of case 1.4 Sunbeam: The Revenue Recognition Principle 1. Company history ← In April 1996‚ Sunbeam appointed Albert Dunlap as its CEO and chairman. ← Immediately‚ the CEO began replacing nearly all of the upper management team and led the company into aggressive corporate restructuring. ← As at end of March 1997‚ the company arranged special sales contract with the wholesaler provided that the wholesaler could return all of the merchandise‚ with Sunbeam paying all
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In 1897 John K. Stewart and Thomas Clark incorporated their Chicago Flexible Shaft Company‚ which made horse trimming and sheep shearing machinery.[4] In 1910 the company produced its first Sunbeam branded household appliance‚ the Princess Electric Iron. The company did not officially change its name to Sunbeam until 1946.[5] In 1928‚ the company’s head designer‚ Swedish immigrant Ivar Jepson‚ invented the Mixmaster mixer. Introduced in 1930‚ it was the first mechanical mixer with two detachable
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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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evaluates 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
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Restructures in Sunbeam 3 Turnaround at Sunbeam 5 Accounting Practices at Sunbeam Corporation 5 Accusations 5 Key Players in Sunbeam’s Scandal 6 Unethical Behaviours 7 Ethical Analysis 7 Stakeholder Theory 7 Deontological Theory 7 Shareholder Theory 7 Utilitarianism Theory 7 Reference 9 Executive Summary This report is based on Sunbeam Corporation and Albert Dunlap‚ the CEO from
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1. Analyze the changes that Al Dunlap had initiated at Sunbeam after being hired from a strategic perspective. Did the changes started by Dunlap allow him opportunities to manage earnings? First‚ after Al Dunlap was hired‚ Dunlap wanted to surround himself with loyal executives‚ such as Mr. Kersh‚ and fired the existing senior managers. This strategy make Dunlap easily get consensus for his points. Second‚ his immediate strategy was to aggressively cut the costs by eliminating excessive staffs
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throughout its corporate history. Sunbeam 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
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made by Al Dunlap gave him the ability to gain stronger control over the future of Sunbeam. His goal was to double revenue and dramatically improve operating margins‚ and he put in place a number of measures to achieve it. Let’s analyze each of these measures individually: a) Replacing Senior Management team: Dunlap fired the entire existing Senior Management team and brought on people from his previous company‚ Scott Paper. Given their history of working together closely‚ this meant Dunlap could
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1. Analyze the changes that Al Dunlap had initiated at Sunbeam after being hired from a strategic perspective. Did the changes started by Dunlap allow him opportunities to manage earnings? Following are the changes that Al Dunlap initiated after being hired by Sunbeam Inc and the probable opportunities that Dunlap used to manage earnings: Fired the existing set of senior managers of Sunbeam and appointed his close friends and lieutenants in those positions. Opportunity: Picked a close set of
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End of Book Case Studies 16/7/03 3:16 PM Page 642 end-of-book End-of-book: Case studies Q 643 case studies 19 Think design and performance— think Sunbeam Café Series Nicole Stegemann‚ School of Management and International Business‚ University of Western Sydney The history of Sunbeam dates back to 1883 in Chicago‚ Illinois‚ when T J Clark and J K Stewart formed a partnership to manufacture clipping and grooming machinery for horses‚ later expanding into sheep-shearing equipment. The Chicago
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