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RUNNING HEAD: MANAGEMENT PLANNING PAPER 1

Management Planning Paper

RUNNING HEAD: MANAGEMENT PLANNING PAPER 2 In this paper I am going to be telling you about organization WorldCom. I will be evaluating the planning function of management. Then I will be analyzing several things such as the influence hat legal issues, ethics, and corporate social responsibility that they have had on management planning. I will also be analyzing three factors that have influenced the company’s strategic, tactical, operational, and contingency planning. So please read on to find out about these things within the organization WorldCom. I would like to tell you about the company WorldCom before I get into the planning function of management. In 1983 a man named Bernie Ebbers was an early investor in a company that was a long distance service for a telecommunications company. Bernie made LDDC profitable and it began to grow over a fifteen year span he made the company a total seventy five thousand dollars. (WorldCom, 2010) By 1994 the long distance service revenues reached $2.2 billion and the company’s name was then changed in 1995 to WorldCom to reflect its growing global business. Then in 1998 WorldCom completed a takeover of MCI so it became MCI WorldCom. The company was doing so good but then hit rock bottom for Bernie Ebbers when he had to resign in 2001 due to loan scandal. (WorldCom, 2010) Now that I explained a little about the company I would like to get into evaluating the planning function of management. When evaluating the planning function of management it definitely did not look good for WorldCom. I think that with today’s decisions they impact the state of the future, this is determined by planning. In management planning it involves setting objectives and determining a course of action for accomplishing these goals. This requires managers to be good decision makers as well as aware of environmental conditions facing their organization in order to predict
RUNNING HEAD: MANAGEMENT PLANNING PAPER 3 future conditions. When reviewing the organization WorldCom I found that when it came to accurately reporting high profits and making the company more profitable it was not so good in that area. Since WorldCom failed to report correctly and appropriately, many of the stakeholders were cheated which is not fair. So basically WorldCom was fraudulently reporting profit instead of like most long distance companies reporting a loss. (Save On Phone, 2002) WorldCom found out very quickly that they were acquiring debt not a profit. So with all that being said WorldCom was led to bankruptcy instead of a successful corporation. (Save On Phone, 2002) Now that we talked about how WorldCom’s planning function was not a success let’s move on to analyze the influence of legal issues, ethics, and corporate social responsibility they had on management planning.
WorldCom had many legal issues, ethic issues, and corporate social responsibility issues with the management planning. They did not follow the right ethical and legal conduct according to the standards of the company. Doing so did land the company in bankrupt in 2002 due to the fraudulently activity and corrupt practices. (Save On Phone, 2002) The person behind it with Ebbers was Scott Sullivan he is believe to use varieties of methods to bolster the operating income, he was the chief of financial officer. He took the bad debts and made them into operating income. (Save on Phone, 2002) So with that being said ethical and issues of the organization were broken. With the management standing by and letting this go on just showed the true colors of the WorldCom. Social responsibility issues were also a problem because it seemed like the company really didn’t communicate as well as they should of so this caused them problems in the long run with everything that has happened. Communication is the key
RUNNING HEAD: MANAGEMENT PLANNING PAPER 4 within big organizations like WorldCom. Now let’s talk about the factors that influence the WorldCom’s tactical, operational, and contingency planning.
I would now like to discuss the factors that influenced WorldCom’s strategic, tactical, operational, and contingency planning. The tactical plan was that WorldCom combined local, long distance, and data communication to the consumers by purchasing and partnering with major suppliers and internet services. Which would have make WorldCom one of the largest telecommunications that provides business and consumers telephone service. The strategic plan was that when Ebbers started the business to make it successful but then he started turning the company into nothing but a scam. So he really had strategic planning at the beginning but turned into bankruptcy at the end because of Ebbers and Sullivan’s scandalous ways of running the company. The operational planning of the company was that they would keep buying out the other company’s like MCI and also Sprint this way they could expand their company and make it successful by being the most wanted telecommunication service. It was working for Ebbers very well as you could see his profit getting bigger. But everyone caught on to the accounting scam and that is why Sprint decided to back out. The contingency planning of WorldCom was not very successful. You need contingency to be successful and that is why WorldCom did not last very long. WorldCom had not roles, responsibilities or authority going on in the organization to make it expand and work in long term. So there are many ways that all of the plans did not work in the company and did not make it a successful long term organization.
So after all the information I have read about WorldCom I can see why it did not last long term and had several difficulties. You must work together as an organization to make it work and
RUNNING HEAD: MANAGEMENT PLANNING PAPER 4 communication is the key to success. If they would of accurately reported income and didn’t make it all out to be a joke WorldCom could still be in business and still going strong. WorldCom had a very disappointing planning function in management and having a planning strategy is very crucial to a company.

References
SaveonPhone.com (2002) WorldCom News. Retrieved on January 29, 2011 From www.worldcomnews.com
WorldCom. (2010). In the Hutchinson Unabridged Encyclopedia with Atlas and Weather guide. Retrieved from http://www.credoreference.com/entry/heliconhe/worldcom

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