Global Business Plan the Issue Business Plan

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They communicate the HR situation to the HR responsible who then acts in accordance with the information received from the division managers.

The business in which Niche Tools operates requires a lot of field work. This means that people at the base observe better and faster any problems or needs that might interfere with the company's activity. Therefore, information within the company circulates mainly from the bottom to higher levels. Top managers make their decisions based on the information received from their subordinates.

The company's top management mainly assesses the conditions of the external environment. They negotiate with suppliers, they analyze competitors in order to develop competitive advantage. Also, they analyze other components of the external environment, like the economic, demographic, geographical environment and their likely influence on the company's activity.

Top managers conduct analyses in order to identify the company's strengths and weaknesses. They identify opportunities that can be exploited by the company. Also, they must identify any potential threats that might affect the company's activity, and develop manners in which they can be avoided or counteracted. Based on their findings, top managers develop the tactic and the strategies that they consider to be suitable for the company in the context in case.

The employees that work on the field are able to observe any events that could lead to changes regarding the company's tactics and strategy, since the top managers have little contact with the actual field work. These employees further report their observations to their supervisors, the division managers, in case they have not made these observations themselves.

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In case these problems can be solved without being reported to top managers first, the division managers will make all the decisions. For more important problems, the division managers will give their feedback to the top managers. The company's organizational chart is a flexible one, allowing for communication to flow easily and rapidly within the company. This reduces the time required for taking decisions, allowing the company's top managers to make decisions that can be implemented in due time for the company to avoid certain situations.

Chain of command chart

Reference list:

1. Pieniazek, a. (2007). Centralization vs. Decentralization. Retrieved March 3, 2010 from http://adamp.com/management/centralization-vs.-decentralization/.

Top Management

Division leader 1

Division leader 2

Division leader 3

Production Department

Field workers

Field workers

Field workers

Financial Department

HR….....

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