Kaplan University
School of Business
MT460 Management Policy and Strategy
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Unit 7 Scotts Miracle-Gro Case Study Analysis
Introduction
Scotts Miracle-Gro Company was brought together by two of the top leaders in lawn and garden care, Scotts and Miracle-Gro. Merged in 1995 they were the largest lawn and garden company in North America. Scotts was founded in 1868 and Miracle-Gro was founded in 1951.
Synopsis of the Situation The company Scotts Miracle-Gro is on the verge of outsourcing to China to increase production and cut expenses. The operations manager, Bawcombe, has overseen operations of the company over the past 5 years …show more content…
The operations manager, Bawcombe needs to prove that outsourcing would only bring the company problems more than solve any. With over 5 years as the operations management and Scotts Miracle- Gro the largest lawn and garden company the solution lies within the management team.
Implementation
Continue to process spreaders in Temecula, California. With the opening of the new facility in Temecula, production increased. Once lean management techniques were implemented the plant was ready to compete on a global basis.
Recommendations Keep the vision of implementing the whole plant as automated as possible. Leave the idea of outsourcing to China a thing of the past. Scotts Miracle-Gro does not have many competitors as it is the industry leader in lawn and garden. Conclusion In conclusion Scotts Miracle-Gro is the top company for lawn and garden. Without the added costs of transportation, taxes, administrative expenses the company has net sales over 2.7 billion dollars. Although the labor wages are fairly low, the added expenses can cost as much as they are within the United States. The new facilities in Temecula, lean management techniques are all good reasons to continue the manufacturing process in …show more content…
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|Resources, Assets, People? |Worlds leading supplier and marketer in | |Reputation, presence and |
|Experience, knowledge, data? |lawn care | |reach? |
|Financial reserves, likely | | |Financials? |
|returns? | | |Own known vulnerabilities? |
|Marketing - reach, | | |Timescales, deadlines and |
|distribution, awareness? | | |pressures? |
|Innovative aspects? | | |Cashflow, start-up