Gap Analysis: Riordan Manufacturing

Running head: GAP ANALYSIS: RIORDAN MANUFACTURING

Gap Analysis: Riordan Manufacturing

MBA 530/Human Capitol Development

University of Phoenix

4/14/2007

Gap Analysis: Riordan Manufacturing

Riordan Manufacturing is an established global plastics producer which employs 550 individuals and their projected annual earnings are $46 million. The company is a division of Riordan Industries, a Fortune 1000 enterprise. Riordan Manufacturing has production divided among three plants. The plastic beverage containers are produced in Albany, Georgia. The custom plastic parts are manufactured in Pontiac, Michigan. Finally, parts for plastic fan are produced in Hangzhou, China. The corporate office is located in San Jose, California with Research and Development located there as well. Riordan maintains major accounts with the automotive parts industry, aircraft manufacturers, and the Department of Defense. Other major customers include beverage makers and bottlers, and appliance manufacturers (University of Phoenix, 2007).

Riordan has experienced declining sales and uneven profits over the past two years. This has encouraged the company to change its sales processes, and led them to take on a new Customer-Relationship System (CRM). Riordan have made several strategic changes in the way it manufactures and markets its products. One of those major changes is having the sales teams, rather than single salespeople, to focus on a particular customer segment. The sales team includes a sales person, product engineering specialist and customer service representative (University of Phoenix, 2007).

Situation Analysis

Issue and Opportunity Identification

Riordan Manufacturing has implemented a new strategy of customer-relationship and a quality based improvement to enhance its manufacturing processes. However, implementation of the new strategic plans is at risk due to low employee morale and job dissatisfaction issues. Riordan must take immediate corrective actions to address these issues in order to successfully in implement the new customer-relationship system. Riordan should consider ways that allows management to develop how to improve morale, find effective techniques that would address and resolve employee dissatisfaction and strategies for dealing with conflict. They must set clear goals for their entire organization by engaging all employees. Implementing the new strategy will require strong leadership in transforming the current organization marketing and sales approach to the new strategy focused on customer needs.

Riordan has decided to hire Human Capital Consulting to be the consulting firm for the company which they specializes in human resources. The analysis objective will include, identify the issues that are leading to a decrease of employee satisfaction. Finally, recommend any potential actions to those issues (University of Phoenix, 2007). The management staff has to come up with a timeline to get the entire implementation plan off the ground. There has to be an action, a completed by date and the person designated to be responsible for that action. To make this implementation process a success everybody including the management staff and the employees have to be able to give their suggestion.

Issues and concerns turn into opportunities that will motivate employees in solving the problem to come up with alternative solutions. Incentives may lead to employee satisfaction and a lesser turnover rate. There are a few internal issues with opportunities, career advancement, higher job satisfaction, better communication among employees, employee motivation, lower turnover rate, improving opportunities with rewards and incentives. External issues that exist are globalization, and existing employees leaving the company to work for another organization and taking the skills acquired at Riordan and using those skills at the other organization.

Stakeholder Perspectives/Ethical Dilemmas

An organizational value is a translation of a company's behaviors during their everyday's activities to complete a specific goal. Most organizations place their values in a code of ethics and standard of conduct policy. Riordan Manufacture stakeholder consists of management, employees and customers. Each of these three groups has its own rights and responsibilities, but it is the CEO that makes the final decision. Riordan believes that the company takes great care of its customers. They also believe that employee dedication and loyalty can go towards solving the company's motivation issues and problems. These employees are seeking wages that are suitable for the jobs that they are doing and for what experience and knowledge they have. The customers are always first is a good way to think. These customers deserve to be treated fairly and if there are any problems the customer should be handled professionally at any given time. Realizing opportunities can help to take a long-term outlook while meeting direct needs, and can help focus on creating value for all stakeholders.

End-State Vision

Riordan Manufacturing executive team leaders need to improve by working together within the new customer-relationship management (CRM) system. This goal is to implement an effective incentive program over the next six months to motivate employees and to improve company's morale. Another goal is to review the salary structure, which needs restructuring over the next six months as well. Finally, to develop a program over the next twelve months that will help the company design a strategy to support employee rewards.

Gap Analysis

The outcome for Riordan is to increase it sales and the company's profitability. The company expects to build a stronger relationship with it employees and expected a minimum amount of turnover. In fact the company hopes with the implementation of the Customer Relationship Management System the company desires to see no turnover. With the new Customer Relationship Management System in place Riordan should notice an improvement in the planning and development and implementation of this program. Riordan has to do everything that they have spoken of in the past few months to make this an easy move for the company. They must make sure that they are keeping the customer aware of what is going on in a timely manner so that their will be no loss of customers along the way. Above all thing gain the respect of

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