Riordan Manufacturing Strategic Plan Essay

3809 Words Nov 26th, 2011 16 Pages
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Riordan Manufacturing Strategic Plan

University of Phoenix
Strategic Management
MGT/498

Riordan Manufacturing Strategic Plan A world renowned plastics manufacturer employing nearly 550 workers worldwide, Riordan Manufacturing Co. a leader in the industry of plastic injection molding, has more than $1 billion in revenue. With operations based in California, Michigan, Georgia, and China, review of current resources within Riordan’s business structure reveal numerous areas in need of redefining to improve operational efficiency company-wide. Implementation of this proposed strategic plan will address issues areas of improvement including • Ethical and social responsibility considerations

• Competitive
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Riordan possesses manyuch strength’s as the team observeds fromin the internal environmental scan. The corporation’s brand is widely recognized in the automotive parts, aircraft, and appliance manufacturing industries as well as with the Department of Defense, beverage makers, and bottlers. The company manufactures its products on two different continents, so it can reach an international market and reduce some costs by manufacturing in a more underdeveloped country, China. This adds to Riordan’s ability to offer their products at lower prices while maintaining revenue and profitability growth. The manufacturing firm also boasts high standards of quality as it exceeds ISO 9000 standards (Apollo Group, Inc., 2008).
Riordan has several weaknesses. The first is their costs of goods are directly related to the rising cost of oil. Because Riordan’s products are made from polymer and derived completely from oil, profit margins are greatly affected when oil prices rise. Riordan’s finance and accounting systems in each of their manufacturing branches are not compatible with one another. This has resulted in higher labor costs, costly monthly auditing, slow reaction time to financial dilemmas, compliance to government regulation strains, and high inventory costs (Apollo Group, Inc., 2008).
The external environmental scan shows some opportunities for Riordan. Consumer demand and capital spending remain

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