Strategic option for expanding global operations for Riordon
Riordan is a global plastic manufacturing company extending its operations beyond its boundaries. The company has vigorously expanded because of its focus on its mission, vision, and value statements. The mission and vision statements concentrate on four areas, which are the customer management programs, building long-term relationships with stakeholders, having innovative employees, and sustaining future growth.
It is achieved by having innovative employees, offering innovative solutions to customers, ensuring quality by reducing defects. The combination will enable the company to realize its vision and mission. There is also the use of the six sigma model to meet customers, shareholders, and employee demands. The value statement concentrates on giving all stakeholders value in the products of the company. This is ensured through the continuous focus on quality improvement and defect prevention by investing in research and development. It has adopted a variety of strategies that ensure the smooth running of the company’s operations.
To be a leading plastic manufacturer both today and in the future, the company has focused its energy on customer relationships, employees, the company’s focus, and the future vision. It has been in line with its mission and value statement. Also, Riordan manufacturing is concerned about its material purchasing process between the employees and the vendors. The management is considering implementing a database that will support web-based communication. The strategy will avail the users of a real-time picture of the company’s operations. It is essential to any company intending to venture into global markets Nwadei (2004, p.122).
Most important countries in which a global country should participate today
The global market has become excessively competitive, with developed industrial companies expanding to diversify their risks. The developed countries are protecting their infant companies by diverting unfair competition. Some of the developed countries are making intensive investments in third world countries. For instance, European companies have made intensive capital investments in the third countries whilst creating both complex and global supply chains.
Also, the European exporters have increasingly ventured into emerging economies, which include India, Brazil, China, and Russia, among others. It is according to the global Europe framework (2006, p.3). Therefore, the underdeveloped countries and the developing ones are the best countries to invest in because the competition is low. Also, local customers prefer foreign goods and services to the local ones. It necessitates foreign companies to capture a large base of customers within a short period.
Countries like China and Russia are developing at an accelerating rate, and this poses a threat to the countries making investments in those countries. In a decade, it is believed that some countries will have developed fully to support their population with locally generated products. Therefore, the list of the most vital countries to invest in will change and exclude the countries that are developing vigorously today.
Risk profiling
The Riordan manufacturing company, as a global company has developed some strategic plan options. The developments are cultivated by the idea that the company needs to attain its goals and objectives. The strategic plan options for this company were to reach too many customers as possible and to modernize its technology. The strategic options have their risks which are, both technical and market uncertainty.
To start with, the technical risk is that the strategic plan options were not developed in a manner to address diverse customers’ needs. It can hurt the market in that the company can experience difficulties when dealing with the customers. Also, a market is a dynamic place, and to cope with the changing environment, the company should flexibly frame its strategies. It will necessitate the company to adjust according to the demanding environment. The technical risk ranks at the top and should be addressed critically. The analysis suggests that companies need to position themselves properly to excel in competition.
Reference List
Europe Framework. (2006). Market access in a changing global economy. Europe: Publication Office.
Nwadei, C. (2004). The relationship between perceived values and congruence and organizational commitment in multinational organizations. Australia: Universal Publishers.