Aug. 4, 2014
Timothy Fiscus, MBA
Riordan Manufacturing incorporated engages in plastic injection molding with operations both in the United States and China. An industry leader, Riordan is in the process of identifying strategic factors in the internal and external environment. The goal is to develop long-range plans to manage resources as well as opportunities and threats present in the environment. Emerging markets of Asia, some in South America, and in Europe expects to bring in demand for more products. These markets deeply affected by lifestyle changes ushered in by the new age of multimedia, economic growth, industrialization, and growth of personal income will power the expected growth for plastics and other consumer products.
Riordan is a company with business across the globe. Similar to companies like McDonald’s and The Gap, Riordan receives a great deal of pressure to maintain technological perks to the customer, treat the employees well, and support efforts to enforce the protection of the environment. As a global company, special interest groups sometimes have a louder voice than the public; these groups will request, almost demand, the support of the business within the community. For Riordan to remain competitive the company has been supportive of special interest groups to include improved processes resulting in improved manufacturing processes that reduce their footprint left on the environment.
Community and Market analysis is based on the global location of the business, some similarities in strategy exist, but there will be location-specific points that will require a spin on what is considered normal. Competitor Analysis will require local and global evaluation. Competition in the plastics industry will require in depth analysis to ensure customer needs are met and niches discovered. Similar to competitor analysis Supplier Analysis should be conducted globally and internally.
Using local supplier support the local community and reduce costs incurred through long-distance shipping; however, some costs can be reduced by using cheaper manufacturing sites in other parts of the company. Government Analysis will be affected by specific locations of the business; however, an increase in available jobs and taxes paid in the area should improve relations in this area. Government include analysis of the local businesses and trade laws, this is an important element as this can add cost to doing business in that country and may not be realized until after the business is up and running.
Why Competitive Strategies
The three core competitive strategies recommend for Riordan relate to analyzing and leveraging information and relationship for the competition, suppliers, and government. Each of these has a unique impact on the company. This section will work to explain why these competitive strategies affect sustainability of long-term organization performance. With regard to competition Riordan has an opportunity to provide higher quality services not available from the competition. By analyzing what the competition has to offer Riordan can counter market with more innovative products or services that compliment such products. One example of this is Riordan’s plans to implement a new sales information system that will help understand the customer’s needs. This will help Riordan shape products and solutions to respond to the needs (Riordan, 2009).
Another key relationship for Riordan revolves around their suppliers. Riordan has commented that there is a challenge with seamless compatibility (Riordan, 2009), meaning their various invoicing and payment systems are not integrated. Riordan must understand how their suppliers wish to receive orders and process payments. If analysis proves that there are opportunities to improve this process Riordan can reduce their operating costs and cost to suppliers. This can