Scotts Essay

272 Words2 Pages
This case is about Scotts Miracle Grow Company and their operations regarding the production of their various products. Scotts Miracle Grow Company was formed in 1995 with the merger of Miracle Grow and The Scotts Company. Following the merger, Scotts Company became the largest company in the North American lawn and garden industry. Orlando McLean Scott as a purveyor of weed-free seeds founded the Scotts Company in 1868. Ownership of the firm changed hands several times, beginning in 1971 when ITT bought Scotts from the Scotts family. Scotts was a private company for a while until 1992, when finally its stock started to be traded on the NASDAQ market. Horace Hagedon founded Miracle-Gro in 1951. Miracle-Gro had no internal production. Instead all production was outsourced to contract manufacturers. Before the merger in 1995 with The Scotts Company, Miracle Gro was already a leading brand in the lawn care chemical industry. Eventually in the early 2000’s, Scotts Miracle-Gro was the number one competitor in every major category and in virtually every major market. In 1992, The Scotts Company acquired the Republic Tool and Manufacturing Company from the McRoskey family, providing Scotts with a spreader manufacturing plant that occupied three buildings in Carlsbad, California. By 2000, the company realized that there were many cost and inefficiencies with regards to managing production across the three independent buildings. This made the Scotts Company explore alternatives to producing or procuring the spreaders. With that being said, the senior management of the company decided that the most efficient solution would be to move their operations to the current facilities located in

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