Keller School of Management
What is your opinion of the behavior of the following actors Joe Costello: Joe Costello was the CEO of the Cadence Design System during the great Silicon Valley intellectual property theft. Joe constantly fought the critical against the Avant to seek justice and finally he got it. During this complete prosecution phase he faced many hurdle and criticism from the industry leaders and from customers as well. He ignored all those criticism and faced the hurdle effectively and got justice for the wellness of the Cadence Design System, which again created the very good reputation of it in the market. Joe seems to be very dedicated to his work and having very good ethical values and was totally against the unethical act of any one. He continued his struggle against the Intellectual theft until he got the justice for his company. As media houses and industry leader criticized him and his board customer and friends urged him to leave the case but still he didn’t stopped his fight. Vice president of Avant blamed him that he is attacking him personally but he didn’t care about any criticism and finally proved that he was right. Finally Cadence design got the huge amount of $460 million just because of dedication and determination of Joe Costello. Gerry Hsu: Gerry Hsu was the CEO of the Avant. With 6 former employee of the Cadence, he started the Avant. This person was involved in the great conspiracy against the Cadence by stealing the source code from the Cadence. Gerry was the victim of that offence by still he was blaming the Costello that he is attacking me personally and was claiming that Avant products are better than the Cadence. But finally he convicted by the court and got the 7 years of prison and civil lawsuit. Even though Avant was the public company but still he was operating it like a sole proprietorship. He always used to put his family member as the payroll employee with huge salary. He has also invested on many companies. So totally he was selfish and dishonest person and resulted in the great tread-theft and persuaded others to do that also. Former Cadence employees that went over to Avant: All Cadence employees who went to the Avant were the part of great conspiracy against the Cadence. Every one breached the confidentiality agreement of the employer and stolen complete product code. Just because of stolen code Avant become the more than $1 billon organization, all six person breached the integrity just to earn money. Finally 6 former Cadence employees convicted by the court and got 7 years of prison. All 6 collectively created the history in the Silicon Valley by great trade-theft. Customers and potential customers of Cadence and Avant: Before the final investigation and court judgment, the entire customer did not believe that Costello claims that Avant is using the stolen source code in their product. Customers were satisfied with the Avant products. Customers were also blaming the Costello that he is wasting everyone’s times. One of Cadence customer saying that- “If Joe is right, this would make an example of someone who went over and didn’t come back” and that proved right at the end of this case. Before the final decision normal customer were criticizing the Costello for wasting the time and taking the Avant fight personally.
After the final decision when 6 Avant managers convicted for the trade-safety theft. Customer perception changed and decided not to buy any product from the Avant. So it show that customer were taking very quick decision either it was criticism of Costello or leaving the Avant as their vendor for the design products. Avant!’s auditors: External auditors who was auditing the Avant was seems very effective and they found many irregularity in the Avant. They ware doing the good work, which comes positive for the Cadence. External Auditors found...
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