Virtual Organization E-Business:
Virtual Organization E-Business:
A global plastics manufacturer, Riordan Manufacturing employs over 500 people with projected annual earnings of $46 million. Riordan Industries, Riordan Manufacturing’s parent company is a Fortune 1000 enterprise with revenues in excess of $1 billion. Riordan's major clientele include automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers (Apollo Group, Inc., 2005).
With manufacturing plants in Albany, Georgia, Pontiac, Michigan, and Hangzhou, China, Riordan’s e-business plays a ...view middle of the document...
The Federal Patent Statue of 1952 establishes the requirements for obtaining a patent and protects patented inventions from infringement. Riordan’s plastic processing techniques and plastic designs fall under those requirements.
Riordan, like many organizations, uses the Internet for the sale of goods and services. Buyers in the manufacturing facility in China purchase eclectic motors and plastic polymers from local Chinese companies. In turn, finished products are available for purchase and shipped to customers anywhere in China or internationally. The China plant also designs and develops customized electric fan products for customers worldwide under individual customer contracts. After the design and development of a new electric fan is completed for a particular customer, a small production lot of the fans is usually scheduled, but under a separate contract. Periodic orders for quantities of fans against the contract’s yearly total however, are received from customers randomly throughout the year (Apollo Group, Inc., 2005). In order to be successful in meeting contract requirements and customer’s additional requests, contracts between Riordan and the contractors in which they work are critical. Failure on the part of one of Riordan’s vendors increases the risk of Riordan facing a breach of contract suit from their customers.
“The Web has made it extremely attractive to conduct commercial activities online” (Cheeseman, 2004). Riordan has established itself internationally as a world leader in the production of plastic products. The use of domain names is critical in protecting that reputation.
A domain name is a unique name that identifies the company’s Web site. For example, Riordan’s domain name might be Riordan.com or RiordanMfg.com. Once a company establishes a domain name, registration of that name will protect it from use by competitors. Even if Riordan decides to use the domain name Riordan.com, it may register multiple similar names to prevent competitors from using them. If a competitor were to find that the name RiordanPlastics.com was not registered to Riordan, it could register the name in the hopes that someone interested in working with Riordan will type in the incorrect domain name and be directed to the competitor’s page of similar products.
Riordan’s plant in China is a branch of the corporation. “Branches are often used where a corporation wants to enter a foreign market in a substantial way but wants to retain exclusive control over the operation” (Cheeseman, 2004). By conducting international business through a branch office, Riordan exposes itself to...