Sunbeam Organization and Chainsaw Al Exploration Paper

Sunbeam Corporation and Chainsaw Ing

OTTAWA UNIVERSITY

FINANCE ADMINISTRATION

POST-CLASS ASSIGNMENT

MODULE 5

FAHRIAN C. L. CHOE

SCHOLAR ID: 128370

MELAKA # 03

THANKS: JULY five, 2004

LAST CASE MONETARY DECISION MAKING

SUNBEAM CORPORATION AND CHAINSAW 'S

Prepared For

Richard Brewington

Instructor

Ottawa University Foreign

Prepared by

Fahrian C. L. Choe

College student

Ottawa University or college International

06 30th, 2004

CONTENTS

Webpage

Executive Summary………………………………………………………. i

Introduction………………………. ……………………………………... 1 Dunlap's Action Plan…………………………………………………….. 2 Accounting Practices Raise Questions………………………………….... four Lawsuit …………………………………………………………………... 5 Discussion………………………………………………………………... 6 Summary ………………………………………………………………. being unfaithful Reference ……………………………………………………………….. 10

Exec Summary

This report will be based upon Sunbeam Firm and Albert Dunlap, the CEO from 1996 till 1998. In July of 1996, Eileen Price and Michael Steinhardt hired Dunlap as the CEO and chairman of the board to get Sunbeam Organization. As a pair of the original investors who bought Sunbeam coming from bankrupt Allegheny International, Price and Steinhardt together very own 42 percent of it is stock. Prior to hiring Dunlap they had tried, unsuccessfully, to offer Sunbeam. That they believed that he was normally the one person who can turn the organization around and increase stock prices and profits. The rise in inventory prices performed occur, very quickly. The transformation took merely fifteen months. On July 19, mil novecentos e noventa e seis, the day Dunlap was known as chairman and CEO of Sunbeam, the stock hopped 49 percent. The bounce increased the share cost from doze ½ to eighteen 5/8, adding $500 mil to Sunbeam's market value. The stock ongoing to increase and reached a list high of $52 per discuss in Drive 1998. Company turnaround expert Al Dunlap, whose penchant for reducing jobs gained him the nickname " Chainsaw 's, " His plan included massive cuts to the industry�s product lines, plant closings and major cutbacks in the volume of employees at Sunbeam. This individual called for the same types of cutbacks by previous businesses he advancing, including Jeff Paper. As head honcho at Scott Paper, Sunbeam and other once-sleeping giants, Dunlap has turned around balance bedsheets with remarkable speed and results. Dunlap had developed quite a status for him self. He was well regarded by Wall Street and the purchase community to get his track record in dramatically boosting shareholder value at troubled firms. To shareholders who manufactured millions through him, Dunlap was, if perhaps not a god, certainly a savior (2). In 97, on the basis of Sunbeam's financial claims, it came out that Sunbeam's turnaround had been accomplished. Over 10 years ago Sunbeam started out a series of purchases of Coleman Inc., Initially Alert Inc., and Mr. Coffee, almost all synergistic businesses related to Sunbeam's core businesses. In the initial Quarter of 1998 the stock struck its perfect high of $52 per share. By Summer 1998, the company's directors got fired Dunlap, commenting that they can had misplaced confidence in the leadership abilities. Dunlap's dismissal comes below two years following your company hired him. 3 years later, Sunbeam was in individual bankruptcy court and by May 2001 Dunlap was charged with fraud by SEC. Dunlap was incurred with orchestrating a fraudulent scheme to develop the illusion of the powerful restructuring of Sunbeam and facilitate someone buy of the Business at an filled with air price. (1) By Sept. 2010 2002, Dunlap had been suspended from at any time serving because an officer or director of a open public company. This individual also was required to shell out a 500 usd, 000 excellent. (The New york city Times; September 5, 2002). By 12 , 2002, the corporation announced that it had emerged by Chapter 11 bankruptcy protection. This announcement came with a name transform for the company, from Sunbeam Corporation to American...