from the United States were the biggest market for the company. In 1980, Wang bought out the Swiss parent company and Computer Associates International, Inc. became his. Computer Associates had an IPO in 1981 that garnered

8374-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

8480-402: The product outright. Panvalet and Easytrieve provided the two big commercial successes that powered the growth of Pansophic. Pansophic filed to go public in 1980. Around that time, David J. Eskra, who had been hired the previous year as vice president of marketing, was named president and chief operating officer of the company, with Joe Piscopo remaining as chief executive officer . With

8586-655: The quarter ended in order to meet Wall Street analysts' expectations. As one account from the Wharton School of the University of Pennsylvania wrote, "The SEC said the goal was to meet or beat per-share earnings estimates of Wall Street analysts, a key to keeping a company's stock price rising. ... In all, the company prematurely reported $ 3.3 billion in revenues from 363 software contracts. ... Moreover, executives at Computer Associates were big shareholders themselves, and many held enormous blocks of stock options. They therefore had

8692-595: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

8798-430: The sale of computer hardware from its software and support services, i.e., mainframe computers from computer programs , etc. The decision opened new markets to competition and provided an opportunity for entrepreneurs to enter the nascent software industry  — an opportunity that Goodner sought to exploit by developing and selling software products for the IBM mainframe market. The new firm Computer Associates

8904-495: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

9010-412: The time. This was followed by a battery of further acquisitions in the software industry, diversifying the company away from solely mainframe software into the minicomputer and personal computer markets for fields as disparate as computer-aided software engineering , computer animation, computer graphics for presentation slides , and supply chain management . In November 1986 alone, Pansophic announced

9116-484: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

9222-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

9328-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

9434-447: The years, [the company] has gained a reputation as a callous employer that dismisses workers without warning while top executives take home eight- and sometimes nine-figure pay packages." In particular, Computer Associates had a reputation for mass dismissals within companies it had taken over. This was the case with Applied Data Research , for instance, as some 200 employees from its Montgomery Township, New Jersey facility were let go on

9540-448: Was Charles Wang . The main key to Computer Associates' fast growth was the acquisition of many lesser-sized software companies in the IBM mainframe industry segment. CA was known for large-scale dismissals of employees in the acquired firms, and for sometimes extracting cash flow from acquired products rather than enhancing them. Customers of CA often criticized the company for its poor technical support and hostile attitude. CA underwent

9646-508: Was a Nasdaq-100 company. On September 1, 2009, CA announced CEO John Swainson's decision to retire by the end of the year. On January 28, 2010, CA announced that William E. McCracken would be its chairman of the board and chief executive officer. In May 2010, at the opening of the CA World 2010 conference in Las Vegas, the company announced it was changing its name again, to CA Technologies. For

9752-541: Was a symbolic debugger for the COBOL programming language on the IBM mainframe VM/370 platform. In addition, by October 1974, Standard Data was advertising several other products for VM/CMS , including VM/370 ISAM, an emulation of OS ISAM in VM/CMS, as well as SYMBUG for other languages. Eventually Standard Data created a Software Products Division, of which Charles B. Wang was a vice-president. Wang too sought to take advantage of

9858-567: Was already being well-received in the market. The company eventually saw Panvalet installed at over 6,000 sites worth some $ 100 million in revenues by 1991. In its early years, the company also engaged in redistributing IBM mainframe software made by others. One such product was CA-SORT, made by the Switzerland-based Computer Associates International Ltd , which Pansophic sold in North America for

9964-496: Was copyrighted to Computer Associates International Ltd. For instance, CA-DYNAM/D was a disk utility for IBM mainframes running DOS and DOS/VS that did disk space management, disk cataloguing, and other such functions; announced in 1977, its trademark belonged to Trans-American Computer Associates, indicating it was developed in America rather than Europe. In 1979, offices of the American company were moved to Long Island at Jericho, New York , at 125 Jericho Turnpike. By 1980,

10070-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

10176-510: Was founded in 1969 in Oak Brook, Illinois , by Joseph A. Piscopo (1944–2021). The company was begun with four employees and $ 150,000 of startup capital obtained by Piscopo's uncle Emil Piscopo and was initially incorporated from the second story of a storefront in the Chicago suburb of Oak Brook. The company was founded in the middle of Joe Piscopo's MBA studies; although he had formal training as

10282-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

10388-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

10494-408: Was not widely known, it was a renumeratively rewarding one. A profile in Business Week in 1996 was headlined "Computer Associates: Sexy? No. Profitable? You Bet ", and that accurately conveyed the company's place in the industry. In May 1998 stock grants were issued to Wang and two others together worth $ 1.1 billion at the time. In 1999, Wang received the largest bonus in history at that time from

10600-461: Was responsible for programming some of the early software products the new company was offering. Artzt is accordingly considered a co-founder of the well-known Computer Associates. But that would still be awaiting. Soon, the new American venture's name would appear as Trans-American Computer Associates, Inc. , in the sense that by September 1977, the company's advertisements were copyrighted to Trans-American Computer Associates, Inc., while CA-SORT 77

10706-453: Was sentenced to 12 years in prison and fined $ 8 million for his role in the massive accounting fraud at Computer Associates. The company subsequently made sweeping changes through virtually all of its senior leadership positions. Overall the company spent over $ 500 million on investigations and fines. By 2001, Computer Associates was the fourth-biggest among independent software companies and had 18,000 employees. Attempts to diversify away from

10812-638: Was strong in products for the IBM OS mainframe operating system . In contrast, this was an area where Capex had established itself. The acquisition of Capex was generally viewed as having been successful. It was the start of what was to become a buying spree for Computer Associates over the next several years. The company specialized in going after third-party mainframe software. By 1986, Computer Associates had moved its headquarters again, to Garden City . They would come to be situated in five other buildings within Nassau County as well. CA's strategy for growth reached

10918-503: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

11024-521: Was to the shareholders, so we went ahead with the deal." A contrarian view of Computer Associates was given by computer industry historian Martin Campbell-Kelly , writing around 2001, who gave the company credit for continuing to enhance the DATACOM/DB and IDMS database products it had acquired and for doing the work to have its databases and utility products be able to interoperate. Campbell also saw

11130-468: Was typical for the company and became a part of CA's public image. Haefner became Computer Associates' largest individual shareholder, with a stake that comprised about 25 percent of the company. In 1987, CA's stock began trading on the New York Stock Exchange using the ticker symbol "CA". In 1988, the company purchased the principal software product of Consco . As the decade ended, CA became

11236-562: Was underfinanced, but it did have a customer in the Swiss pharmaceutical giant Hoffmann-La Roche and it had developed a sorting program for Hoffmann-La Roche. The new sort had superior efficiency, and, starting in 1971, Computer Associates began selling in Europe the CA-SORT package as a plug-in replacement for the IBM Sort on IBM System/360 and System/370 mainframe platforms. The firm sought to sell in countries other than Switzerland, and created

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