Planning Function of Management for Tyco - Essay Example

Running Head: THE PLANNING FUNCTION OF MANAGEMENT FOR TYCO The Planning Function of Management for Tyco In APA Style By Name University Failing to plan is planning to fail. Planning is one of the four functions of business management which refers to "the decision making process focused on the future of an organization and how it will achieve its goals." As such, it becomes apparent that the objective of planning is the ability to identify where the company wants to be in the future and how it is going to attain these goals in through its day to day operations. The importance of planning can never be overstated. A person stated that failing to plan is the same as planning to fail which highlights the importance of having a set of objectives and mechanisms to achieve them. Without a specific plan, a business organization is expected to fail noting that its specific decision is not geared toward pursuing a common goal. Lack of plan will leave leaders and staffs clueless on where the company is headed and what strategies are best get there. In order to highlight these statements, this paper will take a deeper look at planning function of management in Tyco International (Tyco). The first section will be a brief introduction to the business organization in order to fully recognize the issues that it faces. Secondly, this paper will identify and analyze the legal issues, ethics and corporate responsibility which have a profound impact on its planning function. Lastly, it will analyze three factors which influence its tactical, operational, strategic, and contingency planning. Tyco International is "is a highly diversified global company that provides thousands of products and services vitally important to residential and commercial customers" (Tyco 2008). The business organization's product line is diverse which range from electronic security and alarm monitoring to fire-fighting equipment and breathing apparatus, and from water purification and flow control solutions to galvanized steel tubes and armored wire and cable. The company is organized into five business segments namely ADT Worldwide, Fire Protection Services, Safety Products, Flow Control, and Electrical and Metal Products (Tyco 2008). The operation planning function of management in Tyco has always been influenced by the legal issues that can surface from the decision that it makes. It should be noted that being a prominent and one of the largest companies in the world, Tyco faced the legal implications of its actions as it is always under the scrutiny of its stakeholders including the government, its stockholders, and its customers. With its quest in conquering the global business arena by opening up operations in countries all over the world, Tyco maintains its commitment in adhering to the laws and regulations implemented in the geographical regions where it operates. The company has always considered upholding its legal standards through its adherence to the financial reporting standards which is set by the governing bodies. It should be noted that while large companies like Enron and HealthSouth faced legal battles in 2001-2003, Tyco retains its credibility by emphasizing its commitment to report its activities utilizing the preset standards (Tyco International 2008). In this, it can be seen that Tyco's initial plan to be successful in its operation by being mindful to the various legal constraints becomes visible. Until now, the legality of the operation of the company and its different processes is a primary concern in its planning activities. Ethics have also been an important part of the culture of Tyco which also becomes a tenet in its long-term and short-term plans. Through its commitment of upholding moral excellence among its directors and leaders, the business organization have had taken actions in order to eliminate dishonesty and abuse of power. It should be noted that during 2002, Tyco filed federal suit against its former executive president Mark Swartz and corporate counsel Frank Walsh for the alleged "excesses" of these officials. Recognizing the importance of its employees in attaining success, the company also took efforts in ensuring that ethical standards are upheld by its individual staff (Tyco International 2008). This plan becomes the foundation and adoption of Tyco's Guide to Ethical Conduct which lays out how an employee should act in order to maintain his integrity (Tyco International 2008). It is reported that employees are now required to take brief ethics course and sign an ethics statement annually. Through this, ethics becomes an essential factor in the planning process and execution of these plans. With the rapid evolution of the business arena into a more hypercompetitive environment, each company is now embarking in their corporate social responsibility programs. Tyco, for one, recognizes that its success is not just tied on its operational efficiency and ability to enhance bottom line but also through its effort in making a positive impact on the societies where it operates. It becomes irrefutable that corporate social responsibility has had profound implications on its planning process and continues to become one of its most important priorities. In terms of planning, Tyco has actively contributed to the people in China by "providing opportunities for students and teachers to excel in science and math education, and helping to preserve biodiversity in threatened environments" (Tyco 2008). In its future plans, corporate social responsibility remains very influential. The strategic plans of Tyco are mostly influenced by its stakeholders namely its customers, its owners, and its employees. Through its planning process, the business organization takes note of these entities and act in order to maximize their welfare noting that its success are heavily dependent of their satisfaction. As with any company, Tyco's main plan is to maximize shareholder value through its focus on maintaining and improving financial health. Tyco has steadily recorded robust performance in the past years which indicates its plan and commitment in adding to investor's wealth (Tyco Annual Report 2007). Customers are also at the forefront of factors influencing planning at Tyco. From its inception, the company has always been very keen in developing high quality products which provides the customer value. Today, the company plans to further satisfy customers by innovating products to suit their changing lifestyle and by giving them all the support that they need regarding usage of their goods. Employees are also strategically aligned for the attainment of organizational goals. As with any modern business organization, Tyco plans to provide its employees with training and motivation in order for them to become suited for its purpose. With the recognition that employees are its strategic partners, the company plans and strives to take care and mold its workforce. In terms of tactical plans, three important factors are considered by Tyco namely its capacity to develop new technologies, its ability to enhance its operational efficiency, and its strength in procuring the inputs that it need. Being in a business environment where technological obsolescence is a very important consideration, Tyco's tactical plan always involves the active participation of the research and development team in order to come up with an innovative product (Tyco Annual Report 2007). The company is also faced with the challenged of enhancing its operational efficiency by minimizing wastage in its production processes. Tyco is in the forefront of looking for ways in order control costs through optimal operational management. Lastly, tactical plans in strongly linked to the company's ability in the procurement of its raw material noting that this often has adverse impact in the society and the environment. In terms of its operations, the company again turns to its customers, employees, and leaders. Tyco regards its customers in its operational plans by making sure that interaction with customers always brings positive result. The company currently aims in attracting new customers and gaining more transactions from old ones by ensuring that these are satisfied every time they conduct a transaction with Tyco. Employees are also important as they are the ones directly relating with the customers. For its day to day operations, the business organization stresses to employees their role of taking care and satisfying buyers. Lastly, operational plans highlight the role of leaders in translating these operational plans into actions by their daily supervision of their employees. Tyco stresses that long term goals are the result of its day-in and day-out operations. Contingency planning in Tyco is influenced by legal considerations, ethical concerns, and financial health. Since contingency planning often refers to the unforeseen issues which may arise, the company strives to excel in all these fields which will minimize the risk of getting into trouble. References Tyco. (2008). Tyco.com. Retrieved 5 March 2008, from http://www.tyco.com Tyco Annual Report. (2007). Tyco.com. Retrieved 5 March 2008, from http://library.corporate-ir.net/library/11/112/112348/items/276539/TYC_AR.pdf Tyco International (2008). Wikipedia: the Free Encyclopedia. Retrieved 5 March 2008, from http://en.wikipedia.org/wiki/Tyco_International Read More