Sr-Rm-012

Riordan Manufacturing Service Request SR-rm-012

Basilio V Bayquen, Pete Desai, Kelly Berry

BSA 310

September 27, 2010

Oswald Angst

Riordan Manufacturing Service Request SR-rm-012

Executive Summary

Riordan Manufacturing, Inc. (RMI) is a fast growing successful global plastics manufacturer. RMI has grown to be a Fortune 1000 enterprise with revenues in excess of $1 billion. Since the company’s inception in 1991 as Riordan Plastics, Inc, the company remains wholly owned by Riordan Industries. RMI employs 550 people with projected annual earnings of $46 million. Its products are produced at three different plants located in Albany, Georgia, Pontiac, Michigan, and Hangzhou, China. The company’s research and development (R & D) is done at its corporate headquarters in San Jose, California. Riordan Manufacturing produces plastic beverage containers at its plant in Albany, Georgia, custom plastics parts at its plant in Pontiac, Michigan, and plastic fan parts at its facilities at Hangzhou, China.

Riordan Industries’ income statements of the last three years from 2003 to 2005 reveal a rapid increase in income with a resultant high yield in net profit. Based on the income statements, with a net profit of $113,061,000 in 2003 and a net profit of $199,305,000 in 2005, the profitability of RMI has jumped a sizeable 43.27%. The business outlook for RMI is very positive as indicated by its income statement in the past three years. Reardon Industries is on the right direction towards maintaining its dominance in the plastic manufacturing. It is a proactive company looking for better ways to conduct its business.

History

Dr. Riordan, a professor of chemistry, started Riordan Plastics, Inc. in 1991when he realized the commercial applications of the several patents he obtained in the processing of polymers into high tensile strength plastic substrates. The initial focus of the company was on research and development and the licensing of its existing patents, but...