Approaches to Global Strategy
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 (Scenario: Riordan manufacturing, 2006).
Riordan is looking to expand further internationally in Australia. In order for Riordan to do so there needs to be a successful plan in place. The steps involved are called the strategic management process. If Riordan follow these steps, the expansion plans should be successful.
Strategic Management Process
Strategic management is the set of managerial decisions and actions that determines the long-run performance of an organization. It involves all the four functions of management. Strategic plans provide a common vision for the whole organization. The strategic management process is a series of steps that formulates the strategic planning, implementation and evaluation.
Step 1: The first step is identifying organization’s current mission, objectives and strategies. Every organization needs a mission. Defining the organization’s mission, forces managers to carefully identify the scope of its products and services. It is also important for managers to identify the goals currently in place and the strategies currently being pursued. A company’s goals provide the measurable performance targets that employees strive to reach. Knowing