Gap Analysis: Riordan

Gap Analysis: Riordan

Riordan Manufacturing is a globally known plastics company that develops and manufactures plastics through the process of injection molding. The company has three operations that manufacture custom plastic parts, plastic beverage containers, and plastic fan parts. Riordan employs over 550 employees and has anticipated yearly revenues of $46 million and business revenue of $1 billion (UoP, 2010). In 2000, a company extension into China relocated the manufacturing operation of fans from Michigan, and restructured the Pontiac, MI building to manufacture custom plastic parts (UoP, 2010).

Riordan faced many obstacles when the company decided to expand its existing facility in Hangzhou, China; from passing Chinas’ inspections, gaining the proper licensing, and equipping the new facility. Each hurdle was met with success. There was one major obstacle that was in the way of Riordan which is Riordan cannot locate enough skilled employees in China to cover the workforce needed to run an effective operation; this is due to the high concentration of competition in the same area as the new facility. Riordan is fairly aware that they will need to search for qualified individuals in the surrounding countries of India, Korea, and Pakistan to fulfill the labor needs. The following areas will be acknowledged in this paper; Riordan’s current issues and opportunities dealing with the cultural diversity of the company, political environment, becoming a multinational corporation, the legal & regulatory environment, basic principles of International Law, and the culture values. End-state visions, ethical dilemmas and stakeholders’ perspectives will ensure that Riordan can focus on the short-term and long-term relationship of its employees to promote employee satisfaction and loyalty.

Situation Analysis

Issue and Opportunity Identification

An important part of learning and developing global business is effectively to manage a cross cultural management system....