ToolsCorp Corporation

ToolsCorp Corporation

Organizational Structure

The organizational structure of ToolsCorp Corporation is a decentralized and functional structure in which the company motivates various functional components and departments for giving their ideas in order to improve strength of the company. Decentralized structure has been designed because more learning ability is provided to the employees as decisions come from different levels of the company. The cross-functional teams have been made for looking at the repeatable processes with a view to improve experience of the customers, decreasing cost, enhancing efficiency and eliminating non-value added activities. ToolsCorp Corporation is a layered company that consists of three levels that includes technical level, management level and institutional level. Since company is related to manufacturing therefore, technical level is important for the company as technology is main driving factor.

The technical level is concerned with discrete task and specific operations performed by the technical team. The second level of ToolsCorp Corporation is management level in which it concerned with integration and coordination of work with technical level. Some of the activities of management level include hiring professional employees, performing training and development, quality control, making strategic decisions, performing contingency planning and analyzing risk involved in the business. The last level of the company is institutional level which is concerned with broad objectives of ToolsCorp Corporation as a whole. Decisions made at this level are concerning with selecting appropriate operation and development of the company in line with external agencies and wide social environment. This level serves as mediation link between technical and administration level (Jelinek, 2010).

Industry Cost Structure

There are more than 100 manufacturing companies similar to ToolsCorp Corporation in Italy therefore, competition in the region is high and main focus of the companies are on the standard as well as price of the product. The success in this sector is dependent on the ability of the business to react to market changes and this can be performed by designing cost structure in such a way that cost of manufacturing can be kept low (Daft & Marcic, 2010). This can be performed by focusing on cost factors such as:

Balance Sheet

The balance sheet of the company will be kept strong by increasing focus of management in areas like asset utilization, working capital and gearing levels.

Forecasting

The forecasting will be made effective by implementing cash flow forecast of 13 weeks which will assist ToolsCorp Corporation to access capability for business for generating cash to fund capital requirement and achieving consistent growth without over trading.

Cost Efficiency

The benchmark cost structure of ToolsCorp Corporation is mentioned in figure below and key cost will be monitored by help of KPI's in which performance dashboards will help to timely identify negative trends (Daft & Marcic, 2010).

Risk Management

The process to identify, analyze and respond to the factors of risk through project lifecycle is known as risk management therefore, ToolsCorp Corporation will design risk management system in order to identify a number of risks that includes quantifying risks and predicting impact of the risk as ...