GLOBAL STRATEGY

Global Strategy

Global Strategy

Introduction

Riordan is a very big manufacturing company of China. It manufactures fans blades and fan housing. Electric fan motors are purchased from a third-party and manufactured in China with plastic parts. The China operation is being conducted as a joint venture between Riordan Manufacturing and a small consortium of Chinese nationals, which then sells its final product to the market. Riordan has expertise over the manufacturing of the fan and its processes, on the other hand, the labor and capital is supplied by individuals and government agencies. After receiving the raw materials and all other required stuff, Riordan manufactures the goods and then sell these final goods to the market. The sales of the company have been increasing and it intends to further expand its production, and operations. It plans to expand the business and go abroad for the sales of its goods world wide. In this paper, we will examine the aspect of strategic management of expanding the business world wide.

Discussion

The Strategic Management of the company represents a systematic objective and approach towards determining the future direction of the company. Riordan plans to expand its business and go abroad for the sales of its goods. The first step includes setting the company's objective and the future plans of the company. In this step, the company has decided to expand its business to global operation to expand its sales and scope. The third step includes the time it takes to plan the whole process and expand the business internationally (Bharadwaj, S. G., Varadarajan, R. P., and Fahy, J, 1993). This expansion usually takes a significant amount of time; hence it can take even two to three years. When expanding the business, an organization has to look for alternatives, so it can select the best option available. This is the fourth step, when the company decides which course of action will be taken by the company that best suits the company. There are different options available for expanding the business to Riordan Company. It has to look at the market of Fan Sales in a particular country and has to consider the presence of competitors in such an area. The company has the option to enter into a joint venture in the foreign country or start a new subsidiary in the other country to achieve good results. After going through all these processes, it is ...