Mt460 Management Policy and Strategy Unit 7

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This Assignment is the case study analysis of Case 26, Scotts Miracle-Gro: The Spreader Sourcing Decision. This analysis will focus upon the idea of the company’s short-term objectives, and through internal and external analyses create functional tactics to support the company’s outsourcing proposition in order to help move Scotts Miracle-Gro forward. These strategies will help the company to outsource propositions in order to move forward. It will also include a SWOT analysis. The company Scotts Miracle-Gro (SMG) deals with consumer lawn and garden products, as well as with many professional horticulture products as well. This company is the largest marketer of these types of products in North America and it has more than half of the market share. Scotts Miracle Gro’s fertilizer spreaders and lawn seed are produced Scotts’ Temecula plant, located in Southern California. The director of operations is Bob Bowcombe. The key issues revolve around the idea that is has become expensive to produce fertilizer spreaders and lawn seed by Scott’s Temecula plant. Other weaknesses of this company, according to Data monitor (2007), are that the company is over dependent to customers like Home Depot or Wal-Mart, it has experienced lower sales in the international segment, and it has been recording lower profitability compared to the market average. The problem is the increasing cost of production for the Temecula plant, which manufactures products for Scotts’ Miracle Gro’. These increasing costs are driven by the higher labor costs. The meeting with the corporate office occurs because the directors consider that the company should outsource manufacturing to lower-wage manufacturing places or regions like China. However, if this takes place, then they would have to seriously consider quality issues that may appear. Outsourcing to China may not be the best solution because

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