The adjustment Influences are legal Issues, ethics, corporate social responsibility, and there factors that can make a company need to rethink the strategy that they have in place. This is done by planning for possibilities as neglecting one area may have negative consequences on the entire company’s future, especially in an industry that can have a negative reputation among consumers and a great deal of competition. Planning Is the central function of management, and it pervades everything a manager does.
In planning, a manager looks to the future, saying, “Here Is what we want to achieve, and here is how we are going to do it” (Sims, 2002, p. 10). Managers deed plan out the organization’s goals and strategies to remain successful, especially for such a large business as Hallucination in a very competitive energy field. One thing that can strain Hallucination’s planning process is that they have opened a second headquarters In the Middle East to be closer to the oil and gas fields In this area.
Acquiring two headquarters can cause some tricky decisions when It comes to determining corporate plans that will require those In management from both headquarters to meet and consult the company strategy. The advent of
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Legal matters can be very expensive, even Just retaining corporate lawyers, so It Is Important that this Is budgeted Into any strategic plan to prevent shortages In other areas of the company. Legal issues can also have the unwanted affect of causing plans to fall apart. For instance, property concerns may come up about areas where the company is interested in drilling, such as problems with a sale going through, which can put any other plans regarding that property behind.
This type of legal issue can play havoc with the company’s deadlines on projects, and potentially dullness or destroy the amount of product that the company provides to consumers. The Influence that ethical issues can have on management planning at Hallucination is that the company needs to be above any potential ethical wrongdoing at any level, including individual employees. An incident occurred at Hallucination where an employee was found to be taking kickbacks, which is an unethical practice.
According to Helloing, Jackson, and Slouch (2007), “Although Hallucination discovered, took action, and reported the unethical and Illegal behavior of the employee, the media’s reporting focused on their ethical actions and must be sure to continually to weed out any potential employee embarrassments like this incident. Consumers are more aware today of what companies that they are willing to spend their money with based on how well they trust a particular company, so it is truly in a company’s best interest to remain above ethical scandals.
This also can be true for other companies as they may want o end partnerships prior partners if they believe that may be a disadvantageous partnership for their brand. The influence that corporate social responsibility can have on management planning at Hallucination is that it can act as a way to help negate the negativity that any company may garner among consumers and work as positive public relations for the company. This will help enrich the areas that the company is located in, especially in some Middle Eastern areas, along with promoting the company by showing a more human side to consumers.
Corporate social responsibility is also something that can help to enrich the company as a whole by wowing employees that the company cares. According to Whitman and Amatory (2010), “Among the other factors that affect planning are the physical environment, the political and legal environment, the competitive environment, and the technological environment” (p. 39). Physical environment is certainly a factor for Hallucination as their business focuses upon getting non-renewable energy resources from out of the Earth.
Hallucination must not only help to keep the Earth healthy for current and future populations, but they must keep in mind that new energy sources may need to be developed for their continued growth. Political environment can play an important role in how Hallucination goes about their strategic planning as contingency plans may need to be implemented, depending on the safety of their locations. Part of the problem with being an international company that must have employees in a variety of countries is that the political situation can change, especially after the events of the Arab Spring.
This needs to be constantly watched to ensure that all employees remain safe no matter what area that they are working in and that the sites where Hallucination is located are not damaged, if possible. The nominative environment is also important for Hallucination to keep in mind when dealing with the company’s strategic, tactical, operational, and contingency planning. Any improvements that competitors have that Hallucination is behind on can play a role in how successful the company can compete.
Any strengths and weaknesses that Hallucination may have would be important to determine when it is concerning competition because improving on the weaknesses and capitalizing on the strengths will help to keep this company in the top of the market. In conclusion, the planning function of Hallucination is one of the most essential parts of management to pep the organization on track with their mission and goals. Hallucination can function well as a large organization because they are able to adequately plan for their future.