Affect of global market on business strategy of riordan - Essay Example

Riordan Manufacturing is one of the major global companies of plastic products. The major s include manufacturers of automotive parts, appliance manufacturers, defense development, health care, beverage makers and aircraft manufacturers. Around $46million annual earning is reported. They are considered as the leaders in the production of plastic products. Markets of fan, plastic bottles and plastic parts are easily disturbed by altering and changing economic conditions. These changes also disturb the Riordan Manufacturing.

Economy is also hit badly for appliances, automotive parts and aircraft manufacturers. Manufacturers of appliances are affected by housing market (Abrams, 2003). Considering when housing market is in good business in any city or region than people need new appliances for their homes. The Riordan Manufacturer, specifically in the production of home appliances has to increase their output and be able to balance the supply and demand graph. Changes in demand of products require Riordan Manufacturing Company to change their strategy accordingly.

Change in demand of drink affects beverage market. But this does not affect as strongly as home appliances. These shifts have impacts over costs and planning as well. The shift or reduction in beverage market is because of weather, change in design of bottles and marketing strategy (Ghemawat, 2010). In this situation Riordan Manufacturer can offer different styles after some time period, so their customers don’t turn away from them. Global economy change has an impact over marketing and business strategy of Riordan Manufacturing Company as well.

Everything, every business decision is linked with economy, customer demand, construction, marketing strategy, usage and last but not least quality products as well. Demographic conditions affect the manufacturers of medical stents, heart valves and health insurance as well. If the target population is getting free treatment from government and other institute then the production may be affected in small run. Changes in economy do not disturb the manufactures of health care products. Defense sector is also not affected by economic conditions as well (Ghemawat, 2010).

This is true for Riordan manufacturing Company as well. Their business strategy should be updated every time the global economy shows a shift. Looking at the above discussion Riordan Manufacturing has to grasp every opportunity available to them. New opportunities can be achieved by entering new markets and providing best quality products. To remain in market with one’s competitors, quality must be considered. ISO certification programs can help out the employees for ensuring quality of products.

Having established the fact that in business world economy, manufacturing, nature of product, social issues, cultural problems and everything else going on in the world is related and that it has an impact over the economy means that Riordan Manufacturing should adjust its business strategy accordingly. When demands are high, supply must be increased to cater to the requirements. When demands are low, the business strategy should be on strong enough footing to hold on for the dry period. The strong interdependencies between different aspects are the reason of ups and downs in market.

To capture the market in global manner every business needs to follows rules of globalization. Globalization is to gather the people on single forum; they belong to different back ground, culture, heritage, way of living, having different architectural style preferences and divert them toward single goal. To capture people belong to different regions, Riordan Manufacturer must take care of all these aspects. The culture difference must be considered while designing the shape of products. The previous examples and their needs must be kept in mind.

In this order Riordan Manufacturers can capture the market on global basis. References: Abrams, R. (2003) The Successful Business Plan: Secrets and Strategies, The Planning Shop, Palo Alto, CA. Pp. 186-189 Ghemawat, P.E. (2010) Strategy and the Business Landscape, Prentice Hall, New Jersey. Pp. 66-67