A company’s executive management will design the company’s mission statement to classify and measure a company’s success. The focused audiences of the mission statement are management, employees and stockholders. In addition, external customers and other stakeholder can review the mission statement on the company’s Internet website.
Riordan Manufacturing’s mission statement includes the use of Six Sigma and leading-edge research and development. The company promises to exceed the ISO 9000 standards of excellence, and continue to lead the plastic injection molding industry in the recognition of industry trends. For the customer, Riordan is committed to solving customers’ problems, rather than becoming the problem. Riordan’s management is dedicated to a high level of “quality controls, innovative solutions, a responsive business attitude and reasonable pricing” to earn long-term relationships with its customers (University of Phoenix, 2009a, para. 4). Regarding its employees, Riordan promises to maintain a supportive team environment focused on innovation. Through the mission statement, management shows commitment to employee training a sharing of information and knowledge. Finally, Riordan’s financial mission is to maintain a “reasonable profitability to assure…sustained growth” (University of Phoenix, 2009a, para. 6).
The vision statement not only indicates the expected moral and ethical behavior of employee and management, but also acts as the company’s commitment to the stakeholders and community. Although Riordan does not appear to have a vision statement listed on the company’s Internet or Intranet site, the Business and Ethical Conduct section of the employee handbook does speak to the ethical behavior expected from all employees. According to the employee handbook, “Riordan is built upon the principles of fair dealing and ethical conduct of our employees” (University of Phoenix, 2009d, p. 7). The handbook goes on to say the company considers integrity, and adhering to the spirit and letter of the law, as the baseline for ethical behavior. Riordan knows the company’s success and stability is the result of earning the customers’ confidence and respect. All employees are responsible for complying with the company’s business ethics. Failure to abide by the company’s comply could result in discipline or termination of employment.
A company’s strategic objectives are specific, appropriate, timely, and measurable. Strategic objectives “are used to operationalize the mission statement” (Dess, Lumpkin & Taylor, 2005, p. 1). Vision statements differ from mission statements and strategic objectives in that the primary purpose is to reveal the company’s core values “rather than bottom line measures” (MindTools.com, 2009, para. 4).
According to the Sales and Marketing Intranet page, Riordan’s has a “two year plan to reach the $50 million revenue mark” (University of Phoenix, 2009b, para. 11). Research on Riordan’s Operations webpage revealed further specifics on the company’s strategic plans. Riordan’s strategic initiatives include: efficient management of the employee headcount, improving processes to reduce costs, strengthening the company brand for a competitive advantage, improved time to market, and developing “ERP and MRP processes and tools that reduce cost by 10% and cycle by 15%” (University of Phoenix, 2009c, Excel Spreadsheet). Typical of strategic objectives, Riordan has the appropriate specific measurements and timelines in place for its strategic plans.
Total Quality Management a Strategic Objective
Total Quality Management is a strategic level objective for Riordan Manufacturing. Riordan has several facilities that operate the company. Riordan services different types of customers that all have diverse needs. TQM is an important and much needed strategy for the company in order to ensure Riordan meets the various needs of the customers, and remains credible. The company has to implement a strategy that works for the specific needs of its customers, which includes automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers. Management should be prepared to tailor the strategy based on the customers’ environment and industry. Riordan Manufacturing understands that customers will only be satisfied if the customer receives consistently reliable products and services delivered as expected, and priced for value (Total Quality Engineering, 2009).
Riordan understands that total participation by employees will keep the company running smoothly. Regardless, TQM is not going to be the same for every organization. The strategy that Riordan uses may not work for the next organization, but each process must place the need of the customer as the primary focus of the strategy for a successful implementation of TQM. Riordan Manufacturing uses the techniques of process management to develop cost-controlled processes that are stable and capable of meeting customer expectations (Total Quality Engineering, 2009). TQM is clearly a strategic level objective for Riordan Manufacturing in the company’s vision for future success.
Globalization generates an atmosphere of diverse customer necessities and customer fulfillment, as well as cultural differences. The globalization of trade has made high-quality low-cost products available throughout the world. Most leading companies now compete in multinational markets, and even residents of small villages may have the opportunity to select from a wide variety of products and services (Wadsworth, Stephens & Godfrey, 2002). Many suppliers may not have technology that is compatible with other countries, which may be a consideration as a base of operation. Total Quality Management has broadened, and every organization around the world has a preferred system to track of processes. Riordan Manufacturing uses Six Sigma and ISO 9000 standards (University of Phoenix, 2009a, para. 4).
Riordan Manufacturing recognizes the value of ISO 9000 and the importance of meeting the terms of international business standards. The company strives to exceed these standards to produce and market a product that is high in quality. The organization abides by international standards, maintains records of quality and audits their system internally to remain competitive with local and international markets. New methodologies in quality improvement, cross-functional management, process engineering and reengineering, and teamwork have contributed breakthroughs in product and service quality (Wadsworth, Stephens & Godfrey, 2002).
Riordan’s strategic plan contains a mission and vision that demands the company put quality first. Six Sigma and ISO are an essential part of the TQM strategy that the company has assembled to keep quality at a high standard. To maintain its industry leadership, the company will continue to adapt to new standards and improved processes as the company embraces the principles of total quality management. Globalization, increased competition, and the relentless pursuit of innovation will test the company’s ability to manage quality.