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Riordan Manufacturing International Marketing

Autor:   •  February 21, 2012  •  Case Study  •  1,095 Words (5 Pages)  •  1,939 Views

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Riordan Manufacturing has chosen Malaysia for marketing one of its top-selling products, which has been established in many other countries over the years. In order to establish their business in Malaysia effectively, the company needs to understand all the issues such as technological, ethical, legal rules and regulations, economy, political, and background of the country that could have direct or indirect impact on the Riordan Manufacturing process. In addition, there are many ethical issues that are connected to the plastic industry that Riordan manufacturing needs to take into consideration when expanding their market into Malaysia. Furthermore, ethical issues are one of the most important problems that the company needs to take into consideration, when operation its manufacturing plant in an international market like Malaysia. There are three different ethical issues that Riordan Manufacturing might faces such as (1) The environmental issues (2) Business corruption and (3) Safety issues in an international market.

Environmental Issues

Environmental issues have become very common with the plastic industries and are one of the most relevant ethical issues that multinational companies are faced with when operating in international markets. Hence, Riordan manufacturing company will need to make sure that they abide by all the international environmental standards that are set be the Malaysian government. In addition, Malaysia has had negative results with past manufacturing companies and its processing. The company may face with a variety of problems due to the depleting of Malaysians natural resources, polluting the environment, causing unhealthy living conditions for the local population, risking people's lives through accidents, and causing some environmental phenomenon's (CIA, 2012). All of these issues could cause problems for Riordan manufacturing company to conduct business in Malaysia international market. It could also lead to less expansion and growth over time. Therefore, the company will have to manage their resources in order to protect the environment and will have to build their plants according to the rules and regulation of the Malaysian environment in order to minimize their environmental impact. They will have to ensure the government that they will control the pollution measure and create environmentally safe products.

Business Corruption/Political Scandals

Business corruption is another major ethical issue in Malaysia. Malaysia today has many problems with the political parties and business corruption. In 2010, many political parties and influential business leaders were entailed in the bribery of many different scandals. For instance, several reports have stated that companies are offering "facilitation payments" so that they can get visa approvals faster for workers.


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