Riordan Manufacturing Company International Market Plan Essay

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This is a research assignment based on the international market plans for Riordan Manufacturing Company to sell their products in China. Riordan Manufacturing is a global manufacturer of plastics which is based in San Jose, California. The company is fully owned and operated by Riordan Industries.

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Their main products include plastic parts, plastic fan containers, and plastic fan parts. All these products are produced independently, in different branches of the company. Plastics and containers are listed as the major exports of the company. Having an annual earning of about $46 million and a workforce of 550 people, Riordan Manufacturing is arguably one of the most reliable branches of Riordan Industries, Inc.

Over the years, the company has tried to extend its operation capabilities by taking the business to the international scenes as one way of achieving its business goal of becoming a distinguished leader in the plastic industry. This plan has enabled the company to establish operational plants in various regions of the world, such as China, Michigan, and Georgia.

However, the company’s plans to market its products at a global level have been fraught with numerous issues in various cross-cultural contexts. This paper examines the three most pertinent ethical issues that would face the company in its international mission in China.

Riordan has many customers for its vast plastic products from all over the world, and most of these customers would constitute of beverage makers, military departments, automotive makers, appliance manufacturers, and aircraft manufacturers. With its strong economic profile, China has the potential of creating a constant market for the company’s top-selling products.

Manufacturers of automotive and aircraft parts are some of the major industries that utilize Riordan’s products in China (Wasley, 2008). Riordan Manufacturing established its operations in China in the year 2000 as one of its most recent expansion plans to foreign markets. This expansion would see the company’s fan manufacturing operation being shifted from Michigan, where it had been situated previously in China.

As an industry leader in plastic products and containers, Riordan had to deal with several ethical issues in its plans to take its top-selling products to the international market. In China, for instance, issues such as cultural differences, corruption, and legal policies continue to affect the way the company conducts its business operations there.

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In regards to culture, China is defined by a strong cultural setting that continues to offer formidable challenges to business opportunities in the country, especially to foreign investors. The ancient philosophical schools of thoughts have dominated China with strict values which continue to pose serious impacts and implications to the international businesses operating in the region.

Chinese culture and tradition have always had a significant impact on the operations of all businesses in the region. In this regard, many international businesses planning to succeed in the region have no other choice but to comply with the requirements of the country’s social values and standards. In most cases, these are some of the standards expected to guide businesses and organizations in China.

Also, in line with culture, the Chinese are known to harbor many taboos that tend to have a great impact on businesses in the country. Most of these taboos would be based on superstition, social norms, and religious values, among other cultural aspects. For instance, the Chinese are so much concerned with numbers and letters that they believe could be signals of either fortune or fate.

Foreign investors in the country may never get to understand some of these cultural beliefs and would, in most cases, end up violating them, unknowingly. This would, in turn, bring negative effects to the company’s overall business operations within the country.

Whereby it is a necessary move for Riordan Manufacturing always to ensure that they consider and respect business ethical standards in their international expansion plans, conducting business in China has never been so easy. This is owing to the country’s strong business cultural perceptions, that greatly interfere with the company’s normal operations as stipulated by the American culture, which is different from that of China.

Another ethical issue that affects Riordan’s market operations in China is corruption. As the fastest advancing economy in the world, China has never been lucky to escape some of the worst vices in society. Corruption stands out as a common practice in the country’s expansive business sector, and this brings serious effects to foreign investments, in terms of economic development.

Prevalent political and bureaucratic corruption in China stands out as a negative factor that continues to impact serious implications for the country’s future economical position (Satish, Jacob & Xianon, 2010). As with any other thriving economy, the success of most international business transactions in China has been achieved through the incidence of corruption and one common way through which corruption is exercised in various segments of the giant economy is through bribery.

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This clearly explains the reason why many foreign investors would be disappointed in their attempts to take an active part in China’s business environment. Establishment of good business relationships with relevant authorities in the country has often relied on significant, influential factors such as bribe and other incentives.

Due to their outstanding ethical standards in business, Riordan Manufacturing may never stoop to this level and compromise with the idea of paying bribes to conduct business in China. This, however, would mean partial success for the company in the country, since their interactions with partners in business, suppliers and government agents may be limited, as a result of the heightening corruption in the region, which continues to pose serious challenges to foreign investors.

Discrimination is the other pertinent ethical issue which is likely to affect the business operations of Riordan Manufacturing in China. As the company goes on with its mission of offering competitive products to satisfy the global plastic demands, it can not escape the fate of competition as new firms continue to join the industry. Most of these firms are likely to establish their business operations in China and India, among other strong economies.

Heightening competition in the sector may also encourage domestic investors in China to venture into the business to compete with foreign investors. This way, there would be a likelihood of discrimination of foreign businesses. Suppliers, customers, and other key business players in the country’s economical channels would tend to favor domestic firms to foreign investors.

In conclusion, all these ethical issues continue to pose serious impacts and implications to the marketing efforts of Riordan Manufacturing, Inc., in the Chinese business environment. To be able to prosper in their international business plans, the company should adopt new policies that are certain to help at improving its business strategies in regions that present high ethical issues.

References

Satish, D., Jacob, J. & Xianon, S. (2010). Ethical climate and managerial success in China. Journal of Business Ethics, 99(4), 527-534.

Wasley, P. (2008). University of Phoenix lets students find answers virtually. Chronicle of Higher Education, 54(48), A1-A10.

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IvyPanda. 2020. "Riordan Manufacturing Company International Market Plan." April 27, 2020. https://ivypanda.com/essays/riordan-manufacturing-company-international-market-plan/.

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IvyPanda. "Riordan Manufacturing Company International Market Plan." April 27, 2020. https://ivypanda.com/essays/riordan-manufacturing-company-international-market-plan/.

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