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Review of Riordan Manufacturing Business Systems

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Team B Review of Riordan Manufacturing Business Systems Greg Guntz, Jerad Kays, Armando Figueroa, Lanone Mayfield, Rich Roberts, Bill White University of Phoenix BSA/310 Business Systems Mission/Description Riordan Manufacturing is an industry leader in the field of plastic injection molding that has earned them international acclaim. (Apollo Group, Inc., 2004,). The mission that Riordan Manufacturing has embarked on will lead the company into the 21st century with a sound footing in the plastics manufacturing industry. In order for Riordan Manufacturing to be able to meet its customer 's needs and expectations, there needs to be systems in place that not only focuses on the quality but also the management of the manufacturing …show more content…

The expenses for general and administrative operations have gone up almost $200,000 in one year. The next item of focus is Riordan 's balance sheet. "The balance sheet indicates what the firm owns and how these assets are financed in the form of liabilities or ownership interest." (Block and Hirt, 2005, p.28). The assets of Riordan have gone up roughly three quarter of a million dollars. These assets have been financed through liabilities or stockholders ' equity. (Block and Hirt, 2005, p.28). If the assets are taken and divided by the stockholders equity the result is that the stock price has dropped from $2.78 a share in 2004 to $1.56 a share in 2005. The opportunities for this area would be to reduce long-term debt, which increased over $200,000 in the past year. The first challenge is to cut the administrative costs, ideally below what was paid two years ago, which was $1,524,066. The fact that the separate entities in Michigan and Georgia are not compatible with each other on the mainframe systems is a glaring problem. This existing system needs to be upgraded or replaced. An even bigger problem is that this information needs to be consolidated at the headquarters in San Jose, which is not happening due to incompatibility. The solution is to spend enough money within the IT department, involving software and hardware upgrades, to eliminate administrative costs enabling long-term debt to be paid causing stock

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