Functional Area Relationships: Riordan Manufacturing

BUS/475 – Integrated Business Topics March 1, 2010
Dr. Laura Pogue
Functional Area Relationships: Riordan Manufacturing Riordan Manufacturing boasts their strategic capabilities and intellectual property strength as having the patents for major polymer material substrates. Because of these patents, Riordan is able to build unique products which create opportunity for their clients. The mission for Riordan is to be a company which pays attention to detail, practices extreme precision, and quality control. The attributes of the Riordan mission are seen throughout the processes of all Riordan projects. Careful checks and balances are placed throughout the process of generating new products which provide Riordan with the ability to create new products to meet the “unique needs” of their clientele. Riordan manufacturing exists to provide innovative products to meet customer needs. While Riordan may have started out holding patents for unique polymer processing substrates, the vision and goals did not stop there. Riordan manufacturing produces medical supplies, plastic bottles, and also owns a manufacturing plant in China which produces fans. The basic focus of Riordan manufacturing is to build a name trusted by clients to be superior quality regardless of the product. Reasons for the organization’s existence Riordan Manufacturing has 550 employees globally who are part of a Fortune 1000 enterprise that has revenues in excess of $1 billion dollars. “Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers” (University of Phoenix, 2004). Being such a large organization can make for a possible lengthy and complex mission statement; however, this industry leader in using polymer materials for solutions has a concise and user-friendly set of goals and statements. Reviewing the mission of Riordan Manufacturing, the focus on satisfying the customer was evident as one the top priorities. When companies bring in Six Sigma and exceed ISO 9000 standards, it is well-known that the companies are striving to be the leader among its peers and competitors. Within the mission statement, the values are placed in the customer relationships. Long-term relationships will be sought by maintaining rigorous quality controls, innovative solutions, and a responsive business attitude and reasonable pricing (University of Phoenix, 2004). The vision and goals seem to be tied in by treating their employees well with providing timely and pertinent information so the right decisions are made and supported in each department. Noting this has been mentioned, the finance department needs work on improving the consolidation effort between countries and locations. At the moment, the finance area is not feeling the much needed support since the switch from United States to China for the manufacturing division and does need more improvement. The goals seem to be in line with what all businesses are in business for. According to the simulation, the mission statement states that the bottom line is to achieve and maintain reasonable profitability to assure that the financial and human capital is available for sustained growth. Striving to be a solution provider, Riordan Manufacturing wants to be sure they are not part of their customers challenge.
Organizational Structure The reason for the way Riordan Manufacturing has set up their structure into such a culturally diverse layout has its advantages and setbacks. The organization wants to be a global presence and leader in the field of plastic injection molding. With state-of-the art design capabilities, they create innovative plastic designs that have earned international acclaim. Attention to detail, extreme precision, and enthusiastic quality control are the hallmarks of Riordan Manufacturing and they wish to remain with the competitive edge (University of Phoenix, 2004). Key positions that support this structure involve every department that Riordan has gainfully employed. Human resources plays a very integral piece of this structure and without these individuals, and the legal team working together, much of the foreign implementation would be virtually impossible. Operations and information technology must work with the other departments to ensure security is top notch, along with facilities providing the required safety initiatives, placement of all electronics is in a safe and cool environment in each location, and all details accordingly. The line managers on the sales force team are looking to hit a certain two year milestone with the organization and to achieve this objective, they need to focus on the day-to-day operation very closely. With implementing the new structure in China that houses the manufacturing plant, there were many areas of each department that were not completely ready for the move. This has inhibited Riordan Manufacturing in becoming seamless in their unification to the most important person, the customer (University of Phoenix, 2004).
Collaboration Process Riordan Manufacturing divides its functions into two main categories; research and development, and operations. Research and development consists of top management and various product engineers. Collaborating with the operational functions (e.g. sales and marketing, finance, operations, etc.) requires effective and efficient communication. Riordan Manufacturing is designed to maximize collaboration efficiency. All the functional vice-presidents report directly to Chief Operating Officer. The Chief Operating Officer works directly with the senior-vice president of research and development; both of whom report directly to the Chief Executive Officer. The collaboration process among Riordan Manufacturing’s functions is vital for achieving the organization’s goals. Because of Riordan’s structure, the collaboration process is encouraged. As mentioned previously, the operating functions report directly to the Chief Operating Officer. For example, the vice-president of marketing and sales reports to the Chief Operating Officer in regard to the company’s current sales, the Chief Financial Officer reports to the Chief Operating Officer in regard to the company’s financial status, and the vice president of operations reports directly to the Chief Operating Officer in regard to operating efficiency. Once the Chief Operating Officer has all the necessary information from each function, he reports to the Chief Executive Officer. Likewise, the vice-president of research and development reports to the Chief Executive Officer the progress being made by his engineers. The Chief Executive Officer can make the decision to allocate resources where needed to continue with the company’s strategic direction.
Use of lateral and vertical collaboration The collaboration process at Riordan Manufacturing is extensive. As a functional organization, Riordan Manufacturing has a traditional hierarchy of management. The CEO, Dr. Michael Riordan, is at the top of the chain of command. Because functional organizations are departmentalized, Riordan’s chain of command is separated into two categories, research and development, and operations (Bateman & Snell, 2009). Therefore, directly under the CEO are two senior-vice presidents. One senior-vice president oversees the research and development function, and the Chief Operating Officer oversees operations including sales and marketing, operations, international operations, legal counsel, transportation, finance, product support, and information (University of Phoenix, 2004). A vice-president is in charge of each of the functions previously mentioned and answers directly to the director of operations. The research and development function of the business is more linear than the operation function. Engineers specializing in different categories of research and development are given delegation over their specific area of expertise. The operation function of Riordan Manufacturing is more complex and less linear. To achieve organizational goals in regard to operations, orders start at the top. The CEO directs the Chief Operating Officer who gives the orders to the vice-president of a specific function (e.g. sales and marketing). The vice-president of sales and marketing relays the orders to five directors – each one in charge of a different task. Each sales director is in charge of four sales representatives who are responsible for carrying out the final orders. Therefore, the chain of command is long and extensive. Reaction to changes in the business environment is slower because of the lengthy chain of command.
Key Stakeholders and Their Roles Identify the key stakeholders and their roles needed to achieve the organizational goals, and recommend the collaborative interactions among the key stakeholders to facilitate the organization’s success. “Stakeholders are influential people who are vitally interested in the actions of the business” (Pearce II & Robinson, 2009). Riordan Manufacturing, while having numerous stakeholders, has a several key stakeholders that will play a significant role in achieving identified strategic goals. Riordan Manufacturing has defined it strategic direction with objectives and current initiatives. Additionally, Riordan Manufacturing has defined performance measurements for business processes and results that will ensure the strategic direction is successful. The key players that will ensure that the financial, people, and customer and market objectives are met include the (a) President and CEO, (b) Senior Vice President of Research and Development, (c) Chief Operating Officer, (d) Vice President Sales and Marketing, (e) Chief Financial Officer, (f) Director of Human Resources, (g) customers, and (h) employees. Riordan desires to achieve world class financial performance. This will require two significant needs. First, the CFO will need to address the compatibility issues of the Finance and Accounting Department. Second, the CFO will need to work closely with other department heads especially Research and Development and Operations to identify appropriate ways to reduce product costs with improved processes and tools. For Riordan Manufacturing to meet its customer and market goals, collaboration will be the key. The department leaders from Marketing and Sales, Research and Development, Product Support, Plant Operations and the COO will need to all have a clear understanding of the goals and how each of them play a role in achieving success through collaboration. Marketing will need to identify what the customers’ needs and desires are. Research and Development will need to design new products to meet the customers’ needs. Product Support will need to understand new products and how to provide the appropriate customer support. Plant Operations will need to ensure that process, tools, and employees are available to produce new products. The COO will need to have all his team members at the table to identify their respective collaborating roles in supporting the company’s objectives. Another area that has been identified as an objective is to recruit and maintain quality employees and to have improved employee satisfaction. This will take the collaboration of the Human Resources Department and the VP of Operations and the Directors of Plant Operations, as well as the employees. The employees should play a significant role in identifying what it is that improves or harms the employee satisfaction levels. Using collaboration between the departments of Riordan Manufacturing will enable the organization to more efficiently and effectively meet its overall strategic goals.
Conclusion
Riordan Manufacturing has been a successful company and desires to continue to improve its products, services, financial success. The mission, vision, values, and goals of Riordan Manufacturing provide the foundation for their strategic goals and current initiatives. The organizational structure supports the many varied products, services, and functional areas of the company. Collaboration across the functional areas, implementing processes and action plans, and understanding the key stakeholders, too, will prove to allow Riordan Manufacturing to gain the desired outcomes of its strategic objectives.
References
Bateman, T.S., Snell, S.A. (2009). Management: Leading and Collaborating in a Competitive World. (8th ed.) New York: McGraw-Hill Irwin. Pearce II, J. A., & Robinson, J. R. (2009). Strategic management: Formulation, implementation, and control (11th ed.). New York: McGraw-Hill Irwin.
University of Phoenix. (2004). Riordan Manufacturing [Computer Software]. Retrieved from University of Phoenix, Simulation, BUS 475 - Integrated Business Topics website.

Written Assignment Feedback | | |
|Student/Group Name(s) Team A |Date 3/1/10 |
|Course BUS475 |Assignment Functional Area Relationships |

Content/Development
| | |
|Subject Matter: | 3/3 |
|• Key elements of assignments covered | |
|• Content is | |
|comprehensive/accurate/persuasive | |
|• Displays an understanding of relevant | |
|theory | |
|• Major points supported by specific | |
|details/examples | |
|• Research is adequate/timely | |
|• Writer has gone beyond textbook for | |
|resources | |
| | |
|Higher-Order Thinking: | 2/2 |
|• Writer compares/contrasts/integrates | |
|theory/subject matter with work | |
|environment/experience | |
|• At an appropriate level, the writer | |
|analyzes and synthesizes theory/practice to develop | |
|new ideas and ways of conceptualizing and performing| |
| | |
| | |

Organization
| | |
|• The introduction provides a sufficient | 1.9/2 |
|background on the topic and previews major points | |
|• Central theme/purpose is immediately clear| |
|• Structure is clear, logical, and easy to | |
|follow | |
|• Subsequent sections develop/support the | |
|central theme | |
|• Conclusion/recommendations follow | |
|logically from the body of the paper | |
| | |

Style/Mechanics
| | |
|Format--10% | |
|• Citations/reference page follow | .9/1 |
|guidelines | |
|• Properly cites ideas/info from | |
|other sources | |
|• Paper is laid out | |
|effectively--uses, heading and other | |
|reader-friendly tools | |
|• Paper is neat/shows attention to | |
|detail | 1/1 |
|Grammar/Punctuation/Spelling--10% | |
|• Rules of grammar, usage, | |
|punctuation are followed | |
|• Spelling is correct | |
| | 1/1 |
|Readability/Style--10% | |
|• Sentences are complete, clear, and| |
|concise | |
|• Sentences are well-constructed | |
|with consistently strong, varied structure | |
|• Transitions between | |
|sentences/paragraphs/sections help maintain | |
|the flow of thought | |
|• Words used are precise and | |
|unambiguous | |
|• The tone is appropriate to the | |
|audience, content, and assignment | |

Comments / Grade
|9.8/10 - Great work Team A, Well done this week. I would like to see a bit more focus on organization and flow however, you did an excellent|
|job overall. Please also be sure that your running head follows APA formatting. Keep up the effort. Onward, Dr. Pogue |