Management Planning Paper

Submitted By libbydigs2
Words: 930
Pages: 4

This paper will evaluate the planning function of Tyco International management, and the weight that legal issues, ethics, and corporate social responsibility had on management planning while providing an example of each. The paper will also analyze the factors that influence Tyco’s strategic, tactical, operational, and contingency planning.Henry David Thoreau stated, ³It is truly enough said that a corporation has no conscience; but a corporation of conscientious men is a corporation with a conscience´ (Bateman &Snell, 2009, p. 162).
Tyco’s mission statement notes, “We are committed to exceeding our customer’s expectations and achieving market leadership and operating excellence in every segment of our company” (Tyco Company, 2011, p. 2). Tyco International is a worldwide company that provides vital products and services in more than 60 countries. Tyco is a manufacturer and supplies safety and security products, fire protection and detection products and services, valves, controls, and other industrial products (Tyco Company, 2011). In early 2000 where former Chief Executive Officer (CEO) Dennis Kozlowski and Chief Financial Officer Mark Swartz were charged with grand larceny and falsifying records, the company continues to operate at a higher management control level. Using unlawful accounting practices and insufficient personal use of company funds, the two executives gave themselves and former General Counsel Mark Belnick interest-free and low interest loans without the approval of Tyco’s board. They ignored their corporate duties to management and employees which not only put the company at risk but also the potential to interfere in employees livelihoods. The aim of ethics is to identify and recognize the set of policies that govern people behavior and ethical decisions in their underlying values. Business ethics comprise the moral principles and standards that guide behavior in the world of business (Bateman & Snell, 2009). Following the corporate scandal and legal issues in
2000 the United States Congress passed the Sarbanes-Oxley Act of 2002 with record speed. Sarbanes-Oxley reforms establish strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence (Bateman & Snell, 2009). Tyco’s former CEO Dennis Kozlowski supposedly spend $2 million dollars celebrating his wife’s birthday party in Italy, one example of his ethics and the need for the Sarbanes-Oxley Act. Corporate social responsibility is the obligation toward society assumed with business. The socially responsible business maximizes its positive effects on society and minimizes its negative effects. Social responsibilities can be categorized as economic, legal, and ethical responsibilities (Bateman & Snell, 2009). Strategic planning involves making decisions about the organization’s long-term goals and strategies. This level of planning is the responsibility of top-level managers (Bateman & Snell, 2009). In 2002 Edward Breen was appointed President/CEO, and Chairperson of Tyco International. Part of the long- term goals he established was the removal of nine board members from the previous board of directors. He wrote in the 2003 Annual Report, “With our attention now squarely on 2004, the immediate challenge for our team is to improve. Our strategic plan, which is to increase business volume, gaining market share and improving operating efficiency” (Tyco, 2003 Annual Report, 2004, p.8). Tactical planning is a set of procedures for translating broad strategic goals and plans into specific goals and plans relevant to a definite portion of the organization, often a functional area. This level of planning is the responsibility of middle-level managers (Bateman & Snell, 2009). In keeping with his plan to increase growth Breen realized the organization was extremely diverse to function successfully and in 2007 he made the biggest yet…