ABE LEVEL 7 DIPLOMA IN BUSINESS MANAGEMENT ASSIGNMENT

How, XEROX CORPORATION is managing its Ethical and Corporate Governance issues to achieve its Goals.

D.V.A.RANGA RAJU
494071 1/20/2012

My word count excluding appendix and bibliography : 3737

TABLE OF CONTENTS:
- Introduction - Corporate Strategy of Xerox - Business at Xerox - Global Presence of Xerox -Geographic Revenue - Management & Organization analysis - Competition - SWOT analysis - Risk Factor - Ethical, Governance, Social and Legal Issues at Xerox - Environmental Issues at Xerox - Xerox at present - Corporate Social Responsibility - Shareholder Value - Industry Analysis - Conclusion and Recommendations - Bibliography - Appendices - Self-evaluation

Page Nos
4 5 6 7 8 9 10 11 13 13-15 16 17 18 19 20 21 22 23-26 27

Declaration by the author:

I hereby declare that I have successfully completed my Assignment on Xerox Corporation, under the guidance of Faculty Guide Mrs. Reena Nevatia. I also declare that this report is of my own and has not been submitted before for award of any other university degree.

D.V.A.RANGA RAJU

Introduction:
Xerox Corporation is an American multi-national company that manufactures and sells all types of printers, copiers, multi functional systems and other document services. Ursula Burns is the CEO and its head quarter is at Norwalk, Connecticut.

XEROX VISION STATEMENT:Quality is the main principal of Xerox. It provides internal and external customers with innovative products and services that satisfy their requirements. Job of every Xerox employee is to improve quality.

XEROX MISSION STATEMENT:Xeroxs intent is to help people finding the best way to do their good work by improving and leading their products which improve their customer performance and give them best results at their work place or at their business.

XEROX VALUES:-

Ever since Xerox started it operated under these 6 values:

1. To succeed through satisfied customers. 2. It gave best quality and service in all what it did. 3. They require premium return on assets. 4. It used technology to develop market leadership. 5. Xerox valued its employees. 6. Xerox behaved responsibly as a corporate citizen.

REASON FOR SELECTING TOPIC:

-While going through the topics of Ethics and Corporate Governance and few surveys I
found Xerox Corporation is best at its business ethics and corporate governance. So, I thought that selecting this topic would be interesting.

CORPORATE STRATEGY OF XEROX:

Xeroxs corporate strategy

Market Development

Expanding

Empowering

Middle East

Strong distribution channel

Introducing education series of programs that communicate Xeroxs quality services.

By practical training workshops.

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Patents, Trademarks and Licenses:

Xerox own more than 650 trademarks, either registered or applied for in U.S. These trademarks have a perpetual life, subject to renewal every 10 years. Xerox vigorously enforce and protect their trademarks. (Appendix 1)

BUSINESS @ XEROX:Business at XEROX divided in three segments which are production, office and others (also known as XEROX global services). XEROX GLOBAL SERVICES :OFFICE - It services small to mid-range commercial customers, government, education and other public sectors

PRODUCTION - Here high-end products are produced for customers in graphics Industry and In large enterprises

OTHERS - Other segment mainly includes revenue from paper sales, wide format (Xerox global systems, value added services, global imaging and electronic presentation Services) systems and network integrated solutions.

GLOBAL PRESENCE OF XEROX:

Geographic Revenue Information: Xeroxs global presence is one of its core strengths. Overall, approximately 36% of our
revenue is generated by customers outside the U.S. Currently, ACS generates approximately 10% of its revenue outside the U.S. They have a significant opportunity to leverage their global presence and customer relationships to expand the ACS business in Europe and developing markets. Revenue of Xerox by geography

U.S Europe Other areas

Revenue in Millions: US - $13,801 Europe - $5,332 Others - $2,500

MANAGEMENT & ORGANIZATION ANALYSIS OF XEROX CORPORATION:

Xerox will need to optimize productivity and infrastructure. To do those two things, Xerox will need to improve the efficiency and effectiveness of its resources, both tangible and intangible. Also included in the process is the improvement of marketing, distribution, and management of human resources. In conclusion, Xerox needs to commit to the aforementioned strategies and market-oriented standards in management to increase its market position in todays fierce market competition.

COMPETITION :
Although Xerox encounter competition in all areas of their business, they are the leader or among the leaders in each of their principal business segments. Xerox competes on the basis of technology, performance, price, quality, reliability, brand, distribution and customer service and support. Their competitors in the Technology business include Canon, Ricoh, HewlettPackard, Ricoh, Samsung, Kodak, Oce, Konica Minolta and Lexmark. In the Services business, their larger competitors are Hewlett-Packard, Genpact, Teletech, Accenture, Aon Hewitt, Computer Services, IBM and Dell. In addition, in the Services segment, they compete with inhouse departments performing the functions that they are seeking to have them outsource to Xerox corporation. Xerox is market leader of MPS(managed print services): Xerox is market leader for MPS were as HP and ricoh are also enjoying the same market position. Ricoh, Canon and Lexmark are in third, fourth and fifth positions.

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S.W.O.T. Analysis:
For Analysis and description of SWOT refer to (Appendix 2)

S.W.O.T. Matrix For Xerox Corporation

S.W.O.T Matrix For Xerox Corporation

Opportunities: 1.multi functional technology 2.Outsourcing to reduce expenses 3.Reusable paper

Threats: 1.Intence competition 2.Market is going digital

Strengths: 1. ACS acquisition 2. Special printers that help mortgage companies 3. Work in global market

Strengths/ Opportunities S1 + O2 S2 + O1 and O3 S3 + O1 and O3

Strengths/ Threats S1 + T1 S2 + T2 S3 + T2

Weaknesses: 1. Cost of sales and expenses rising 2. No real presence in home printer market

Weaknesses/ Opportunities W1 + O1 and O3

Weaknesses/ Threats W1 + T1 W2 + T2

Alternative Solutions Based on the S.W.O.T. analysis, the following alternative solutions should be implemented as part Xerox Corporations corporate strategy. 1. Prepare for growth in the small business and household markets. 2. Work to efficiently produce new multi functional printers . 3. Invest in Research and Development o Printable Electronics o Loan processing technology

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4. Should have strong code of business ethics and corporate governance. Xerox has been a major player in the midsize to large printer and photo copier markets for decades, but recently due to loss of market cap in the electronic industry and a decline in its stock price, Xerox has needed to revamp itself. To reclaim its lost market value, Xerox has made power moves by acquiring ACS, a major outsourcing solutions company. The company should focus on making their innovations come to life with a business plan that includes aggressive marketing campaigns coupled with entering into new markets.

CORE STRENGTHS, BUSINESS AND GROWTH DRIVERS:

Core strength Businesses
Document Technology -High end -Mid range Advanced digital printing

Growth drivers
Accelerate color transition

Brand

Global presence

-Entry Expand distribution

Renowned Innovation

Services -Document outsourcing -Business process outsourcing -IT outsourcing

Extend lead in document outsourcing

Expand ITO and BPO globally

Services operational Excellence

Leverage innovation

For description refer to (Appendix3)

Strategy of XEROX:
To lead the markets in which they participate. Xeroxs strategy leverages its core strengths to drive growth within their segments and lines of businesses.

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RISK FACTOR:
Xerox business, results of operations and financial condition may be negatively impacted by conditions abroad, including local economics, political environments, fluctuating foreign currencies and shifting regulatory schemes. A significant portion of Xerox revenues are generated from operations outside United States. In addition, they manufacture or acquire many of their products and/or their components from, and maintain significant operations, outside United States. Xerox future results, sales and revenue of get affected due to fluctuations in foreign currency exchange rate, especially Japanese yen to euro currency and yen to US dollar, there are many other factors different from country to country like political, legal, taxes, trade, license and other issues. Xerox do not hedge the translation effect of international revenues and expenses, which are denominated in currencies other than their U.S. parent functional currency, within their consolidated financial statements. If future revenues, costs and results of operations are significantly affected by economic conditions abroad and Xerox is unable to effectively hedge these risks, they could materially adversely affect their results of operations and financial condition.

ETHICAL & GOVERNANCE ISSUE AT XEROX:

In 2002 Xerox revealed the scandal that 5years before to 2002 it had inappropriately classified nearly $6 billion that lead to overstatement of earnings by around $2 billion. The Securities and Exchange Commission (SEC) investigation ended in April of that year. It charged the producer of copiers and all the related services with accounting manipulations. Amount involved was Estimated as half which is now stated, or about $3 billion. Settlement was reached with $10 million fine and agreement to conduct a further audit. Over $6 billion figure was produced during this audit.

SOCIAL & LEGAL ISSUE AT XEROX:

Bailey-Rhodeman, still an employee of Xerox claimed one of the companys vice president Larry Lauver under New Jersey law against retaliation and discrimination at working place. She claimed that when complained about race and gender discrimination she faced retaliation. This complaint was filed in 2007 and trail began on Jan 2011 after 10 weeks on April 6th 2011 court has issued a verdict awarding $804,214and $316,216 as past and future losses and she also gained many other financial benefits as compensation. In this way she has won the case against Xerox.

XEROX OVERCOMES THE ETHICAL, SOCIAL AND LEGAL ISSUES BY FORMING STRONG CODE OF BUSINESS ETHICS & GOVERNANCE:
Xerox corporations Ethics and Compliance Governance Board was revised with further more strong rules and regulations, this committee has senior executives from business units and corporate functions, integrates the companys Business Ethics and Compliance program into all worldwide business operations. The Ethics Governance Board, which represents business and corporate organizations in Xerox and its subsidiaries, participates in quarterly meetings chaired by Xeroxs Business Ethics Office. Additionally, each Governance Board member has the following duties within their area of responsibility.(Appendix4)

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THE SEVEN CONSIDERED FACTORS OF XEROX FOR REFLECTIVE OF A GOOD ETHICS AND COMPLIANCE PROGRAME:
Ethics and Compliance Responsibilities:

Internal Audit

Corporate security

Functional areas

Ethics Office

Human resource

Legal Subject matter expert

Business units

Codes of Business Conduct:

Xeroxs Code of Business Conduct is the bedrock of the companys ethics and compliance program. It embodies and reinforces their commitment to integrity and helps Xerox people to resolve ethics and compliance concerns consistent with core values and legal and policy controls. The Code is aligned to Xeroxs core values and covers policies and guidance on key topics, including sales and marketing activities, controllership, insider trading, bribery, nondiscriminatory employment practices, privacy rights, human rights and environmental stewardship. The Code also specifies employees obligations to report suspected ethical violations and reinforces Xeroxs strong no retaliation policy. In addition to global Code of Business Conduct applicable to all employees, Xerox also has a supplemental code of conduct for finance employees and a specific code of conduct for the Board of Directors. As a member of the Electronic Industry Citizenship Coalition, Xerox uses the Electronic Industry Code of Conduct (EICC) as our vendor code of conduct.

Key Components of Xeroxs Business Ethics and Compliance Program:

At the start of every year, senior leaderships commitment to business ethics and compliance is demonstrated by the distribution of a CEO message on business ethics to all employees. Annually, all employees are required to complete ethics training and acknowledge that they have read Xeroxs Code of Business Conduct.

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Periodic ethics surveys are conducted of employees in several countries to gauge the state of the companys ethical culture and help us focus on areas for improvement. Xerox provides a variety of channels for employees, suppliers and customers to report suspected ethical violations including phone, Internet reporting, e-mail and regular mail addresses. The Ethics Helpline is available globally 24 hours a day, seven days a week, via tollfree telephone numbers and includes a Web reporting tool with international language reporting capability. Xerox has contracted with an independent third party that specializes in helpline reporting with immediate electronic transfer of all reports to Xeroxs Business Ethics and Compliance Office for case management. Xerox strictly enforces a no retaliation policy to promote confidence in using the Helpline. Xeroxs Business Ethics and Compliance Office tracks all cases from initial reporting to closure. Additionally, the Business Ethics Office reports quarterly case activity and trends to the Business Ethics & Compliance Governance Board and the Audit Committee of the Board of Directors, including the number of matters reported, case categories, outcomes and disciplinary action.

Corporate Governance:
Effectiveness of any policy and decision making at Xerox will be monitored by board whose commitment will be reflected by corporate governance guidelines, keeping in view of improving shareholder value. Assessment of these guidelines will be done by board, through Committee of corporate governance and modifications required will be done time to time by the board. The guidelines include: The board details, Board meetings, committee meetings, leadership development, policies and guidelines.

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ENVIRONMENT ISSUES AT XEROX:

At Xerox, they approach environmental issues from a life cycle perspective, recognizing the importance of considering all aspects of their actions, products and servicesand recognizing that the biggest opportunity to make an impact may lie outside of their own four walls. In 2006, a cross organizational team led by Vice President of Global Environment, Health, Safety and Sustainability conducted a review of those environmental impacts and opportunities. The result of that work was a focus on four commitment areas where they can make a significant impact across their entire value chain of products and services. These priorities are reviewed on an annual basis and, while the commitment areas remain unchanged, the goals and objectives have been updated as necessary. For example, in 2010 Xerox began development of their environmental sustainability scorecard to assess how the corporation is progressing toward its corporate goals across supplier, Xerox and customer dimensions. The scorecard process was piloted in late 2010 across their internal operations. In early 2011, Xerox developed the scorecard approach with suppliers, with plans for wide-scale implementation in late 2011. Xeroxs four global environmental commitment areas are: -Reducing Energy Use and Protecting the Climate. -Preserving Biodiversity and the Worlds Forests. -Preserving Clean Air and Water. -Preventing and Managing Waste.

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XEROX AT PRESENT:
After all the above mentioned measures taken by Xerox Corporation, now it is heading towards its goals and also it is been awarded as one of the best ethical company. - ETHISPHERE SURVEY:
The Worlds Most Ethical Company is awarded to those companies that have best ethics and compliance programs, that too when compared to their competitors of same industry. This year, many companies were dropped out of list because of their litigation and ethical violations. Corporate Governance and corporate social responsibility of that particular company is also considered in selection process. Even though there are changes in ethical companies lists from 2011,2010,2009 but still Xerox is one of the few organizations which is still continuing in the chart continuously for all the 3 years. Xeroxs strong competitor HP was dropped from 2011 most ethical companies list.
2011 WORLDS MOST ETHICAL COMPANY SELECTION PROCESS IS OF 5 STEPPS:

1. The Methodology 2. Candidate Selection 3. In-Depth Analysis 4. Further Refinement 5. The Winners As the list was released on different industry bases Xerox was placed under consumer electronics industry. Electrolux and Ricoh are the other 2 companies which are most ethical along with Xerox in the same industry. Here is the list: Consumer Electronics Electrolux Ricoh Xerox

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-Corporate Social Responsibility:

The Reputation Institute ranked Xerox 38th its 2011 Global RepTrak 100: The Worlds Most Reputable Companies list. The study provides an assessment of companies worldwide that are most liked, trusted, and respected. The ranking is made by more than 48,000 consumers across 15 countries. The Reputation Institute measured the reputations of more than 1,000 of the worlds largest companies on criteria such as citizenship, workplace, governance and leadership.

-Diversity:
Diversity MBA Magazine placed Xerox 8th on their annual list 50 Out Front for Diversity Leadership: Best Places for Diverse Managers to Work. The list focuses on corporations that offer the best work environments and opportunities for women and people of color. The National Association for Female Executives has identified Xerox as a Top Company for Executive Women. Xerox once again appears on this list for its commitment to building a workplace that welcomes different people, different thinking, and different perspectives. -Sustainability: Xerox was named one of the Top 50 Best Global Green Brands by Interbrand in its inaugural ranking. Interbrand, the leading brand consultancy, combined public perception of environmental sustainability with a demonstration of performance based on publically available information and data. Xerox won the Green IT Awards Public Sector Project of the Year for 2011. The award recognized Xeroxs sustainable print project in collaboration with the UKs Department for Work and Pensions, which has significantly reduced the amount of electricity used by the department. Xeroxs Webster, N.Y. campus was presented the Environmental Performance Silver Award by the New York Water Environment Association, Genesee Valley Chapter Industrial Issues Committee. Xerox also received Finning Chiles Supplier Award 2010 for developing products with a focus on environmental protection, decontamination and energy conservation.

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Shareholder value:
To develop shareholder value the key growth drivers that include are:

Shifting its revenue mix to a higher percentage of services, a business that is targeted to grow between 6-8 percent by 2012. More than 90 percent of revenue from services is annuity-based, providing a long-term revenue stream. Expanding distribution in its document technology business to capture more opportunity in developing markets and increase its business with small and mid-sized companies. Revenue in the companys technology business is expected to grow 1-3 percent in 2012 with growth driven both from increased distribution and an increase in color pages. Color pages currently account for 25 percent of the total number of pages printed on Xerox systems yet color pages are growing 9 percent per year. Investing in acquisitions that give Xerox more scale in services and more feet on the street selling the companys products in global markets. The company expects to invest about $300 million in acquisitions this year; the added capabilities and channel expansion are expected to deliver 1-2 points of revenue growth.

Xerox Corp.'s Annual Earnings:

Xerox Corp. reported annual 2010 earnings of $0.94 per share on 01/26/2011

2009

2010

2011E

2012E

$1.17 $0.60 $0.94 $1.08

-Actual

-Estimated

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Xerox Corp.'s Annual Revenues:

Xerox Corp. had revenues for the full year 2010 of $21.6B. This was 42.5% above the prior year's results.

2009

2010

2011

2012

+ -

$15.2B

$21.6B

$22.8B

$23.1B

-Actual

-Expected

Industry analysis:

As Xerox is the company that follows business ethics and has good corporate governance but still they are not helping Xerox to compete with its competitors in the market so here are some of the recommendations for Xerox in order to compete in the market by maintain good business ethics and corporate governance.

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Conclusion and Recommendations:

-The real opportunity is to expand in B2B business, like XEROX is to explore this sector. As we know this sector is cost conscious and very large, which can contribute large to the profitability of the company. - Laying plans to break into the small business and household consumer markets is critical for Xerox if it is to grab a larger capitalization in the electronic market. While the current innovations at the company are very promising, they have yet to be produced commercially due to their technical never been done nature. - Printers and photocopiers, Xeroxs major production strengths already, are a better bet to be a long term success due to a few reasons. Xerox is taking a larger risk with technologies, such as silver ink, multi functional printers because of the probability that it will be imitated by companies like Google, HP and Apple, and maybe even improved upon. In the small-sized photocopy and printer market, the company could find its niche by evaluating competitors and using its reputation in big business to muscle up on others market capitalization. Growth in the electronic sector through small business and household consumers could provide future success. - Investing in Research and Development is important for companies to sustain longevity. If the Silver Ink works out, Xerox will be in a position to produce printable electronics, like RFID and animated posters, and successfully grow in the field of digitally processing mortgages and other processes. The next new multi functional printers must always be on the horizon to stay competitive and fuel stock momentum, which will create investment due to expectations. Research and Development is crucial.

- Xerox is more concentrate on selling its high-end product rather than the low-end product. The major benefit to sell a high-end product is that they can able to meet the sales target very easily but they forgot that they have just made one customer. But in the other hand if they can able to sell ten low-end products they will get ten new customers which itself is a great achievement because they will get a free promotion of one of the powerful media i.e. WORD OF MOUTH. - It is found that new offices are coming up in the study area, which are having high potentiality in buying the MFPs. These areas are not covered by many photocopier companies. It is suggested to the Xerox company, if they guide their sales force to cover these offices and also their decision maker who normally available at their city corporate offices. - Brand name of Xerox is very well known in Photocopier market and it is associated with quality
thus this has to be maintained in all spheres of the selling and marketing.

-Xerox is mainly concentrating on protecting environment so it needs to develop all its products keeping in mind environment safety. Xerox should follow the above mentioned recommendations to compete in the market but Xerox should always maintain its good business ethics and corporate governance.

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BIBLIOGRAPHY
www.xerox.com www.wikipedia.com (http://en.wikipedia.org/wiki/Xerox).
2010 10-k report of Xerox corporation. http://ethisphere.com/past-wme-honorees/wme2010/ http://www.investegate.co.uk/article.aspx?id=20101116080543P9E62 http://mystrategicplan.com/resources/functional-tactics-implementation/ http://www.expressvoice.co.uk/news.htm http://sec.edgar-online.com/groupon-inc/s-1-securities-registrationstatement/2011/06/02/section50.aspx http://www.bpcc.pt/news.asp http://www.ukincorp.co.uk/

Global citizenship report 2011 of Xerox corporation. www.idc.com

www.businessweek.com www.prnewswire.com
www.cio.com Fortt, J. (September 29, 2009). Xerox CEO Defends ACS Deal. Retrieved October 17, 2009, from brainstormtech.blogs.fortune.cnn.com

Wire, B. (October 12, 2009). Xerox Helps Mortgage Lenders Cut Costs, Adapt to Market Conditions, Stay Competitive. Retrieved October 17, 2009, from www.reuters.com

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Appendix 1
Xerox and its subsidiaries were awarded 1,031 U.S. utility patents in 2010. On that basis, we would have ranked 20th on the list of companies that were awarded the most U.S. patents during the year. Including our research partner Fuji Xerox, we were awarded over 1,600 U.S. utility patents in 2010. Our patent portfolio evolves as new patents are awarded to us and as older patents expire. As of December 31, 2010, we held almost 10,200 design and utility U.S. patents. These patents expire at various dates up to 20 years or more from their original filing dates. While we believe that our portfolio of patents and applications has value, in general no single patent is essential to our business or any individual segment. In addition, any of our proprietary rights could be challenged, invalidated or circumvented, or may not provide significant competitive advantages. In the U.S., we are party to numerous patent-licensing agreements and, in a majority of them we license or assign our patents to others in return for revenue and/or access to their patents. Most patent licenses expire concurrently with the expiration of the last patent identified in the license. In 2010, we added 16 new agreements to our portfolio of patentlicensing and sale agreements, and Xerox and its subsidiaries were licensor or seller in 14 of the agreements. We are also a party to a number of cross-licensing agreements with companies that hold substantial patent portfolios, including Canon, Microsoft, IBM, Hewlett-Packard, Oce, Sharp, Samsung and Seiko Epson. These agreements vary in subject matter, scope, compensation, significance and time. In the U.S., we own more than 650 trademarks, either registered or applied for. These trademarks have a perpetual life, subject to renewal every 10 years. We vigorously enforce and protect our trademarks.

Appendix 2
First I have examined financial ratios, Environment issues and other resources significant to the evaluation of the company. Next, examined the products and services offered by the company, as well as management strategies and other strategies. Then proceeded by identifying Xeroxs strengths, weaknesses, opportunities, and threats. Finally, created alternative solutions and devised ways to implement these solutions to help in making Xerox more successful. Strengths/Opportunities By combining Xeroxs in the silver ink creation, outsourcing capabilities, and reusable paper development, it can be strengths of the ACS acquisition, mortgage technology innovation, and its global name brand with its opportunities concluded that Xeroxs strengths will make its opportunities viable. ACS acquisition would further the outsourcing of labor to other companies, while increasing data prevalence in marketing and management departments (Fortt, 2009). Xeroxs current position as a power player in electronic loan processing (Wire, 2009) as the field growswill provide more cash flow to finance opportunities. Being a universally known brand in a global market provides a platform for anticipation and reputability for the silver ink and reusable paper project. Acquisitions of Xerox in 2011. (Refer below for acquisitions of Xerox)

Strengths/Threats The threats to Xeroxs strengths are not as dark as the opportunities are bright. As always, competition is a threat, but given Xeroxs current position as a leader in managed print services and outsourcing, it will be unrivaled. While more companies around the world are going digital, it would seem to pose a major threat to Xerox. The digital increase is not too much to worry about because Xerox is

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expanding into more digital services, and will get a boost from outsourcing to cover lost revenue. Weaknesses/Opportunities Xeroxs weaknesses include the rising costs of sales and expenses, and a lack of presence in the consumer home electronic market. These weaknesses could create an issue in the company, especially costs of sales and expenses. Rising costs of sales and expenses could slow the development of better technology like new multi-functional printers. Though the lack of a market share in consumer home electronics is a weakness, it has no effect on the opportunities for Xerox.

Weaknesses/Threats Combining Xeroxs weaknesses and threats show some things that Xerox needs to be aware of so that it can protect itself from them. There is lot of intense competition for Xerox from its competitors.

2011 Acquisitions by Xerox and its companies:

Services and Software

XL World Innova Consulting (Facilities) Education Sales and Marketing Miller Technology Solutions Newfield IT CredenceHealth, Inc. Unamic/HCN WaterWare Internet Services Spur Information Solutions TMS Health ExcellerateHRO ACS (Affiliated Computer Services) Advectis, Inc. XMPie Amici, LLC Distribution

Bennett's Business Systems Xerographic Solutions United Business Solutions Concept Group

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Georgia Duplicating Products Irish Business Systems ComDoc, Inc. Precision Copier Service, Inc. DBA Sierra Office Solutions Saxon Business Systems Veenman B.V. Better Quality Business Systems Image Quest, Inc. Inland Business Machines (Sacramento) Marbaugh Reprographics Supply Co. Blackstone Valley Office Systems Global Imaging Systems, Inc.

Appendix3
core strengths include: Our Brand We have a strong and well-recognized brand that is known by businesses worldwide for delivering industry-leading document technology, services and solutions. Global Presence Our geographic footprint spans 160 countries and allows us to serve customers of all sizes to deliver superior technology and services regardless of complexity or number of customer locations. Renowned Innovation We have a history of innovation and, with more than 10,200 active U.S. patents and five global research centers, we are committed to continuing to lead in the document technology industry and to leverage our technology into new service areas. Services Operational Excellence We have an operational excellence model that leverages our global delivery capabilities, production model, incentive-based compensation process, proprietary systems and financial discipline to deliver productivity and lower costs for our customers.

We organize our business around two segments: Technology and Services. Our Technology segment comprises our business of providing customers with document technology and related supplies, technical service and equipment financing. Our product categories within this segment include Entry, Mid-range and High-end products.

Our Services segment is comprised of business process outsourcing, information technology outsourcing and document outsourcing services. Because we provide all three of these business services, we are uniquely positioned in the industry, and we believe this allows us to provide a differentiated solution and deliver greater value to our customers.

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We will leverage our core strengths and market opportunities to grow our businesses by executing on the following growth initiatives: Accelerating the Transition to Color We have the broadest color portfolio in the industry and leading technologies to help customers realize the communication benefits of printing in color. Cost and quality improvements are driving the transition from black-and-white to color. With only 23% of Xerox pages printed on color devices, we believe there remains tremendous opportunity to grow color pages and revenues. Advancing Customized Digital Printing We are the leader in digital production printing, and we continue to create new market opportunities for digital printing through technology that enables personalized promotional and transactional documents, short-run book publishing, crossmedia customized campaigns and more. Color digital production pages are estimated to grow over 20% CAGR from 2009 to 2014, according to internal market estimates. Expand Distribution We strive to ensure Xerox is considered by every customer and potential customer. We will continue to broaden our distribution capacity through acquisitions and channel partnerships targeted at expanding our presence in the small and mid-size business ("SMB") market and we will capitalize on our coverage investments and partnerships to drive growth in digital production printing. Extending Lead in Document Outsourcing We lead the industry with end-to-end Document Management Services. Through offerings such as managed print services, we can help our customers save up to 30% on printing costs by optimizing their use of document systems across an entire enterprise. We will seek to grow our document outsourcing revenue by expanding our print services offerings to smaller companies, delivering solutions in new service categories such as multi-channel marketing communications, and leveraging our BPO and ITO presence to deliver even greater value to our customers.

Appendix4

Establish a business ethics and compliance network. Implement ethics training and education programs. Ensure consistent enforcement of discipline policy. Ensure that organization-specific policies are consistent with existing laws, Xerox Code of Business Conduct and other company policies. Oversee and make recommendations for changes to Xerox policies including the Business Ethics & Compliance Office Charter (ETH 100). Evaluate ethics and business conduct issues and trends to proactively address the potential problems. Attest annually that organizational ethics and compliance programs are effective and all employees have completed required business conduct training and acknowledgements.

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Self-Evaluation: During production of my assignment I have learned the following: How important is business ethics and corporate governance in an organization About Xeroxs global presence and its competitors Impact of social and legal issues on organization How careful is Xerox in protecting the environment How company goals are linked with business ethics and governance. What corporate strategy does Xerox follow and were the company stands at present.

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