Strategic Planning for Riordan Manufacturing
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This paper examines the issue of strategic planning for a company specializing in plastic injection molding and design, Riordan Manufacturing. The paper points out that strategic planning is the very essence of long-term survival for a business. Since publicly-owned corporations like Riordan Manufacturing have the primary goal of maximizing shareholder wealth, strategic planning centers on the long-term growth in a company's financial position. Also, Riordan Manufacturing must constantly keep abreast of local, state, federal, and international laws, since a simple legislative act could affect them in any number of ways. Another primary concern is that of competition. The paper also suggests that Riordan Manufacturing should construct much of its budget based upon its economic forecast. The paper concludes that Riordan Manufacturing seems well-poised to continue its growth in the plastic injection molding industry, and appears to adhere to sound financial planning strategies, leaving little doubt that its shareholders are being appropriately represented.
Master Budgeting Process
Master Budgeting Process
From the Paper:"The formulation of any projected financial data must naturally include some assumptions. In the case of cash budgets, one important assumption of that of sales compared to collections from sales. Riordan quite clearly expects to collect revenue from sales during the month following the actual sale. For example, projected sales for July total $5,350,200 whereas projected collections from those sales are expected to be received in August under the cash budget.
"Another assumption appears evident in interest income. Given that collections from sales occurs up to a month--and possibly later--after the actual sale, Riordan has anticipated the interest income to be a fairly steady amount; as the figure does not change at any point throughout the fiscal year."
Sample of Sources Used:
- Block, S.B., & Hirt, G.A. (2005). Foundations of Financial Management (11th ed.). New York: McGraw-Hill/Irwin.
- Riordan Manufacturing (2005). Economic Forecast for Riordan Manufacturing (June 16, 2005). Retrieved 30 July 2007 from: https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/Finance/RioFandAEcoFore001.htm
- Riordan Manufacturing (2005). Operating and Cash Budgets - Fiscal Year 2005. Retrieved 30 July 2007 from: https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/Finance/RioFandA004.htm
- Riordan Manufacturing (2004). Riordan Manufacturing. Retrieved 30 July 2007 from: https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/RioMfgHome002.htm
Cite this Case Study:
Strategic Planning for Riordan Manufacturing (2008, March 23) Retrieved February 28, 2015, from http://www.academon.com/case-study/strategic-planning-for-riordan-manufacturing-102338/
"Strategic Planning for Riordan Manufacturing" 23 March 2008. Web. 28 February. 2015. <http://www.academon.com/case-study/strategic-planning-for-riordan-manufacturing-102338/>