Imagine being Chief Executive Officer of a Fortune 1000 company with projected annual earnings of $46 million dollars and revenues totaling in excess of one billion dollars. However, the company has operated from a status quo position for years, you find that your company sales revenue is quickly declining, profits are uneven, and the ability to retain staff is being negatively impacted. As Chief Executive Officer it is your duty to turn the company's situation around so as to not loose any ground in the industry. This is precisely the situation that Riordan Manufacturing is currently facing. How would you go about resolving the myriad of problems at hand without losing anymore profits and revenues? The following pages will address some viable options to address the situation described above.
Riordan Manufacturing Company is a global plastic producer with three production facilities one in Albany, Georgia; a second in Pontiac, Michigan; and a third in Hangzhou, Chine. Riordan Manufacturing employs 550 workers, has annual projected earnings of $46 million dollars. Riordan Manufacturing primary clients are automobile parts and aircraft manufacturers; the Department of Defense, beverage makers, bottlers, and appliance manufacturers (University of Phoenix, 2006.
The company found itself in a very delicate situation with decrease in sales revenues, low employee morale; due to the lack of incentives and rewards employee retention also declined. The Chief Executive Officer knows that something must be done immediately to turn the situation around if the company is to minimize the impact of the situation. Assistance in rectifying the precarious position of Riordan Manufacturing must be a collaborative effort between members of upper management, the human resource department, as well as employees
Riordan Manufacturing is facing two years of declining sales, employee morale, and work ethics. Due to this tenuous situation, Riordan Manufacturing is being forced to implement strategic changes in manufacturing and marketing. The changes primarily focused on the company's sales practices, leading to include a new system strategy called adopt a customer-relationship management (CRM) system. Another issue is some of the company's work was redirected to a new manufacturing plant in China. Some plants restructuring have occurred leading to a self-directed work team approach, as a result more employees are leaving the company. Riordan Manufacturing completed their annual employee survey, revealing a decrease in overall job satisfaction, especially in the areas of compensation and benefits (University of Phoenix, 2006.
Implementing the CRM system is an opportunity to increase sales profits, by using the team approach to servicing each customer. The sales team approach is specifically design to focus on the individual customer's need. Each team includes a sales person, product engineering specialist, and a customer service representative; working together to ensure their individual customer's sales need (University of Phoenix, 2006.
The annual employee survey results are an opportunity for Riordan Manufacturing to address key concerns of their employees. Based on the survey results an employee recognition and rewards program is critically needed to ensure staff retention and job satisfaction in the areas of salary adjustments and financial incentives. The salary adjustments and financial incentives should be a direct result of performance appraisals that clearly align with the business strategy (University of Phoenix, 2006).
An outside consulting firm is a worthwhile expense, especially if the firm is able to identify the critical issues and make suggestions regarding the most effective way to identify and rectify the numerous internal...