Strategic Decisions

Strategic Decision Making at Riordan Manufacturing

The intent of this paper is to explain the structural, leadership, and cultural

considerations that face Riordan Manufacturing as it begins global operations. Supportive marketing and operational tactics required to execute the strategy are also discussed. In addition, a revised organizational chart for Riordan will be included.

Structural Leadership and Cultural Considerations

As Riordan begins and expands its global operations, one consideration is the integration

of global authority. This integration will ensure that Riordan’s global units are reporting to its domestic base. Domestically, Riordan will track profitability for each global line, coordinate business functions, and take responsibility for the strategic planning, including budgeting, for each global line. Riordan must appoint directors to work with each unit to guarantee that the strategic plan is implemented properly between the lines. These directors will travel often between the units and coordinate management activities internationally. The central theme of Riordan’s global strategy is integration. “Integration within each country is important in order to coordinate the activities of the different businesses and to be able to present a common front to host governments, suppliers, channels, customers, and community groups” (Yip, 2003). Centralized authority will eliminate the need for individual directors at each site and make the global strategy more cohesive. This integration will provide a substantial cost savings to Riordan by cutting out the duplication of management activities and flattening the hierarchal structure.

With the correct global structure in place, Riordan must concentrate on its global

leadership. Global leaders use information systems, strategic planning, budgeting, and performance reviews to influence directly how the business is managed.

“Having information about the world is a minimum requirement for...