Resources: Riordan Virtual Organization, Concepts in Strategic Management and Business Policy, and Competitive Advantages Paper
Scenario: The board of directors for Riordan Manufacturing has asked your team to create a strategic plan for the organization.
Create a 2,500- to 3,500-word strategic plan for Riordan Manufacturing starting from what you learned in Week One and using a similar strategic management process as Concepts in Strategic Management and Business Policy. You may also use information from the team project you completed for Riordan Manufacturing in Week Four to create the strategic plan.
Cover thoroughly the areas of environmental scanning, strategy formulation, strategy implementation, and evaluation and control.
What internal dynamics along with cultural and structural leadership considerations should be used in implementing business strategy for Riordan? 250-300 words
How do they influence business continuity?250-300 Word
Explain and justify all of the decisions you have made for your strategic plan, using research and understanding learned from the reading material.
Outline your strategic plan for Riordan Virtual Organization in a 20- to 30-slide presentation using Microsoft® PowerPoint®.
Describe why Riordan needs a plan, and walk the audience through every step in the strategic management process.
Include ethical considerations, environmental scanning for competitive advantages, innovation and sustainability considerations, measurement guidelines, internal dynamic and resource considerations for strategy implementation, and what feedback considerations Riordan should put into place to ensure the success of the company.
Competitive Advantages of Riordan
Competitive advantages are important to any business, without discrimination to the industry. Riordan Manufacturing evaluates the competitive advantages on a regular basis so the company can continue innovation and maintain global status. A good management team understands the importance of research to stay ahead of the competition. Riordan Manufacturing must consider some new competitive strategies to maintain their competitive advantage.
Riordan Manufacturing is a global company in the plastics business. Riordan shares common business traits with other companies. Harley-Davidson, J.B. Hunt and Exxon-Mobile are three companies that work hard to keep and expand their market share. One of the biggest factors that all four companies share is the relationship with the customers. The relationship with the customers is in very strategy of the companies. Harley-Davidson and Exxon-Mobile have a more direct relationship with the public, where J.B. Hunt and Riordan deliver products and service through broader business dealing. The best example of a company with a direct access to the customers is Harley-Davidson. They spend very little on advertising and rely on word of mouth to sale their motorcycles (Harley-Davidson, 2015). Likewise, Exxon-Mobile does little advertising because everyone who drives or operates a vehicle will find a convenience store to get fuel (Exxon-Mobile, 2015). The best advertising they have is the gas price signs at the convenience stores. They are in competition with the other oil companies, so delivering a quality product at a fair price is what the company strives to achieve. J.B. Hunt, like Riordan, works to provide a product other companies to use (JBhunt, 2015). By staying at the forefront of the industry, they will help the company to maintain their leadership. All the companies are the same when it comes to having a strategic plan. Without a strategic plan, the companies would be lost in the market place and probably would not survive.
Business sustainability includes business models and managerial decisions grounded in financial, environmental, and social concerns (Rowe & Bansal, 2015). Companies create sustainability by creating long-term financial value for the company (Rowe & Bansal, 2015). Riordan Manufacturing's strategic goal is to create an excellent working environment for the company employees. Sustainable companies forge strong relations with their employees. Six Sigma and Lean manufacturing will continue to drive down operating costs, thus keeping with the financial strategy outlined by upper management (University of Phoenix, 2015).
Riordan's business strategy is to continue to be highly innovative. The company will continue to use Research & Development (R&D) to excel the company to greatness. Plans for the company are to create and design a roadmap for medical stents and devices. The R&D department at Riordan is first class and has always been a leader in creating new products and services that will improve sustainability throughout the organization (University of Phoenix, 2015).
Sustainability is one of the major factors of any organization, and it demands a new way of thinking rather than analyzing things in older technologies. The competitive advantage is the dominance gained by the association when it can give a similar or lower cost than its competitor.
Riordan manufacturing company enhanced their sales by providing discounts on price and sale endorsements to make sure that their costs are reasonable to the customers. Riordan recently used the industry standard "Six Sigma" competitive strategy in their company. To correct the improvement and sustainability the industry functions both in the US and in the international market, Riordan required theexecution of a strategic capability plan. This preparation enhances the efficiency, adds development to its supply chain, and executes the processes and ideas of most of the base line construction. This will sustain the cost and this can maintain the competitive advantage.
The strategies were selected by Riordan can utilize their brand name in marketing and promotions. As their name becomes a domestic name, the cost of their products and the industry rises. The effective world can build the Riordan product a domestic name locally and globally. The long-term sustainability of the organization based on hiring latest customers and managing recent customers. Riordan becomes the replica to outline themselves after by building the excellence products and differentiating their product in the plastic industry. These strategies will give the long-term presentation and productivity.
Many companies or organizations, such as Exxon Mobile, J.B. Hunt, and Harley-Davidson, have a very attractive opening. This makes them hold the market, but as times passes their ideas weaken and the organizational hold grows weaker. Riordan Manufacturing is a self-made company that is unique at what they manufacture. The company structure is very similar to the three comparison organizations chosen in week three, Harley Davidson, Exxon-Mobile and J.B. Hunt. All four companies focus on achieving and maintaining reasonable profitability to assure that capitol is available and growth is sustained.
All four companies are comparable as it pertains to employee satisfaction within the workplace, profit sharing, and safety. Riordan's manufacturing strategy is also similar to the comparison companies, they all want to strengthen their brand and make it significantly competitive within each of their industries. They all are doing well in the global market, all producing quality products. Riordan Manufacturing's strategic planning department is steering the company in the right direction as it pertains to the financial goals, customer service, and market analysis because of the leadership they have in place. All four companies have an excellent Human Resource department that ensures all employees are trained properly, treated equally, and rewarded for a job well done. Final competitive strategy chosen is all cost reduction for manufacturing and delivering products and services. All four companies have had their challenges in the industry they currently operate in and try not to make the same costly mistakes that happened in the past. All four companies currently have excellent score cards and are moving forward with business plans and achieving goals.
The global market can affect the business strategy by regulating different environmental laws regulations, resource allocation, and employee management differently that the current regulations enforced in the locations of operation throughout the continental United States. The global market could allow for a less desirable waste management program envisioned and practiced by Riordan Manufacturing. Problems that could arise for Riordan by venturing in a global market can include inventory, employee retention, and meeting quotas. On the other hand, the customer base, which includes the Department of Defense and aircraft manufacturing and other plastic products, has proven to be beneficial in operations for Riordan as the customer base is at a constant demand of plastic and polymer products.
It is important for Riordan to maintain a stronghold on the operations conducted in China by placing key leadership personnel at that particular location to monitor the progress and daily operations of the company, thus ensuring the mission and the integrity of the business is not placed into question. The comparison between Harley-Davidson, J.B. Hunt, Exxon-Mobile, and Riordan relates to the constant innovation of new strategies to venture into a global market. Although all of these companies provide a different product or service, the international rules, laws, and regulationsstill apply since all companies maintain their headquarters of operation in the United States.
Global companies must ensure their ability to maintain competitive advantage. This is to stay ahead of the competition and gain knowledge of any new competition in the market. Riordan understands this and makes every effort to ensure their ability to innovate and keep the competition from surpassing them in the industry. Riordan Manufacturing will stay ahead of the competition if the management team continues to use strategic planning and competitive advantages to keep the competition from surpassing them in their operational goals.
References
Exxon-Mobile. (2015). Corporate Citizen Report. Retrieved 31 August 2015, from https://cdn.exxonmobil.com/~/media/global/reports/corporate-citizenship-report/2014/2014_ccr_full_digital_approved.pdf
Harley-Davidson. (2015). Harley-DavidsonLeadershipRetrieved from: https://www.harley-davidson.com/content/dam/h-d/documents/company/sustainability/en_US/sustainability-report-2013.pdf
Jbhunt. (2015). J.B. Hunt Transport: About Us. Retrieved 31 August 2015, from https://www.jbhunt.com/company/about/
Rowe, A., & Bansal, T. (2015). Ten Steps to Sustainable Business in 2013 | Ivey Business Journal. Iveybusinessjournal.com. Retrieved 8 September 2015, from https://iveybusinessjournal.com/publication/ten-ways-to-help-companies-become-sustainable-in-2013/ University of Phoenix. (2015) University of Phoenix Material: Riordan Manufacturing Intranet
Attachment:- Riordan Strategic PlanTeam B.pptx