Riordan Manufacturing Leadership-Level Organizational Change Planning
Riordan Manufacturing Background
Riordan Manufacturing is among the leading worldwide plastics manufacturer with an approximated 550 workforce as well as a projection of $46 million annual earnings. However, the Riordan company is fully owned by the Fortune 1000 enterprise which usually have annual revenues that are estimated to be in excess of $1 billion. However, the company is also involved in an aggressive expansion strategy which is to a greater extend facilitated by implementation of effective information systems (Apollo Group, Inc, 2006).
Moreover, the development and research in the company is mainly done at the corporate headquarters of the company located at San Jose, California. The products also ranges from custom plastic parts whose production takes place at the Pontiac plant, plastic containers for beverages produced at the Albany plant, as well as plastic fan parts whose production takes place at Hang Zhou in China, Michigan and Georgia (University Of Phoenix, 2011). However, the major customers of Riordan products are the aircraft manufacturers, manufacturers of appliances, automotive parts manufacturers, as well as bottlers and beverage makers.
Riordan Manufacturing has ensured that it maintains an effective intra-organizational strategy that is aimed at ensuring that the expansion strategy of the company is achieved through the facilitation by the company’s information systems. Achievement of a long-term interaction with the company customers has been achieved through holding open business outlook, very good quality controls, sensible pricing as well as providing new solutions to the customers (Olson & Wu, 2011; Lam, 2007). Moreover, maintaining of innovation as well as team environment has been constantly ensuring that the employees are knowledgeable and also supported towards achieving the set company goals where expansion is one of them. Riordan Manufacturing has also continued to put its focus on ways of ensuring certainty the future of its continued profitability as well as performing workforce.
Global organizational behavior
With the tremendous expansion of the Riordan Manufacturing globally, the need for maintaining business ethics in the global organizational behavior. This is mainly crucial because the expansion of the business means doing business in varied countries that have different regulations and regulations that must be adhered to. Moreover, in the implementation of the company information systems that facilitate the expansion of there is need to consider the cultural as well as language differences all of which must be respected in order to be able to continue doing business smoothly (Apollo Group, Inc, 2006). Additionally, there is also the need to strictly abide to the global codes of conduct involved in global business transactions and treatment of employees. Therefore, as the Riordan Manufacturing business expands to go global it is highly recommendable that the company ensure that it familiarizes itself with business regulations in any country in which it will be interested to do business.
Global E-commerce communications and business transactions
With Riordan Manufacturing tremendous expansion into the global market, it becomes evident that the embracing of the electronic commerce (e-commerce) will of crucial significance since it is nowadays the most flourishing form of global business in modern world. Therefore, most of the business will be conducted over the internet through which goods and services are bought and sold worldwide (University Of Phoenix, 2011). For instance, currently the e-commerce and computer technology economic growth has exceeded the United State’s manufacturing economy. Thus, in the expansion strategy of Riordan Manufacturing there will be an increase in the productivity as well as increased efficiency in both sales and marketing which leads to the strengthening of the customer relationships helpful in promoting the exportation of the company’s products globally (Olson & Wu, 2011; Lam, 2007).
In addition, with the manufacturing plants of the Riordan Manufacturing in Pontiac, Michigan, Albany, Georgia, and Hangzhou, China, the embracing of the e-commerce will greatly enhance the company’s continued growth. This is mainly because the e-commerce constitutes business processes ranging throughout the whole value chain such as purchasing electronically as well as the electronic processing of orders, and electronic handling customer service. Therefore, the e-commerce is actually taking new forms that enable new business practices likely to posed greater opportunities while at the same time bringing some risks (Gupta & Kohli, 2006).
Moreover, understanding the differences in the e-commerce will be of crucial significance to Riordan Manufacturing since they shall have extended their business globally. This will be vital because some challenges will be faced such as cultural differences, language differences, legal and regulatory restrictions, tax code differences as well as the issue of handling multiple currencies. Therefore, this will require incorporation of various business software such as those involved in currency conversion, calculations for global shipping as well as increased language translations (Gupta & Kohli, 2006; Mamaghani, 2006). Translation of the constantly changing global information in the company website combined with the transfer of the same information to supply distributors globally makes the commerce more complex. Hence, the company will be supposed to support several languages in its website from where most of the customers and suppliers are found as well as listing prices in the required local currencies. Therefore, effective global e-commerce transactions there is need for adequate online communication and effective strategies involved in international marketing will be inevitable as a key factor to the Riordan’s success.
Human resource issues and development
Human resources is also one of the most crucial departments that will be involved in the facilitating the expansion strategy of Riordan Manufacturing Inc. Hence, the need for ensuring that the entire of the human resources department is on board in every step of the expansion becomes essential. This is mainly because failure to adequately involving the employees in the expansion program it is likely that there are several issues that may arise and negatively affect the company such as increased employees’ turnover and decrease of their morale. Therefore, this necessitates the need for an effective strategic planning of the human resources to ensure that it is adequately involved in the whole process of expansion.
In addition, all procedures that will affect the employees also needs to be amicably addressed. For instance, if there will be promotion or expatriation of employees there will be need to clearly provided the procedures that will be followed in doing that. However, communications of the human resources management systems will be necessary. This will ensure that every employee understands the human resources management systems involved in all aspects of the company (University Of Phoenix, 2011). Finally a development program for the new employees will also need to put into place as well as means of rewarding the performing employees to boost their morale.
Marketing and product development
Riordan Manufacturing is constantly involved in the marketing of the manufactured plastic products. This is also combined with continuous development of new products through research and development. Hence, the constant production of sophisticated and high quality products in combination with aggressive marketing that is greatly facilitated by the company’s information systems has contributed to the tremendous growth and expansion of the Riordan company. However, the Riordan’s sales and marketing systems mainly depends on the current integrated information management standards. This is mainly because Riordan has computerized its sales and marketing systems in its expansion strategy in order to handle their customers efficiently (Grabski, Leech and Schmidt, 2011).
However, the company is also working on the consolidation of the customer information towards providing good value to the company customers. However, the customers information can be tracked electronically hence easily accessible whenever needed. In addition, the Riordan goal of expansion is likely to be achieved through increasing sales by providing price discounts, sales force promotions, as well as utilization of the customer user group services. The increased marketing will undoubtedly lead to increased production which will highly compliment the company expansion (Gupta & Kohli, 2006; Mamaghani, 2006; Morris, 2011).
Internal systems and processes development
Riordan Manufacturing’s current information systems were installed in 1992 operating differently and independently in its branch offices. However, the company uses the ERP system to constitute an integral part of both its finance as well as accounting system whereby these systems are decentralized indicating that despite the main systems being located at headquarters each branch office consists of its finance and accounting systems that are independent but consolidated at the corporate headquarters located at the San Jose, California (Nicolaou, 2004; Sumner, 2009). However, the company is seeking to establish a single integrated application capable of utilizing today’s existing HR system tools. The embracing of the sophisticated information system will be crucial facilitating the company’s expansion strategy in most of the aspects that require its utilization (Palaniswamy & Frank, 2002).
There are numerous measures of success associated with the expansion strategy of the Riordan Manufacturing. Such measures range from the simple successes recorded to the most complex and requiring complicated analysis. For instance, the expansion strategy of the company will undoubtedly lead increased sales and profits which will then result a continued expansion due to increased productivity. However, due to increased production there will be the potential of benefiting from the economies of large scale production which will result to better utilization of the company resources both the capital and human resources (Gonzalez, 2007).
Moreover, the expansion in various countries outside United States to China and other foreign destinations of the company implies diversification of the business meaning that there is a counter balance in case unfavorable business environment prevails in one of the company’s foreign destination. This expansion strategy will also improve the distribution of the company products since customer orders will be dealt with by the nearest branch of the company thereby reducing congestion and time delays hence increasing efficiency (White, 2006; Wright & Wright, 2002).
Riordan Manufacturing vision is actually to continue being among the leading industries in the plastics manufacturing by providing solutions to the customer challenges while at the same time creating an environment that is friendly to the employees for increased productivity which is crucial in enabling the continued expansion of the company (Theil & Ferguson, 2003). However, the company is also facing numerous challenges in changing its business planning model in the attempts of adjusting in order to be able to amicably accommodate the prevailing opportunities posed by the expansion plans. Therefore, the resistance which may be originating from the employees towards the change needs to be addressed to ensure that the expansion process embraces the entire workforce. Hence, in order to adequately address these challenges the company has to face the challenges that include decline in employees morale, declining sales and profits, work ethics, staff adjustments, reduced turnover rates as well as increased job satisfaction (Apollo Group, Inc, 2006).
However, in the expansion process can lead to long-range success of the Riordan Manufacturing on the basis of the motivation and retention of employees. Additionally, these challenges can be overcome through the establishment of an effective feedback process as well as putting in place career development programs and efficient communication channel to ensure that information is easily transferred. However, maintaining of the company’s performance is actually very crucial in ensuring the success of both the present and future expansion of the company operations (University Of Phoenix, 2011). Therefore, implementation change on its own is not enough mainly due to the fact that there is need for a continuous process as well as commitment towards the improvement plans that are linked to the expansion of the company operations. Therefore, solutions to the company expansion strategy that are cost effective needs to be adopted in order to allow the company to achieve its goals through exploitation of the opportunities posed by the company’s expansion strategy. In addition, the company will also be able to fully exploit the opportunities that are presented by the expansion strategy if its management and employees work as a team. This is because as a team the company will form a strong workforce able to address all the challenges that may accrue in the expansion process as well as exploiting all possible opportunities (Gonzalez, 2007).
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