Failure at Tyco International, Ltd. - 1137 Words

Failure at Tyco International, Ltd. LDR / 531 January 31, 2011 Clance Doelling Failure at Tyco International, Ltd. Tyco International Ltd is a diverse manufacturer who grew tremendously in the 1990’s and early 2000’s. The company had big ambitions with an aggressive program of acquisitions during this period where they spent an estimated $62 billion to purchase more than 1,000 companies. However, unbeknownst to the shareholders of Tyco and the world, Tyco was led by a management team and CEO (L. Dennis Kozlowski) that did not use wise or truthful business practices and organizational behavior. In the following paper, I will examine the failure that occurred at Tyco, compare, and contrast contributions of leadership, management,†¦show more content†¦Ã¢â‚¬Å"Organizational behavior is concerned with the study of what people do in an organization and how their behavior affects the organization’s performance.† (Robbins and Timothy, 2007, p. 10). A healthy organization responds to globalization and increasing market share by u nderstanding its’ foreign assignments, people from different cultures, managing diversity, and foreign implications. Tyco quickly made acquisitions and developed offshore networks that were managed by executives that did not enforce an ethical code of behavior. Tyco falsified accounting records in order to meet U.S. standards and profitability. Tyco set their sights on strategies that would improve growth and investments, with disregard to any type of business code of ethics or standards. Complications surfaced that the company was not handling money correctly and top management was to blame. Either the company did not properly train their management (especially those who handled the financial aspects of the business) or management was not governing themselves by company policies and procedures that would make the business successful. It appears Kozlowski and his top executives were able to persuade many employees to overlook company policies and procedures to pursue hig h margins of profitability. This demonstrates that the organizational culture and management behavior was overlooking their ethical obligations to the shareholder, company, and employees of Tyco. They were willing toShow MoreRelatedEssay on Examining a Business Failure - Tyco1003 Words   |  5 PagesBusiness Failure: Tyco International Ltd.  ® LDR 531 August 23, 2010 Examining a Business Failure: Tyco International Ltd.  ® Many have heard the proverb, â€Å"A chain is only as strong as its weakest link.† This can be directly applied to business organizations through analysis of the three strongest and/or weakest links: managers, leaders and the organizational structure. These three areas provide the central core to any organization and are often linked to dramatic failures and consequencesRead MoreCreating a Plan for Positive Influence1093 Words   |  5 PagesTyco International Ltd. was started by Arthur Rosenburg in 1960 and became owned publicly in 1964. Within 1973 to 2001, Tyco International Ltd. Grew swiftly amid the acquisitions of different companies with â€Å"annual revenues of more than $500 million and a net worth of nearly $149 million (Tyco, 2004-2009). The New York Stock Exchange depicts Tyco International Ltd. as a â€Å"diversified global provider of security products and services, fire protection and detection products and services, valves andRead MoreBusiness Failure Ld r/531985 Words   |  4 PagesExamining a Business Failure – Tyco International Ltd. LDR/531 Organizational Leadership March 01, 2010 Examining A Business Failure – Tyco International Ltd. Organizational behavior is concerned with human behavior in organizations. This essay seeks to explain how organizational behavior theories could have predicted or explain the failure of Tyco International Ltd. The theories that organizational behavior are built on are psychology, social psychology, sociology and anthropologyRead MoreTyco International: Management Planning Analysis Essay1114 Words   |  5 PagesTyco International: Management Planning Analysis Traditionally, along with leading, organizing and controlling, planning is one of the main functions of management. As a function, planning has to answer five questions; where does the company want to go, why they want to go there, how they will arrive at their destination, what is needed to go there and finally, how they will know when they have reached their goal. In this paper I will explore how Tyco International, Ltd. has used the planningRead MoreThe Management Failure Of Tyco International Essay1212 Words   |  5 PagesThe Management Failure of Tyco International Tyco International was founded by Edward Breen in 1960 (Wikipedia, 2007). According to Wikipedia, (2007), Tyco International’s operational headquarters is located in Princeton, New Jersey, and employs 247,900 employees. Dennis Kozlowski became the CEO in 1992, leading with aggressiveness acquiring several other companies into the organization (Wikipedia, 2007). In 1999, after a stock split, rumors began to spread about Tyco’s accounting habitsRead MoreTyco International Accounting Fraud Case Study1544 Words   |  6 PagesTyco Accounting Fraud: Tyco International is an organization with operations in approximately 100 countries resulting in its claim as the largest manufacturer and servicer of electronics and electrical items across the globe. Actually, the firm designs and makes undersea telecommunications systems, electronic security systems, specialty valves, and fire protection systems. The company has also developed to become a major player in the several other markets including adhesives markets, disposableRead More Mergers Essay1032 Words   |  5 Pagesmost successful thing in the world either. Lots of mergers don’t last very long or don’t succeed. This past year we had quite a few merger failures. Here are the top 10 Biggest Merger and Acquisition Bloopers of 1999, announced by leading merger consultants. 1. AOL and Netscape 2. Excite 3. Disney and Infoseek 4. BNP and Bank Paribas 5. Tyco International Ltd. and Binge/Purge 6. Deutsche Telecom and Trouble on the Line 7. American Home Products and Warner Lambert 8. Aetna US Healthcare 9. AutoNationRead MoreEthical Dilemmas1374 Words   |  6 Pagesethical questions following each one (CTU Online, 2013). Additionally, it is asked that each student provide a discussion on the new GAAP guidelines for consolidating entities, and to provide an example of a firm that has experienced trouble for failure to comply with the GAAP guidelines. Ethical Dilemmas in Partnerships Scenario 1: In the first scenario, there are two partners in an antique businessRead MoreThe Sarbanes Oxley Act ( Sec )2142 Words   |  9 Pagespublishers rules on requirements and deadlines for compliance (Rouse, n.d.). Company and Scandal Background The Sarbanes-Oxley Act was enacted in response to a chain of high profile financial scandals that happened in the early 2000s at companies including Tyco, Enron and WorldCom that shook investor confidence (Rouse, n.d.). Enron. Enron was once ranked the sixth largest energy company in the world, however, in October 2001 it’s fate changed and it took a turn for the worse. The Enron Scandal came to lightRead MoreExamining a Business Failure657 Words   |  3 PagesExamining a Business Failure Unlike many other recent business failures, such as Tyco International Ltd., WorldCom, or Enron, the failure of the Borders bookstore is a sad tale of a well-meaning enterprise that slowly began to fall behind the times, and was eventually overtaken by its more astute competitors Amazon and Barnes Noble. Borders began as a small, independent Michigan-based bookstore that eventually evolved into a chain store with a national reputation. But its failure to keep abreast of