Sunbeam Corporation Essay

1708 words - 7 pages

Audit AssignmentTITLE:S.E.C Accuses Former Sunbeam Official of FraudGROUP MEMBER:1. Ling Deng Kei 930701-13-62952. Christoper Lau 930806-13-60991. IntroductionThe Sunbeam Corporation began as a small branch of the American group which the name of the company at that time is Chicago Flexible Shaft Company but the name of the company was later changed to Cooper Engineering Company and in 1946 it changed again to Sunbeam Corporation. In 1989, the company was renamed again to the Sunbeam-Oster Company, Inc until now day. Before the company produced it first Sunbeam branded household appliance, the Princess Electric Iron in 1921, they are made horse trimming and sheep shearing machinery. In 1928, the company's head designer invented the Mixmaster mixer and it became the company's flagship and later the brand also became known for the designs of electric toasters, coffee makers, and electric shavers.Sunbeam continued to expand outside of Chicago since Sunbeam bought out the Rain King Sprinkler Company and produced one of the most popular lawn sprinkler lines in the 1950s and 1960s. The John Oster Manufacturing Company was acquired by Sunbeam Corporation in 1960 let the Sunbeam expand into home products and later the company would extent to other innovations. In the shorter time, Sunbeam became the leading American manufacturer of small appliances by the end of the 1970s and it has enjoyed $1.3 billion in annual sales and employed nearly 30,000 people worldwide. In 1981, Sunbeam was acquired by the Allegheny International Inc (AI). In 1980s, Sunbeam became the world's largest maker of small appliances through much after the Sunbeam has been ownership by the Allegheny International's but it also bring negative effect to the Sunbeam. The Allegheny International's poor management caused the Sunbeam walk into serious financial difficulties and the company was eventually forced into bankruptcy in 1988. In 1989, after the Sunbeam was collapsed, an investment group called Japonica Partners purchased the remains of Allegheny in hostile takeover.Albert. J. Dunlap was hired by the Sunbeam-Oster as the CEO and chairman of the board in July 1996, who was embraced the nickname Chainsaw AI, and later became the corporate star in 1990s. Dunlap lay off thousands of the employees in the name off efficiency by making tens of millions for himself. There are three opportunities that Dunlap used to manage earnings. First, Dunlap took large one time charges. Second, Dunlap managed income through managing transactions, which was also known as "channel loading". Third, Dunlap built a loyal team, which could effectively control the total company. His reputation and business philosophy were recognized throughout the world. However, Dunlap reputation was ruined after he engineered a serious accounting scandal at Sunbeam-Oster. In 1996 he took over as chairman and CEO of Sunbeam. In 1997, Dunlap purchased controlling interest in Coleman and Signature Brands when Sunbeam reported...

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