Gap Analysis: Riordan

Essay by asia12University, Master'sA, June 2010

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Gap Analysis: Riordan

Cheri Modica

University of Phoenix


Gap Analysis: Riordan

Riordan Manufacturing moved their fan manufacturing operations to a facility in the Hangzhou Province of China in 2000 and has been very successful. Because of their success in China, CEO Michael Riordan decided to look for other ways to further expand the company in China. Riordan then found and purchased an existing facility that would fit their needs and remodeled it to meet the requirements of the existing Chinese licensing regulations. Riordan must now find a way to staff their new facility while abiding by Chinese regulations, which require local workers to produce a specific amount of products in their country, and increased competition from other companies in the area has left fewer available skilled Chinese laborers. However, plenty of other labor options are available among the Pakistanis, Indians, and Koreans who live in the in Hangzhou area and other nearby provinces.

Not only does hiring foreign labor for the new facility cause issues with the Chinese regulations but it could cause problems in employee relationships due to the mix of cultures, thereby impacting the effectiveness of the plant.

Situation Analysis

Issue and Opportunity Identification

The facility that was purchased by Riordan Manufacturing has had problems obtaining qualified personnel in the past. "Too much competition in the local province has led to a lack of available Chinese skilled labor; however, there is available foreign labor in the form of Pakistanis, Indians, and Koreans in Hangzhou and the nearby provinces" (UOP, 2009, p. 3). To compensate for the lack of skilled labor among the Chinese natives, the existing facility hired employees from the foreign labor market, resulting in management and production...