Running head: EVALUATING OPTIONS – STRATEGIC PLAN – PART 1 1 EVALUATING OPTIONS – STRATEGIC PLAN – PART 1 2 Evaluating Options - Strategic Plan - Part 1 Danielle Hall STR GM 581 April 28, 2014 University of Phoenix Instructor: Steven Hall Company Background Riordan Manufacturing is a multinational plastic manufacturing company based in China. It is owned and controlled by Riordan manufacturing industries. The company markets its products globally. The company’s mission, vision and goals are; the mission of the company is to enhance global supply of plastic materials and ensure environmental conservancy in the company’s operational activities. The company’s vision is to become the leading global plastics manufacturers. The company’s goals are to ensure that it supplies high quality plastic products to its customers in the global arena. Competitive Advantage Riordan Manufacturing has a high competitive advantage over its competitors. Riordan manufacturing was established many years ago and from past experience, the company has endured tough economic times and performances. Due to these experiences, the company has been able to adapt well and formulate proper mechanisms through which it can overcome many of the challenges and difficulties that it is faced with. New companies are more likely to be hard hit by tough economic times and depressions. While they are faced by such challenges, Riordan is likely to continue to register a successful trend in performance (Ghemawat, 2007). The company has a strong economic base. A strong economic base is of great importance in helping the company expand its operations and open up new centers and branches worldwide. Large amounts of capital are required by a company in expanding international operations and branches. Many other companies that manufacture plastic products are less likely to expand their global operations due to lack of an adequate supply of capital resources (John, 1999). The company has a good and positive management background. The healthy management provides good leadership and management of the company’s resources in a wise and most informed manner. The management is vital to the success of a company since the decisions a company makes are paramount to the success of the business. The managers are experienced enough and can steer positive development in the company. The company’s large capital base enables it to conduct R&D in enhancing the manufacture of better and more improved products. Through R&D, Riordan manufacturing is able to develop new brands and manufacture better products unlike their counterparts who aren’t able to inject much into R&D activities. This gives Riordan an upper hand in the development of its products and meeting or enhancing customer satisfaction (Ghemawat, 2007). Potential for Value Creation The company has a big potential for value creation in many different aspects. The company, through R&D activities is able to develop better more refin ...

1. Running head: EVALUATING OPTIONS – STRATEGIC PLAN
– PART 1
1
EVALUATING OPTIONS – STRATEGIC PLAN – PART 1
2
Evaluating Options - Strategic Plan - Part 1
Danielle Hall
STR GM 581
April 28, 2014
University of Phoenix
Instructor: Steven Hall
Company Background
Riordan Manufacturing is a multinational plastic manufacturing
company based in China. It is owned and controlled by Riordan
manufacturing industries. The company markets its products
globally. The company’s mission, vision and goals are; the
mission of the company is to enhance global supply of plastic
materials and ensure environmental conservancy in the
company’s operational activities. The company’s vision is to
become the leading global plastics manufacturers. The
company’s goals are to ensure that it supplies high quality
plastic products to its customers in the global arena.
Competitive Advantage
Riordan Manufacturing has a high competitive advantage over
its competitors. Riordan manufacturing was established many

2. years ago and from past experience, the company has endured
tough economic times and performances. Due to these
experiences, the company has been able to adapt well and
formulate proper mechanisms through which it can overcome
many of the challenges and difficulties that it is faced with.
New companies are more likely to be hard hit by tough
economic times and depressions. While they are faced by such
challenges, Riordan is likely to continue to register a successful
trend in performance (Ghemawat, 2007).
The company has a strong economic base. A strong economic
base is of great importance in helping the company expand its
operations and open up new centers and branches worldwide.
Large amounts of capital are required by a company in
expanding international operations and branches. Many other
companies that manufacture plastic products are less likely to
expand their global operations due to lack of an adequate supply
of capital resources (John, 1999).
The company has a good and positive management background.
The healthy management provides good leadership and
management of the company’s resources in a wise and most
informed manner. The management is vital to the success of a
company since the decisions a company makes are paramount to
the success of the business. The managers are experienced
enough and can steer positive development in the company.
The company’s large capital base enables it to conduct R&D in
enhancing the manufacture of better and more improved
products. Through R&D, Riordan manufacturing is able to
develop new brands and manufacture better products unlike
their counterparts who aren’t able to inject much into R&D
activities. This gives Riordan an upper hand in the development

3. of its products and meeting or enhancing customer satisfaction
(Ghemawat, 2007).
Potential for Value Creation
The company has a big potential for value creation in many
different aspects. The company, through R&D activities is able
to develop better more refined products. The development of
better products is aimed at creating better value in the products
of the company. The development of these products is aimed at
ensuring that the value of Riordan products meets the value and
needs of the customers of its products. The company has
continually enhanced production of better and improved
products to meet the satisfactory levels of consumers. The
company strives to manufacture products that are
environmentally safe and that serve the needs of the customers
at the same time (Ghemawat, 2007).
Situational Analysis of the Company
The company’s greatest challenge is the relationship between its
products and the environment. Plastics are not very
environmentally friendly and this means that the company has
to work with negative criticism from environmental activist
groups (John, 1999).
Potential for Global Expansion
The company has a great potential to expand its operations to
the global arena. Though the company operates in some
countries globally, it has the potential to manufacture and
supply plastic products globally.
There are few plastic manufacturing companies in many
different parts of the world. The company could take advantage
of the available market opportunities to expand and open up its

4. outlets. The company could use and take advantage of its
current good economic status and position to open up new
branches worldwide.
Company structure According to Porters Five Forces Model
The threat of new entrants is relatively high. This is certainly
because there are many opportunities that other internal and
external investors could take advantage of or exploit these
opportunities to start up new companies. The new companies
could take up some of the market share currently held and
occupied by Riordan (John, 1999).
The threat of subsidiary products in the market is also high.
However, the company’s products are of high quality and many
customers and countries quantify and approve the products of
the company due to their high quality (Ghemawat, 2007).
The bargaining power of consumers in the regions where the
company operates is relatively high. The product prices are fair
and affordable in the local and international markets where the
company has established its markets.
References
Ghemawat, P. (2007). “Managing Differences: The Central
Challenge of Global Strategy,”. Harvard Business Review , 59-
68.
John, M. (1999). Strategic Options for Global Expansion. Trade
and Finance .

5. Running head: Making strategic decisions
1
making strategic decisions
6
Making Strategic Decisions
Danielle Hall
STR GM 581
May 5, 2014
University of Phoenix
Instructor: Steven Hall
Competitive Advantage
Riordan Manufacturing has the advantage of having been in
operations for a relatively long time since its founding. The
experience has made the company popular at the local level and
many people are already aware of the products and services that
the company deals with. This gives it an advantage over new
and emerging companies that will have to win the trust of
customers to be properly operational.
Riordan manufacturing has a big capital base which it uses in
financing its R&D activities and expanding or opening new
branches in the global scenes. The wide capital base also allows
it to be capable of financing its daily activities unlike other new
companies that have to depend greatly on borrowed capital to
finance many of their operations (Gelfand, 2006).
The good leadership and management in the company is an
added advantage since the decision making add up to positive
results for the company. Having an experienced managerial
team that steers the company towards the success path is a big

6. advantage for Riordan.
Structural, Leadership, and Cultural Considerations
In expanding and establishing its operations to the global scene,
there are several structural, leadership and considerations the
organization is to implement. These factors must be catered for
as the company establishes operations in the global scene;
Structural Considerations
The company’s structure must be in line with the global
structural expansion objectives that it has put in place. The
company will create a compatible structure that ensures that
roles and responsibilities to be delegated in foreign countries
are done in a good manner and through proper communication
channels. The company will ensure that it has a good
management team that is in charge of the operations of
management issues in the international scene (Gelfand, 2006).
Instructions will flow in a hierarchical manner from the top,
especially in decision making.
The company’s management in the foreign lands where
operations are to be started will recruit employees who have
experience in the respective fields and departments in the
company. The supporting managers in the foreign lands to be
hired will be experienced enough in the industry to avoid great
risks and losses. Recruitment of experienced employees will
save the company the monies that would be spent in training
new employees who lack experience in their respective fields
(Avolio, 1994).
Leadership
The company which is highly experienced in management
issues, in the new market, similar culture of competent leaders
and employees. The leadership should be able to adjust easily to
the new environments without complications or taking too much
time that could cost the company a lot in terms of finances.

7. Only those who have qualified in the cross-cultural training
program will therefore be posted internationally. (Gelfand,
2006).
In the international scenes, will be assigned different roles and
responsibilities. In delegation of their roles, there will be clear
distinction of the roles and responsibilities to be played by
every individual. This is to ensure that there is no overriding of
roles and responsibilities and that there is accountability of
every top manager in their respective area of jurisdiction.
(Avolio, 1994).
Major management decisions to be taken by the leadership will
be made after and in consultation with the management of the
company at the international level. The leaders in the regional
operations are allowed to take charge of smaller decisions and
they should regularly report to the international management on
any decisions they make (Gelfand, 2006).
Cultural
The company will instill programs to facilitate a leadership and
employee base to operate in the new global venture that is fully
aware of the new location’s culture and more specifically
language as an aspect of the new culture. The knowledge of the
culture of the people where it intends to establish is important
for many different reasons most important among them being
the formulation of the most appropriate advertising strategies.
The process of advertising could damage the company’s
reputation and damage its image to the public who are the
consumers if it is not in line with the cultures of a people
(Avolio, 1994).
The managers and other leaders knowledge of the culture of the

8. people is of great importance in ensuring that there is minimal
conflict with the people. Knowledge of the cultures of the
foreigners will help Riordan management team to adjust easily
into the way of life in the environments where they will
establish operations (Bass, 1985).
Supportive Marketing and Organizational Tactics
Before entering the new external market, a pilot study of the
market niche has to be established. This is to help the
management understand the new market in a better way in terms
of how to handle the most important decisions. The management
at the international level devices on the best entry strategy to be
adopted in entering this market (Gelfand, 2006).
In the new markets, the company is to adopt intense marketing
and advertising activities so that the company’s products
presence in the market is established. Consumers are not likely
to buy products that are just new, they are not aware of the
quality of the products and products that have not been
advertised regularly. Advertising is expected to increase the
sales as well as the revenues of the company (Gelfand, 2006).
Social media advertising is to be the most emphasized strategy
in the new market.
In enhancing and increasing global growth and expansion to
new markets, the company will apply a good pricing strategy
where it is to set its prices lower than that of players and
competitors in the markets where they are to venture. Together
with lower pricing for its products, the company is to begin
with giving discounts, and establish promotions for its products.
These two are expected to attract customers in a big way and
they will definitely prefer the company’s new products (Bass,
1985). Since the quality of the products is high, it could help
the company to easily scoop a big part of the company’s market.
Discounts and promotions will automatically cost the company a

9. lot in terms of profits though this is expected to be momentarily
after which the company would scrap them off to avoid losing
profits. Successful entry into new markets could be a challenge
and loss of profits for a short time is safer than incurring losses
due to lack of consumption or low revenues from reduced sales
(Avolio, 1994).
The company will adopt the mergers and acquisitions strategy if
a market is a highly competitive one or where it takes long
before a company establishes itself well. Mergers and
acquisitions will help the company adapt easily to the new
market environments and pick up quickly compared to direct
investment. Mergers and acquisition is one of the best
techniques for the company to enter into new markets since the
company and through these, the company will not spend a lot of
money or incur losses in advertising and other marketing
activities (Bass, 1985).
The New Organizational Chart
The Company C.E.O
Board of Directors (At the International Level)
Regional Directors
Board of Directors (At local levels)
Managers
Employees
References
Avolio, B. (1994). Improving Organizational Effectiveness
Through Transformational. Thousand Oaks: Sage Publications .

10. Bass, B. (1985). Leadership and Performance Beyond
Expectations. London: Collier Macmillan.
Gelfand, M. (2006). Cross-cultural organizational behavior.
Annual Review of Psychology , 479-514.