Political Science

Overview
Like many companies, Riordan Manufacturing faces the challenge of the changing forces of the economy.  The company, which produces a range of plastic products for the automotive parts, aircraft and appliance managers, beverage makers and bottlers, the health industry and the Department of Defense, intends to reach the 50 million mark in terms of its sales by increasing its sales to its existing customers and to expand to new markets.  Currently, Riordan operates in California, Georgia, Michigan and China with annual earnings reaching  46 million.

Economic forces have been fluctuating over the years cited factors influencing profitability are the effects on costs and value caused by GDO growth, the value of the dollar, inflation rates, labor costs, and overall sales across the industries.  Hence, in the entire supply chain, Riordans success depends on the demand of its existing customers and the success of its market expansion.

Recommendation
The summary of the strategy is to expand the operations in China.  As the US dollar is projected to get weaker over the years, in addition to the increasing market and industrial activities in China, the country is going to be the next sensible market to target and its peripheral regions.  This will be an easier approach as the Riordan already has production operations in China.  In addition, other markets in the Asia Pacific can be targeted as well, especially as outsourcing productions target the region due to less expensive labor and operational costs.

Overseas expansion, in this regard, can be regarded as the main strategic element that Riordan needs to implement because the US market reaches the point of dilution in addition to the fact that the economy has been hit with critical forces such as recession and financial downturns.  Moreover, globalization has enabled companies to explore new markets and to expand its opportunities by doing business with developing and emerging economies.

Although the next big step for the firm is to enter new foreign markets, it is also important for Riordan to stabilize, sustain, and then eventually pick up the business activities on the home front.  The US economy has been volatile in the past years, and since that the chain of demand for Riordan products relies on the long chain of demand from certain industries (i.e. the appliance sector lies in the dynamics of the housing market), it is important for the company to make sure that Riordan manages to stabilize its sales in these sectors.

Implementation Plan
Objectives
Main objective To reach the  50 million selling mark.
To identify other opportunities that will increase company sales by means of increased transactions with existing customers and to expand opportunities in new markets.
To determine the most workable strategies based on the projections of the performances of certain markets.
To protect the company by making the firm less vulnerable from economic instabilities brought by exchange rates, oil prices, and labor costs, among others.
 To formulate strategies based on the dynamics of related industries.

Functional Tactics
To initiate country and regional analysis for potential overseas expansion of sales.  As the company already operates in China, research and analysis can be conducted from the country.  It is also important to identify potential new market entries in the region.

Calculate the costs of entering new markets, or at the least, the costs of expanding the operations in China, and to open new sales venues there.

Source information on the performance of the relevant industries in the United States.  As the companys main customers come from specific sectors, the demand for Riordans products depend on these markets performance.  Market and industry research is therefore an important step that should be implemented now especially as projections for production for specific markets need to be calibrated according to anticipated demand.

Identify the project management team and sub-teams that will be mobilized for these sets of initiatives.

Action Items
Identify the project management teams.
Translate the objectives into a set of structured plans and sub-plans.
Contact operations in China and conduct a feasibility study on expanding operations to include sales.  Explore potential markets in Asia Pacific.
Conduct current market and industry research in the US and identify the potential critical points that can affect current production strategies.
Explore diversification.  Examine other plastic products that the company is not producing yet which can be deemed to increase demand in the long run.
Calculate costs of expansion andor diversification and then the eventual ROI.

Milestones
Sales and marketing activities in China and Asia-Pacific prior to the establishment of the China sales office.

Establishment of the sales arm in China and the possible expansion at the Asia-Pacific.

Restructuring of sales operations in the United States.

GANNT CHART
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1. Market and industry research for current US sales sector.
2. Feasibility study for China sales and the rest of Asia-Pacific region country analysis.
3. Computation of resources allocation and projected return of investment for foreign market entries.
4. Preparation for the expansion of sales arm in China and Asia-Pacific.
5. Sales and marketing activities in China and Asia-Pacific.
6. Establishment of the sales arm in China which will serve the Chinese and the Asia-Pacific market.
7. Adopt strategic production operation output, and sales and marketing efforts in the US.
8. Explore potential product diversification points for bot the U.S. and foreign markets.
9. Implement the integrated and coordinated strategies for the U.S. and China operations.