As the reference to page number 345

As the reference to page number 345, the business environment depends on technology, market, and regulations. One of the engineers of Andersen established the usage of computers technology for the automate bookkeeping to facilitate their clients. After that firm launched new computer consulting business, it is the big step to develop the advanced technology practice of accounting firm. (555-556).
The market condition, technology, and regulation are very important determinants of strategy. According to figure 11.1, the strategy must be the choice of the industries and basis for competition (price, quality, and service). The Andersen strategy was to offer high-quality accounting services to clients, promoting integrity and audit opinions over higher short-run profits. (555). With the passage of time competition was increased, so AA adopted the new strategy, considered on generating new business and cutting cost. (556)
The organizational changes are depending on right decision assignment, reward system and performance evaluation system. In Andersen, the Auditors were rewarded and promoted for making audit decisions. The top management establishes one professional standards group, they have monitored audits and issued of transactions. Andersen split into two companies, Andersen Consulting focused on to provide the consulting services to large firms in the field of computer system integration and Arthur Andersen was focusing on audit and tax engagements, and provided consulting services to small companies. (555) the AA announces the 2X performance evaluation system.