Caledonia Products Integrative Problem
Cathi Stark, Jamie Prettyman, Sylvia Mendoza, and Gregory A. Osborn Jr.
May 19, 2014
The Expansion of Riordan Manufacturing
Riordan Manufacturing has been in business for over 30 years. The company first opened their doors in 1991 as a research and development company. Over the last 30 years it has acquired a fan manufacturing company and a plastic bottle manufacturing plant. The company also made a big leap when it decided to move part of the company to China in 2000. It has been a while since the company has made any moves, and they have decided to expand the company once again. Riordan can expand the business in one ...view middle of the document...
The biggest disadvantages are the disclosure of information to the stockholders and the high cost of complying with the regulations. ().
Another option is the acquisition of another company within the same industry. However, a disadvantage of this is if Riordan Manufacturing no longer has competition, the drive to improve the products and service may decrease. With no competition, the company does not need to fight to get to the top. Another disadvantage of this option is problems the acquired company potentially did not share during the purchase; Riordan would have to fix their problems.
The final option is merging with another organization. This can result in changes for Riordan Manufacturing and the other company. Some employees may lose jobs, and everyone will have to adjust to differences in organizational culture. Additionally there may be a loss of full control of the company. If Riordan chooses this option, management must know and trust the company they are merging with to eliminate surprises after the merger.
Opportunities of Expansion Options
The opportunities that Riordan could face going public through an IPO are: an infusion of money and fresh, new people and ideas, and the ability to reach more people and consumers through the public offering of stock. If Riordan acquired another organization in the same industry, they could expand and benefit from having an already established organization. By merging with another organization, they could benefit from the expanded operation and larger number of employees. If they merge with an organization that is established and has a good track record, it could only mean good things for both companies.
Threats of Expansion Options
The threats of going public through an IPO are that their stock prices could be much lower than what they projected or needed them to be. They also could get bought out by a person or organization that would get rid of the existing employees and bring in their own. If Riordan acquired another organization within the same industry, they could potentially have a conflict with the way the two companies operate and they could clash within the company and industry and end up hurting both organizations. If Riordan merged with another organization, the management of that organization could do things much differently from what the employees of Riordan are used to and they could have major problems with management and the employees.
Globalization financial decision-
Riordan Manufacturing marketing budget, to include, “increased sales to existing customers by increasing sales force promotions, price discounts, and customer user group service” (University of Phoenix Apollo Group, 2005, 2006, 2012, 2013). This will increase and help produce revenue to reach $50 million, and also, “Expanded sales to new customers by implementing public relations activities, trade shows, brand development and sales force promotions” (University of Phoenix...