Management Planning Essay
Tyco International Ltd. is a Swiss based manufacturing company which comprises of a vastly diversified global portfolio. The five major businesses of the company are; Safety Products, Electrical and Metal Products, Flow Control, Fire Protection Services, and. ADT Worldwide. However since June 2007 the company underwent a corporate separation in which the company got split into three independent public companies which are the Tyco Electronics Ltd, Covidien Ltd and Tyco International Ltd. Tyco has revenue reported to be more than $17 million in 2009 (SCHAFFHAUSEN, 2010).
This huge returns support the mission statement of the company in which they aim to increase the value of the company by increasing the value of their diversified global portfolio so that they exceed consumers’ expectations. By doing so they aim to become the market leader in all the segments they operate. In order to steer the company in the direction aimed for the management of the company has to put together the right blend of planning. The planning function of any management is categorized as strategic planning, tactical planning, operational planning and contingent planning ( Bateman & Snell, 2007).
Tyco’s managements planning is analyzed below. Strategic Planning Strategic planning mainly lies with the top management
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Tyco was faced by a scandal in 2004 involving its CEO and CFO. The company had come into turmoil but then the new CEO of the Tyco made the company remain adamant on its strategic goal of growing Tyco organically, by increasing its existing turnover, so that growth in market share, business volume and improvement in operating efficiency can be achieved. As a result in the annual report of 2005 the CEO of the company was reported to state that the company was successfully able to achieve sustained organic growth and exceed the financial targets of the year (Breen, 2005). Tactical planning
Tactical planning which may range to a month or a year or two is also dealt with by the upper management. Tactical planning aids in department wise implementation of the strategic plan. Following Tyco’s plan of organic growth one of Tyco international’s division, Kendall began its project of what was called ‘next generation of hypodermic needles. ’ This led to 210 million units being produced in one fiscal year as per consumer demand. Hence this increase in turnover of Kendall proved as a successful addition towards the strategically planning of Tyco’s management. Operational planning
Operational planning provides the procedure for the front line managers and employees, these are the day to day procedures that are to be followed like quality assurance, production runs likewise. Tyco management uses the modern approach of collaborating operational planning with input from employees, lower level management even customers and vendors. The Tyco management believes that these stakeholders have a direct link with the operational process so they should be allowed to mould this lower level planning according to their feasibility. However keen management is integral for operational planning at Tyco.
The M/A- COM which is a business of Tyco Electronics produces and supply high grade communication equipments to NASA and Boeing. These are equipments which need undergo extreme quality checks, in process inspections and through many other test procedures. These are managed vigilantly because standards here are to be maintained or exceeded. Contingent Planning Contingent plans are the secondary which are designed by the management as back up plans when primary plans fail. Tyco’s management takes contingent plan very seriously and makes efforts to design the best possible ones.
This can be depicted by the case which took place during hurricane Katrina when it hit the city of Slidell, Louisiana. The 800Mhz systems off the city got dysfunctional due to the disaster. It was then that according to the backup plan the M/A COM radios were linked to the St. Tammy Parish Sherriff’s system and were fully functional for usage so rescuers were able to communicate for recovery operations in the area. The planning of the management is highly influenced by the Legal issues, ethics and the corporate social responsibility of the company.
Legal While planning the processes to be followed the legal possibilities need to be adhered to as well by the management. Tyco, like other organizations is to adhere to laws of the Securities and Exchange Commission (SEC) and other legal bodies. Tyco was faced by an illegal act by it’s former CEO and CFO of falsifying business records and other illegal business conducts. However the SEC then accused the two men and were made to resign. This however affected most to the stakeholder of Tyco mostly to the shareholders of the company. Ethics
Ethic goes beyond value and quality of production. It mainly deals with the good and bad, evil and righteous. Before 2002 had no or almost very little ethical conducts being followed. It was more like unwritten laws that were followed without any obligations attached to it. However after the illegal conduct that took place in Tyco itself and other scandals around the industry during 2000 and mid 2002 the SEC along with the Department of Justice (DoJ), FBI and other congressional committees established business laws for ethical business conducts.
Sarbanes-Oxleys Act of 2002 was implemented in the accounting and other practices conducted during the operations at Tyco. Corporate Social Responsibility Corporate social responsibility on a company imposes the duty that that the company during its operations has the responsibility of taking care of factors of the society which are directly and indirectly affected by their operations. This includes not only the stake holder but also the external factors like the society where operations are conducted, the environment the locality and other related.
Tyco does not take social responsibility lightly they believe in maximizing any positive conduct that they can perform for the society because society truly has an important role in business conduct today. Tyco is a multinational company operating in different parts of the world so the company is reported to claim to be global partners in performing activities involving betterment in health, education and stability in the environment. Tyco supports the Code Adam Child Safety program and the Water for People organization. The company performs it’s function under the flag of being global citizens.
Hence the business planning of Tyco is made carefully keeping corporate responsibility as a priority. Reference Breen, E (2008). Tyco 2004 Annual Report. Electronic document. Retrieved: August 17, 2010. http://media. corporateir. net/media_files/irol/11/112348/reports/tyco_ar_2004. pdf Thomas Bateman & Scott Snell (2007). Management: Leading and Collaborating in the Competitive World McGraw-Hill/Irwin ISBN-10: 0073254622 SCHAFFHAUSEN, Switzerland (2010). Tyco International Reports Third Quarter Earnings from Continuing Operations Before Special Items of $0. 72 Per Share and GAAP Earnings of $0. 50 Per Share. PR Newswire. July 20, 2010