Riordan Manufacturing: organizational structure and financial overview

Riordan

Riodran Manufacturing

Riordan Manufacturing is a global plastics manufacturer 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. Riordan Manufacturing's China plant is focused on the manufacturer of electric fans and related products. The Hangzhou facility was developed as a joint venture between Riordan and a Chinese partner who was brought on for their experience working in that particular region. The selection of the Hangzhou location was originally chosen because of the proximity to the Qiantang River which was able to meet the transportation requirements for the company. The original location was also well suited to source a variety of raw materials and material suppliers could easily transport these materials on Chinese waterways.

However, the management team has recently concluded that a new location in Shanghai would make the organization more competitive in the long run. Shanghai represents a strategic location that has access to even more distribution channels. The move would allow the company better access to key logistic networks and increase its distribution capacity throughout Asia and Europe which are both growing markets. Thus the Shanghai relocation project plan has been initiated and the company plans to move their manufacturing facilities within five years of the current date. Therefore, the strategic plans that the company needs to create will involve the relocation of their manufacturing capabilities in China.

Relocating the manufacturing facilities Hangzhou to Shanghai will require a lot of effort from many divisions. A cross-functional team composed of representatives from the related business operations will have to be identified to redesign the business operating processes. Therefore the first step will have to be the recruitment and selection of the project team. The team should include people from all over the company who can represent their business functions. There should be representatives' information systems and information technology team members, operations representatives, logistics members, and manufacturing management and, professional movers among others. The project manager will have to work closely with human resources to create a plan to fill the positions internally (McDonough, 2000).