W2 Situational Analysis
W2 Situational Analysis
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Date Created: 11/16/15
Situational Analysis 1 Situational Analysis University of Phoenix International Strategic Planning and Implementation STR/GM581 Situational Analysis Riordan Manufacturing Company is a Fortune 1000, owned by Riordan industries. Riordan is a manufacturer of plastic. This company produces essential parts for automobile manufacturers, aircraft manufacturing, and the Department of Defense, beverage, and equipment manufacturers. Riordan had to combat the collapse of the effectiveness of the organization over the past two years; this made the company change their structure. The following is an analysis of the current situation Riordan faces including the company’s mission, vision and values, and a SWOT analysis. Riordan Manufacturing needs to work on their business strategies for the rapid development of commodity price changes, improving the organizational structure and teamwork. On the other hand, the world market is facing a severe shortage of talent. Riordan responds to income inequality and reducing sales by making strategic changes in production and marketing. Unfortunately, low job satisfaction and decreased productivity are some of the situations Riordan faces. After extensive studies of the management of employees, Riordan’s CEO determined the organization must comply with existing human resources systems in point of fact to support its strategic objectives. The officials expressed their dissatisfaction with the lack of professional challenges and lack of promotion opportunities. Mission Statement Riordan Manufacturing’s mission is to supply products and service in high demand from a specific segment of the population with the highest quality and satisfaction possible at a reasonable cost. This mission reflects a need from their customers for fine food products not found in most food stores, along with the distinctive assistance of experienced and knowledgeable staff, in a relaxed and comfortable environment that will satisfy all its clientele. Vision Statement Riordan Manufacturing’s vision statement communicates the company’s steps it will like to carry out in the distant future, and the position it would like to be in some time in the notsonear future. Riordan’s vision is to increase revenue and maximize product, retain and increase its market share, and expand its line of fine products and services. Value Statement The value statement of the company expresses their commitment to move the company in the right direction, through the implementation of a set of values that will define Riordan as an ethical company. Environmental Forces According to (UOP, 2009), “Riordan’s manufacturing director in China says the company is presently facing three main challenges which include high tariffs, bureaucracy and high prices.” Although China has reduced many of the rules for foreign companies, the regulation will remain difficult. Riordan suffered from heavy taxes on imports from China, although the company plans to move production of many species in China solve this problem. Riordan is facing strict quotas and the difficulties of imports of consumer goods. To resolve this problem, Riordan acquired an agent who is responsible for the importation of all issues, including labeling, including products of the company. Situation Analysis Identifying Issues and Opportunities This section will identify Riordan organizational issues and opportunities to improve the structure of the future organization. In recent years, Riordan has changed the strategy used by the client. In the past, people who did business with Riordan used to manage customer relationships. Riordan changed the strategy for the marketing team managing customer relationships. The main differences between the individual and team relations customer relationship is based incentives to win the team's performance on individual performance. “Riordan is the first producer of $46,000,000 U.S. in the world of plastic, with three plants in Georgia, Michigan, and China, (UOP, 2009).” The company is decided to remedy this trend; the leadership strategy focuses on a system based on a group of CRM. Riordan has a solid record of achievement and success. Riordan is in a state where it was exclusively for the development and delivery errors. Riordan needs to redefine the objectives of the recommendations of the human capital consulting for success. The rest of the management team must lead to serious arguments for restructuring the organization. SWOT Analysis A SWOT analysis is used by Riordan Manufacturing as a way to evaluate and adapt the best business position in this situation. Strengths Indepth business knowhow, experience, knowledge and insight Experimental techniques test markets with evaluations Employment of extremely resourceful, elastic business models that build up direct customer sales and distribution Weaknesses Inexperience with product branding and cobranding to increase competitive advantage Geographic expansion limitations Small management team with many responsibilities Opportunities Decreased product costs through economy of scale Increased profit margins and international sales production Well established position with a well defined market niche Threats Future potential competition from several established market participants End state vision Riordan has the opportunity to adopt the recommendations of and improve employee turnover, satisfaction, training opportunities, development, compensation and benefits prior to making the decision of going global, (Yip, 2003). Employees are the most important asset the company has and they need to find a way of keeping these motivated and satisfied. Conclusion Riordan has the opportunity to revitalize the organization. Leaders must understand that their employees should be recognized, developed, and their salaries must be competitive in Riordan to increase worker retention and performance incentives for employees. The management team is concerned about the future of Riordan. The company must meet organizational needs and directly determine its position within the market. The company must work on their employee turnover prior to considering going global. Workers are more worried about Riordan total compensation, including the development, compensation, recognition, and flexible schedules. References: Barney, J. B (2007). Gaining and sustaining competitive advantage (3rd ed.). NJ: Pearson Prentice Hall. Mintzberg, H., Lampel, J., Quinn, J. B., and Ghoshal, S (2003). The strategy process: Concepts, contexts, cases (4th ed.). NJ: PearsonPrentice Hall. University of Phoenix (2009). “Riordan Manufacturing Virtual Organization” Retrieved from STR/GM 581 Materials Page Yip, G. S (2003). Total global strategy II (2nd ed.). NJ: Prentice Hall.
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