M7A1 Case Study: Tyco Image of a senior manager holding a piece of a puzzle Tyco is a multinational corporation that deals with industries from hospital suppliers to fire sprinklers. To some, Tyco epitomized the excesses that could occur from success. Some executives plundered the company for personal gain, which affected its very survival and the employment of thousands of employees. The organization’s culture required substantive change. In this assignment, you will review and write a case study analysis on how Tyco overcame the frustration of its employees and communicated needed change throughout the organization. Review the following case study from your textbook: Case Study: Tyco. The case study references the six change images discussed in the course materials and seeks to understand how change management strategies can affect turnover. Subsequently, review the Case Analysis Rubric for information on how to write an analysis of a case study. Your case should be of sufficient length to address the issues and at least 3–5 pages, not including the title page and bibliography. Submit a Word document using correct APA formatting (6th edition). See the Course Calendar for the due date. Compose your work using a word processor (or other software as appropriate) and save it frequently to your computer. When you’re ready to submit your work, click Browse My Computer and find your file. Once you’ve located your file click Open and, if successful, the file name will appear under the Attached files heading. Scroll to the bottom of the page, click Submit and you’re done. Be sure to check your work and correct any spelling or grammatical errors before you post it. Evaluation Criteria Review the SBT Case Analysis Rubric located in the “Start Here” section of the course for more information on grading criteria. Together, these case study assignments comprise 15% of the total course grade.


M7A1: Case Study – Tyco

Student’s Name





In this assignment, you will review and write a case study analysis on how Tyco overcame the frustration of its employees and communicated needed change throughout the organization.



M7A1: Case Study – Tyco


In 2002, Tyco International Plc faced its major corporate scandal that threatened its very survival and ability to function effectively while maintaining its competitiveness. The corporate scandal comprised of the company’s former Chairman and Chief Executive Officer (CEO) Dennis Kozlowski and the Chief Finance Officer (CFO) Mark H. Swartz were accused of the theft of over US$150 million from the company (Hills & Michaels, 2002). The embezzlement of the funds damaged the company’s public image demoralizing its employees to remain focused in future for the interest of the organization. In this paper, we extensively assess the way that Tyco International Plc responded to the problem, managing its employees in order to overcome their frustration and the communications needed change throughout the organization.

How Tyco Overcame Frustration of its Employees

Tyco International Plc entails of an international organization dealing with Security Solutions and Fire Protection making it one of the best-performing companies in the world before looming into corporate scandals and dragging its name in court procedures and processes (Lease, 2006). In the period before the scandal, the company pursued a progressive path that saw it acquire such companies as AT&T Submarine Systems in 1997 enhancing its competitiveness of its workforce and employee confidence. The years looming in after the scandal eroded the workers’ confidence in the organization, its corporate culture, and basis of its core values.

Therefore, to overcome the employees’ frustrations and restore the company to its former glory required a strong leadership mantle and overall transformation of the company. The overall transformation culminates into the development of a new corporate image and restoration of confidence of the employees on the leaders and the organization itself. In June 2007, the company concluded to pursue a path that would oversee its split into three distinct entities in the aim of improving productivity and restoration of the company’s former glory. Hence, Tyco International Plc divided into three separate publicly independent companies including Covidien Ltd. (previously referred to as Tyco Healthcare), TE Connectivity Ltd. (formerly Tyco Electronics Ltd.) and finally, Tyco International Ltd. This gave new breath to overcome employees’ frustrations by the change of the organizational leadership and image of the company to give it a chance to reclaim its competitiveness.

In the focus of the Tyco International Ltd., the change of the leadership brass worked in favor of the company to restore the employees’ confidence in the organization. The culmination of a new vision for the company gave a new breath of development of a new corporate culture allowing the company to recover quickly. In January 2011, Tyco International Ltd., branch announced its first acquisition of Brink’s Home Security Holdings. Additionally, on January 25, 2016, Johnson Controls announced its merging with Tyco International Ltd., into “Johnson Controls International Plc.” This serves as an extended strategy for the company to overcome the employees’ frustrations on the long-term basis and elevate the company’s operations and competitiveness in the industry.

Also, ensuring that the former CEO and CFO were held accountable for their misconduct was a significant step to reassure the employees and overcome their frustrations. In turn, this served as an example of enduring resilience in the company’s challenges and emerging stronger than before giving the company an enormous lesson how to approach, deal, and manage crisis (Verschoor, 2006). The action taken against the persons involved in the scandal served as a re-assuring approach to employees’ frustration and security of the corporate culture that required revolutionization of ethical standards and organizational values. This created an opportunity for the organization to embark on a strategy of enhancing their employees to operate in the best interest of the organization and restore its public image.

Communications of Needed Change Throughout the Organization

The core communications of needed change throughout the organization entailed how to approach, deal, and manage the crisis. The efforts to reassure a frustrated workforce required a new leadership led by CEO Edward D. Breen to implement new strategies that would steer the company back to the progressive path. The problem created an opportunity to communicate on ethical standards of the company and the core values of the organization (Verschoor, 2006). Henceforth, giving the leadership an opportunity to revolutionize the ethics and corporate culture, communication of the organizational vision and new approaches to their operations. In turn, dealing with all these challenges gave the organization a chance to communicate the importance of its employees in all the processes it had to undergo. Also, it is critical to communicate the measures and actions against the misconduct of any employee in the organization irrespective of their rank loudly. Hence, provide the communication of the best interests throughout the organization for its benefits.


In conclusion, the case study involving Tyco International Plc approach to handle its employees and overcome their frustrations serves as an excellent example of managing a profound crisis that threatens the extinction of an organization. The overhaul leadership change is the first step following the restoration of the company’s public image. Similarly, the revolutionization of corporate culture, values, and ethics serves best to re-assure the employees.




Hills, A., & Michaels, A. (2002). Paw taste condemns Kozlowski: Report says Tyco bought $15,000 dog umbrella stand for chief’s apartment. Financial Times, 1.

Home – Advancing safety and security worldwide | Tyco. (2017). Tyco.com. Retrieved 8 June 2017, from http://www.tyco.com/

Lease, D. R. (2006). From Great to Ghastly: How Toxic Organizational Cultures Poison Companies, The Rise and Fall of Enron, WorldCom, HealthSouth, and Tyco International. Academy of Business Education, April, 6(7).

Verschoor, C. C. (2006). Tyco: An ethical metamorphosis. Strategic Finance, 87(10), 15.


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