Management Planning – Tyco Essay Example

difficulties when its stock collapsed, causing concern among shareholders. Nevertheless, under the new leadership of Chief Executive Officer Edward D. Breen and his management plan, Tyco managed to recover from this setback.

The current CEO of Tyco not only resolved the scandal caused by his predecessor, Dennis Kozlowski, but also increased Tyco's stock price by over 100%. Currently, Tyco prioritizes legal compliance, ethical conduct, and corporate social responsibility in its management planning. To prevent a recurrence of the legal issues faced in 2002, it is crucial for employees at all levels to adhere to the company's rules and regulations regarding legality, ethics, and corporate social responsibility.

In August of 2002, Congress passed the Sarbanes-Oxley Act (SOX) as a means of holding companies accountable for their financial decisions. This act introduced strict accounting and reporting regulations that management must comply with. If SOX had been implemented earlier, it could have potentially prevented the financial scandal under CEO Kozlowski's leadership in early 2002.

Corporate social responsibility involves a business committing itself to ethical behavior and contributing to economic development while enhancing the well-being of its workforce, their families, the local community, and society as a whole.

Recently, Tyco launched "Tyco Electronics Responsibility Advantage (TERA)," its corporate responsibility program. As part of TERA, TE has successfully reduced greenhouse gas emissions and energy consumption by implementing energy-saving recommendations. Notably, despite a significant increase in sales revenue, TE achieved an 8 percent decrease in greenhouse gas emissions from 2009 to 2010. Moreover, TE has made substantial improvements in health and safety with a 28 percent decrease in the total recordable incident rate compared to 2009 and a 37 percent decrease compared to 2008. Additionally,

TE is actively working on reducing water and wastewater usage in its manufacturing operations.

TE's site in Menlo Park, California made process improvements to save 16,000,000 gallons of water yearly. The company also supports the communities it operates in. For instance, TE employees in China volunteered with the Wheelchair Foundation's Red Chair program to assist physically handicapped and elderly citizens at the World Expo 2010 in Shanghai. The TERA program brings together Tyco's chains, workplaces, and related programs, uniting them all under one corporate social responsibility umbrella. This allows Tyco to utilize its worldwide properties in the name of corporate social responsibility. Evaluate three factors that influence the company's strategic, tactical, operational, and contingency planning.

The appointment of Edward Breen as Tyco's Chief Executive Officer in 2002, following financial scandals, had a significant impact on the company's strategic, tactical, operations, and contingency planning. Despite facing challenges, Breen successfully implemented a management plan that led to the company's fiscal recovery by 2006. Breen recognized that Tyco's businesses had limited synergies and each major unit encountered distinct obstacles. As a result, he made a crucial decision in 2007 to split Tyco into three publicly traded companies: Covidien, Tyco Electronics, and Tyco International.

Tyco is a leading and innovative company in management planning. They have established goals and guidelines that govern all aspects of their business, including legal, ethical, operational, and social. Despite facing unethical and illegal practices, Tyco has successfully recovered. Additionally, strategic decisions made by the company's management team ensure that Tyco will continue to prosper and produce high-quality materials.

References

1. Tyco Company (2012).
2. Tyco – A vital part of your world.
3. Retrieved from http://www.tyco.com/wps/wcm/connect/tyco+who+we_are/who_we_are/history Tyco History (2012).
4. Brown Box Era HO-Scale Trains.
   

Retrieved from http://tycotrain.tripod.com/tycotrains/id1.html Business week (2006).

The information is obtained from the following sources:

• http://www.businessweek.com/bwdaily/dnflash/jan2006/nf20060113_1818_db035.htm
• CSR Wire (2011). Tyco Electronics Launches New Corporate Social Responsibility Program and Report. Retrieved from http://www.

The website csrwire.com (2012) reports on Tyco Electronics' launch of a new corporate responsibility program and report. Additionally, the website mallenbaker.net provides insights into the definition of corporate social responsibility.

mallenbaker.net/csr/definition.php