Professional Documents
Culture Documents
Food Preparation,
Food Savers
Cooking Appliances
Quick Turnaround
Dunlap had a reputation of quick corporate turnarounds
resulting in dramatic increases in share value
1 year growth
His strategy is to take sick company and turn it around
within a year.
Increase Sales
Sunbeam’s sales increase for the year of 22%
with earnings higher than analyst expectations
High Margin
In the 4th quarter, they had achieved 20%
operating margins with a 17% overall operating
margin for the year
FIRED
After only less than 2 years Dunlap became Sunbeam’s CEO, he has
fired by BOD as Company performance in his second year didn’t
met the expectation. Sunbeam’s stock price gone down drastically
from its all-time highest $53 to $16. What was happened with
Dunlap at Sunbeam at that time?
THE FAULT IN DUNLAP’S
“STARS”
Chose Shareholders over Stakeholders
Shareholder’s Wealth
Maximization
Stakeholder’s Welfare as
Company Objective
Change-Resistance
Politized
Unhealthy Cultures
Insular, Inwardly Focused
Incompatible Subcultures
THE FAULT IN DUNLAP’S
“STARS”
Ignored Sunbeam’s Cultures to the Strategy
Execution Process (Cont’d)
Sunbeam’s Unhealthy Cultures
Change- Politized Insular, Unethical and Incompatible
Resistance Inwardly Greed-Driven Subcultures
Focused
Russell A. Kersh
WHAT WE COULD LEARN FROM
DUNLAP’S TERRIBLE, HORRIBLE,
NO GOOD, VERY BAD DAYS AS
CEO AT SUNBEAM?
Balancing Shareholders and Stakeholders
Even though stakeholders didn’t pay a penny for their stake as shareholders, their interests
are still valuable to the shareholders as they are the ones that drive shareholder profit.
Without the employees and the culture of the firm, there is nobody left to perform the labor
that creates value for the company.