Implementing Strategic Plan - Part 2

Evaluating Options - Strategic Plan - Part 1

Danielle Hall

STR GM 581

April 28, 2014

University of Phoenix

Instructor: Steven Hall

Company Background

Riordan Manufacturing is a multinational plastic manufacturing company based in China. It is owned and controlled by Riordan manufacturing industries. The company markets its products globally. The company’s mission, vision and goals are; the mission of the company is to enhance global supply of plastic materials and ensure environmental conservancy in the company’s operational activities. The company’s vision is to become the leading global plastics manufacturers. The company’s goals are to ensure that it supplies high quality plastic products to its customers in the global arena.

Competitive Advantage

Riordan Manufacturing has a high competitive advantage over its competitors. Riordan manufacturing was established many years ago and from past experience, the company has endured tough economic times and performances. Due to these experiences, the company has been able to adapt well and formulate proper mechanisms through which it can overcome many of the challenges and difficulties that it is faced with. New companies are more likely to be hard hit by tough economic times and depressions. While they are faced by such challenges, Riordan is likely to continue to register a successful trend in performance (Ghemawat, 2007).

The company has a strong economic base. A strong economic base is of great importance in helping the company expand its operations and open up new centers and branches worldwide. Large amounts of capital are required by a company in expanding international operations and branches. Many other companies that manufacture plastic products are less likely to expand their global operations due to lack of an adequate supply of capital resources (John, 1999).

The company has a good and positive management background. The healthy management provides good leadership and management of the company’s resources in a wise and most informed manner. The management is vital to the success of a company since the decisions a company makes are paramount to the success of the business. The managers are experienced enough and can steer positive development in the company.

The company’s large capital base enables it to conduct R&D in enhancing the manufacture of better and more improved products. Through R&D, Riordan manufacturing is able to develop new brands and manufacture better products unlike their counterparts who aren’t able to inject much into R&D activities. This gives Riordan an upper hand in the development of its products and meeting or enhancing customer satisfaction (Ghemawat, 2007).

Potential for Value Creation

The company has a big potential for value creation in many different aspects. The company, through R&D activities is able to develop better more refined products. The development of better products is aimed at creating better value in the products of the company. The development of these products is aimed at ensuring that the value of Riordan products meets the value and needs of the customers of its products. The company has continually enhanced production of better and improved products to meet the satisfactory levels of consumers. The company strives to manufacture products that are environmentally safe and that serve the needs of the customers at the same time (Ghemawat, 2007).

Situational Analysis of the Company

The company’s greatest challenge is the relationship between its products and the environment. Plastics are not very environmentally friendly and this means that the company has to work with negative criticism from environmental activist groups (John, 1999).

Potential for Global Expansion

The company has a great potential to expand its operations to the global arena. Though the company operates in some countries globally, it has the potential to manufacture and supply plastic products globally.

There are few plastic manufacturing companies in many different parts of the world. The company could take advantage of the available market opportunities to expand and open up its outlets. The company could use and take advantage of its current good economic status and position to open up new branches worldwide.

Company structure According to Porters Five Forces Model

The threat of new entrants is relatively high. This is certainly because there are many opportunities that other internal and external investors could take advantage of or exploit these opportunities to start up new companies. The new companies could take up some of the market share currently held and occupied by Riordan (John, 1999).

The threat of subsidiary products in the market is also high. However, the company’s products are of high quality and many customers and countries quantify and approve the products of the company due to their high quality (Ghemawat, 2007).

The bargaining power of consumers in the regions where the company operates is relatively high. The product prices are fair and affordable in the local and international markets where the company has established its markets.

References

Ghemawat, P. (2007). “Managing Differences: The Central Challenge of Global Strategy,”. Harvard Business Review , 59-68.

John, M. (1999). Strategic Options for Global Expansion. Trade and Finance .