A Look into Halliburton’s Planning Strategies
University of Phoenix
October 8, 2009
Management Planning Paper
Halliburton is one of the largest providers of products and services to the oil and gas industry. Contributing to the success at Halliburton are 50,000 employees that work in over 70 different countries (Halliburton, 2009). What began in 1919 after borrowing a wagon, some mules and a mixer, has become a successful business by focusing on innovation and expansion. This paper will evaluate the management planning process within Halliburton and the four types of planning, and discuss the issues of legal, ethics, and corporate social responsibilities that impact the management planning processes. Planning at Halliburton. Planning is the primary management function that formalizes an organization goal. Each plan starts with a mission or vision and Halliburton’s vision is, "To be welcomed as a good corporate neighbor in our communities; to do no harm to the environment; to provide demonstrable social and economic benefits through sustainable relationships, sustainable technology and sustainable sourcing; and to validate our progress through transparency and reporting" (Halliburton, 2009). Their vision statement clearly defines how they plan to do business and work with the environment and surrounding communities. There are four different types of planning in management, strategic planning, tactical planning, operational planning, and contingency planning. Strategic planning. Strategic planning involves making decisions about the long-term goals and strategies of the organization. The long-term goal of Halliburton is to expand in the global market to help benefit any stockholders and surrounding communities. Halliburton strategic plan is to continue to expand towards the Middle East and surrounding areas, where state-owned oil companies represent a growing source of business (Sourcewatch, 2009). One factor that has influenced them to move to the Middle-East are the changes in the industry both competitively and resourceful. With many major oil and gas businesses moving to the Middle-East to take advantage of tax havens and enriched fields, Halliburton found it necessary to stay competitive and follow the crowd. In 2006 Halliburton reported that 38 percent of the 13 billion dollars in oil field revenues were generated from the eastern hemisphere. Tactical planning. Tactical planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization. Tactical planning focuses on the actions needed to be taken in order to reach the final goal of the strategic plan. To reach the goal of global expanding and making profit in the eastern hemisphere Halliburton created a new corporate headquarters. In 2007 they opened new headquarters in Dubai, the United Arab Emirates, a region more heavily weighted in oil exploration and production opportunities according to CEO, Dave Lesar (Halliburton 2009). Another factor that can have an influence in Halliburton planning strategies is the resources in the Middle East. Partly due to the fact that the land has not been tapped into as much as the North American lands have. Creating more areas to search and find new sites to drill and research.
Operational planning. Operational planning identifies the specific procedures and processes required at lower levels of the organization. Over the last several years, an increasing amount of Halliburton's business has shifted to places like Kuwait, Russia, Libya, Australia, Vietnam, and west and central Africa. Halliburton is expanding eastward to provide new manufacturing capacity, move closer to key markets, and help reduce the costs of moving materials, products, tools, and people (New York Times, 2007).
Contingency Planning. Contingency plans are “what if” plans. It is the reaction to the actions of...