Riordan Manufacturing Strategic Plan Essay

Strategic fill inrs have state to both the employees and stakeholders of the government. Engaging in strategical coun cheat oning decisions should include virtuouss and amicable responsibilities. The expectation of such responsibilities from stakeholders is to play legal and honest economic decisions. Satisfying the purpose of the strategic training answer for Riordan Manufacturing, the institutionalizeion team has taken into consideration the economic, legal, ethical and arbitrary responsibilities. According to Wheelen and longing (2010), the ethical and discretionary responsibilities atomic number 18 alike cognise as social responsibilities. Ethical responsibilities require decision-makers to follow expected behaviors of confederation and the community. Riordan whitethorn take substantial hazard by up mountain customers by failing to meet existing ethical values. Understanding the existing ethical values and standards of Riordan, the forethought team provide assist senior leadership in inventionning and committing to social responsibilities.Why a Strategic invent?A strategic grapplement devise bequeath localize Riordans objectives, conclusions, and efforts on long-term exertion and sustainability. Managing short-term goals and successes is relatively uncomplicated and easily attainable, yet longevity is much more difficult to accomplish. Strategic management lays the frame reach for lasting success. Corporations can no longer sustain rewardous business activities by simply maintaining a business as everyday or status quo dodge. As the world and economic marts continue to evolve, companies essential also transform to accommodate an ever-changing environment. During such transformations, managers should be minute to put through limiting that is consistent with the orders core explosive charge and objectives.Strategic planning assists in in effect accomplishing these changes and provides business owners and managers the opportunity to attain innovative thinking to preserve competitive advantages. Riordan, like some other companies, ask a strategic plan. The plastic injection molding alliance uses red-brick design capabilities to provide innovative plastic products to national and worldwide customers. Riordan advertises that assistance to detail, extreme precision and enthusiastic forest controls ar the hallmarks ofRiordan Manufacturing (Apollo Group, Inc., 2004, Internet). By setting such high standards in a lucrative and competitive exertion, it is haughty to Riordans success that they implement a strategic plan to manage long-term pro gybeability and sustained growth.Ethical and Social ResponsibilityTo commiserate the role that ethical and social responsibility considerations occupy in the victimisation of Riordans strategic presidencyal planning, one must first love what these concepts mean. According to Merriam-Webster (2011), ethics is the discipline dealing with what is costly and bad and with deterrent example duty and obligation (para. 1). Outside of this general definition that ethics argon standards for morality, researchers and philosophers have actively sought for many years for a widely distributed and all-encompassing explanation of what is and is non ethical. Many factors contribute to the meaning of ethics and corresponding behaviors, including but not limited to culture, religion, societal influences and pressures, and various stages of moral development. Though social responsibility works tump over in hand with ethics, it does possess extraordinary implications. Wheelen and Hunger (2010) describe that the concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond reservation a profit (p. 72).This notion exists because the decisions and actions of a business or organization often atomic number 18 far reaching and carry on many others beyond the boarders of the companys facilities and trading operations. counselling has a responsibility to balance that which is upright for the business and for the surrounding communities and affected parties while formulating strategic plans. Experts in the palm of corporate ethics and social responsibility argue that profitability is not the only duty to be satisfied by a business. For example, William J. Byron believes that pay are merely a means to an end, not an end in itself, and Archie Carroll suggests that corporations have four responsibilities economic, legal, ethical, and discretionary (Wheelen & Hunger, 2010, p. 72-73). Riordan is much more likely to amaze success and provide great returns to stakeholders if a well-rounded business advancement is adopted, as opposed to a strictly profit-oriented regularity. An extensive internal and outside(a) environmental scan impart help Riordan determine what ethical and social concerns to incorporate in the companys strategic plan.Forinstance, considerin g present concerns with environmental pollution, including the over-use of plastics and the toxic air pollution created by manufacturing facilities, Riordan should take a proactive stance in environmental sustainability efforts. Riordan operates in a changing world, and if the company chooses not to pay attention to and participate in the vigorous worldwide environmental conservation activities, they may distinguish themselves out of business and in financial ruin. The ethical and socially responsible role of Riordan affects customers, employees, stakeholders, local and international communities, and future generations. If these parties are not satisfied with the companys efforts and actions, Riordan may be at risk for potential failure.Competitive Advantages and StrategiesRiordan presently utilizes an industry standard sestet Sigma competitive strategy, along with their customization of innovative products and sale of caliber items to a select market of exceptionalized buyers. The manufacturer also takes advantage of high-volume production methods to generate elevated remuneration. They provide plastic products, including bottles, fans, heart valves, medical checkup stents, and custom parts, to customers in bulk amounts at affordable prices to sustain the companys tax revenue stream. Riordan also has a revolving product line, which creates value and sustainability because the products are recycled. These competitive advantages helped Riordan become an industry leader, yet the integration of a specialization strategy and a lower cost strategy allow work to enhance organizational growth. Riordan can improve innovation and sustainability of business operations in the United States and in the global market by implementing a blend of differentiation and lower cost business strategies.This arrangement is perfection for Riordan because it caters to the purpose of the manufacturing business, which is to provide valuable products at reasonable costs. Wheele n and Hunger (2010) excuse that differentiation strategy is the ability of a company to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service and lower cost strategy is the ability of a company or a business unit to design, produce, and market a comparable product more efficiently than its competitors (p. 185).The combination of these two super effective competitive strategies allows Riordan to introduce innovative and distinct plastic products to themarketplace, creating greater value to customers, in a more efficient and cost-effective expressive style than competitors. To further guarantee organizational longevity, Riordan should continue to use existing quality improvement processes such as Six Sigma and Total Quality Management, which focus on cost reduction, quality improvement, customer satisfaction, performance improvement, and continual re newlyal. measuring stick GuidelinesUsing a combination of differentiatio n and lower cost strategies in the Riordan strategic planning process leave alone help the organization maximize profits through two avenues. The first commission the company go away come up the organizational strategy is by using differentiation to carry on specialty products to organizations that are departinging to pay higher prices for specialty orders. upstart innovation get out increase the sales of the organization. Riordan will use a return on investment (ROI) mensuration as a guidepost to verify the effectiveness of the innovation strategy. The ROI measurement will look at the profitability of each specialty order and determine if the products are creating plenty revenue for the organization. If the products are not impact a set revenue target goal, then the organization will increase the customers cost.The second way Riordan will stabilize the organizations growth and maximize profits is by using a lower cost strategy. The organization will maintain the existi ng customer base by selling putting surface plastic products at lower rates. The primary plastic products in this home are beverage bottles, food containers, and common automobile parts. The organization will use a balanced scorecard attempt to verify strategic effectiveness of the lower cost strategy. The balanced scorecard will focus on four main strategic goals to determine effectiveness. The first goal is customer satisfaction. Satisfying the customers needs will bring through profits growing. The second goal is financial constancy and profitability. Financial stability will show stakeholders the company is strong and dependable. This encourages more business from other organizations in the future.The third goal in the balanced scorecard approach is internal perspective. Management will look at successes and failures in spite of appearance the organization and determine corrective actions to improve the organization. The fourth step is innovation and larn within the organi zation. Managers will look at areas that are not meeting the strategicgoals and determine improvements to the strategic plan. The management team will also evaluate ways to improve value of products and ways to cut cost of production. By using the ROI and balanced scorecard guidelines, Riordans managers can effectively evaluate the effectiveness of the organizational strategy. This will allow managers to determine if the strategies are successful in their menstruum form or if adjustments are infallible to improve production or profitability standards.Internal dynamicsFor Riordan to implement the new business strategies, the internal dynamics of the organization must change. These changes will affect the culture and structural leadership of the company. Riordans current management structure is a matrix structure using the old method management. This means that longevity in the organization is a stipulation for management placement. Each level of manager is put in a positioning an d the commerce is made to fit the candidate. The company will keep the current matrix structure in place with one major difference. In the new internal dynamics of the company, the requirements of the job determine the eligibility of candidates. New job placement processes will cause the cultural environment to change within the organization. Employees, whom may be waiting for older workers to leave the company, will find it easier to move into new positions without the wait. The most qualified candidate will be eligible for the positions, instead of employees relying on longevity.This type of organizational movement will promote innovation through education by placing fresh candidates in leadership positions. This will also help the company avoid downturns in innovation and growth. Organizational managers must determine if the new business strategy will fit the current culture. If the strategy does not fit, managers must steady down how to implement the strategy by making changes in the structure. According to Wheelen and Hunger (2010), the management team can try one of four methods to adjust the culture. The strategy makers can take a chance and ignore the culture, manage around the culture by changing the plan, change the culture to fit the plan, or change the strategy to fit the culture (Wheelen and Hunger, 2010, p. 256). The new organizational business strategy must have the support of the stakeholders to which the changes will affect because a failure to plan and adjust the business strategy effectively could result in failure of the implementation process. short letter ContinuityBusiness continuity are the activities performed by an organization to stop that the business functions will be available when needed by customers, suppliers, regulators, and others of Riordan that must have vex to those particular functions. Business continuity is performed by members of the company such as management, employees, and its stakeholders. The business function s and continuity at Riordan consist of project management, system backups, change controls, and the help desk. These functions help Riordan maintain service, consistency, and recoverability within the organization. Riordan influences business continuity by supporting items in their mission statement.The influences are geared by Six Sigma and R&D, which is the industry leader in identification of industry trends. Riordans business is also influenced by ISO 9000 standards that define the companys side and abilities. Long-term customer relationships and team oriented working environments are epochal businesses influences of this company. With a continual focus on achievement and maintaining profitability to ensure sustained growth, financial and human capital availability are determine as ongoing strategic goals and objectives.Assessment and Feedback ControlsRiordan provides its employees with well informed and decent supported information that focuses on the long-term viability of the company. The opinion and feedback controls that should be admit in determining the direction for Riordan in the proposed strategic plan are as follows. The assessments will ensure that Riordan examines employee motivation and empowerment, manufacturing and marketing areas, and the structure of performance reviews. Once these areas are assessed, then the feedback process will begin. The management feedback process consists of making sure employees are still being recognized as team players as Riordan is changing the strategy of the company. Providing employees coaching sessions to identify worry areas, implementation of career development opportunities, and instituting a pay rewards system for good performance that supports the companys vision will provide direct feedback to the company.At Riordan, product quality and quantity is a major focus. Establishing an evaluation, control, and assessment process will provide timely feedback to leadershipin hope of results or areas of concern. Areas of assessment include employee and customer satisfaction, environmental presence, and environmental scan for external locations of the manufacturing facilities. Instituting assessment and feedback to determine the profitability and feasibility of the company is completed through the strategic process. Management will determine and specify what measurements are necessary, establish standards of performance through specific implementations, measure performance by predetermined controls, and compare coveted performance within a adjustment range. Should the performance fall outside of the predetermined tolerance range, leadership will have the ability to take immediate corrective action. Companies may commence fluctuation or desired standards not being achieved. This provides the company with an opportunity to take corrective action and re-evaluate the strategic plan.Should Riordans strategic plan fluctuate or not achieve predetermined goals as accord to plan, manage ment would consider altering the specific strategy. Some of the changes to be considered are based on the feedback, but may include the competitive strategies, measurement guidelines, and internal dynamics. These areas provide opportunities for improvement but could also reflect similarities to the overlord plan with minor adjustments and still provide successful outcomes. Alterations of the strategic plan would be evaluation of Competitive Strategies In the area of competitive strategies, we will limit the high-volume production methods and not add any new innovation. measurement Guidelines In the area of measurement guidelines, we will eliminate the differentiation to sell specialty products to organizations for a higher price which leads to return on investment. Riordan will focus on maintaining the product line that already exists. Internal Dynamics In the area of internal dynamics, Riordan could not go forward with the new changes to the company culture and job placement pr ocess. Only a fewer minor adjustments are needed for this particular area. Job placement should be considered upon experience and the company culture should remain the same. If Riordan fails to make these corrections anterior to implementation of the new strategic plan, the company could be at risk of losing market share, not having the ability of expanding globally, jeopardizing the relationship with stakeholders, and lose of profitability.ConclusionCompanies are respected and rated by their ethical and social responsibilities to the stakeholders and employees. These responsibilities are as grand as the ROI. The purpose of business is to make a return on investment, and this factor is used to evaluate the performance of management and offers a market comparison to similar firms and industries. Key performance measures are essential for achieving the desired strategic outcome. A comprehensive plan that includes environmental scanning, strategy formulation, strategy implementation , and evaluation and control processes will provide assurance of a well-developed strategic approach to business strategies and growth initiatives.ReferencesApollo Group, Inc. (2004). Virtual Organization Riordan Manufacturing. Retrieved from Apollo Group, Inc., Simulation, MGT498 Strategic Management website. Merriam-Webster, Incorporated (2011). Ethic. Retrieved from http//www.merriam-webster.com/dictionary/ethics. Wheelen, T. L., & Hunger, J. D. (2010). Concepts in strategic management and business insurance policy Achieving sustainability (12th ed.). Prentice Hall.