Riordan Manufacturing Strategic Plan Essay
Riordan Manufacturing Strategic Plan
University of Phoenix
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 …show more content…
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