Assignment:
Questions
1. Consider Dunlap's statement on page 4 of the case: "Stakeholders! Every time....is the stakeholder". Do you agree or disagree with Dunlap's view of shareholder primacy? Explain.
2. Evaluate Dunlap's compensation packages (at the start and at the end of the second year). What types of behavior did the packages motivate?
3. What controversies did Al Dunlap create at Scott Paper? What controversies did he create at Sunbeam? Did the board of Sunbeam make the right decision in hiring him?
4. How likely do you think Al Dunlap will turn around Sunbeam if the board gave him more support and time? Did the board make the right decision in firing Dunlap?
In case write-up, please try to answer the focus questions as thoroughly as possible. Excellent answers should be based on thorough analyses of the firm's industry environments and internal capabilities and resources. Such answers should reflect critical thinking about the firm's most important strategic issues and alternative courses of actions that are relevant to these issues. When a recommendation is made, it should be well justified with case facts, theories, logics or personal experiences, etc.
Case write-up can be no longer than one page (single-spaced, 12-point Times New Roman, and one inch margins).
Readings:
Al Dunlap at Sunbeam
BRIAN J. HALL
RAKESH KHURANA