Creating Firm Value at Tyco Essay Example

organizational structure should ensure regular monitoring of senior members' conduct and behaviors to promote responsible behavior due to observation (Clarke, 2007). Additionally, an ineffective organizational structure can lead to the development of personal interests that prioritize individual gain over the well-being of the entire organization, ultimately resulting in its downfall. In Tyco's case, leadership played a significant role in executing their strategy. The leadership team was comprised of high-level officials, with Dennis Kozlowski as the leader. Unfortunately, strategic leadership sometimes involves individuals with flawed motives who exploit their position for personal gain. In this instance, the top leaders used their authority to implement their strategy (Clarke, 2007). Notable figures involved in this process were Dennis Kozlowski, CFE Mark Shwartz, and chief officer Mark Belnick. These leaders even organized extravagant parties and engaged in questionable financial transactions without proper accountability. Ultimately, Tyco's downfall can be directly attributed to the erosion of its leaders' values driven by greed (Bowen, 1994). The leadership team successfully transformed the organization's behavior and ethical standards to prioritize self-interest at the expense of financial misappropriation.

Assessing how strategic entrepreneurship contributes to creating firm value at Tyco is crucial since its main purpose is to enhance profit and wealth for the company. Within Tyco, general managers can utilize strategic entrepreneurship by employing various tools, techniques, and concepts to improve the company's wealth (Clarke, 2007). The value of Tyco can be increased through innovations, networks, organizational learning, effective management teams, governance, and ensuring positive growth. Hence, it is essential for general managers to take action and play a vital role in enhancing the organization's value.

In conclusion, the downfall of Tyco International was a result of

lacking corporate governance, compromised ethics among top managers, and a deficiency in well-defined strategic entrepreneurship to monitor and control personal interests from being implemented.