Tyco International: Management Planning Analysis
Traditionally, along with leading, organizing and controlling, planning is one of the main functions of management. As a function, planning has to answer five questions; where does the company want to go, why they want to go there, how they will arrive at their destination, what is needed to go there and finally, how they will know when they have reached their goal. In this paper I will explore how Tyco International, Ltd. has used the planning function to recover from a scandal and to begin again to build a new future. Planning is the foundation that lays out the goals of a company however; factors such as ethics, technology, legal issues and social responsibilities that can have direct affects on strategic, tactical, and contingency planning.
Tyco International is a large global multinational corporation that manufacturers an extensive variety of products that include electronic components, fire systems, security systems and health care products. Some of their main markets have been in municipal and industrial water treatment, emissions monitoring systems, and hydropower generation. Tyco has reported a net income of 14.50 billion for fiscal year 2004; however, in early 2002 the corporation began to unravel. Questions arose regarding the bookkeeping practices of the company and this lead to a criminal investigation of its former Chief Executive Officer, L. Dennis Kozlowski, Chief Financial Officer, Mark Swartz and chief legal counsel Mark Belnick. They flagrantly stole more than $170 million from the company through loans to themselves without the knowledge of the shareholders and gave themselves many lavish perks. Swartz and Kozlowski convicted on 22 counts of fraud and thef...
... middle of paper ...
...t must put big importance on these factors during the different phases of the planning process. Established strategic, tactical, operational, and contingency plans could be the difference between failure and success for companies like Tyco.
Works Cited
Jorgenson, B.2005. Do the right thing – the right way. Electronic Business, June 2005, 16-18.
SEC.2005. “Complaint: SEC v. L. Dennis Kozlowski, Mark H. Swartz, and Mark A. Belnick”. 2/16/2005.
Tyco's Edward Breen: When Leadership Means Firing Top Management and the Entire Board: Knowledge@Wharton
(http://knowledge.wharton.upenn.edu/article.cfm?articleid=1317)
Tyco International, Ltd. http://www.tyco.com/livesite/Page/Tyco/Who+We+Are/Mission+and+Goals/?
Varchaver, N. and Levinstein, J. (2006). What Is Ed Breen Thinking? Fortune, 153(6), 54-59.
Ebert Ronald J and Griffin Ricky W. (2011).Business Management.(8th edition). Business essentials, (pp.94-97), Boston [Mass]; London: Pearson.
Securities and Exchange Commission. SEC Complaint Case 9:13-cv-80396-XXXX 2013. SEC Digital Archive. Web. 2 Feb. 2014
(2001) 8 MJ 81 [19] Law Text, Cases and Materials (Third Edition) – Paul Craig and Grainne De Burca [20] Law Text, Cases and Materials (Third Edition) – Paul Craig and Grainne De Burca [21] Case T-54/99, max.mobil Telekommunikation Services GmbH v. Commission, ruling of 31 Jan. 2002 paras. 48, 57 [22] Law Text, Cases and Materials (Third Edition) – Paul Craig and Grainne De Burca [23] Law Text, Cases and Materials (Third Edition) – Paul Craig and Grainne De Burca [24] Case C-13/94 [1996] ECR I-2143 [25] Case C-50/99, Deutsche Telekom v. Shroder [2000] ECR I-743 [26] Law Text, Cases and Materials (Third Edition) – Paul Craig and Grainne De Burca [27] Law Text, Cases and Materials (Third Edition) – Paul Craig and Grainne De Burca
In modern day business, there can be so many pressures that can cause managers to commit fraud, even though it often starts as just a little bit at first, but will spiral out of control with time. In the case of WorldCom, there were several pressures that led executives and managers to “cook the books.” Much of WorldCom’s initial growth and success was due to acquisitions. Over time, WorldCom discovered that there were no more opportunities for growth through acquisitions when the U.S. Department of Justice disallowed the acquisition of Sprint.
In addition, include in your scheduling a picture of internal and external certainties that will influence your plan. Then there is a need to expertise an action plan to take gain of opportunities discovered. Tactical Planning Process include identifying the courses of action you will need to achieve those strategic objectives. Strategic planning relates to issues applicable
Planning is an essential process in today’s organizations. Based on the three types of managers: top-level (strategic managers), middle-level (tactical managers), and frontline (operational managers), exist three corresponding levels of planning: strategic, tactical, and operational. The purpose of this essay is to focus on the strategic level of planning for the Ford Motor Company; a leader in the global automobile industry. Strategic planning, according to Bateman and Snell (2009), “involves making decisions about the organization’s long-term goals and strategies” (p. 137). This paper will elaborate on six key influential factors: economic, environmental, competition, foreign policy, domestic policy, and innovation; that shape this corporation’s strategic plan. Finally, a SWOTT analysis will be conducted covering the strengths, weaknesses, opportunities, threats, and trends, that the Ford Motor Company has in relation to its business environment.
The success of any organization just as the Tesla Motor largely depends on the planning of the activities by the management team in the company. A good performance is always attributed to the planning strategy that a certain company has. The following are therefore four factors that affect the planning and performance of the company.
There are three factors that affect contingency plans. The first of these key components is the environmental factor. The next factor is the organizational factor. The environment is bound to change and have an impact on how an organization is run. For example, when FedEx Express went through the September 11, 2001 situation, they boosted security throughout the hub and raised shipping prices to offset the security budget. The same can be said when the president created the new cabinet of Homeland Security to fight the 9/11 attacks. The Unit...
The first function of management is planning. Planning is a process that managers use to identify and involve goal setting and decide the best way to achieve the goal.(Bartol 2007) Planning connect the gap between where we do, where we intend to go. It predict the possible things to happen which would not otherwise happen (MSG 2012). There are several steps to the planning process, which are determine the goals of the organisation, evaluate the current position, consider possible future conditions, identify possible alternative actions and choose the best. Planning is the criteria thinking through goals and making decision to achieve the goal of the organisation’s objective, which requires a systematic way. Also objectives focus the managers how to achieve the final result as managers have to predict anything will happen, avoid the problem and fight back to competitors. An example of planning, which is the President Canon Inc Tsuneji Uchida and lead Canon Company become the no.1 in the global business (Canon.Inc 2011). Tsuneji Uchida has to understand what is the company objective and goal. First, make decision to protect the position and the aim of canon, improve the operation more diversity. Second, he creates the new design of camera and new technology, he plan to do these things to maximise profit.
Dennis Kozlowski, is the former Chief Executive Officer (CEO) of Tyco International Ltd. During his tenure, Kozlowski engaged in activities that were considered unethical. In 2005 Kozlowski was convicted of misappropriation of corporate funds. Kozlowski had been involved in illegal and unethical behavior during most of his tenure. The findings that lead to the conviction of the former CEO were due to the persistent questioning and interrogating tactics of the shareholders and stakeholders because Kozlowski held within his authority to make decisions that could change the course of the company. Business ethics, auditing practices, and government regulations will forever be affected by the $500 million loss endured by the company. Needless to say this scandal had an major impact on the economy and the business world.
In management, each of the four functions, planning, organizing, leading, and controlling, are crucial to the development of any business. Involving employees in the planning process help them understand the goals of the organization. Planning is analyzing a situation, determining the goals that will be pursued, and deciding in advance the actions needed to pursue the goals. This paper will evaluate the planning function of the Halliburton Company and analyze the impact that legal issues, ethics, and corporate social responsibilities have on management planning along with examples of each, and analyze three factors that influence strategic, tactical, operational, and contingency planning.
The Tyco accounting scandal is an ideal illustration of how individuals who hold key positions in an organization are able to manipulate accounting practices and financial reports for personal gain. The few key individuals involved in the Tyco Scandal (CEO Kozlowski and CFO Swartz), used a number of clever and unique tactics in order to accomplish what they did; including spring loading, manipulating their ‘key-employee loan’ program, and multiple ‘hush money’ payouts.
Planning can be used to help the organization map out a way to efficiently achieve their goals. The beginning of the planning process should include analyzing of the current situation. From this information the company can determine the goals and start to outline the steps that need to be taken to ensure that the goal will be met. Other planning activities that should be completed are determining the company’s objectives and were they want to be in the future. This will help them to choose their business objectives and strategies. In addition, the company should look at the resources that they have available and determine if they are sufficient to achieve the organizations goals.
Tyco faced bankruptcy because of failed tricks by its accounting department and fraudulent activity by the company’s leaders. Kozlowski was accused of applying millions of dollars to his personal life. His greed and misguidance cost the company billions of dollars, him his freed...
Good strategic planning is typically based on a rich mix of conceptual, qualitative and quantitative information about what works for whom.