...Management Planning for Tyco MGT 330 Management Planning for Tyco Planning is one of the important actions management must consider when forming the foundation and goals of an organization. The company’s mission is set from the goals set by management. According to Tyco’s mission statement the company’s mission is to, “To be our customers’ first choice in every market we serve by exceeding commitments, providing new technology solutions, leveraging our diverse brands, driving operational excellence, and committing to the highest standards of business practices all of which will drive Tyco’s long-term growth, value and success" (Tyco. 2011 para 1) The best way for Tyco to obtain the goals for the company is for management to distinguish the superior between strategic planning, tactical planning, operational planning, and contingency planning that best serves the needs of the company. While keeping in mind the Influence of legal, ethical, and social responsibilities. Strategic planning or strategic goals is the making of choices concerning the organizations long and short-term goals. These goals can be the supporting element for one or more of the following company growth and profits, return on investments (ROI), market shares, productivity, quantity, quality, and customer satisfaction. Short and long-term goals can range from a week to years to complete. In 2007 Tyco faced adversity when “Kozlowski and Mark H. Swartz, the company's former chief financial officer...
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...Tyco management planning Tametrius Walker MGT/230 October 18,2011 Terrell Kennard Tyco management planning Tyco International Ltd. is an extremely well recognized company worldwide, which provides fundamental products and services to clients in over 200 countries around the globe. These services range anywhere from electronics, security, and fire prevention; to healthcare products like disposable medical supplies, and monitoring equipment (Tyco International, Ltd., 2007). Tyco International Ltd. is a reproduction of complicated and new manufacturing and service and without doubt one of todays trade leaders. Tyco employs 250,000 people worldwide (Tyco International, Ltd., 2007). It is very important for higher-ranking management to create new strategic plans in order to address legal, ethical, or corporate responsibility issues when the credibility of the higher-ranking management is at risk and this will direct to a break down in the ability of control. In Tyco, for example, the corporation first needed to disassociate itself from its CEO because he had been on the wrong side of the law of pocketing millions of dollars from Tyco (BBC News, 2002). This required a shake-up of the business. To enhance the business liability and responsibility the company is now well thought-out into the next division, fire and security, electronics and healthcare, engineering products and services. In addition, throughout the existing year, Tyco sold its Plastic & Adhesives unit. The...
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...Management Planning of Tyco International LTD Management Planning of Tyco International Ltd. Tyco International Ltd., “Is a diversified, global company that provides vital products and services to customers in more than 60 countries. With more than 100,000 employees worldwide, Tyco is a leading provider of security products and services, fire protection and detection products and services, valves and controls, and other industrial products” Tyco International Ltd (n.d.), (Who We Are Overview, para. 1). The management planning function of Tyco International influences every facet of the business from the environment to their employees. In addition to establishing long-and short-term goals management planning also involves the company’s legal issues, ethics, and corporate social responsibility. Several factors, internal and external also influence Tyco’s strategic, tactical, operational, and contingency planning. Function of Management Tycos' vision is to be their customers first choice in the five markets they serve; home security, fire protection services, safety products, flow and thermal valves and controls, and electrical, and metal products. Tyco believes by going beyond commitments, using new technologies, powering the advantage of their diverse brands, maintaining operational superbness, and total dedication the highest business standards, Tyco will achieve their vision. Tyco goals of governance, customers, growth...
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...HAROLD F. HOGAN, JR. Tyco International On October 6, 1995, Tyco International, a diversified U.S. conglomerate, received some very unflattering news. A respected investor monitoring organization, the Council of Institutional Investors (CII), had included the firm in its list of the 20 worst-performing S&P 500 companies. CII generated its list annually, based on a mechanical formula that calculated total shareholder returns over a five-year period.1 One commentator described the annual rankings as “the corporate equivalent of being put on the school detention list.”2 The choice of Tyco as one of the 20 culprits was quickly challenged. Tyco’s own management described the result as an artifact arising from an abnormally high share price during a narrow window at the start of CII’s measurement period. Robert Monks, head of Lens, Inc., an activist money management firm and former member of Tyco’s board of directors, also took exception to the report. In a letter of protest to the executive director of CII, Monks asserted that based on his own experience, he believed Tyco was a responsible company fully committed to enhancing shareholder value. He wrote: “On balance we conclude that this is a first-rate company successfully adding value in the difficult mode of a conglomerate. Our criteria [for evaluating] companies ultimately is—what can we, as informed and effectively involved owners, do to enhance value? Our answer in the case of Tyco is—virtually nothing. What...
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...“Forensic Accounting” is a term that you do not hear every day so let’s examine its definition. The Strayer University BUS508 textbook defines accounting as, “The process of measuring, interpreting, and communicating financial information to enable people inside and outside the firm to make informed decisions.” Merriam-Webster defines forensic as, “suitable for a court of law.” Our textbook defines forensic accounting as, “Forensic accounting is accounting performed in preparation for legal review.” The textbook also describes it as, "focus on uncovering potential fraud in a variety of organizations.” The Business Dictionary defines it as a, “Criminal investigation practice whereby investigators analyze financial documents and activities to determine if and how a crime, such as fraud, has been committed by an organization. Tactics include tax analysis, financial reporting review and banking activity oversight.” This also includes white collar crimes such as embezzlement, stock market manipulation and price fixing schemes. This can include the financial impact of marketplace events, such as intellectual property infringement, anti-trust actions, financial reporting fraud, asset impairment and business valuation (Neumann, O'Connor, 2008). It also includes matters of family law, such as matrimonial disputes. In short, "Forensic accounting is the use of accounting, auditing, and investigative skills to assist in legal matters.” They use accounting skills following the GAAP (generally...
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...achieving a goal. While general motivation is related to the effort toward any goal (Robbins & Judge, 2007). This paper will describe how specific organizational-behavior theories could have predicted or explained Tyco’s International Ltd. Failure. It will compare how leadership, management and organizational structures contributed to the failure. Tyco International Ltd Tyco International Ltd. Is a diversified company that provides security products and service, fire protection and detection products and services, valves and controls, and other industrial products. Tyco operates in the Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific. It is headquartered in Schaffhausen, Switzerland and employees 102,000 people (Datamonitor 360, 2011). On 2002 three former high-level executives were accused of fraud. The three accused manger, former CEO L. Dennis Kozlowski, former Chief Financial Officer Mark Schwartz, and former general counsel Mark Belnick, have been indicted for fraud and theft by the Securities and Exchange Commission (SEC) as well as their former employer ("Tyco Fraud Infocenter", 2006). The "Tyco Fraud Infocenter" (2006) website stated that, “the SEC and Tyco International have indicted the former executives on charge of civil fraud and theft. They are accused of giving themselves interest-free or low interest loans for personal purchases of property, jewelry, and other frivolities. According to the SEC, these loans were never approved...
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...A Matter of Ethics John Hilger Ashford University Personal and Organizational Ethics PHI 445 Stephen Carter February 07, 2014 A Matter of Ethics Business ethics is something that all companies and organizations need to be mindful of. It isn’t something that just the large and powerful for-profit organizations need to worry about, but it is something that not for-profit organizations have to be cautious as well. I plan to show how two large well known institutions failed to live up to these. Penn State is one of the more widely recognized leaders in higher education. It first came into existence in 1855, when the Commonwealth chartered it as one of the nation’s first colleges of agricultural science. And it’s goal was to apply scientific principles to farming. Penn State’s main campus is located in the small city of State College; State College is a quintessential college town with small eateries and quirky little shops that line the streets. There are a total of 24 locations of the campus throughout the Pennsylvania area. Penn State’s tax exempt status is the same as most not for profit state schools and the company is 501c3. Through my research I was unable to find out the date that it was granted or if there was an umbrella organization. According to Penn State’s Alumni Insider from their December 2009 Issue, there are 44,000 full-time and part-time employees at all of the locations. One of the biggest obstacles that any and all institutions of higher learning...
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...Group Paper 1-Tyco Company TYCO - Starting with a Clean Slate In 2002, Tyco International Ltd. was involved in one of the top ten largest accounting scandals in US history. CEO Dennis Kozlowski and CFO Mark Swartz were found guilty of siphoning money through unapproved loans and fraudulent stock sales. Not only did the SEC find questionable accounting practices but during the investigation there were findings of abnormally large executive bonuses and grand lavish parties paid for on the company’s dime. The former CEO and CFO were sentenced to 8 to 25 years in prison both of whom have since been released. Right after that news scandal broke, Tyco replaced its CEO with former Motorola CEO Ed Breen. In a move never done before, Ed Breen’s first move was to get rid of the entire board of directors. The message the new CEO wanted to send was that the entire corporate management and structure needed to be changed to put trust back in the company (1). In the next year Ed Breen would hire over 60 new senior executives to try and turn the company around (1). He hired top rate talent who were mostly former employees of other fortune 500 companies. According to the outside world, this made it clear that Ed Breen was interested in establishing new systems and setting a new strategic direction. With the new team assembled, Tyco’s first goal was to see were they went wrong. They performed several phases of exhausting audit reviews from the financial, operational and accounting departments...
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...ETHICAL DECISION MAKING AND ETHICAL LEADERSHIP To improve ethical decision making in business, one must first understand how individuals make ethical decisions in an organizational environment. Too often it is assumed that individuals in organizations make ethical decisions in the same way that they make ethical decisions at home, in their family, or in their personal lives. Within the context of an organizational work group, however, few individuals have the freedom to decide ethical issues independent of organizational pressures. ETHICAL – ISSUE INTENSITY The first step in ethical decision making is to recognize that an ethical issue requires an individual or work group to choose among several actions that various stakeholders inside or outside the firm will ultimately evaluate as right or wrong. Ethical issue intensity, then, can be defined as the relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization. it is personal and temporal in character to accommodate values, beliefs, needs, perceptions, the special characteristics of the situation, and the personal pressure prevailing at a particular place and time. Ethical – issue intensity reflects the ethical sensitivity of the individual or work group that faces the ethical decision – making process. Research suggest that individuals are subject to six “spheres of influence” when confronted with ethical choices – the workplace, family, religion, legal system, community...
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...Part 1- Facts of the Case Prior to the Tyco scandal, the company was one of America's largest conglomerates, with operating revenues of 38 billion dollars and 240,000 employees, worldwide. Tyco Laboratories began operations in 1960, performing experimental work for the U.S. government. The firm went public in 1964 and quickly expanded, mostly by acquisition, to exploit the commercial applications of its work. Dennis Kozlowski joined the company in 1975 as an assistant controller. The company subsequently shifted its focus from growth to profits within its three primary divisions: fire protection, electronics, and packaging. Kozlowski joined Tyco's board in 1987 and became president and chief operating officer two years later. Kozlowski engineered a coup to become Tyco's chief executive officer (CEO) in 1992 and the chair of the board in 1993. He diversified the company, branching into health care. Tyco eventually became the second largest producer of medical devices in the United States. On December 5, 2001, the Tyco shares were trading for 59.76 on the NYSE. B. Identification of all individuals or firms who knew about, participated in, or condoned the behavior. The primary people that were identified for responsibility of the scandal were Dennis Kozlowski and finance chief, Mark Swartz. Kozlowski joined the company in 1975 as an assistant controller at Tyco. He worked in the company during a time of rapid expansion and moved to the board of directors in 1987, become CEO in...
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...Enron, Tyco International caught the public eye. One must first have an understanding of what it is to be ethical and moral. Once there is an understanding of these two terms, one may gain an appreciation of the occurrences in the corporate business world in the early 2000’s. One occurrence in particular is Tyco International. Tyco International will be evaluated. This evaluation will include the historical aspects, the corporate spending and the loans obtained, the outcome of events, and the punishments imposed. Further, the question of is it difficult to see ethical breaches that we may commit will be discussed. Ethics and morality are interconnected and thus integrity is also linked. According to Stephens, one cannot be defined without the other being in the definition. Stephens states many definitions of ethics have morals within the definition. One may differ with Stephens. While both ethics and morals relate to right and wrong, ethics is set rules of conduct that spells out how things are based on the rules for a specified group or action and morals are based on a person’s habits or principles and ideals as to their conduct. Integrity is a rigid adherence to a code of behavior. Ethics is society driven and is flexible to a point. Morals and integrity are internalized within self and are found to be fairly consistent unless a person changes their belief. Now with the understanding of ethics, morals, and integrity, we can focus on the history of Tyco International...
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...During his reign as CEO, Dennis Kozlowski, who was reported as one of the top 25 corporate managers by BusinessWeek, siphoned hordes of money from Tyco, in the form of unapproved loans and fraudulent stock sales. In early 2002, the scandal slowly began to unravel and Tyco's share price plummeted nearly 80% in a six-week period. Kozlowski was convicted of crimes related to his receipt of $81 million in unauthorized bonuses, the purchase of art for $14.725 million and the payment by Tyco of a $20 million investment banking fee to Frank Walsh, a former Tyco director. He was sentenced to up to 25 years in prison. Tyco’s primary stakeholders included their shareholders, employees and customers. Their secondary stakeholders proved to be the SEC, the District Attorney of Manhattan, NY and the media, just to name a few. #1: Dennis Kozlowski, CEO. A: I believe that Kozlowski was in level one- the pre-conventional level of moral development. This is the level in which focus is generally on the self and where ethical egoism is dominant. Ethical egoism is based on the idea that the individual seeks to maximize his/her own self-interests; and this is exactly what Kozlowski did. Stage two of moral development is the seeking-of-rewards stage. At this stage, individuals might not completely understand the moral idea of “right” and “wrong” but rather learn to behave in accordance with the punishments or rewards that follow. Kozlowski enjoyed the rewards that came to him in terms of a lavish...
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...Tyco International Ltd. was started by Arthur Rosenburg in 1960 and became owned publicly in 1964. Within 1973 to 2001, Tyco International Ltd. Grew swiftly amid the acquisitions of different companies with “annual revenues of more than $500 million and a net worth of nearly $149 million (Tyco, 2004-2009). The New York Stock Exchange depicts Tyco International Ltd. as a “diversified global provider of security products and services, fire protection and detection products and services, valves and controls, and other industrial products” (NYSE, 2009).” As a diversified company Tyco International Ltd. Comprise of five sections: ADT Worldwide, Electrical and Metal Products, Fire Protection Services, Flow Control, and Safety Products” (NYSE, 2009). Though the company got enormous earnings from their acquisitions, the Securities Exchange ran an enquiry on Tyco International Ltd. ensuing in the resignation of then CEO Dennis Kozlowski in the wake of the allegation of misusing millions of company funds for private use. Furthermore the then CFO Mark Swartz was also charged with the distortion of fiscal report to inflate stock prices and subsequently trading the stock for more $500 million dollars. With the resignation of Kolzowski, Ed Breen became the new CEO; he promptly restructured the board of directors and the senior level executives of Tyco International Ltd. Organizational behavior theories such as administrative misdeeds and the absence of managerial responsibility may perhaps...
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...Tyco International: Ethical Dilemma, Yes or No Tabitha Taylor Financial Accounting Aaron Pennington- Professor Introduction By definition, ethics is a term that refers to a code or moral system that provides criteria for evaluating what a person or organization deems is right or wrong. It is a code of conduct in which people govern their lives and the perimeter of standards that guides and hold their existent together. Basically, ethics is just persons, who make up the business world, doing the right thing. Dr. Michael Walsh, a Consultant for Edmund Rice Business Ethics Initiative suggests that ethics is “concerned with the kind of people we are. This could be called the “ethics of being”. It is also concerned with the things we do or fail to do. This could be called the “ethics of doing”. This short statement has the latter as it focus – what we do, and how we decide what we ought or ought not to do” (Walsh, 2003). Ethical decision-making and living applies to organizations as well, organism; living, breathing, and growing entities. Businesses establish values, ethical codes of conduct that must be or should be adhered to by all the employees of a said organization. However, the catastrophes of live can make ethical behavior wavier. The predicament that faces most corporations today is economical tribulation and budget constraints. The demands for products cause the supply to fall below the projected profit margin that an organization has forecasted...
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...identified with exhibiting poor judgement and gross unethical behavior (Stephens, Vance, Pettegrew, 2012). The underlying reasons for these failures on the part of individual leaders can be traced back to a lack of moral and ethical standards. The downfall of former Tyco International CEO, Dennis Kozlowski, is just one of many examples. Background Kozlowski reputedly came from a middle-class background. His parents were public service employees and sent their son to Seton Hall University, a Catholic school. Kozlowski graduated from Seton Hall University in 1968 and gained employment in auditing. Later, in 1975, Kozlowski gained a position with Tyco and had a phenomenal rise in the company. In 1989, his was promoted to President and Chief Operating Officer and three years later, he was promoted to Chief Executive Officer, only 17 years after joining Tyco. Somewhere along the way, the good Catholic education and standards provided by his second-generation Polish-American parents went astray (biography). Undoubtedly Kozlowski excelled in his executive position raising Tyco's mergers and acquisitions to unprecedented levels and to vastly increasing revenues, up 48 % for four years in his last four years with TYCO. At the same time, Kozlowski dramatically increased his own wealth. Living lavishly, even extravagantly, Kozlowski lived an over-the-top lifestyle (Kaplan, 2009). There is no crime or sin in doing well in America, it's a capitalist country, but doing so in an...
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