IMD-1-0218 © 2005
Hamilton, Stewart; Micklethwait, Alicia
Under Kozlowski's (CEO) direction Tyco embarked on an acquisition spree that created one of America's biggest conglomerates. Kozlowski's power and wealth grew in tandem. But this was not enough. Kozlowski's aspiration was for Tyco to become the new GE.
At the same time, he, Swartz, and his CFO, looted the company of millions of dollars. The business was eventually brought by expansion into financial services and investigations by the SEC into Tyco's competitive accounting practices to the verge of collapse. As investors endured an 80% loss a whole suite of court cases ensued.
Tyco Driven By Growth, Driven To A Fall Case Study Solution
Subjects: Acquisitions; Conglomerate; Executive compensation; Board oversight; Fraud; Greed
Settings: USA; Conglomerate; 2001 sales of $38 billion; 2002
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