Submitted by jld090909 on 02/09/2009 12:34 PM Flag This Paper
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Gap Analysis: Riordan Manufacturing
Riordan Manufacturing while taking the opportunity to address declining sales, has adjusted their business strategy to be more customer-centric. This new business strategy has meant a change in the sales structure from individual salespeople to a sales team that includes a sales person, product engineering specialist and customer service representative. (Riordan Manufacturing) Unfortunately, the new business strategy did not include restructuring the Human Resource management strategy leaving many employees and managers dissatisfied and lacking motivation. The following situational analysis will address the issues and opportunities facing Riordan Manufacturing at the corporate level as well as at the manufacturing facilities located in Albany, Georgia and Pontiac, Michigan. Each stakeholder will be identified along with their potential issues and any ethical dilemmas. Additionally, end-state goals will be identified in order to perform a gap analysis. The gap analysis will identify potential solutions to achieve the end-state goals.
Situation Analysis
Issue and Opportunity Identification
In an effort to curtail declining sales and inconsistent profits, Riordan Manufacturing following the direction of founder and Chief Executive Officer, Michael Riordan shifted the business strategy to a customer-centric model. Individual sales people have been moved into a team that includes an engineering specialist and customer service representative based on customer segments. Additionally, Riordan Manufacturing has adopted Six Sigma and is now ISO9000 certified. (Riordan) These changes were intended to increase sales and profits but instead Riordan Manufacturing continues to see a decline in sales and profits, as well as, internal conflict. Specifically, the turnover rate has increased while employee satisfaction has declined and performance data indicates motivation is on the decline. Many correlate these internal issues to...