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In any business or organization, the planning function management Is utmost important as It would create sustainability for the company; effectively and efficiently maintained profit margins and assist their employees to function. Also. Management would be able to assess their business for future longevity and address any problems that may arise.

This paper would address the company “Hallucination” and the use of the planning functions, legal issues, ethics, and corporate responsibility, last but not least, analyze three factors that influence the company’s strategic, actual, operational, and contingency planning. The key to success for any business or organization Is proper planning. Hallucination was founded In 1919; It Is one of the world’s largest providers of products and services of the oil and gas industry.


The company employs more than 74,000 employees from 140 nationalities in approximately 75 – 80 countries worldwide. Hallucination currently comprises 13 product service lines (Slips) which operate in two divisions – drilling and evaluation, and completion and production. Slips are accountable and responsible for strategy, genealogy, process, and people development. The first headquarters are based In Houston, Texas and their second headquarters are In Dublin, united Arab Emirates.

Hallucination has been involved in a few scandals in recent years in which have left a stigma on their reputation. Most people believe that Hallucination team with the government to boost their profits nevertheless Hallucination is a very successful and profitable company around the world. Planning Function of Hallucination The Hallucination Company uses planning as one of their main components that involves their goals and strategies in every aspect.

It is stated in one of their mission statements that the employees, stockholders and customers comes first and would do everything to satisfy their needs. Taking such an approach has made Hallucination one of the most successful companies around the world: they are very concern about the company’s reputation and image, which was criticized and scrutinize in the past, as they were accused of corrupt and criminal activities which involved Dick Cheney who was CEO and at the time he was Vice President of the United States; they have nice taken the necessary measures to rectify that.

The company revamp their planning functions, and revised the legal, ethical and social responsibilities by abide by. Although it is still a work in progress to restore their reputation and image, the company continues to strive for excellence. Legal Issues In any business or organization, there would be a time they would encountered legal issues of some sort and like everything else there must be a plan as to how they would address these unforeseen legal issues. It was reported by CBS News that

Hallucination was accused of the following: Hallucination and its military services subsidiary, KGB, was accused by Pentagon auditors for overestimating the number of troops to be served meals; Allegations of a kickback scheme by two former employees in Kuwait that prompted Hallucination to reimburse the Pentagon $6. 3 million; and a separate DACCA audit that accused KGB of overcharging by $61 million for gas delivered in Iraq to serve the civilian market although Hallucination stated the charges were proper.

In one of their ad, the chairman David Lesser of Hallucination stated “Will things go wrong? Sure they will because it’s a war zone and when they do, we’ll fix (Fleming, 2004). Hallucination is very concerned about their reputation and image and would take the steps to address those negative issues to look good to the public and gain their trust once again.

Ethics As Hallucination is accused for taking advantage of their customers, this raised the topic of their ethical practices, many people believe that Hallucination acquired contracts without biding and unfairly although the Pentagon was fully aware of the no-bid contract Hallucination received, it is said the Dick Cheney used his influence and sections to assist Hallucination to obtain several contracts worth billions of dollars.

September 2003, Vice President Dick Cheney made a statement to Nab’s Meet the Press “He left Hallucination to become the Vice President of President George Bush, he severed all ties and gotten rid of all financial interest and no longer has any financial interest with Hallucination for over a period of three years” (Business Ethics, 2010). However, it is stated the Dick Cheney made an untruth statement because he still share an interest with the company. Hallucination wants to gain the trust and satisfy heir employees, stockholders and the public.

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