Scotts Miracle-Gro 26-1 Case 26 Scotts Miracle-Gro: The Spreader Sourcing Decision John ancient Michael Leiblein 1 As cork Bawcombe drove to work on a warm atomic number 20 cockcrow in June 2007, his mind was occupied with an upcoming showdown with the sept from the corporate office in Marysville, Ohio. Bawcombe was the director of operations of Scotts Temecula plant. For over five years, he had been in charge of the Temecula manufacturing plant, which produced tout corps de ballet of Scotts Miracle-Gros domestic lawn seed and fertilizer spreaders (see Exhibit 1). As a result of the plants location in Southern California, Bawcombe was under constant pressure to justify wherefore Scotts should not offshore/outsource production of its spreaders to a low-wage manufacturing site, such(prenominal) as China. COMPANY HISTORY 2 The Scotts Miracle-Gro participation (Scotts), base in Marysville, Ohio, was formed by a 1995 jointure of Miracle-Gro and The Scotts Company. The merger made Scotts the larg- est club in the North American lawn and garden industry. It was the worlds leading supplier and marketer of consumer products for do-it-yourself lawn and garden care, with products for master horticulture as well.
1 In the 2007 financial year, Scotts had net sales of $2.7 meg (see Exhibits 2 and 3). 3 The Scotts Company was founded in 1868 by Orlando McLean Scott as a purveyor of weed-free seeds. By 1879, Scotts had diversify into distribution of horse-draw n make equipment and also started a mail-or! der give rise seed distribution channel. Scotts began pass grass seeds for lawns in 1907, distributing done retail channels kickoff in 1924. In 1928, Scotts introduced turf Builder®, the first fertilizer specifically designed for grass. Scotts started its spreader business with the introduction of drop spreaders in 1930; broadcast spreaders were roll out in 1983. Scotts acquired Republic asshole &...If you want to construct a full essay, order it on our website:
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