Riordan Problem Solution

Problem Solution: Riordan Manufacturing

Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Production is divided among three plants: plastic beverage containers in Albany, Georgia; custom plastic parts in Pontiac, Michigan; and plastic fan parts in Hangzhou, China. Research and Development is conducted at corporate headquarters in San Jose, California. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.

Recently, Riordan made several strategic changes in the way it manufactures and markets its products. Declining sales and uneven profits over the past two years not only forced the company to change its sales processes, but also prompted them to adopt a customer-relationship management (CRM) system. Primarily sales teams rather than single salespeople now service customers, with each team focusing on a particular customer segment. Teams typically include a sales person, product engineering specialist and customer service rep. The hope is that the team approach will improve sales. (Milkovich and Newman, 2004)

This paper introduces an overview of situational analysis, issues and opportunities and end-state vision of Riordan Manufacturing Company that is facing employees, lower job satisfaction and increased turnover. The current management team focuses on increasing employee motivation and rewards for encouraging workforce environmental performance. The organizational structure of Riordan needs to rapidly change the new strategy ...

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...ives. They can use other companies, similar to theirs, that have had to resolve the same issues. Riordan leaders will have to clearly communicate to their employees through a better form of communication, like a memo that their bonuses are not at risk. Perhaps their bonuses should be based on how they perform individually and within a team. Their decisions should involve all the appropriate stakeholders before committing to a decision. Instead of communicating through teams, the management team should meet on a weekly basis face to face. Riordan should implement the correct training and incentive plans to keep their employees. Most importantly, Riordan should understand the effectiveness of surveys and learn to act on any key findings. Finally, Riordan should send a letter to their employees announcing a new incentive plan for their existing and new employees.