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Essay / Gap Analysis: Riordan Manufacturing - 1946
Gap Analysis: Riordan ManufacturingRiordan Manufacturing, a Fortune 1000 company and global plastics producer, creates custom plastic parts for customers primarily in the automotive industry, manufacturers aeronautics, the Ministry of Defense, bottlers and beverage manufacturers and manufacturers of household appliances. However, recently, declining sales and profit inequality have forced Riordan to make several strategic changes in the way it manufactures and markets its products, and management is working to resolve motivation issues within its workforce (University of Phoenix, 2007). The following will cover some aspects. Riordans issues, opportunities, stakeholder perspectives and ethical dilemmas. This article will also cover Riordans desired end goals following the implementation of new strategies. Situation Analysis In response to declining sales and uneven profits, Riordan was forced to change its sales process and adopted customer relationship management (CRM). system. Customers are now served by sales teams rather than a single salesperson. In addition to the salesperson, the team typically includes a product engineering specialist and a customer service representative. Riordan has also implemented a Six Sigma quality approach and is ISO9000 certified. These measures were adopted in the hope of improved sales. However, internally, a recent employee survey found that employee motivation, satisfaction and retention are declining. Identifying Problems Riordan faces a number of problems which include but are not limited to; decreased sales, motivation, satisfaction and employee retention; however, due to different functional specialists, the issues are different within the company. R&D employees are unhappy with pay and declining satisfaction. The IT group believes its contributions are not sufficiently recognized. Due to declining sales, Riordan had to revise its sales approach and processes to better serve its customers. However, these changes led to more problems. Employees are concerned about fairness in incentives and compensation and do not understand how this will translate effectively into the CRM system. Riordan has a highly diverse workforce with a multitude of motivational needs, from valuing interesting work to higher salaries. Riordan does not communicate effectively with all different demographic groups within the company. Employees revealed in the annual survey that many are not satisfied or challenged by their work and do not feel adequately compensated for their efforts. Motivation is low and employees feel they do not have enough opportunities for development or promotion. These issues have culminated to the point where many employees are actively seeking opportunities outside of Riordan (University of Phoenix, 2007).