Al Dunpal Case Study

Situation- Albert Dunlap was known for turning just about badly shaped companies into paying companies. Through his radical restructuring and downsizing methods, he bring outd shareholder value. At Scott Paper, Dunlap fired 35% of all the employees and 71% of the corporate cater raising the stock equipment casualty from $38.00 to $120.00 and sold the company to Kimberly Clark for to a greater extent than $6B. Due to his past success, Al Dunlap was hired to turn around Sunbeam. Sunbeam had a long period of management and fiscal instability. In other words, Sunbeam needed a savior. many a(prenominal) believed this was Al Dunlap. Unfortunately, through his tenure at Sunbeam, stock price fell from a high $53.00 to $16.00 on the day that he was fired. Were his rightsizing techniques not adequate? or was he just an overpaid chief operating officer? 1. Consider Dunlaps statement on page 3 of the case: Stakeholders! everytime I hear the word I supplicate how much did they pay for their stake? There is only matchless constituency I am concerned about and that is the shareholders. Do you check out or disagree with Dunlaps view of shareholder primacy? Explain I completely disagree with Dunlaps statement. Although shareholders are owners of the company who suck in paid for their stake, stakeholders do play a key component in an organization.

In essence, shareholders are stakeholders. According to Kim in corporal Governance (p. 166) although the primary goal of a firm is to create wealth for the shareholders many believe companies should a have a greater responsibility to society stakeholders. I agree with this perspective. Every decision Dunlap made as a CEO abnormal not only the shareholders but also affected the ineluctably and interests of the stakeholders in the company. In the short-term, shareholders profited from the company wide staff cuts and nest egg but Dunlap sacrificed Sunbeams culture and morale of its employees. In the long-term, the company suffered. During Dunlaps tenure, many employees were let go... If you want to nail a full essay, order it on our website: Orderessay

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