SCOTTS MIRACLE-GRO: THE SPREADER SOURCING DECISION IVEY BUSINESS CASE STUDY 908M78 Introduction This paper provides a case analysis and case solution to an Ivey School of Business case study on Scotts Miracle-Gro‚ the biggest company in North America’s lawn and garden industry and the world’s leading supplier and marketer of consumer lawn and garden care products (Gray & Leiblein‚ 2008‚ p. 1). The time setting for the case is the summer of 2007. The case focuses on questions about where
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Case: Scotts Miracle-Gro (the Spreader Sourcing Decision) 1. What are the strategic risks and benefits of outsourcing production of the Temecula plant to contract manufacturers in China? Benefits • Significantly low cost supply from contract manufacturers: Labor‚ electricity (government subsidy)‚ overhead Risks • Some costs are expensive: freight cost from China‚ inventory (lead-time increase because of shipping)‚ and quality control (testing shipped products from China in the US require some
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Unit 7 Scotts Miracle Gro: The Spreader Sourcing Decision Case Study Analysis Kaplan University School of Business and Management MT460 Management Policy and Strategy Author: Ashley Toores Date: September 17‚ 2012 Introduction The world’s leading supplier of do it yourself garden and lawn care‚ Scotts Miracle Gro was created in a 1995 merger between Miracle Grow and The Scotts Company and is backed by the established history of its founding companies. In 1951 Horace
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Scotts Miracle-Gro: The Spreader Sourcing Decision By Harvey L. Brooks Don Billoni Valarie Haywood Cynthia Wiley Procurement 5820 Professor: Dr. Innocent July 22‚ 2011 Table of Content Case Introduction………………………………………………………………….3-4 Statement of Problem……………………………………………………………...4-6 Causes of the Problem……………………………………………………………….6 Decision Criteria and Alternative Solution ……………………………….……7-8 Decision Matrix and Scoring………………………………………………………...9 Recommend Solution and Implementation…………………
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Management Scotts Miracle-Gro Outsourcing Decision: Long Term versus Short Term Costs The largest company in the North American lawn and garden industry‚ Scotts Miracle-Gro‚ which was based in Marysville‚ Ohio‚ formed through a merger in 1995. A corporation of great success‚ with $2.7 billion dollars of net sales in 2007 had a difficult assessment to make between outsourcing a contract manufacturer in China or continuity of manufacturing in the United States. In 2000‚ Scotts management decided
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Unit 7 Scotts Miracle-Gro Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Professor: Date: 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
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Scott’s Case Study Synopsis of the Case: This case follows the outsourcing decisions of the Scotts Miracle-Gro company in June 2007. The company’s main production facility‚ located in Temecula‚ CA‚ produces all of the company’s domestic lawn seed and fertilizer spreaders. This facility was acquired after Scotts merged three fertilizer spreader production factories from the acquisition of Republic Tool & Manufacturing Company in 1992. A fifteen year lease was signed in 2001 on the current Temecula
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Name Scotts Miracle-Gro The Scotts Company has been around since 1868. Ever since‚ they have been supplying many families with weed-free seeds. Throughout the years‚ Scotts has distributed many supplies such as fertilizers‚ seeds‚ soil‚ spreaders‚ and more. They were the first to introduce Turf Builder and they began spreader business with drop spreaders (Scotts Miracle-Gro). The company started expanding with mail order distribution channel‚ then to retail channel distribution. Miracle-Gro was founded
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A case analysis On Scotts Miracle – Gro Company Submitted by: Sadikchya Acharya Business strategy Masters in Business Administration (MBA) Kings College International American university Babarmahal‚Kathmandu Submitted to: Prof. Dr Raj Kumar Sharma Dated: 9th August‚ 2015 Introduction and Background Scotts is an American company with its headquarter in Marysville‚ Ohio the company begins its operation since 1868 up to now it has already carried a long life of more than 147 years and it is
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Objective The objective of this study is to decide the best decision for Scott’s Miracle-Gro on whether to outsource their production to china or stay in the Temecula plant in California. Factors such as risks/benefits‚ and cost analysis will be considered in reaching an outcome onto what will be the best option for Scott’s Miracle-Gro in order to maximize profit‚ efficiency‚ and long-term growth. Suggestions The best option for Scott’s Miracle-Gro is to stay in the United States. This will benefit the
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