The Management Failure Of Tyco International Essay

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The 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 habits. It was said that Tyco was producing irregular financial accounts, but was denied by Tyco’s leaders. Throughout the years of Kozlowski’s leadership, Tyco merged and bought out several companies, making their profits grow beyond 30 billion…show more content…
An untrusting CEO like Kozlowski made shareholders indignant. Kozlowski’s management plan was to turn Tyco International into a large incorporated company like GE. Only his plan came with his own benefits as well. No one can ever say what drove Kozlowski to commit such heinous crimes and put so many people’s jobs in harms way. By studying his actions, someone can see that it is easy for a rich person to be corrupted in the eye of money also. Kozlowski broke federal laws (tax aviation) and state laws during his time as CEO for Tyco. He fraudulently transported money to New Hampshire to avoid paying taxes, stilling money to purchase his apartment, and getting loans through the company. Kozlowski pled not guilty to the charges in 2002 and a trial was scheduled for June 26th of the same year. He paid a 3 million dollar bond to regain his freedom until the trial. Kozlowski showed little ethical concern with how his actions would affect the company, or any of the people involved with the company. According to what has been written in regards to his criminal history with Tyco International, Kozlowski had to have made his actions a part of his plan from the beginning. When he began his reign in 1992 as the CEO of Tyco International, he began his deceit through aggressively merging smaller companies and buying out others. The deceit took place when the financial paper trail was doctored to

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