Introduction
Tyco International Limited is a Swiss based multinational in the manufacturing and service industry; it specializes in security-solutions, fire-protection, and flow-control apparatus since 1960 (Tyco International Limited, 2011). In the United States of America, it operates under the name Tyco International (US) Inc with its central office at Princeton, New Jersey; the company’s founder is Arthur J. Gandua Ph.D. (Tyco International Limited, 2011).
To remain competitive and continue meeting its customers’ needs and expectations, the company has maintains an effective management team; generally, scholars have realized four major functions of managers as planning, organizing, controlling and monitoring; managers undertake this role via the decisions they make. This paper discusses planning roles of Tyco Company management and factors affecting planning role of the company’s management.
Planning as a function of management
The control and direction taken by a firm is dependent with the decision that managers have made, when quality and timely decisions are made, then the company will be seen to successes. Planning is a vital function of management as it implements strategies and footpaths that a company follows into the unpredictable future; ensures that activities are well thought and coordinated. It considers the past, current and uses the information to predict and come up with policies to face the future with some certainty.
Planning is all about coming up with the right decisions that can see the company into the future, it aims at understanding the unpredictable future and developing policies that are likely to tap the opportunities offered by the future business environments as the company manages risks in the future. When making a strategic plan, the company ensures that they have utilized internal and external information at the exposure of the company; information can be sort form government, research firms and self-developed information’s through research.
Tyco is among the world most successful manufacturing companies, the company does not limit its operations in the United states or in Switzerland but it has diversified in other regions of the world. When communing up with the decision of where to diversify, the management has to plan not only the operations of the company in the foreign company but also the strategy it will implement to remain competitive in the foreign country. After a successful venture, then to remain competitive, the company management plans and develops different strategies to make the company competitive.
Planning has some objectives that it aims to attain, it is the managements who have the role of ensuring the planned strategies can be attained effectively. when planning the best plan is the one that will offer the expected results within a certain time framework. it should come to the rescue of a company by solving the issues at hand (Williams, 2001).
Effects of legal issues, ethics, and CSR on planning role of the management
When planning and developing strategies: managers have to consider both internal and external environment that a company operates. Tyco is an international company, the external environment that it has to consider is thus widened by the diversity approach. Different countries have their set of legal requirements that a company must comply: other than the domestic ones, other international laws that must be respected. When planning the company considers all these laws and ensure their decisions are compliant with the legal rules. Some of the laws include taxation, labor laws, and environmental laws among others.
Globalization and increase in people awareness of their rights have called on businesses to for conduct business ethically. Ethics in business means conducting a business in socially, economically, politically and environmentally friendly manner. The company ensures it has policies that are compliant with the expectations of the customers and the public; for example when making the products, it ensures it buys the materials from the local communities in the efforts of promoting the economies of such places.
On the other hand, a number of corporate social responsibilities that the company has initiated, they include environmental conservation, fair trade and health clinics with time. The company adopts a CRM (customer relation management) approach to public relation, under the approach the company ensures that it satisfies the needs of the customers as well as those of the customers; this is in the effort of having good business relation with the people around (Crane & Matten, 2004).
Factors that influence the company’s strategic, tactical, operational, and contingency planning
When planning Tyco’s managing team must ensure that their plans are well thought and executed, to make tactical decisions, the managers consider the past, currents and expected future to come up with decisions. Effective plans must be both operational, and contingent, they should be accepted in the organization by all parties and be supported. Before making a decisions, the management needs to elaborate and understand the problem at had so as they can plan how to tackle the issue.
The operating environment (external environment)
When making tactical, operational, and contingent strategies, Tyco appreciates the influence of external environment; external environment effects are those things that influence the direction of an organization but they are above the control of the organizations. When making plans they are interpolated as the risk that the decisions are likely to suffer from, they include, global economies, politics, and social movements. To understand these forces, the company undertakes PESTLE analysis and uses Porters five forces to interpolate the environments.
Organizational objectives, mission and vision
When making strategic, tactical, operational, and contingency planning decisions, Tyco aims at fulfilling the needs of stakeholders and fulfilling corporate mission and vision; it aims at fulfilling the promise that it makes to the stakeholders. For example, when planning on expansion strategies and the sources of funds, the company ensures that the financial obligation that it has on shareholders and owners are met. Human resources are also taken as an integral part of the organization and need to be managed effectively for an effective business, when planning their needs are considered
Internal potential
The company has to interpolate the potential it has in the manufacturing sector, when the potential is interpolated, then the plans made are to put them in optimal use. Internal potential include factors like human resources, brand name, intellectual property, or innovativeness, the advantage that can be taken from the internal potential should also be interpolated for an effective business and knowing areas of competitive advantage (Williams, 2001).
Conclusion
The success of Tyco International Limited in the international business arena can be attributed to effective management team; the team is able to plan for the future using past and current experiences. When coming up with a future strategy, it is the policy of the company to involve all cadres of staffs; the involvements boosts decisions acceptance.
References
Crane, A., & Matten, D.(2004). Business Ethics. Oxford: Oxford university Press.
Tyco International Limited.(2011). Tyco International Limited. Web.
Williams, S. (2001). Making better business decisions: understanding and improving critical thinking and problem-solving skills. London: Sage