The Relocation of Riordan's China Plant

To address these concerns, Riordan should negotiate with its Chinese partners to obtain rights to directly work with suppliers. It can do this by insuring its Chinese partners they will maintain the relationship between the Chinese plant and the Yin Motor Company. Riordan then can work directly with the Yin Motor Company to improve their labor situation and increase their on-time deliveries. This strategy will increase Riordan’s supply chain strength.

Moving the warehouse in between the shipping and receiving departments will reduce the amount of time needed to pull orders for shipment thus reducing the staging time needed. By having one location for both the finished goods and raw materials allows for the cross training between shipping and receiving as well as allows both departments to have access to each part of the building they need without adding extra work to one department.

Riordan Manufacturing has Chinese business partners with facilities in China. These facilities are in close proximity to the Qiantang River. The river access leads to Hangzhou Bay, which is sufficient to handle our shipping needs. Therefore, Riordan Manufacturing made a decision to take the electric

Distribution is a key to success in China. Recent economic growth has improved the distribution networks, particularly around the major urban areas with the construction of roads, highways and infrastructure.

With CADE eTutor, interactive training and communication programs can be delivered over the Internet/Intranet.  It provides the same capabilities of the satellite delivery system, as well as a few extra features, in a desktop version using highly compressed audio and video over IP.

Compare to our major competitors like ADI (leading supplier in industry), we are still very young. In such an industry that many similar companies offering similar products and use comparable tech, unique geographical advantage no longer matter in competition. What’s left for us is to execute the business with maximum efficiency and effectiveness and to make the smartest decisions possible.

Distribution: The company “operates two leased distribution facilities in Glen Bernie, Maryland” (Wheelen 20-6). We ship our products from these facilities to our retailers and clients. I do not think having two distribution facilities in same area is helping our company to reach our clients faster in other parts of country. My recommendation to our board is to construct or lease distribution facilities in suitable locations. These locations have to be easily accessible from western parts of the country. Having one more distribution center will give us an extra benefit. We can provide better, faster and cheaper service to our retailers and clients.

The Home Depot’s sophisticated logistical management system is rooted on infrastructure and relationships that were built in the US. Therefore, it can be argued that it can to the most part not easily be transferred to China, meaning it is location-bound. Nevertheless, the knowledge how to set up a well-functioning logistical management system can be a skill that can be transferred to China if the company is able to overcome the stickiness of knowledge.

Levendary café in china should not be completely different from that of US yet the flexibility is a must to survive in China. Foster should cooperate with Chen to find the proper way to adopt the Chinese culture and style in term of the menu choices yet they have to capitalize on what they are good in and use it as a competitive advantage such as the personalized services and the fresh organic food. They need to be differentiated to be considered by the Chinese customers. The stores should be located according to a strategic plan rather than opportunistic ones. Urban arias are the best choice for Levendary. Finally, a plane for the operation should be put and controlled.

Riordan Manufacturing's China plant is the company's sole manufacturer of the electric fans and related products. The Hangzhou (China) facility represents a joint venture between Riordan Manufacturing and local partner who has expertise in the region. The local partner is responsible for supplying the labor, communication with other local vendors, governments, and regulatory agencies as well as providing a small sum of operating capital. The Riordan team provides the technical and process expertise as well as executive management to the Chinese joint-venture.

This drawn manufacturing enterprise moved from Hong Kong to backyard China at a relatively lower cost. Therefore, Hong Kong port turns to focus on transporting container cargo; shifting from a relay hub to a load center and enjoying its superb period till mid-1990s.

To start, ABC Steel, Inc. has been located and producing in Reading, Pennsylvania for 120 years. This is a long and enduring relationship that we have built with this city, but packing up our operations here would completely crush this relationship. For example, ABC Steel, Inc. has many employees that are the children of multiple generations of hard workers. We would lose all of these loyal employees. We are also the largest employer in Reading currently and with the city already being one of the poorest in the country, our relocation could eventually cause the collapse of Reading. If we were to move to China to do business, the already high poverty rate of 41.3 percent in Reading would without a doubt raise substantially. Lastly, we had to address what our relocation would do to our customers. Many of our customers do continued business with us because of our long tradition in Reading. If we are to move to China, we have to realize that this could damage this relationship. If they see that after 120 years of loyal service that we move our operations to China, we

| * disconnected management, and problems with the joint venture with New Continent * lack of brand awareness in Beijing * very high operating expenses * perception of Carvel as a purely “American” brand

To achieve our new goal we will need to open a new factory in Thailand, as our research tells us, we have now four possibilities in four different regions, Mae Hong Sorn, Nong Khai, Bangkok and Yala. Each of these regions will also primarily serve a specific Chinese region according to trading deals, expansion will be possible once we supply 90% of the market we first target we are currently in.

The second major argument is that the Hong Kong’s logistic industry has a significant economic growth. As mentioned before, the logistics industry is one of the pillars of Hong Kong’s economy and it is essential for maintaining the Hong Kong’s success and prosperity. As the logistic industry is developing well, it can create a large amount of employment opportunities and contributes direct and indirect tax revenue to the Hong Kong government which is beneficial for maintaining Hong Kong’s competitiveness. According to the statistics of the stock market in Hong Kong, the stocks in the logistic sector raise an average of 54% in the last 12 months (Kerry Logistics Network, 2014). We can see that the investors are interested in Hong Kong’s logistics industry as the e-commerce expands further nowadays and it needs logistics to coordinate. Some local logistic companies are profitable such as, Kerry Logistics. The net profit of Kerry Logistics rose 71.5 per cent to HK$1.83 billion last year. And the earnings per share of Kerry Logistics are increased to HK$1.4 dollars. The Kerry Logistics said the focus of the huge e-commerce market will be cross-border e-retailing (So, 2014).