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Location of Riordian steel plant.

Acting as a Senior Manager please critique the two papers (combined) by identifying two reasons why the proposal should be accepted and two reasons why the proposal needs to be further refined before it can be accepted.

Country Analysis II: Technology Infrastructure and Demographic Factors
GMGT/580
Ben Zuckerman
Bobby Allen Jr.
July 9, 2006

Within Riordan Manufacturing initiatives there has been several goals mentioned that deserve ample consideration when looking for global expansion locations. The first goal set by the company was review outsourcing options for standardized plastic products built in the Albany plant. The next goal was develop a roadmap for next generation heart valves, medical stents, and complementary medical devices. Attached to this goal Riordan also wants to create market brand recognition for medical products. It is the goal of this analysis to show how technology and infrastructure factors as well as demographics can lead us to a comparable plan to standardize plastic components to gain quality improvements and volume global pricing as well as position Riordan as the leader in the delivery of plastic solutions. Future opportunities listed during the consideration of the expansion should present two or more new entry points to the global market of plastic solutions.

Technology and Infrastructure in Mexico

The first opportunity presented to Riordan Manufacturing is the ability to open up a new facility in Mexico that allows them to remain competitive in an environment were there competition is already seeking to expand into low labor cost countries.

"Charlotte-based Dynacast International, a die caster of zinc, aluminum, and magnesium, is instituting a "capacity realignment to support customer migration to low-cost countries." According to CEO Simon Newman, "Our customer base is moving manufacturing operations to low-cost countries, and it is important to our future to expand our facilities in these areas."(Foundry, 2006)

The threat present in this diversification opportunity to remain competitive is the affect that companies such as Dynacast have on the community they leave when they relocate. The economy for that city takes a tailspin downward as unemployment spikes upward. This is economy is not easily resuscitated without the introduction of new jobs in the market which does not happen regularly.

Potentially the company may decide not to fully relocate the operations within the plant to a low cost area and totally kill all the jobs off in that area. The other opportunity's that exist for company's seeking expansion are joint ventures. By linking up resources and adding business experience with technology companies are now empowered to enter into new markets with half the risk exposure they would normally have by being sole proprietors.

"Techno cast is a joint venture between Caterpillar Inc. and Cifunsa, a Grupo Industrial Saltillo subsidiary. In 2004 Caterpillar announced it planned to downsize its Mapleton, IL, foundry, and discontinue production of engine blocks and heads there. At the time the Techno cast joint-venture was unconfirmed, but the expectation had
been that those Caterpillar-designed products would be manufactured in Mexico
and supplied to Caterpillar plants in Mossville, IL and Greenville, SC."(Foundry, 2006)

The long term threat of consolidating the smaller companies into larger ones in the reduction in competition within quickly shrinking industries. The push for these mega companies to be in the top five in industry will reduce the quality of diverse markets and competition. This change will force smaller companies to seek more customized production and create opportunities for specialty shops that could be link to the large organizations.

"The merger might spark more consolidation by making other companies look for further acquisitions or mergers to be number one in the market, he adds. Much of this will depend on what GE's strategy is going to be. They now have several companies, each of which has small market shares in several sectors Industrial control, telecommunications, and military. "Do they intend to try and take a leadership position in all these, or will they focus on just one? Perhaps a more pertinent question would be 'is consolidation good for customers." Only a customer can answer that."(McHale, 2006)

As technology continues to increase in Mexico we should see the opportunity to influence households more as the personal computer usage increases creating a market for future skilled workers.
"As part of the initial implementation of this effort, Intel and Mexico's Telmex will collaborate to expand the use of technology in Mexico by making a new type of desktop PC available to first-time computer users. Intel intends to work with governments and local telecommunications companies to initially launch the PC in other parts of the world later in the year." (Electronic News, 2006)
"Intel has long been working with local governments and organizations in developing countries to bring the benefits of personal computing to homes, schools and businesses," concluded Mark Beckford, general manager, Intel's emerging markets platforms group, in a statement. "With Intel's focus on enabling the local PC industry infrastructure with tailored products, investments and partnerships, we believe we have been able to make a real difference in people's lives. The purpose of the Discover the PC initiative is to bring personal computing to citizens in developing countries that currently can't access or afford a personal computer."(Electronic News, 2006)

Technology and Infrastructure in Canada
The opportunities in Canada took me down a different path of potential innovations for Riordan Manufacturing currents goals and as well as future opportunities. Canada Hydro Developers are building power plants focusing on low-impact renewable energy technology and wind energy. Although this may appear to be a stretch from any of the related operations that currently exist within the company. The current piping that is being utilized could potentially be change to a highly durable plastic base formula that allows for longer terms of use without the compromising characteristics present by metal based piping. There is a new project that will be taking placed that has been presented and sold to promote the growth of alternative energy in the Canadian regions.

"The company builds and operates independent power plants focusing on low-impact renewable energy technologies, such as hydroelectric, biomass and wind energy, according to Canadian Hydro's profile. In addition, in 2005, the company signed a 20-year contract to
sell green power to the Ontario Electricity Finance Corporation for the Melancthon Grey Wind Project near Shelborne."(H.B.O., 2006)

Another potential opportunity that is present in Canada is there inability to process the recycling of there aseptic containers. Since there is no recycling program in place and the government currently retrieves these items through a municipal program but are unable to fully break them down and take advantage of the potential raw material there is room for a fresh ideal to be presented and a leader in the industry to be named. With the creation of a new plant in the region it may be possible to retrofit it to be compatible with processing these items and turning the end product into something useful to potentially be used in current finished goods as well as new market opportunities.

"Tetra Pak Canada [letrapak.ca] says 77 percent of households have access to recycling through either deposit/return or curbside collection systems. in BC aseptic beverage containers except milk or milk substances are redeemable at retail stores and depots. Provinces including Alberta, Saskatchewan, and Manitoba do accept them as part of this deposit/ return-it program. Depending on where you live, aseptic cartons might be part of curbside recycling and/or accepted at some depots. Check with your city/municipal office. Though often returnable, aseptic containers aren't fully recyclable in many cases. Significant energy is required to break down their multi-layered construction and few facilities with capable technology exist." (Alive, 2006)
Due to the amount of energy necessary to break down the material a joint relationship with Canada Hydro developer would potentially produce a beneficial agreement that could create limitless profits since the amount of raw material generated is based on resource consumption and the energy source is self fed and nondependent.
As another potential opportunity to gain skilled workers some manufacturing plants in Canada have outsourced plants to low labor cost countries to remain competitive in certain industries. This has created pool of skilled workers potentially that would be eager to gain employment at a new facility allow Riordan to control the quality of worker that would be put into place.
"First of all, there is the pretty-much expected thing: restructuring. Kleinert says that they've closed a piston plant in Canada and adjusted the production in plants in the U.S. and Mexico. Plants in Europe have also undergone adjustments. They've decided to concentrate on core competencies and products. "Our goal is to be in the number 1, 2 or 3 positions in each
of our businesses. This has led the company to sell its Fuel pump business, as well as its mass air sensor business. Kleinert explains that in each of those cases there are companies with solid
positions and that it would consequently require sizable investments in order to gain the position that they're seeking."(Vasilash, 2006)

Riordan Manufacturing has a great desire to effectively manage global resource demand and some companies within Canada have managed additional cost savings by outsourcing the management of certain operations. This redirection of resources has created an opportunity to take the cost savings and reinvest those dollars into research and development and improve industry standings by making sustainable changes and diversifying market entries.
"Another shift in IBM's plan is to business transformation outsourcing (BTO). According to Fortin, BTO is currently a $500-billion market globally. He admits he's not clear what portion of this is in Canada, but says that it essentially doesn't matter since IBM is positioning itself as global player. "BTO is emerging. People might outsource call centers or help desk but (BTO) takes on HR, procurement, finances and transforms the processes and than we run it for them. That is a fast growing market and customers are zeroing in on this," (Del Nibletto, 2006)

The last opportunity I see with Canada in regards to their infrastructure area is branding. Currently the country is going through an identity crisis due to a lack of products or industries with which they can be known for. With Riordan Manufacturing looking to launch its new pyramid bottle water they stand the opportunity for the country to get behind the product as a means of pushing and identifiable source of refreshment across the boarders into other countries. Although this product is not expected to be a sole source branding the expertise of American companies could take this opportunity to attack a very calm market that is not use to aggressive marketing.
"The Canadian economy is largely resource-based with some interesting pockets of innovation in technology, sciences and service industries. But, Canadian business leaders must recognize the need to move fast and far in innovation, research and development and brand building. A lesson can be learned from South Korea's Samsung. Earlier this decade, it had a wide-ranging product portfolio that was priced too high to compete with "no names" while simultaneously lacking the product quality and brand reputation to compete in the high-end segment. Its response was to move into premium brand positioning in all markets while dropping undifferentiated and unprofitable brands. The most important decision was reinvesting in research and development, design and brand. For the first time, Samsung surpassed Sony this year in Interbrand's annual Best Global Brand study."(Swystun, 2006)

Demographic Factors In Mexico

When looking at Mexico and its relationship with the U.S. in 2010 15% of the U.S. population is expected to be Hispanics. If we are currently looking at 42% of Mexico as Spanish speaking country then the need to diversify and cross communicate is definitely there. Even some Hispanic based companies have looked to change there product orientation to suit the growing population the states.
"Though Goya products have been in Chicago-area stores for the past 30 years, the company was slow to react to the region's changing demographics. In the beginning, there were a lot of Puerto Ricans here, but then that changed. Now, 70% of the Hispanic population in Chicago is Mexican and we didn't change with that," says Rafael Rodriguez, Goya's general manager for the Midwest. "In the last few years we opened our eyes and said, 'What are we going to do about it?'" "Goya started developing new products that are popular among Mexican-Americans. Unlike its thick Puerto Rican nectars, the company looked to Mexico's best-selling nectar brand, Jumix, which is more diluted. In Chicago, Goya is now selling similar nectar in 14 flavors, such as mango, pear and guava."(Jargon, 2006)
As Riordan Manufacturing looks to expand into that regional area the population is in place to support plastic based food packaging opportunities. The Mexican packaged food and meat market grew by 6.7% in 2005 to reach a value of $59.8 billion dollars. BY 2010 the packaged foods and meats market is forecasted to have a value of $81.4 billion dollars and increase of 36.1% since 2005. In addition Mexico accounts for 3.3% of the global packaging food and meat markets value. If there was a threat in this market it would be that the Mexican bloc has not been known for there water supply or even in a jokingly sense respected by travelers. Based upon this premise I believe that the growth that they have experience has been a direct result almost negative growth in that area. Bottled water only grew 0.1% in 2003 to reach a value of $707 million. The growth rate has not been impressive and could be challenging for a new water based product being launch out of there country.
Demographic Factors in Canada
Canada presented some interesting facts in regards to their demographics. Based upon findings the countries politeness has actually hindered them in the gathering of information that could be used as a resource for several things. It's hard to believe that until the 80's Canada had not really critically look at targeted marketing to minority groups within their population. Although things have changed now it also reinforces the previous statement the Canada has had issues with branding creating the opportunity for a company to come in and give the an identity and lead their business market by the hands.
"The mainstream ad agencies in Canada are, for the most part, owned by people of European descent, English and French. Most have never had an ethnic person to dinner. So it is quite a stretch to ask them to develop advertising campaigns for their clients targeting minority communities that they cannot relate to. And in a language that they do not understand."
"In the early 1980s my advertising agency in Canada ? the Montreal-based Creative Concepts International Inc. ? did a considerable amount of collateral work for various departments of government in Ottawa. (This was long before the Gornery inquiry, a time when we were all considered honest tradesmen.) The collateral work included brochures, pamphlets, and posters and so on in 12 languages ? the kind of work the major ad agencies found to be time-consuming and unprofitable. But for a small agency like mine, not only could we make money at it, it also allowed me to get an insider's view of the federal government and how it functioned." (Miller, 2006)
In comparison to Mexico the cost food services rate of return of Canada does not really compare potentially because of the tourism that Mexico generates over Canada. People live in Canada and visit Mexico so we will see different demographics in comparable areaseconomic forecasting. In 2010 the growth value will be $5.3 billion an increase of 10.8% for 2005. Canada accounts for 2.1% of the global food service as the compound annual growth rate of the market in the period 2001-2005 was 2%. Also Canada is expected to see an increase in contain packaging of $11.9 billion and increase of 15.1% since 2005.
Canada's true growth is seen in the pharmaceutical area with a forecast of $15.5 billion in 2010 and increase of 37.5% since 2005. Cardiovascular drugs form the most lucrative sector of the market accounting for 24.9% total value. Canada is 2.1% of the total global economy in this area. This growth creates a perfect marriage since Riordan is looking to expand into the medical area with next generation heart valves. These numbers represent a market for the targeted direction of the company.
Conclusion
After reviewing the analysis for the two regions both have shown great potential for growth in separate areas as well as some similar. Profits can be made in both regional bloc areas but as Riordan Manufacturing looks forward into the future considerations need to be made for the current needs as well as future expansions. I believe that both markets will eventually be penetrated because of the ability to generate a solid profit on both sides, but only one market/region currently addresses the company's immediate needs and near future growth opportunities.

References

Alive. (2006). Aseptic cartons-practical or previous? Canadian Journal of Health & Nutrition,
283, 26-26. Retrieved July 8, 2006 from EBSCOhost database.
Bottled Water Industry Profile: Mexico. (2004). Bottled water in Mexico, 1, 15.
Retrieved July 8, 2006 from EBSCOhost database.
Del Nibletto, P. (2006) The transformation of Dan Fortin. Computer Dealer News, 22(6), 14-14. Retrieved July 8, 2006 from EBSCOhost database.
Electronic News. (2006). Intel promotes Pc in developing countries, 52(15), 6-6.
Retrieved July 8, 2006 from EBSCOhost database.
Foundry Management & Technology. (2006). Dynacast closing in S. Carolina, expanding in China, Mexico, 134(6), 6-6. Retrieved July 8, 2006 from EBSCOhost database.
H.B.O. (2006). Canadian hydro seeks c$100m via Scotia Capital. Private Placement Letter, 24(21), 6-6. Retrieved July 8, 2006 from EBSCOhost database.
Jargon. J. (2006). Goya catches up with demo change. Crain's Chicago Business, 29(23). 18-18.
Retrieved July 8, 2006 from EBSCOhost database.
McHale, John. (2006). Proposed GE/ Fanuc/SBS merger creates mixed feelings among industry
observers. Military & Aerospace Electronics, 17(5), 1-14. Retrieved July 8, 2006 from
EBSCOhost database
References

Miller, D. (2006). The problem. Marketing Magazine, 111(2), 20-20.
Retrieved July 8, 2006 from EBSCOhost database.
Swystun, J. (2006). Canada's brand agenda. Marketing Magazine, 111(15), 28-28.
Retrieved July 8, 2006 from EBSCOhost database.
Vasilash, G. (2006). The importance of investing in technology. Automotive Design and
Production, 118(5), 26-26. Retrieved July 8, 2006 from EBSCOhost database.

Country Analysis II: Technology Infrastructure and Demographic Factors
GMGT/580
Ben Zuckerman
Bobby Allen Jr.
July 9, 2006

Within Riordan Manufacturing initiatives there has been several goals mentioned that deserve ample consideration when looking for global expansion locations. The first goal set by the company was review outsourcing options for standardized plastic products built in the Albany plant. The next goal was develop a roadmap for next generation heart valves, medical stents, and complementary medical devices. Attached to this goal Riordan also wants to create market brand recognition for medical products. It is the goal of this analysis to show how technology and infrastructure factors as well as demographics can lead us to a comparable plan to standardize plastic components to gain quality improvements and volume global pricing as well as position Riordan as the leader in the delivery of plastic solutions. Future opportunities listed during the consideration of the expansion should present two or more new entry points to the global market of plastic solutions.

Technology and Infrastructure in Mexico

The first opportunity presented to Riordan Manufacturing is the ability to open up a new facility in Mexico that allows them to remain competitive in an environment were there competition is already seeking to expand into low labor cost countries.

"Charlotte-based Dynacast International, a die caster of zinc, aluminum, and magnesium, is instituting a "capacity realignment to support customer migration to low-cost countries." According to CEO Simon Newman, "Our customer base is moving manufacturing operations to low-cost countries, and it is important to our future to expand our facilities in these areas."(Foundry, 2006)

The threat present in this diversification opportunity to remain competitive is the affect that companies such as Dynacast have on the community they leave when they relocate. The economy for that city takes a tailspin downward as unemployment spikes upward. This is economy is not easily resuscitated without the introduction of new jobs in the market which does not happen regularly.

Potentially the company may decide not to fully relocate the operations within the plant to a low cost area and totally kill all the jobs off in that area. The other opportunity's that exist for company's seeking expansion are joint ventures. By linking up resources and adding business experience with technology companies are now empowered to enter into new markets with half the risk exposure they would normally have by being sole proprietors.

"Techno cast is a joint venture between Caterpillar Inc. and Cifunsa, a Grupo Industrial Saltillo subsidiary. In 2004 Caterpillar announced it planned to downsize its Mapleton, IL, foundry, and discontinue production of engine blocks and heads there. At the time the Techno cast joint-venture was unconfirmed, but the expectation had
been that those Caterpillar-designed products would be manufactured in Mexico
and supplied to Caterpillar plants in Mossville, IL and Greenville, SC."(Foundry, 2006)

The long term threat of consolidating the smaller companies into larger ones in the reduction in competition within quickly shrinking industries. The push for these mega companies to be in the top five in industry will reduce the quality of diverse markets and competition. This change will force smaller companies to seek more customized production and create opportunities for specialty shops that could be link to the large organizations.

"The merger might spark more consolidation by making other companies look for further acquisitions or mergers to be number one in the market, he adds. Much of this will depend on what GE's strategy is going to be. They now have several companies, each of which has small market shares in several sectors Industrial control, telecommunications, and military. "Do they intend to try and take a leadership position in all these, or will they focus on just one? Perhaps a more pertinent question would be 'is consolidation good for customers." Only a customer can answer that."(McHale, 2006)

As technology continues to increase in Mexico we should see the opportunity to influence households more as the personal computer usage increases creating a market for future skilled workers.
"As part of the initial implementation of this effort, Intel and Mexico's Telmex will collaborate to expand the use of technology in Mexico by making a new type of desktop PC available to first-time computer users. Intel intends to work with governments and local telecommunications companies to initially launch the PC in other parts of the world later in the year." (Electronic News, 2006)
"Intel has long been working with local governments and organizations in developing countries to bring the benefits of personal computing to homes, schools and businesses," concluded Mark Beckford, general manager, Intel's emerging markets platforms group, in a statement. "With Intel's focus on enabling the local PC industry infrastructure with tailored products, investments and partnerships, we believe we have been able to make a real difference in people's lives. The purpose of the Discover the PC initiative is to bring personal computing to citizens in developing countries that currently can't access or afford a personal computer."(Electronic News, 2006)

Technology and Infrastructure in Canada
The opportunities in Canada took me down a different path of potential innovations for Riordan Manufacturing currents goals and as well as future opportunities. Canada Hydro Developers are building power plants focusing on low-impact renewable energy technology and wind energy. Although this may appear to be a stretch from any of the related operations that currently exist within the company. The current piping that is being utilized could potentially be change to a highly durable plastic base formula that allows for longer terms of use without the compromising characteristics present by metal based piping. There is a new project that will be taking placed that has been presented and sold to promote the growth of alternative energy in the Canadian regions.

"The company builds and operates independent power plants focusing on low-impact renewable energy technologies, such as hydroelectric, biomass and wind energy, according to Canadian Hydro's profile. In addition, in 2005, the company signed a 20-year contract to
sell green power to the Ontario Electricity Finance Corporation for the Melancthon Grey Wind Project near Shelborne."(H.B.O., 2006)

Another potential opportunity that is present in Canada is there inability to process the recycling of there aseptic containers. Since there is no recycling program in place and the government currently retrieves these items through a municipal program but are unable to fully break them down and take advantage of the potential raw material there is room for a fresh ideal to be presented and a leader in the industry to be named. With the creation of a new plant in the region it may be possible to retrofit it to be compatible with processing these items and turning the end product into something useful to potentially be used in current finished goods as well as new market opportunities.

"Tetra Pak Canada [letrapak.ca] says 77 percent of households have access to recycling through either deposit/return or curbside collection systems. in BC aseptic beverage containers except milk or milk substances are redeemable at retail stores and depots. Provinces including Alberta, Saskatchewan, and Manitoba do accept them as part of this deposit/ return-it program. Depending on where you live, aseptic cartons might be part of curbside recycling and/or accepted at some depots. Check with your city/municipal office. Though often returnable, aseptic containers aren't fully recyclable in many cases. Significant energy is required to break down their multi-layered construction and few facilities with capable technology exist." (Alive, 2006)
Due to the amount of energy necessary to break down the material a joint relationship with Canada Hydro developer would potentially produce a beneficial agreement that could create limitless profits since the amount of raw material generated is based on resource consumption and the energy source is self fed and nondependent.
As another potential opportunity to gain skilled workers some manufacturing plants in Canada have outsourced plants to low labor cost countries to remain competitive in certain industries. This has created pool of skilled workers potentially that would be eager to gain employment at a new facility allow Riordan to control the quality of worker that would be put into place.
"First of all, there is the pretty-much expected thing: restructuring. Kleinert says that they've closed a piston plant in Canada and adjusted the production in plants in the U.S. and Mexico. Plants in Europe have also undergone adjustments. They've decided to concentrate on core competencies and products. "Our goal is to be in the number 1, 2 or 3 positions in each
of our businesses. This has led the company to sell its Fuel pump business, as well as its mass air sensor business. Kleinert explains that in each of those cases there are companies with solid
positions and that it would consequently require sizable investments in order to gain the position that they're seeking."(Vasilash, 2006)

Riordan Manufacturing has a great desire to effectively manage global resource demand and some companies within Canada have managed additional cost savings by outsourcing the management of certain operations. This redirection of resources has created an opportunity to take the cost savings and reinvest those dollars into research and development and improve industry standings by making sustainable changes and diversifying market entries.
"Another shift in IBM's plan is to business transformation outsourcing (BTO). According to Fortin, BTO is currently a $500-billion market globally. He admits he's not clear what portion of this is in Canada, but says that it essentially doesn't matter since IBM is positioning itself as global player. "BTO is emerging. People might outsource call centers or help desk but (BTO) takes on HR, procurement, finances and transforms the processes and than we run it for them. That is a fast growing market and customers are zeroing in on this," (Del Nibletto, 2006)

The last opportunity I see with Canada in regards to their infrastructure area is branding. Currently the country is going through an identity crisis due to a lack of products or industries with which they can be known for. With Riordan Manufacturing looking to launch its new pyramid bottle water they stand the opportunity for the country to get behind the product as a means of pushing and identifiable source of refreshment across the boarders into other countries. Although this product is not expected to be a sole source branding the expertise of American companies could take this opportunity to attack a very calm market that is not use to aggressive marketing.
"The Canadian economy is largely resource-based with some interesting pockets of innovation in technology, sciences and service industries. But, Canadian business leaders must recognize the need to move fast and far in innovation, research and development and brand building. A lesson can be learned from South Korea's Samsung. Earlier this decade, it had a wide-ranging product portfolio that was priced too high to compete with "no names" while simultaneously lacking the product quality and brand reputation to compete in the high-end segment. Its response was to move into premium brand positioning in all markets while dropping undifferentiated and unprofitable brands. The most important decision was reinvesting in research and development, design and brand. For the first time, Samsung surpassed Sony this year in Interbrand's annual Best Global Brand study."(Swystun, 2006)

Demographic Factors In Mexico

When looking at Mexico and its relationship with the U.S. in 2010 15% of the U.S. population is expected to be Hispanics. If we are currently looking at 42% of Mexico as Spanish speaking country then the need to diversify and cross communicate is definitely there. Even some Hispanic based companies have looked to change there product orientation to suit the growing population the states.
"Though Goya products have been in Chicago-area stores for the past 30 years, the company was slow to react to the region's changing demographics. In the beginning, there were a lot of Puerto Ricans here, but then that changed. Now, 70% of the Hispanic population in Chicago is Mexican and we didn't change with that," says Rafael Rodriguez, Goya's general manager for the Midwest. "In the last few years we opened our eyes and said, 'What are we going to do about it?'" "Goya started developing new products that are popular among Mexican-Americans. Unlike its thick Puerto Rican nectars, the company looked to Mexico's best-selling nectar brand, Jumix, which is more diluted. In Chicago, Goya is now selling similar nectar in 14 flavors, such as mango, pear and guava."(Jargon, 2006)
As Riordan Manufacturing looks to expand into that regional area the population is in place to support plastic based food packaging opportunities. The Mexican packaged food and meat market grew by 6.7% in 2005 to reach a value of $59.8 billion dollars. BY 2010 the packaged foods and meats market is forecasted to have a value of $81.4 billion dollars and increase of 36.1% since 2005. In addition Mexico accounts for 3.3% of the global packaging food and meat markets value. If there was a threat in this market it would be that the Mexican bloc has not been known for there water supply or even in a jokingly sense respected by travelers. Based upon this premise I believe that the growth that they have experience has been a direct result almost negative growth in that area. Bottled water only grew 0.1% in 2003 to reach a value of $707 million. The growth rate has not been impressive and could be challenging for a new water based product being launch out of there country.
Demographic Factors in Canada
Canada presented some interesting facts in regards to their demographics. Based upon findings the countries politeness has actually hindered them in the gathering of information that could be used as a resource for several things. It's hard to believe that until the 80's Canada had not really critically look at targeted marketing to minority groups within their population. Although things have changed now it also reinforces the previous statement the Canada has had issues with branding creating the opportunity for a company to come in and give the an identity and lead their business market by the hands.
"The mainstream ad agencies in Canada are, for the most part, owned by people of European descent, English and French. Most have never had an ethnic person to dinner. So it is quite a stretch to ask them to develop advertising campaigns for their clients targeting minority communities that they cannot relate to. And in a language that they do not understand."
"In the early 1980s my advertising agency in Canada ? the Montreal-based Creative Concepts International Inc. ? did a considerable amount of collateral work for various departments of government in Ottawa. (This was long before the Gornery inquiry, a time when we were all considered honest tradesmen.) The collateral work included brochures, pamphlets, and posters and so on in 12 languages ? the kind of work the major ad agencies found to be time-consuming and unprofitable. But for a small agency like mine, not only could we make money at it, it also allowed me to get an insider's view of the federal government and how it functioned." (Miller, 2006)
In comparison to Mexico the cost food services rate of return of Canada does not really compare potentially because of the tourism that Mexico generates over Canada. People live in Canada and visit Mexico so we will see different demographics in comparable areaseconomic forecasting. In 2010 the growth value will be $5.3 billion an increase of 10.8% for 2005. Canada accounts for 2.1% of the global food service as the compound annual growth rate of the market in the period 2001-2005 was 2%. Also Canada is expected to see an increase in contain packaging of $11.9 billion and increase of 15.1% since 2005.
Canada's true growth is seen in the pharmaceutical area with a forecast of $15.5 billion in 2010 and increase of 37.5% since 2005. Cardiovascular drugs form the most lucrative sector of the market accounting for 24.9% total value. Canada is 2.1% of the total global economy in this area. This growth creates a perfect marriage since Riordan is looking to expand into the medical area with next generation heart valves. These numbers represent a market for the targeted direction of the company.
Conclusion
After reviewing the analysis for the two regions both have shown great potential for growth in separate areas as well as some similar. Profits can be made in both regional bloc areas but as Riordan Manufacturing looks forward into the future considerations need to be made for the current needs as well as future expansions. I believe that both markets will eventually be penetrated because of the ability to generate a solid profit on both sides, but only one market/region currently addresses the company's immediate needs and near future growth opportunities.

References

Alive. (2006). Aseptic cartons-practical or previous? Canadian Journal of Health & Nutrition,
283, 26-26. Retrieved July 8, 2006 from EBSCOhost database.
Bottled Water Industry Profile: Mexico. (2004). Bottled water in Mexico, 1, 15.
Retrieved July 8, 2006 from EBSCOhost database.
Del Nibletto, P. (2006) The transformation of Dan Fortin. Computer Dealer News, 22(6), 14-14. Retrieved July 8, 2006 from EBSCOhost database.
Electronic News. (2006). Intel promotes Pc in developing countries, 52(15), 6-6.
Retrieved July 8, 2006 from EBSCOhost database.
Foundry Management & Technology. (2006). Dynacast closing in S. Carolina, expanding in China, Mexico, 134(6), 6-6. Retrieved July 8, 2006 from EBSCOhost database.
H.B.O. (2006). Canadian hydro seeks c$100m via Scotia Capital. Private Placement Letter, 24(21), 6-6. Retrieved July 8, 2006 from EBSCOhost database.
Jargon. J. (2006). Goya catches up with demo change. Crain's Chicago Business, 29(23). 18-18.
Retrieved July 8, 2006 from EBSCOhost database.
McHale, John. (2006). Proposed GE/ Fanuc/SBS merger creates mixed feelings among industry
observers. Military & Aerospace Electronics, 17(5), 1-14. Retrieved July 8, 2006 from
EBSCOhost database
References

Miller, D. (2006). The problem. Marketing Magazine, 111(2), 20-20.
Retrieved July 8, 2006 from EBSCOhost database.
Swystun, J. (2006). Canada's brand agenda. Marketing Magazine, 111(15), 28-28.
Retrieved July 8, 2006 from EBSCOhost database.
Vasilash, G. (2006). The importance of investing in technology. Automotive Design and
Production, 118(5), 26-26. Retrieved July 8, 2006 from EBSCOhost database.

Attachments

Solution Preview

STEP 1

The goals of Riordan:

? The entire scenario needs to be reviewed from the perspective of the goals of Riordan. First, the goal is to set up outsourcing for standardized plastic products that are currently being built at the Albany plant. Second, the goal is to set up facilities that would help manufacture next generation high tech heart valves, medical stents, and complementary medical devices. Third the goal of Riordan is to develop a brand name for its medical products. Fourth, Riordan has the general objectives of improving quality and reducing costs.

STEP 2

What if the plant was located in Canada?

? The reasons why the Riordan plant should be located in Canada are ...

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