TYCO is one of the leading companies operating in four main business areas: electronics, fire safety and security, health care, and fluid control (TYCO Home Page 2008). In this company, the planning function of management has a great impact on everyday operations and market performance. In common planning function of management demands the ability of managers to set goals for the organization as well as defining tasks and use of capital needed to attain them. Aims and strategies issues are the final goals of a planned set of activities. The remarkable feature of the planning function of management in TYCO is that all planning takes place within the context of the organization’s philosophy. The well-developed mission statement determines the fundamental exceptional purpose that sets TYCO apart from other companies of its type and defines where the company wants to be in the next 5 to 7 years. TYCO operates on the global market marked by fierce competition and constant changes. For this reason, TYCO uses planning as one of the main tools which help it to reach the stated goals and objectives. The implementation of strategy occurs at all levels of the organization, including both corporate and individual departments (TYCO Home Page 2008). To that end, each unit and team of the company match and support one another in order to improve the planning process (Boone and Kurtz 2002).
At the beginning of the 21st century, legal issues, ethics, and corporate social responsibility become the core of any business. Legal issues involve industry requirements and product quality, product standards, and international regulations. The globalization of economic activity has forced TYCO to carefully consider its economic policies. The usual drive behind such regulatory and fiscal changes in the perceived inadequacy of current economic activity and government-protected large bureaucracies. One of the vivid examples of legal issues is TYCO’s compliance with the international price regulations. Operating on a global scale, TYCO follows international regulations and principles (Corporate Social Responsibility n.d.). For TYCO it is more in keeping with performance-based international principles and legal norms — that is, to develop rewards and incentives for efficient resource management.
TYCO develops its plans and strategies in accordance with international legislation and market demands. An example of ethical issues is fair treatment of all customers and positive relations with both customers and suppliers. TYCO follows the deontological approach of ethics based on the idea of highnesses of intentions. An example of corporate social responsibility is compliance with environmental rules and deregulations in production and manufacturing (Boone and Kurtz 2002).
The company’s strategic, tactical, operational, and contingency planning is influenced by internal and external environments including market conditions and social relations. The main factors which influence strategic planning involve customers, competition, and the regulatory environment. All plans start with a recognition that certain organizational goals (or procedures) are in need of improvement (Boone and Kurtz 2002). Tactical planning is influenced by marketing mix structure, brand positioning, and resources available for project implementation. Operational planning is influenced by technological changes, product design, and quality equipment. Some of the more commonly used approaches to operations management include forecasting, inventory control, linear and nonlinear programming, queuing theory, scheduling, and breakeven analysis. Contingency planning allows the company to foresee possible problems and avoid failures. The main factors which influence contingency planning are uncertain environmental conditions, human factors, and technology. In order to successfully implement a plan, senior managers define areas of responsibility and establish objectives for the different departments within the organization.
References
Boone, L.E., Kurtz, D.L. (2002) Management, McGraw-Hill, New York.
Corporate Social Responsibility. (n.d.). 2009. Web.
TYCO Home Page (2007). Web.