Riordan Manufacturing: Financial State
University of Phoenix
BSA/500 – Matthew Berg
October 8, 2007
Running head: RIORDAN MANUFACTURING INC
Riordan Manufacturing is a leading provider when it comes to plastic manufacturing. Founded by Dr. Riordan in 1991 under the name Riordan Plastics, from the start Dr. Riordan goals were originally aimed towards examining and inventing patents. However, as time past during the exploration of his business endeavor, Dr. Riordan acquired a manufacturing plant which enabled the ultimate creation of plastic manufactured goods. Therefore, altering the company’s name to Riordan Manufacturing. Aspects of Riordan’s profitability such as assets, liabilities, sales, non-operating and operating expenses must be accounted for; consequently financial statements such as the Balance Sheet and Income Statement are used to perform analysis of business performance. Through analysis of Riordan’s Balance Sheet, their inventory turn over rate seems to be exceptionally high. With that said, Riordan’s inventory remains in good standing due to consumer purchase power and longevity of manufactured goods. On the other hand, the Income Statement confirms the increase in Riordan’s net profit of about 1.72 % from 2004 to 2005. This is primarily due to an increase in sales and decrease in non-operating expenses from 2004. As years progress, Riordan will use previous years’ Balance Sheets and Income Statements as guidelines for enhancing business processes and obtaining a higher net profit.
“Riordan Manufacturing, Inc was founded by Dr. Riordan, a professor of chemistry who had obtained several patents relative to processing polymers into high tensile strength plastic substrates.” (Riordan Manufacturing, n.d.) The company is an industry leader in the field of plastic injection molding. The company’s plants are located in Albany, Georgia, Pontiac, MI and Hangzhou, China. Each plant manufactures diverse products for vendor purchase. The plants produce plastic beverage containers, custom plastic parts and plastic fan parts. The company’s research and development is sited at the corporate headquarters in San Jose, California. Riordan’s customer base includes major customers such as automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufactures as well as several minor customers. Riordan Manufacturing is attempting to consolidate customer information to deliver value to the customer. The firm has historical records in many disparate databases, as well as in paper files and microfiche. Riordan Manufacturing use seven database systems, capturing the existing sales and marketing information and would like to consolidate the information into a Customer Relationship Management System (CRM system). The seven database systems are: Historical Sales
Files of Past Marketing Research, Marketing Plans, and Design Awards Sales Database
Production Records System
Profit and Loss Statements by Item and Group
Marketing Budget System
Marketing Budget Anticipated Results
Riordan Manufacture produces plastic beverage containers. It main focus is to meet customer satisfaction, delivering absolute solution. Furthermore, its objective is to define itself as renowned leading industry with its reliability and ability. Customer and Employee relations:
Riordan Manufacture maintains mutual relationship with both of its employees and customer. It understands the important value of employee and their contribution. In return, it provides 550 its employee creating innovative and oriented working environment. Riordan Manufacture major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers. It maintains its professional relationship with its...