corporations?Certainly not.A company is not an instrument of shareholders‚ but a coalition between various resource suppliers‚ with the intention of increasing their common wealth and hence is contradictory to Mr Al Dunlaps view of share holder primancy. Through out his tenure at Sunbeam‚Al Dunlap’s advocated profit by firing many employees and shutting down many factories.If we look at it in the short term ‚this approach seems very attractive as it brings in quick short term gains.In the long term
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ILLINOIS MEMORANDUM DATE: September 14‚ 2011 SUBJECT: Al Dunlap at Sunbeam analysis Introduction This memo will reflect on and analyze the decisions of the Sunbeam Board of Directors during Albert Dunlap’s tenure as CEO. This analysis will include an overview of Sunbeam’s goals‚ evaluation of 1996 – 1997 and 1998 compensation package‚ assessment of the firing decision by BOD and the overall governance of the BOD. Sunbeam’s Goals Dunlap is famous for his ruthless but seemingly successful turnaround
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l “Chainsaw Al Dunlap”: A New Breed of Manager? West Point graduate Albert J. Dunlap‚ former chairman and CEO of Scott Paper Company‚ claims that the U.S. Military Academy made him “tenacious and very organized”. Others say his experience gave him an “inyour-face attitude rare among executives” and made him a valuable hired gun for straightening out troubled companies. Dunlap is known to attack and challenge nearly every premise and person that gets in his sight. Those who interfere with his efforts
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Case Study “Al Dunlap at Sunbeam” Response to Dunlap’s view of shareholder privacy I don’t agree with Dunlap’s view that shareholders are the only constituencies about which corporate directors and executives should be concerned. In light of agents’ obligations to principals‚ managers are supposed act in the best interest of the company’s shareholders‚ the major capital providers‚ when making decisions; however‚ as shareholders and stakeholders interests are to a large extent compatible‚ especially
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managing conflict. They’re better able to make complex decisions. As we go through the story of Al Dunlap‚ we known that Al Dunlap is categorized in low LCPs. Subordinates would felt tension by his style of leading. For instance‚ he forced employee to meet goals by pressurized even though employee knows that is unobtainable. Employee had to work impossible long hour to him as well.Working for Dunlap was described as an exercise in misery. His ability to instill fear into his executive team‚ and
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Albert John Dunlap (born July 26‚ 1937) is a retired corporate executive. He was best known as a turnaround specialist and downsizer. The ruthless methods he employed to streamline ailing companies‚ most notably Scott Paper‚ won him the nicknames "Chainsaw Al" and "Rambo in Pinstripes". However‚ his reputation was ruined after he engineered a massive accounting scandal at Sunbeam-Oster. Dunlap believed that the primary goal of any business should be to make money for its shareholders. To that end
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the decisions of the Sunbeam Board of Directors during Al Dunlap’s tenure as Chairman and Chief Executive Officer. Important elements of this assessment include an overview of Sunbeam’s goals‚ an evaluation of the 1996-1997 compensation package‚ an evaluation of the 1998 compensation package‚ the decision to fire Al Dunlap‚ and the governance of the Board of Directors. SUNBEAM’S GOALS Sunbeam’s goals explicitly showed when they hired Al Dunlap July of 1996. Sunbeam struggled in the business world
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Corporation was not an exception from this concept. The events led by Albert Dunlap had an effect on many people. Most of which affected the basis of financial implications of shareholders wealth. Confident and Controlling Demeanor is a Result of Expectation During the case of the Sunbeam Corporation of the late 1990s‚ there was an individual who had an impact on many of the people involved in the company. Albert Dunlap had a straightforward approach to management. He wanted to do things his way
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By far‚ one of the best teachers I have ever had in all of my years of school‚ has been my eighth grade English teacher‚ Mrs. Dunlap. Before I had her class‚ I enjoyed English‚ and I enjoyed reading‚ but I still had struggles with it‚ and I was not that passionate about it. All of that changed‚ however‚ when Mrs. Dunlap was my English teacher. She was someone who truly cared about the subject that they taught- She was invested in every single piece of literature that she taught us‚ she explained
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Yet‚ it did not turn out the way they wanted. The following year‚ they appointed Albert J. Dunlap as their new CEO. Sunbeam’s stock price rose by 50% on the day Dunlap was hired. Nonetheless‚ Dunlap was still fired two years later due to the unexpected performance. When Albert Dunlap was hired‚ he brought in his team of management. In addition‚ he took an aggressive move on
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