Cross-Cultural Management Research
Riordan Manufacturing (Riordan) is a fictional multinational company that opened a facility in Hangzhou, Province of China (Scenario: Riordan Manufacturing). Global Organizations are companies that have the scope and presence of a working alliance with different countries (Dictionary.com, 2012). Learning Team A has researched eight companies: Cisco, Fed-Ex Corporation, General Motors, Hershey Company, Krispy Kreme Doughnut Inc., Nike, Inc., and Nestle’ and Starbucks. The managing conflicts, cross-culture initiatives and strategies within these organizations have been researched, analyzed, and compared and contrasted against Riordan and with each of the other organizations.
On October 2007 and October 2008 the supply chain for expenses in the United States rose from $750 million to more than $825 million; however the stores in the United States dropped 10 % within that same period. Because of operational cost rising and sales falling, Starbucks, similar to Riordan must develop a strategic plan to cut cost, improve the supply chain performance, and prepare for future success. Starbucks’ three-step plan included a plan for reorganization. Starbucks’ success was fast and the company had to keep up with the pace of expansion.“ We had been growing so fast that we had not done a good enough job of getting the [supply chain] fundamentals in place,” said Peter D. Gibbons, executive vice president of global supply chain operations (Cooke, 2012). The process of implementing a strategic plan began with reorganization and selecting key leaders. The noted efforts to cultivate diversity impact both organizations. In the strategic plan the companies saw that language was a barrier, however, “closely related to language barriers are cultural barriers (Hodgetts, Luthans, & Doh, 2005, p. 189).
The companies’ response is to fully implement a strategic plan. The next phase for both is to...