As the first step to identify training needs, Riordan was investigated from perspectives of stakeholders, senior management, and human resources department. The CEO of Riordan as the main stakeholder is concerned with performance and services the company provides to customers and employees.
Synergies are anticipated benefits from the merger. Basically shareholders of both firms must come to a consensus that merged stocks is more beneficial than holding to individual share of the merging companies Factors contributing to a pro-merger argument are: Also, by merging two entities better producing resources are kept and unwanted financial burdens are phased out.
Tax reduction through a merger is in fact creation of wealth. There are two ways that tax-benefits can create wealth: Utilization of operation loss tax-credit. In a merger, it is stipulated that one of the two merging firms has a weaker financial status; and the other merging firm has strong finances.
Tax credits gained from operation loss by one of the merging firms can compensate for tax liabilities incurred by profitability of the other firm. Reevaluation of depreciated assets. In a merger, previously depreciated assets can be revalued and tax benefits arising from increased depreciation of revalued assets create wealth.
Capitalization on Unused Debts. Companies for various reasons may not take maximum advantage of their debt capacity. Merger creates climate of development opportunities, and a strong management that emerges from the merger can increase debt financing, and fully utilize the tax benefits associated with the increased advantage.
Complimentary in Financial Slack.
Removal of Ineffective Managers. Merger opens the door for a wider selection of human capital, especially selecting effective managers. If one of the merged firms has Riordan manufacturing swot analysis management, as a result of the merger, more effective managers are kept and others are marginalized or eliminated.
Reduction in Bankruptcy Costs. Undoubtedly, diversification minimizes enterprise failure. In case where a firm is failing and is forced to a possible liquidation or bankruptcy be creditors, assets are sold at a depressed value, and what channels down to stockholders are even less amusing since legal fees and selling costs are levied before disbursement of any fund to anyone.
A merger may be a good solution for the creditors and the stockholders to absorb least amount of collateral damage.
Buying Below Replacement Costs Merger. The value of acquired firm depends on number of elements such as: Appraisal value is quantifying the worth of a company by an independent appraiser. This value is closely tied to the replacement cost of the assets.
Dean Lebaron and Lawrence Speidell theorized that multiline companies that are undervalued can worth more if separated and sold individually. The going concern value is estimated based on "incremental fee cash flows to the bidding firm as a result of the merger or acquisition.
These circumstances create numerous opportunities and conflicts for the company; however, with proper planning, the company can capitalize and reach a net gain.
As a recourse to loosing clientele due to closure of Pontiac Plant and shifting operations south to the Mexican Factor, Riordan Manufacturing may choose to acquire or merge with a U. Strengths, Weaknesses, Opportunities, and Threats Analysis A definitive parallel acquisition by Riordan Manufacturing provides an example of the ongoing consolidations in the plastic manufacturing industry.
Coming after closure of Pontiac plant and launch of the Mexican plant, this acquisition provides additional evidence of growing dichotomy between aggressive management and smart investment within Riordan Manufacturing and its parent company.
Strengths The strengths that Riordan Manufacturing could be gaining from the acquisition would be total control of the company, acquiring stock for a minimal price and reducing overall debt.
There are also other factors to include with regards to the acquisition. Riordan Manufacturing could block their major competitors with this acquisition and bring in a higher net project through the acquisition. Dominance over market share.
Acquisition can bring in a positive cash flow, untapped lines of credit, and the customer base of the acquired firm.
Riordan can control more assets for less money through the merger than if it was to acquire those assets any other way. As lucrative the deal may be, facing problems are much of reality that Riordan has to encounter.
A serious opposition to the merger can be the management, labor unions, the existing shareholders of the target firm, vendors, and competition. Management and labor unions.
Management and labor unions may oppose the merger because they perceive their elimination to be inevitable. The management may act to protect their position by taking the poison pill and making the merger unviable for Riordan.
The labor unions with the same notion as the management may feel that their jobs can be cut and may picket the merger, file for an antitrust lawsuit, or walk off and make the plant inoperable. Any of aforementioned situations will create a red-light for any lending company seeking to finance the deal.
Shareholders of the target firm can have two perceptions:Training Needs Analysis Designing a new performance management system is crucial for Riordan Manufacturing as an attempt to align operational performance of the organization with actual performance from employees.
To allow for successful development of such PM system, it is important to conduct SWOT Analysis of existing system. What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help.
Remember, vote up the most important comments. Check out WikiWealth's entire database of free SWOT reports or use our SWOT analysis generator to create your own SWOT template.
Riordan Manufacturing Company Riordan Manufacturing Company Introduction Riordan Manufacturing leads the industry as a global plastics manufacturer of plastic injection molding. Initially, the company under the management of Dr. Riordan focused on the research and development and successive patenting of key plastics capabilities.
SWOT Analysis Stakeholders Scope Statement Statement of Work Implementation Conclusion - New Hire Process Standards and explore within Riordan Manufacturing Conclusion Riordan Manufacturing: Internet Browser Kyra Batson, Gene Brown, Chelsea Moore, Lisa Revely, & Cherrise Smith Learning Team C CIT/ June 24, Full transcript.
The board of directors for Riordan Manufacturing has asked your team to create a strategic plan for the organization. Create a strategic plan for Riordan Manufacturing starting from what you learned in Week One and using a similar strategic management process as Concepts in Strategic Management and Business Policy by Wheelen and Hunger.
The Riordan IS environmental analysis (SWOT Analysis) The SWOT analysis of the Riordan IS strategic plan provides a framework through which the environmental analysis of the Riordan Manufacturing both internal and external could be conducted.