Planning is a crucial function of management that enables an organization to achieve its maximum potential. Halliburton is one of the largest corporations in the United States, with a workforce of over 100,000 people in over 120 countries. Their home office is located in Houston, Texas and they are one of the world’s largest providers of products and services to the oil and gas industry. This paper will discuss the issues impacting and influencing management planning within Halliburton.
“Management is doing things right; leadership is doing the right things.”Peter DruckerIt takes successful management at all levels and quality leadership to lead a business down the proverbial golden path. Planning is the primary management function, which formalizes an organization’s goals and objectives and establishes a base for the other functions of management.
Halliburton Company is an oilfield services company and a provider of engineering and construction services that was founded in 1919. The company has expanded through tremendous internal growth and several acquisitions and in March, 2002, Halliburton split into two main divisions: the Energy Services Group (ESG) and Kellog Brown and Root (KBR). “ESG offers a wide range of products and services to “upstream oil and gas customers worldwide, ranging from the manufacturing of drill bits and other downhole and completion tools and pressure pumping services” (www.halliburton.com) [APA citation error (incorrect-do not use Web addresses or URL’s in citations). If the author is cited in text = Author’s name (year) “direct quote” (p. #). If the author is not cited in text = “direct quote” (author, year, p. #).] . KBR is the engineering subsidiary for Halliburton and is a global leader in construction and project management. Additionally, KBR is a leading government services contractor, which has been the focal point of many legal and ethical issues.
Halliburton has received a great deal of negative publicity over the past year or so regarding it Iraq and Kuwait operations. The Pentagon and Justice Department have both launched criminal investigations due to erroneous contract cost estimates totaling $2.7 billion to serve American troops in the middle east. Accusations have been made of overcharging for meals supplied to troops in Iraq, as well as employees accepting kickbacks from a Kuwaiti subcontractor. Pentagon auditors found that KBR overcharged the U.S. government by $27.4 million during a period of nine months in 2003. Additionally, Halliburton’s internal audit revealed employees accepted these kickbacks in exchange for providing Army supply contracts to the subcontractor (Associated Press). Limited military spending has created lucrative opportunities for privately held companies such as Halliburton to win these contracts and will continue to be at the forefront of media campaigns as long as the United States remains in Iraq, especially when it comes to Dick Cheney. [You have addressed the issue thoroughly and supported your assertions.]
Much speculation has been generated in regard to current Vice President of the United States and former Halliburton CEO Dick Cheney’s financial ties to his former company. On the September 14, 2003 edition of NBC’s Meet the Press, Vice President Cheney said, “And since I left Halliburton to become George Bush’s vice president, I’ve several all my ties with the company, gotten rid of all my financial interest. I have no financial interest in Halliburton of any kind and haven’t had, now, for over three years” (St. Louis Journalism Review). However, it came to light that Cheney received a salary of over $150,000 and maintained over 400,000 shares of unexercised stock options at the time. Cheney stated that he deferred his salary and stock options; therefore it did not constitute a violation of ethics. The Congressional Research Service found that these financial interests in Halliburton demonstrated a financial interest with his former employer creating a conflict of interest. Despite the fact that Cheney broke the law of ethics, he is exempt from the enforcement of such laws and cannot be prosecuted for it (Halliburton Watch).
KBR is the largest military contractor in Iraq, with more than 50,000 employees and subcontractor working there and in Kuwait and Afghanistan. These employees drive trucks, wash clothes, deliver mail, and provide additional support services for the U.S. troops. These workers are part of the Pentagon’s privatization strategy that enables the military to reduce the number of troops needed in a given location by assigning noncombat functions to civilians. Halliburton’s social responsibility is to keep these workers safe and away from fighting, but it has proved a difficult task. Numerous complaint and lawsuits have surfaced because of Halliburton’s failure to provide safe working conditions and in the case of one man who was killed, the suit states he was “intentionally sent the convoy as an enemy ‘decoy’ in the U.S. military camouflage vehicles, to ensure the safe arrival and delivery of a second H-KBR fuel convoy” (CNNMoney.com). Halliburton’s social responsibility remains in question with workers being placed in harms way on a regular basis.
Factors influencing Halliburton’s strategic, tactical, operational, and contingency planning include political instability, rising steel prices, and environmental regulations. Halliburton operated in countries such as Iran, Iraq, Nigeria, Afghanistan, Indonesia, and Russia, which are currently experiencing unstable political and social climates. Continued conflict in these areas could have an impact on the company’s bottom line and their ability to generate substantial revenue. Steel is a major commodity that is used in the setting up of plant and processing facilities for natural gas and petroleum refining. Record breaking high prices were reached in early 2005, but have since stabilized. However, the ongoing consolidation in the steel industry could lead to higher prices causing the profit margins to suffer. Lastly, Halliburton is subject to environment and legal requirement in its worldwide operations, such as the Clean Air Act and Clean Air Interstate Rule, causing the states to reduce the allowable sulfur dioxide SO2 emissions by 70% and nitrogen oxides emissions by 60%.
Environmental issues such as these could place a burden on is cash flow. [Insightful analysis]Halliburton has an exceptional global presence and they are currently playing a prominent role in rebuilding Iraq and by providing our troops with shelter, meals, and delivery of materials. Although Halliburton has come under intense scrutiny over the past several years due to its involvement with Vice-President Chaney and its legal and ethical issues, it has still managed to win military contracts due to its expertise in the oil service industry. This shows tremendous resiliency and reassures its customers and stockholders that it will continue to be a strong force in the oilfield services industry. [Your paper is well written. It is clear and concise.]References-references must match citations by author/owner.
References begin with author/owner name e.g. CNN.money and Halburton are the owners of the websites. See examples in APA manual.
MarketLine Business Information Center. Retrieved January 27, 2007 fromhttp://dbic.datamonitor.com.ezproxy.apollolibrary.com/companies/company/?pid=B07921BD-F512-44F2-AE84-4DA7D8630C9D#CompanyOverviewTop 25 Censored Stories. St. Louis Journalism Review; Dec 2006/Jan 2007, Vol. 36Issue 292, P23-27, 5p. Retrieved January 26, 2007 fromhttp://web.ebscohost.com.
Decision Management System. Retrieved January 28, 2007 from www.halliburton.comHalliburton Announces Full Year and Fourth Quarter Results. Retrieved January 28,2007 from http://CNNMoney.comKelly, Matt. (2003, March). Halliburton Fires Workers for Allegedly Taking Kickbacksfor Iraq Contract. Retrieved Janury 27, 2007 from www.commondreams.orgTotal points available=14Your score=13.75Areas for improvement=teal belowContent and Development = 40%_____ Key elements covered, content comprehensive/accurate, clear points supported with detail, appropriate use of vocabulary, integration of theory and practice, research adequate/timely, content and purpose clear. Very good work on this section.
Organization = 30%_____ Lead is interesting and relevant, thesis is well-developed, directional statement previews major points, paragraph transitions maintain flow, body paragraphs support a specific major point, conclusion is logical/flows evenly, conclusion reviews major points. Good work-very well organized. Easy to read.
Format = 10%_____ APA format, “reader friendly,” utilizes references appropriately, headings aid adaptability/not overdone, neatly presented, format requirements followed. Some small errors in APA formatting of reference page and citations. (-.25)Mechanics = 10%_____ Punctuation rules followed, contractions avoided, spelling correct, vernacular is avoided, written in same person throughout, tense remains consistent.
Readability and Style-10%_____ Complete, clear, concise statements, well constructed sentences, sentence transitions present, words/concepts precise,
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