Halliburton Company’s Analysis and Management Planning
Halliburton is a company that offers oil services with international operations in many countries. It has been exposed to a lot of media and political controversies with regard to its affiliation with the U.S Government and corporate ethics. The main business segment of the company is the ESG or Energy Service Group which provides technical products and services for the production of oil and gas. It is formerly tied up with the KBR which is known for constructing, engineering, and a company of oil fields, pipelines, and other (Halliburton, 2008).
In 2007, Halliburton finally announced its separation from the KBR. Energy services, which is the main expertise of the company and comprise drilling and formation evaluation, production volume optimization, fluid systems, and digital and consulting solutions (Briody, 2004). The company is seen to be profitable and continues its productivity as it is known for being one of the biggest players in this kind of industry in a worldwide scene. The competitors of the business include Tesco Corporation, Baker Hughes, Weather International, and its main competitor is Schlumberger (Halliburton, 2008).
Despite many controversies, Halliburton maintains a management style that enables it to operate its business in a continuous manner (Briody, 2004). The planning function of the company management should then be evaluated and be able to analyze the effects of the legal issues as well as the corporate social responsibility. Factors should also be determined that influence the strategic tactical operations and contingency plans of the business in order to come out with a profound conclusion.
Management planning for organizations is an essential part of creating and maintaining a good business operation framework and thus results in a profitable company. The management system of Halliburton caters to the benefits of every aspect of the company. It considers a good strategy that will maintain its customers, shareholder, employee, and the expectations of the community as well. This is done through the improvement of quality, environment, functions for health and safety, and attending to the regulatory requirements of the business. Halliburton gives focus to the areas of the company that are equally dependent such as the customer and employee satisfaction, the performance with regard to the financial aspects, the quality of service, and most especially the HSE or Health, Safety, and Environment.
The process of teaching and learning is seen to be important for the whole management plan of Halliburton as it creates additional refinement of the whole planning strategy with the involvement of specific aspects of the company. It is known that Halliburton is regarded as one of the most Drilling companies worldwide which have a great number of employees and branch out to various locations in the whole world. Management planning includes the products and service lines of the company and the branches of the business in order to back up the strategies of the business and let the company operate with its global objectives. In recent years, the company has begun off-loading its venture in the KBR subsidiary and totally sold it off (Briody, 2004).
Legal issues of the company are treated as one of the most vital aspects of the business wherein the company responds to the controversies that it has. After its separation from KBR, it had moved its main office to Dubai and focused on oil services (Briody, 2004). Much of the management planning caters to the oil services and worked with the military forces in order to operate safely. Accordingly, the issues that the company encountered are accompanied by the growing business and emergence in the industry. This significantly made the company be known and served as a strategy to improve areas which the company thinks will be beneficial for the business as well as the customers.
As is popular with its primary objectives, which include the HSE or the Health, Safety, and Environment the social responsibility of the business falls under this portfolio. The company centers on the improvement of the health and safety of the target market as well as the employees and an environment-friendly business operation (Halliburton, 2008). This is one of the objectives of the company as it serves the welfare of the target market and the protection of the environment specifically considering the value of nature.
The factors that affect the strategic operations and contingency plans of the business are the negative issues and controversies that it has such as the Iraq controversy, oil failures, and political influences. The Iraq controversy brought the company to have a negative impact on the views of the people as it was included by Osama bin Laden as one that will benefit billions of dollars due to the war at that time. Thus it left a negative mark for the company and had difficulties increasing its market penetration in the international market. The next one is the failures in oil which has something to do with the quality of its services. The contract between Halliburton and Restore Iraqi Oil had been a failure for the company as it lost billions of dollars in order to fix the critical failure. This failure made the company be negatively tagged when it comes to the quality of their service and thus affected the strategic tactics of the company. Contingency plans are as well affected because financials are impacted as it spent lots of money for this dilemma. Another factor is the political controversy of the company’s tie-up with U.S Vice President Dick Cheney (Briody, 2004). For many years, the company has been related to Cheney. The vice president quit from the company upon the U.S presidential election campaign with the dismissal pay of $36 million. This has been put into issue most especially when the vice president received a deferred payment from the company. This issue had been apparent to the factor that affects investors to deal with the company.
The management planning of the company is seen to be a strong one as it promotes the welfare of the customers, the employees, and other significant people. Legal issues include the involvement of military forces in order to back up the operation of the business in a safe manner. The social responsibility falls under the health, safety, and environment that the company promotes in order to respond to the growing industry and advocate a better business operation. Three factors such as regard to the controversies and issues of the company impacted its operational strategies and the contingency plan. The international market is perhaps viewed to be difficult to manage because of its failures and needs more effort to achieve high market penetration.
- Briody, Dan. (2004). The Halliburton Agenda: The Politics of Oil and Money. Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
- Halliburton. (2008). Halliburton’s official website.