Conduct an environmental scan on a virtual organization called Riordan Manufacturing, Inc. They are a
global plastics manufacturer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion.
Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. The company’s research and development is done at the corporate headquarters in San Jose. Riordan’s major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.
The company was founded by Dr. Riordan, a professor of chemistry, who had obtained several patents relative to processing polymers into high tensile strength plastic substrates. Sensing the commercial applications for his patents, Dr. Riordan started Riordan Plastics, Inc. in 1991.
Initially, the company’s focus was on research and development and the licensing of its existing patents, but in 1992 Dr. Riordan obtained venture capital which he used to purchase a fan manufacturing plant in Pontiac, MI. At that time, the company’s name was changed to “Riordan Manufacturing, Inc.” In 1993, the company expanded into the production of plastic beverage containers when it acquired a manufacturing plant in Albany, GA.
The company’s most recent expansion took place in 2000 when it opened its operations in China. At that time, the entire fan manufacturing operation was moved from Michigan to China and the Pontiac, MI facility was retooled for the manufacture of custom plastic parts.
Estimate which competitive strategies Riordan could use to improve innovation and sustainability of business operations both in the United States and in the global market. The three strategies decided are differentiation, cost leadership, focus. Summarize why management at Riordan chose these strategies. Explain how these strategies might affect sustainability of long term organizational performance in at least 200 words.
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