Critical Evaluation of Management Problems of Riverwood Integrated Logistics Solutions

The report evaluates the problems of Riverwood Integrated Logistics Solutions and suggests solutions using TOWS model and Ansoff’s Matrix Porters’ Generic Strategies model. The report provides a literature review of contemporary management and justifies the research approach.

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1INDIVIDUAL REPORT
Executive Summary
The report is based on the problems which have been faced by the Riverwood Integrated
Logistics Solutions company. The study has identified the difficulties of this logistic company
using some tools, theories and models. More precisely, the tool which has been used in this paper
is the TOWS model. The next section of the report would present Ansoff’s Matrix Porters’
Generic Strategies model which would eliminate the weaknesses of the previous model. The
report would also show how it will be helpful for the company. Moreover, the main aim of this
report is to provide some recommendations to those problems which the company has faced
recently.

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Table of Contents
Introduction......................................................................................................................................3
Problem Statement...........................................................................................................................4
Literature Review of Contemporary Management..........................................................................5
Significance of the Theories, Models and Tools.............................................................................7
Critical Analysis..............................................................................................................................9
Conclusion.....................................................................................................................................10
Reference List................................................................................................................................12
Appendix........................................................................................................................................14

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Introduction
This report provides the critical evaluation of the problems of Riverwood Integrated
Logistics Solutions which have been already identified in the previous section of the project.
This is one of the most reputed logistic management companies whose home country is situated
in Singapore (Riverwood.com.sg 2018). Besides that, their primary activities are manufacturing
and supply chain optimisation, product realisation as well as operational management. From the
discussions of Bennett and Lemoine (2014), this has been identified that recently the firm has
faced some problems. One significant fact must be mentioned in this context that a company
cannot survive in this competitive market unless it takes some strategies in order to overcome
those difficulties. As a consequent, the main aim of this report is to provide some
recommendations to those problems which the company has faced recently.
Apart from that, the study would also analyse how the management problems of the firm
would be solved by those solutions. In other words, this report would evaluate whether the
chosen approaches are useful in order to provide the best solutions to the Riverwood Solutions
company. Following the literature of Bondarenko et al. (2017), it can be mentioned in this
context that people always want the best services at the reasonable price in this period. As a
result, every business organisation should upgrade their business so that they can retain their
existing customers and attract new customers at the same time. This report would describe the
research questions on the basis of the previous assessment and also conduct a literature review in
order to understand the management challenges. The next section of the paper would
demonstrate the advantage and disadvantages of the selected tool and also provide an alternative
method in order to mitigate those weaknesses.

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Problem Statement
This section of the paper would represent the problems of the Riverwood Integrated
Logistics Solutions from the management perspectives. Apart from that, the management
challenges would be discussed in the form of the research question which is presented below.
 What strategies should the firm apply in order to enhance the standard of their services
while maintaining the cost competitiveness as well?
Apart from the above question, this paper would also identify how the firm would keep
themselves upgraded and able to meet all the requirements of their customers. Moreover, the
paper would discuss in what way, the company will gain the visibility as well as improve their
productivity in order to compete with their rival companies. From the above discussion, this fact
is clear that the profitability of the company has been reduced to a certain extent due to those
difficulties. Chae et al. (2014) have mentioned in a research paper that logistics management is
one of the most remunerative businesses in this recent period.
As a consequent, various large business organisations have come forward and invested a
considerable amount of capital in this business. This, in turn, has increased the competition for
the Riverwood Solutions as they have to provide the best services to the customers and has to
keep the prices also. Apart from that, the primary job responsibilities of the logistics managers
are to manage the storage, coordinate the transportation and deliver the goods to the customers.
As discussed by Fernie and Sparks (2014),it is clear that the managers have to ensure that all the
products are delivered to the customers within the proper time. Riverwood Solutions have
already expanded their business in almost all countries all over the world and earned a reputation
in their business. On the other hand, this fact is also true that they are facing some difficulties
and severe competition from their rival companies. Gutierrez et al. (2015) have discussed the

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fact in a paper that this logistic management is a profitable business and the company should take
this opportunity. It can be expected that the Riverwood Solutions would be able to mitigate their
difficulties and earn a huge profit margin in the near future.
Literature Review of Contemporary Management
This part of the report would provide the review of the existing literature as well as
theories which have been executed on this issue. In other words, all those theories would provide
immense help to the investigator in order to identify the possible solutions to all those problems
of the firm. From the discussions of Kim et al. (2015), the cost competitiveness occurs whenever
a company sells its products or services at comparatively lower prices than its rival companies. It
is nothing but a competitive strategy which is used by different business organizations in order to
capture the significant portion of the market.
A different argument has been mentioned by Matsuno et al. (2016) who have stated that
this policy would lead to the reduction in profit for the firms. Comparing these two different
views, Riverwood Solutions should implement some strategies which may reduce their cost and
increase their profit margin as well. For example, the company may mitigate their supply
expenses, avoid time consuming procedures, use updated technologies and so on. All those
strategies would help this logistic company to generate higher revenue while maintaining the
cost competitiveness at the same time. From the discussions of Shatskaya et al. (2017), this
problem has already occurred in the automobile industry, and the problem has been solved by
this strategy.
As discussed by Szpitter and Sadkowska (2016), it is the responsibility of every business
organisation to improve the quality of their customer service. Following those arguments,

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Riverwood Solutions should perform consistently and be transparent in their business. Apart
from that, the company should analyse the feedback of their customers and try to identify their
expectations. On the other hand, Utami and Lantu (2014) have emphasised on another issue
which isthe training and development of the employees. They have mentioned that the logistic
firms should train their employees so that they can make a proper communication with all the
agents. In the recent period, the retailing industry has faced this problem and also recovered from
the problem using this strategy (Waller and Fawcett 2014).
The report has also identified that the Riverwood Solutions has failed to keep them
updated and as a consequent, they have been unable to fulfil all the requirements of the
customers. From the literature of Zalengera et al. (2014), the firm should use the latest
techniques which can make their performances upgraded. Besides that, the company may also
recruit some experts for the purpose of research and development. If they find out some latest
technologies and apply those techniques to the company, then their activities would be
developed. As discussed by Feng and Kiely (2018), it may increase the cost of the company in
the initial stage, but ultimately the company would be benefitted by this strategy. Some of the IT
(Information Technology) companies have faced this difficulty and used the latest technologies
in order to get rid of this problem.
The firm has faced another problem in order to gain the visibility and understand the
complicated situations of different regions as well. As per the discussions of Ringsberg and
Lumsden (2016), the Riverwood Solutions would recruit some experienced employees and make
a separate department. The primary responsibilities of those employees would be to look after
the complex circumstances and recommend possible solutions to those difficulties. A different
argument has been raised by Ghobadian et al. (2016) who have discussed that all the logistic

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companies should build the stronger relationship with their employees. It would provide them
immense help to generate the visibility and also create a brand image among the customers as
well. Yanget al. (2015) have mentioned thatthis problem has been already faced by the fashion
industry and they have used this visibility policy as well.
Significance of the Tool: TOWS Matrix
This section of the paper would illustrate the tool which has been used to identify the
problems of the Riverwood Solutions. In order to execute the external analysis of the company,
the study has chosen the TOWS matrix. As mentioned by Ringsberg and Lumsden (2016), this
model investigates the external opportunities as well as threats of a company and also compares
them with the weaknesses and strengths. The TOWS matrix of the Riverwood Solutions is
discussed below with the help of table 1.
Internal Factors
Externa
l
Factors
Strengths (S)
From the discussions of Sánchez et
al. (2015), the company has
expanded their business all over the
world.
Weaknesses (W)
The labor forces of this
company are unable to
handle the latest
technologies which create
a severe problem in
fulfilling the requirements
of their customers.
Opportunities S-O strategies W-O strategies

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(O)
The latest
technologies can
be handled by the
professional
experts who can
enhance the
profitability of
the company.
The company should try to attract
new customers and retain the
existing buyers.
As mentioned by Ferreira
et al. (2016), the firm can
recruit some experts who
can handle the new
techniques.
Threats (T)
As per the
literature of Feng
and Kiely (2018),
the firm is facing
tough
competition from
its rival
companies.
S-T strategies
The firm should use their brand
image for facing the global
competition.
W-T strategies
If the newly recruited
employees can handle the
new technology, then they
can face the competition
as well.
Table 1: TOWS Model
(Source: Prasad and Singh 2015)

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The tool of TOWS analysis is recognized by many leading organizations for establishing an
effective marketing strategy. Similarly, the tool has been applied within the Riverwood
Integrated Logistics Solution Company for generating, comparing and selecting the best strategy
to enhance the success growth (Ghobadian et al. 2016). Basically, TOWS is a tool for strategy
generation and selection and it is often applied at the end of a planning process.
Strengths:
 Through the application of this tool a company is able to utilize its strengths for
exploiting the present opportunities within a market. Additionally it also helps in
mitigating weaknesses to exploit the opportunities.
 The developed strategy includes the internal development for merger, growth,
acquisitions and joint ventures
Weaknesses:
 Like many other TOWS is a subjective model. It is only robust as the data which is
included within the model.
 It requires others frameworks and model to support its strategic choices.
Alternative suggested tool:
For overcoming the gaps identified within the TOWS matrix, Ansoff’s Matrix Porters’ Generic
Strategies can be applied.
This tool is also marketing planning model or a market growth matrix that suggests a business
organization to grow by considering the markets in which it exists or entering. The output from
this market matrix is classified into four categories for setting a direction to the business strategy.
TOWS matrix fail to validate the developed marketing plan which is because this tool is helpful.
Therefore this tool is highly advantageous for filing the disadvantages of TOWS matrix
marketing strategy. These are market penetration, market development and product development
and diversification (Waller and Fawcett, 2014). All these factors essentially help in securing
dominance over growth markets as well as influence the innovation through research and
development.

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Critical Analysis
This section of the report would justify why this research approach is beneficial to solve
the management problems which have been faced by the Riverwood Solutions. The TOWS
model is one of the most significant models which have been used by different firms in analyzing
their present situation. From the literature of Szpitter and Sadkowska (2016), it can be stated in
this context that this tool would help to establish the linkage between the strengths and
weaknesses of the firm with its opportunities and threats. The study has already identified that
the company has faced a problem in fulfilling all the requirement of their customers. Apart from
that, it has also been discussed in the paper that the firm has faced a difficulty in allocating the
limited resources in several sectors. As discussed by Waller and Fawcett (2014), the alternative
model would not only help to distribute the scarce resources but also identify the role of the
supporting and related industries as well.
Sánchez et al. (2015) have mentioned the fact in a study that the government has a
significant role in the growth and profitability of every company. This model has also
incorporated the significance of the latest technologies which helps the firm to enhance their
productivity. One fact must be mentioned in the context that the Riverwood Solutions should
take the role of every government into consideration. More precisely, they have to consider the
Singapore government (which is their home country) and the other nations (in which they are
operating) as well. As discussed byWaller and Fawcett (2014), this would also help to build the
visibility and create a clear brand image as well. On the other hand, the firm would also be able
to build the healthier relationship with their customers by using this tool efficiently.

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Conclusion
This section of the report would sum up the entire findings as well as discussions which
have been described in this paper. The report is based on the problems which have been faced by
the Riverwood Integrated Logistics Solutions company. The study has identified the difficulties
of this logistic company using some tools, theories and models. More precisely, it can be
mentioned in the context that the tool which has been used by this report is the TOWS matrix.
This tool has some advantages, but at the same time, this model has some disadvantages also.
This report has identified the advantages as well as disadvantages of this model and has also
presented Ansoff’s Matrix Porters’ Generic Strategies model as an alternative tool. On the other
hand, the problems which have been identified using those problems are cost competitiveness,
maintaining the higher standard of the services, gaining visibility as well as identifying the
complicated situations.
The report has tried to identify the possible solutions of those problems and has also
shown whether those solutions have been used by other industries as well. It has been identified
from the report that the logistics management is a highly competitive industry and as a result,
this form has to face the tough competition. On the other hand, this is one of the very profitable
sectors which have provided employment to a large section of the population in several
countries. As a consequent, the company should use proper policies which can solve their
problems to a certain extent and enhance their profitability as well.
Besides that, this firm belongs to the logistic management industry whose main
responsibility is to deliver the products to people at the proper time. In order to run their business
efficiently, the firm should recruit some efficient staffs and conduct a training and development
program for them. In this highly competitive world, it is a challenge for all the companies to

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retain their old customers and attract new customers. In order to do so, the firm should maintain
the cost competitiveness by keeping their prices lower than their rival companies. It can be
concluded from the entire report that if the firm uses all those strategies, then they must reduce
their problems and expand their business as well.

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Gutierrez, D.M., Scavarda, L.F., Fiorencio, L. and Martins, R.A., 2015. Evolution of the
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Appendix

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