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Management Planning: Tyco Company


All business and human organizations need the right management practices for them to be sustainable and viable. Proper management practices should focus on both the long and short-term objectives of an organization. It involves formulating strategic targets, defining clearly organizational goals, implementation of correct plans and executing the plans following set standards. Management practices should consider both the internal structure and external environments of an organization (Indian child, 2009, Para. 1-2).

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Tyco is a well-established manufacturing company. It has five business divisions: safety products, fire protection services, ADT globally, flow control and electrical and metal manufacturing. The management split the company into three sub companies: Covidien limited, Tyco international and Tyco electronics in 2007 for easy management. The company manufactures electronic components and helps other industries to market their electronic products (Tyco electronics, 2009, para.1).

Planning function of management

Planning in Tyco involves all business features that range from workers to the surrounding communities. The company’s management focuses on identifying achievable goals, which utilize the available work force and resources. Due to the company’s popularity in manufacturing electronic products, the senior management continuously implements varying strategic plans that meet the market demand. Three main factors influence Tyco’s management planning currently: investigations that are going on, availability or raw materials and the rate at which their products are facing competition. Tyco’s goals are set in relation to the company’s mission.

Tyco’s planners lay great emphasis on good governance, customer relations, financial viability and teamwork. This is because the management believes; good governance gives the company a good rapport to its stakeholders and customers. To achieve its targets, the company’s management has well defined strategic, tactical and operational measures that direct the company’s operations. The management also ensures that all its planning falls within the set social, legal and ethical rules that govern business operations. The management in its planning has to ensure that the company’s products meet the International standard organization’s requirements (Tyco electronic company, 2008, pp.2-5).

The management also plans on means that ensure continual growth of the company in terms of production. The company sets targets that enable it to identify investment opportunities. The management achieves this through thorough evaluation and analysis of global markets and investment bodies. In addition to external evaluations, the organization always has product and employee evaluation measures, which help the company to plan take correct expansion measures (Hoopes, 2008, pp.1-2)

To ensure teamwork, Tyco has rules that guide its employee’s behavior. Tyco’s management has employee motivation strategies that find wide application in the field. It has well planned and organized sales teams that disseminate information to the public. In addition, tit has well planned motivating strategies that include trainings and open communication channels. In addition, the management also has a finance budgeting and planning unit that ensures the company meets all its financial targets. The department ‘keeps the company’s financial records and controls resource allocations in the company (Hoopes, 2008, pp.2).

Tyco’s has both long term and short-term plans. These plans direct the company’s departments in the struggle to achieve overall targets. For example, Kendall, a business sector under Tyco healthcare has had many innovation plans for better performance. It expanded the company’s organic growth by introducing the more effective monoject Magellan needles. This enabled Tyco to manufacture more than 210 million pieces hence, met the clients demand in that year. The operational plans in Tyco help the company define methods and processes of meeting the goals, while its tactical plans give direction and new ventures (Tyco electronics, (n.d), p.1)).

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Impacts of legal, ethical and corporate social responsibility issues

Although the company has tried to meet its targets, its management faces many challenges. Many ethical challenges face the company. For example, in 2007 as reported in the New York Times, reports indicated that the top officials were misusing the company’s funds on personal issues. Auditing bodies found that planning methods of these officials never laid strong emphasis on company needs, but in most cases were on personal interests. This acts violated corporate laws that control management. In 2000, the court found Dennis Kozlowski guilty of stealing 400 million dollars from the company. This degraded the company’s reputation in the corporate world and affected the confidence of investors in the company.

The breaking up of Tyco, in 2007 made the company to loose. The management expected the break up to increase its revenue, but the opposite happened. The company lost approximately six billion dollars in that period. This triggered mixed reactions in the public, hence people lost confidence in the company’s management. In addition, in 2006, The Company lost more than ten billion dollars in healthy care, fire and security businesses, due to defects the products had. This affected the company’s reputation, which made it to lose market of its fire and security products (Symonds, 2006. Para.1-3)

Due to resignations, and expulsion of officials who were associated with frauds, the company has lost most of its experienced skilled and experienced work force. In addition, the cases have caused the company to spend more resources on training new management to run the departments, hence reduction in profits (Tyco electronics, (n.d.), p.1).

Factors that influence the company’s strategic, tactical, operational and contingency planning

The main reason why Tyco succeeds is their great emphasis in dealing with tactical, operational, strategic, and contingency planning. The company gives its employees standards under which they operate. These include the safety, discipline and other ethical behavior. Tyco always aims to achieve, hence the company lays great emphasis on planning in management. Tyco has well spelt strategies that have helped it to overcome the many challenges that the company has faced.

The company in the past has faced many ethical, legal and social corporate issues. This largely has made the company to advocate and plan for measures that ensure that all practices meet the required standards. The company has set new targets that all company employees must achieve. Tyco has always aimed to make profitable investments in order to gain confidence of its shareholders and consumers. Secondly, to meet its goals properly, the company divided itself into small companies that deal with specific aspects of the overall objective. This has helped the company to meet the market demands. The divisions have helped the company to produce high quality goods that meet their customer demands. In addition, the company has cost control policies that ensure respect of consumer rights (Tyco electronics, 2008, p.4-7).

The company’s future targets have also influenced greatly, the companies planning strategies. The company has set targets and constantly communicates to its employees on goals they should aim to achieve. The company also does continuous review of its management organs, for it to enhance quality performance (Hoopes, 2008, pp.3-4).


In conclusion, several factors affect organizations well being, most of these factors either propel or bring down an organization. The common factors affecting many companies are legal and ethical responsibilities. Hence, for companies to always shine and be leaders in global markets, the overall management must always be keen on its planning strategies.

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Hoopes, R. (2008). Management planning for Tyco international. Web.

Indian child. (2009). Management. Web.

Symonds, W. (2006). The Trouble with Tyco. Business week. Web.

Tyco electronics. (2009). Web.

Tyco electronics. (n.d). Web.

Tyco electronic company. (2008). Web.

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