The Expansion of Riordan Manufacturing Essay
Cathi Stark, Jamie Prettyman, Sylvia Mendoza, and Gregory A. Osborn Jr.
May 19, 2014
The Expansion of Riordan Manufacturing
Riordan Manufacturing has been in business for over 30 years. The company first opened their doors in 1991 as a research and development company. Over the last 30 years it has acquired a fan manufacturing company and a plastic bottle manufacturing plant. The company also made a big leap when it decided to move part of the company to China in 2000. It has been a while since the company has made any moves, and they have decided to expand the company once again. Riordan can expand the business in one of three ways: an IPO, acquire another …show more content…
Another option is the acquisition of another company within the same industry. However, a disadvantage of this is if Riordan Manufacturing no longer has competition, the drive to improve the products and service may decrease. With no competition, the company does not need to fight to get to the top. Another disadvantage of this option is problems the acquired company potentially did not share during the purchase; Riordan would have to fix their problems.
The final option is merging with another organization. This can result in changes for Riordan Manufacturing and the other company. Some employees may lose jobs, and everyone will have to adjust to differences in organizational culture. Additionally there may be a loss of full control of the company. If Riordan chooses this option, management must know and trust the company they are merging with to eliminate surprises after the merger.
Opportunities of Expansion Options
The opportunities that Riordan could face going public through an IPO are: an infusion of money and fresh, new people and ideas, and the ability to reach more people and consumers through the public offering of stock. If Riordan acquired another organization in the same industry, they could expand and benefit from having an already established organization. By merging with another organization, they could benefit from the expanded operation and