Rirodan Strategic Plan

According to (Wheelen & Hunger, 2010) “Strategic management is a set of managerial decisions and actions that determines the long-run performance of the corporation.” The basic components of the strategic management process are environmental scanning, strategy implementation, strategy formulation, and evaluation and control. Over time, many organizations have used strategic management concepts developing them overtime and using them successfully. As a team, we will center on explaining various aspects of strategic planning and the need for one and defining the ethical and discretionary responsibility which are known as social responsibilities for the company. Environmental scanning observes, assesses, and distributes external and internal information to important personnel within the organization. These strategic factors will determine the future outcome of the organization. The easiest way to analyze environmental scanning is by determining the strengths, weaknesses, opportunities, and threats known as (SWOT).

Those variables outside the external environment of an organization consist of opportunities and threats while the inside variables consist of strengths and weaknesses in the internal environment. The strategy formulation is long range plans developed to manage the environmental outside variables effectively. Included in the plans are the organization mission, objectives, strategies and policies. Riordan Manufacturing internal factors include their organizational structure, employee’s demographics, interactions between managers and employees, access to natural resources to assist in implementing a strategic plan for the organization. External factors to consider in helping with this plan would be political influences, legal factors, economic conditions, and geographic conditions. With Riordan Manufacturing utilizing SWOT as a tool to help determine their strengths and weaknesses, this will be beneficial in meeting their company mission and objectives.

In the strategy implementation phase middle to low level managers are responsible for putting the process into action. Different programs are needed to accomplish the plan, and the cost of the program is also implemented in this process. There must be a sequence of how the procedures will be implemented. In this process, the organization will experience changes in the management system and its structure. Riordan strategy plan must focus on aligning the four company’s plants that include their Human Resources, Finance and Accounting Divisions, Sales and Marketing, Research and Development and Operations. Throughout the implementation phase, Riordan must concentration on information flow, control systems and risk management. Management is a big part of the implementation phase because of its complex process. Why a Strategic Plan?

A strategic management plan will keep Riordan Manufacturing vision, goals and objectives at the forefront while remaining competitive in the ever changing market of the plastic industry, and maintaining the company values. Riordan needs a strategic plan for their corporation to be globally on top in the industry of manufacturing plastic in injection molding using modern design to continue providing innovative plastic products to customers worldwide. In order for Riordan to accomplish their strategic plans, they must focus on long-term performance and sustainability through economic hard times by remaining profitable. Managing long-term successes for a corporation is more difficult than short term goals which can be more attainable and uncomplicated. As the world markets continue to evolve constantly, companies must have plans in place to accommodate the changing environment. Companies cannot maintain business activities as the usual status quo if they desire to be profitable. Managers should be ready to implement change that is consistent with Riordan mission and objectives. Ethical and Social Responsibility

In today’s society ethics and social responsibility play a defining role. Ethics is defined as a known moral standard of behavior by an individual or a group of individuals. According to Wheelen and Hunger (2010), “A code of ethics specifies how an organization expects its employees to behave while on the job.” When formulating and implementing strategies many corporations are forced to deal with ethical issues and social responsibility, Riordan
should create a code of ethics for its 550 employees that outline expectations of their conduct in certain situations and what actions and decisions are expected. Riordan can create a positive impact addressing cultural, economic, and social issues that are acceptable within the organization and that which is unacceptable behavior. Wheelen and Hunger (2010), describes “The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.”

The complete internal and external environmental scan will assist Riordan in determining what ethical and social concerns they will need to incorporate in the company’s strategic plan. They would need to consider the effects environmental pollution in using plastic and air pollution created by manufacturing facilities. Riordan ethical and social role affects stakeholders, employees, customers and its local and international communities as a whole. If these partners are satisfied with Riordan ethical and social plans for the company, they will continue to have a successful business. With Riordan being socially responsible, this provides the business with a more positive reputation and consumer’s loyalty. Competitive Advantages and Competitive Strategies

Riordan does have several competitive advantages over the competition the first being that they provide a wide variety of products, the first being heart valves and stents for medical procedures. Riordan is also a leading developer in fan cooling systems and the latest technology in plastics and polymers. Riordan is also an industry leader in innovation and design. Riordan is a developer of new and innovative cooling systems for computers as well as utilizing the latest technology in plastic injection molding. Another advantage that Riordan has is that they are an American company. The majority of their products are made in the United States, which can make them very appealing to consumers and companies that wish to promote the U.S. economy. There are two types of competitive advantage that a company can achieve relative to their competitors. The first being differentiation strategy, by separating yourself from the competition you can give your company an edge by providing different or superior product.

The second is a focused strategy. Utilizing a focused strategy based on low cost would also be beneficial. There are two types of competitive advantage that a company can achieve relative to their competitors. The first being differentiation strategy, by separating yourself from the competition you can give your company an edge by providing different or superior product. The second is a focused strategy, focus strategies can either focus on cost or differentiation, in this can we would focus on cost. Here are several ways a company can achieve lower cost. For example, Riordan could control production of plastic and polymer materials and maintain their own supply chain. However with Riordan’s commitment to quality and customer satisfaction differentiation is also very important. (Wheelen and Hunger, 2010)

Innovation is perhaps one of the most effective methods for differentiating yourself from the competition. By providing the leading edge technology in your field not only can your product be superior in quality but also by design. There are several ways for Riordan Manufacturing to innovate their products and to separate them from the competition. For example, Riordan can research and develop new technology in developing stronger and longer lasting heart valves and stents. They can develop new blends in plastic and polymers to be used in the construction of parts for the aircraft and auto industry.

If Riordan focuses on maintaining their place as leaders of innovation in their field, it will help in the long lasting sustainability of the company. Sustainability is very important to the success of every corporation; by maintaining long-lasting relationships with customers and continuing to produce a product that is focused on the customer’s needs. Riordan has a history of producing high-quality product to fit the customer’s demand at a quality second to none. Riordan also ensures that the employees are well trained and properly informed to maintain the company’s high standards and goals. This plays a major role in Riordan maintain a reputation for quality and innovation in our market. (Wheelen and Hunger, 2010 Measurement Guidelines

Riordan Manufacturing will use differentiation and lower cost strategies as measurement guidelines. The differentiation strategy will focus on selling custom products to specialty markets to increase revenues through the use of new product innovations. Riordan will set specific production and revenue goals for this differentiation. To measure the effectiveness of this guideline Riordan will use return on investment (ROI). The ROI will measure profitability of all special orders and determine the effectiveness to increase organizational revenues. If this differentiation strategy fails to meet organizational goals adjustments in customer cost and production processes can be reassessed.

A lower cost strategy will help stabilize growth and maximize profits. Through the use of a balanced scorecard and the current customer base Riordan will sell beverage bottles, food containers, and automobile parts at lower rates. The balanced scorecard will measure the effectiveness of the lower cost strategy that focuses on customer satisfaction, financial stability, internal perspectives, and innovation. Customer satisfaction keeps the company profitable. Financial stability provides stakeholders reassurance of the organizations continued growth. An internal perspective looks at the success and failures with internal functions and where adjustments or changes need to be made. Lastly, is innovation. Management will assess areas that are not up to strategic standards or meeting organizational goals to determine what improvements can be made, how products can be improved, and identify ways to reduce production costs. Both measurement guidelines allow managers to effectively evaluate organizational strategy, and determine the success or failure of current strategies.

Internal Dynamics
The internal dynamics of an organization are important to organizational success. To ensure successful implementation of Riordan’s strategic plan, careful consideration has to be given to internal dynamics along with cultural and structural leadership of the organization. These components are critical to organizational success. Internal dynamics includes a firm cultural and structural leadership practices. Riordan Manufacturing is a diverse organization that uses a centralized business structure that discourages effective decision making for lower management. Team D recommends a decentralized structure that will allow changes in the rigidity of the company strategy and provide more efficient functionality between processes and plants. This provides individual employees the opportunity to work outside the organizational lines. However, this concept will require employee training to ensure proper production standards across cultures. The success or failure of employee understanding for new processes will depend on the employees understanding of cultural differences in multiple markets.

Things such as past experiences and the understanding of target markets will influence the effectiveness of doing business in different markets. Management’s ability to identify cultural differences communicates both global and environmental expectations and helps to maintain the corporate vision. Riordan’s diverse market provides increased global prospects. They employ persons with cultural similarities to future markets. This benefits Riordan manufacturing by providing additional resources and fostering a cultural relationship, as well as give the company flexibility to continue growing, diversifying, and expanding. Currently, the challenge is for Riordan to get employees involved, and support new strategies or initiatives. According to Riordan’s turnover report they have experienced an increase involuntary leave from the company. This signifies that Riordan needs to conduct research to determine employee satisfaction and retention.

To help with this Riordan must make certain that managers adopt strong leadership roles to include communication standards and motivational directives that ensure employees understand their role in achieving organizational goals and objectives. It will also show employees how important individual contributions are to the success of the organization. Reward systems related to performance, and employee empowerment through the inclusion of decision making will increase focus on quality. This will enable the firm to establish an organizational culture that promotes teamwork, effectiveness, and total quality. Business Continuity

Riordan’s internal dynamics constructs the groundwork for business continuity. Company initiatives foster a commitment to quality, employee satisfaction, and increasing morale in the work force. With these achievements in the business strategy plan, Riordan will have positioned themselves to be more adapted to changes in their business, and provide them with increased competitive edge to adjust to changing environments. According to Wheelen and Hunger (p.332, 2010), “Output, behavior, and input controls are not interchangeable. Output controls (such as sales quotas, specific cost-reduction or profit objectives, and surveys of customer satisfaction) are most appropriate when specific output measures have been agreed on but the cause–effect connection between activities and results is not clear.” This has been a problem for Riordan. The company needs to reestablish policies between production and the research and development teams to work together, and operate under the same company standards.

Changing trends in the global market require adaptability to foreign law and regulatory requirements that influence the firm’s strategic and budgetary plans. An environmental scan provided Riordan with information to make effective decisions for continuity. A shift in established policies between production and research and development will increase performance throughout the organization.

Assessment and Feedback Controls

An assessment of Riordan Manufacturing would show the company that has a long history of providing a variety of high-quality products that are tailored to their customers’ needs and traversing the leading edge of innovation. The feedback controls that a company uses can do a great deal to determine the direction that the company takes and their attitude in regard to the maintenance of their strategic plans. Riordan should use a combination of both behavioral controls along with input controls in order to assess and monitor their strategy. Responsibility Centers are another possibility open to Riordan in the need should arise. Responsibility centers are a type of control system that a Riordan could establish in order to monitor multiple divisions, projects or functions. Behavioral controls are used to specify how something is to be done according to particular rules, guidelines, and operating procedures set forth by top level management. Behavioral controls would give Riordan the ability to maintain their rigorous quality controls that Riordan strives for. This would also allow for them to uphold a responsive business attitude, giving Riordan the ability to accommodate their customer base quickly.

Finally by using behavioral controls Riordan would be able to maintain an innovative and team-oriented working environment for their staff. Behavioral controls give Riordan the ability continue and expand on long standing business relationships in a variety of fields. Input controls also offer another avenue of excellence for Riordan Manufacturing. Input controls are often used by companies to maximize resources, for example, abilities, values, skills and the motivation of their employees. The proper training of employees so they fully understand their place and importance in the process will help the quality of the product. Offering incentive programs for employees will help to motivate them to produce on a higher level. Most important management needs to sell the staff on a mission and goals of the company. The more the employees believe and get behind the product and strategy the harder they will work to achieve it. (Wheelen and Hunger, 2010) Altering the Strategic Plan

Alterations will be made only in the event that they are needed. When monitoring any strategic plan and implementing any strategy you must always be prepared to make alterations to the strategy itself or simply to the control process you have selected, however it is vital to only implement them when necessary, like the old adage if it is not broke don’t fix it. Some of the things Riordan will look for are loss of profits. If our profit margin drops then adjustments must be made. Other indications that changes need to be made will come from the monitoring lack of quality control, Falling behind in innovation, and lack of customer satisfaction. All of these areas will be monitored for fluctuation and alterations in the implementation strategy will change according to stability.

Conclusion

In conclusion, strategic management plan will keep Riordan Manufacturing in line with their vision, goals and objectives at the forefront while remaining competitive in the ever changing market of the polymer industry while maintaining their company values. By utilizing the proper controls and measures of practices, Riordan can assure they stay on track with the desired objective as well as continue to maintain an image of producing the finest quality products and presenting solutions to customers and clients.

References
Apollo Group, Inc. (2013). Riordan manufacturing intranet. Retrieved from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/index.asp Wheelan, T., & Hunger, D. J. (2010). Introduction to Strategic Management and Business Policy (12th ed.). Retrieved from The University of Phoenix eBook Collection database.