Running Head: CHAINSAW AL AND SUNBEAM CORPORATION
Analysis of Chainsaw Al and Sunbeam Corporation and the Resulting Ethical Issues
Case Summary
The Chainsaw Al story at Sunbeam is one of lack of oversight and accountability. Sunbeam became a conglomerate, made of several other companies. In 1910, Sunbeam made an electrical clothes iron, and in 1946 it became the Sunbeam Corporation. It made and sold household appliances, like the Mixmaster, automatic coffee maker, and pop-up toaster. In 1960, Sunbeam acquired the John Oster Manufacturing company, making the company a leading provider of household electrical appliances. The company survived the 1980's as the US economy suffered, and many companies underwent acquisitions, restructuring, and closings. In 1981, Allegheny International acquired Sunbeam, and the company retained its name. In this acquisition, John Zink, manufacturer of air pollution-control devices and Hanson scale, manufacturer of bathroom scales, were added to the business. Unfortunately the undertow of the economy consumed the company as well, and Allegheny was forced into bankruptcy in 1988. In 1992, Micheal Price, Micheal Steinhardt, and Paul Kazarian acquired Sunbeam and renamed it Sunbeam-Oster Company, and two years later made the company public. Kazarian was later forced out of his position of chairman at the company. In 1994, Sunbeam-Oster acquired the outdoor furniture business of Rubbermaid, and in 1995, it was renamed Sunbeam Corporation.
When Albert Dunlap took over the company in 1996, it had more than 12,000 SKUs, 12,000 employees, 26 worldwide factories, 61 warehouses, and six headquarters. The company had several product lines and no obvious focus, and earnings had been declining since Decemb ...