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Gap analysis

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Gap Analysis: Riordan Manufacturing Manuel Hizon University of Phoenix Gap Analysis: Riordan Manufacturing When having a drink of water from a plastic bottle, ever wonder where the plastic bottle comes from? Riordan Manufacturing is one of those companies who produce plastic bottles. This global plastics leader generates over $46 million in revenue yearly and is a wholly owned subsidiary of Riordan Industries (Riordan Manufacturing, 2007). Riordan sales have recently declined to include a drop in revenue and profits. The company is also working towards unveiling three new projects in the next year. Recent employee surveys have revealed company wide dissatisfaction and low morale. The focus of this paper is to identify the situation at Riordan, the stakeholders, the challenges and opportunities, and defining the end state goals of the organization. Situation Analysis: Issue and Opportunity Identification Riordan Manufacturing has made recent changes to their manufacturing processes to include marketing efforts. Due to lagging sales, the company has changed their approach to the customer service process. Client services will come through sales teams, not individual sales members (Riordan Manufacturing, 2007). The changes are the result of decreased sales and revenue. Many issues have surfaced during this time of change. Primarily, senior management is feeling the heat of poor morale and employee retention. Senior management is trying to balance the need to compensate and retain skilled workers while dealing with the need to save money for research and development of a new product line. This has led to several new challenges and opportunities for the company. ...read more.


be effective to client's needs? End-State Vision The vision of the company has a different view from different levels of the company. The vision is ultimately, where the company sees itself tomorrow. The current perspective from senior management has the company continually growing as a global leader in the plastics industry. Mid-level management and first-line employees see the company as one where promotions and salaries are below expectations in the industry. Based on the company's strategic goals, the vision of Riordan Manufacturing is to secure a position as a global leader in the plastics manufacturing industry by providing innovative and quality plastic products and services. Gap Analysis The situation at Riordan suggests that multiple issues are standing in the way of the company's vision and end-state goals. The company wants to improve the sales process, introduce new products, and increase revenue and profits. The problems identified through employee surveys, and the concerns of department managers suggest that the achievement of end-state goals is in jeopardy. Riordan's vision will require that the company have the skilled workers to perform the needs of the company. The current issues will require that the company create measures to compensate and reward those workers currently in the company. By not doing so, the existing talent within the company will leave and the hiring of new skilled workers will be difficult. The creation of a performance management system can motivate employees to perform where performance at a higher level occurs. This system allows employees to take ownership in the company because he or she sees how their everyday jobs connect to the strategic goals and priorities of their organization (Trahant, 2007). ...read more.


The CEO is concerned with the bottom line: money. The found of this company is nearing retirement and wants to build the company up to secure a lucrative retirement package. The V.P.'s of the company are only concerned that the employees of their sections are under paid. The HR director feels disconnected from the company and the management team. There is also some mistrust between departments concerning objectivity and compensation. The values employed by this team are varied. The top of the organization is concerned about himself, while others are resistant to change. Some feel no changes are necessary but redesign the job process. Research and Development, IT, and Sales Staff The concern for these workers is that the compensation and reward system is flawed. The managers for these areas are concerned that key members will abandon the company for higher pay. The workers are concerned over compensation but the dissatisfaction comes from no career progression possibilities exist. New hires receive higher compensation and regarding promotions, knowing the right person in management gets you promoted. The company offers no incentives to stay in the company. Promotions to other locations offer no relocation packages. Client Companies The changes at Riordan could expose clients to higher costs of products and services. Some clients are cost sensitive. Will the changes in the sales approach (team approach) be effective to the client's needs? Table 3 End State Goals End-State Goals Increase Sales and Revenue Effective Compensation and Rewards System Innovative Manufacturing Processes and Products ?? ?? ?? ?? Gap Analysis: Riordan Manufacturing 1 ...read more.

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