Mt 460-02 Management Policy and Strategy

unit Seven Scotts Miracle-Gro fictitious character Study synopsis XXX Kaplan University MT 460-02 commission Policy and Strategy Dr. Carrie A. OH ar April 22, 2013 Unit Seven Scotts Miracle-Gro Case Study abstract Introduction The submitted report card identifies Scotts Miracle-Gros strengths, weaknesses, opportunities, and threats (SWOT) (Pearce & Robinson, 2011, p. 140). Key issues willing be explored concerning Scotts Miracle-Gros external environment and solutions developed to maximize its opportunities or minimize its biggest threats. This comprehensive analysis will drilld to add nourish to the company and its consumers.Synopsis (Background) of the Situation The Scotts Miracle-Gro troupe (Scotts), based in Marysville, Ohio, was formed by a 1995 spinal fusion of Miracle-Gro and the Scotts Company (Pearce & Robinson, 2011, p. 26-1). The merger made Scotts the largest company in the North Ameri plenty lawn and t conclusion industry as well as the worlds leading supplier and grocery storeer of consumer products for do-it-yourself lawn and garden c atomic number 18 (Pearce & Robinson, 2011, p. 26-1). The Scotts Company was founded in 1868 by Orlando McLean Scott as a purveyor of weed-free sets.By 1879, Scotts had change into distri exclusivelyion of horse-d keenn farm equipment and similarly started a mail-order farm seed distribution channel. Scotts began offering grass seeds for lawns in 1907, distributing through retail transmit beginning in 1924 (Pearce & Robinson, 2011, p. 26-1). In 1928, Scotts introduced Turf Builder, the first fertiliser specifically designed for grass and started its broadcaster business with the introduction of drop spreaders in 1930 broadcast spreaders were rol take out in 1983 (Pearce & Robinson, 2011, p. 6-1). Scotts acquired Republic Tool & Manufacturing Company in 1992 and gained competencies in total look control over spreader manufacturing (Pearce & Robinson, 2011, p. 26-1). Ownership of the firm changed hand s several times, beginning in 1971 when ITT bought Scotts from the Scotts family. In 1986, a leveraged buy-out (LBO) made Scotts a private company again for a time, until 1992, when its stock started trading on the NASDAQ (Pearce & Robinson, 2011, p. 26-2).Miracle-Gro was founded in 1951 by Horace Hagedon (Pearce & Robinson, 2011, p. 26-2). Unlike Scotts, Miracle-Gro had no internal occupation all outturn was outsourced to contract manufacturers. Before the 1995 merger with Scotts, Miracle Gro was already a leading brand in the lawn c are chemical substance industry (Pearce & Robinson, 2011, p. 26-2). By early 2000, Scotts Miracle-Gro products were No. 1 in each major(ip) category and in virtually every major market in which they competed (Pearce & Robinson, 2011, p. 26-2). Key IssuesThe three headst integrity issues facing Scotts are increased domestic production be, dependence on large leprose customers, and profitability below market average. The comparatively high deeds a nd aim be of the Temecula plant continues to be an issue to the growth of Scotts Miracle-Gro. The key issues revolve around the idea that that is has become expensive to produce fertilizer spreaders and lawn seed by Scotts Temecula plant. Another weakness that has been identified is Scotts over dependent to customers, such as Home Depot and Wal-Mart, which look for 61% of the companys sales (Mays, 2012).These large consumers have demanded a change in policy and production by leaner inventories to end their fiscal years as well as to move shipments close at hand(predicate) to the start of the lawn and garden season (Mays, 2012). Scotts also has experienced bring low sales in the international segment, tumbling 21 percent, while also missing revenue targets in 2011 due to sales declining by -2%, an 8% miss (Mays, 2012). Define the worry The main problem to Scotts survivability and wellness is the increasing cost of production for the Temecula plant, which manufactures products f or Scotts Miracle-Gro.These increasing cost are driven by the high labor costs. These increased costs are also in conjunction with higher prices for raw materials, heartiness costs, and higher allege taxes. Alternative Solutions The three possible solutions to alleviating this issue is outsourcing, hiring lower waged workers, or slightly lower wages and offer bonuses for meeting certain milest matchlesss. Outsourcing to china may not be the beaver solution because it would raise costs in the distribution channel, which is not a desir able-bodied outcome for the long-term.Also hiring an orthogonal work-force willing to accept a lower wage could jeopardize grapheme but the naked employees can be instructed on how to provide quality when manufacturing the products which would generate a short term increase in costs for cultivation. The other alternative is to move the plan to more friendly manufacturing read and slightly lower flow rate employees wages if it is considered t hat they are higher, and also to come in areas where money can be saved.This would harbor human capital which has led to productivity improvements which have averaged six per cent per year (Pearce & Robinson, 2011, p. 26-4). In this section, you abut your expertise by identifying a couple of different ways to crystallize the problem you identified in the previous section Selected Solution to the Problem The most economical and viable solution would be to move production out of doors of California. Areas where costs can be saved are in the distribution of the products and in the procurement of raw materials.Scotts should search for areas where expenses can be lowered and costs cut but that does not denigrate employee morale and job satisfaction which can negatively impact productivity. The state that has been selected is universal time which has right-to-work law on the books which means lower labor costs, Utah also has a favorable regulatory climate and Utahs 5% flat corporat e tax rate is one of the final in the country (Badenhausen, 2012). Implementation Internal Stakeholders External Stakeholders Accounting- Assess figure Customers- e. . Wal-Mart, Lowes, Home Depot Operations- Calculate costs of operational processes Suppliers Local and menstruum raw material suppliers procural- Calculate the costs of purchasing material regulatory agencies- Local government agency Human imagings- Calculate wages and benefits of current employees, management, and executives. Identify training for new plant. Create benefit package to retain current employees. Natives- Local community Legal Department- Develop and review contracts for new facilities and suppliers. Information Technology- Develop mesh topology for supply chain, operations and sales. Maintain single of database Initiating serve Group- Time frame- at bottom one month * come about desegregation way * Reason- Develop objectify Charter * throw away Communications counseling * Rea son- Identify Stakeholders political programning Process Group Time frame- at bottom one month (to run concurrent to the initiation process) * see oscilloscope charge (Within two weeks) Reason- Define Scope (Moving plant operations and distribution) and Create a work breakdown structure (west by south) * trade union movement Procurement (Within two weeks afterward witness is defined) * Reason- Plan Procurements (Where, who, and how much raw materials will cost if plant is moved) * protrusion encounter manipulatement (Within two weeks after tolerate is defined) * Reason- Plan Risk management, Identify Risks, Plan Risk solutions, and Perform Qualitative Risk Analysis * couch Human Resources focusing (Within two weeks after sound projection is defined) * Reason- Develop Human Resource Plan- (Calculate wages and benefits of current employees, management, and executives. Identify training for new plant. Create benefit package to retain current employees. ) * brook Quality guidance (Within two weeks after project is defined) * Reason- Plan Quality- take care the effective design of processes that verify customer needs, plan product bread and butter cycle anddesign, produce and deliver the product or service. Project personify attention (Within one month of project scope) * Reason- Estimate exists and suss out Budget * Project Time Management (Within two weeks after project is defined) * Reason- Define Activities, Sequence Activities, Develop Schedule, Estimate natural action Durations, and Estimate Activity Resources * Project Integration (Within one month of project scope) * Reason- Develop Project Management Plan Executing Process Group Time frame- Within six months of completing the preparedness frame * Project Quality Management * Reason- Perform Quality Assurance (5% improvement from previous year) * Project Procurement Management * Reason- Conduct Procurements (10% reduction in procurement) * Project Human Resource Management Reason- Acquire Project Team, Develop Project Team, and Manage Project Team * Project Communications Management * Reason- Distribute Information and Manage Stakeholder Expectations (30% reduction in labor costs and 20% increase in distribution speed) * Project Integration Management * Reason- Direct & Manage Project Execution admonishering and lockling Process Group Time frame- Within six months * Project Scope Management * Reason- Verify Scope, Control Scope * Project Procurement Management * Reason- Administer Procurements * Project Risk Management * Reason- Monitor & Control Risks * Project Communications Management * Reason- Report consummation * Project Quality Management Reason- Perform Quality Control * Project Cost Management * Reason- Control Costs * Project Time Management * Reason- Control Schedule * Project Integration * Reason- Monitor & Control Project break down and Perform Integrated Change Control Closing Process Group Time frame- Within nine months of completing the pl anning phase * Project Scope Management * Reason- Verify Scope, Control Scope * Project Procurement Management * Reason- Administer Procurements * Project Risk Management * Reason- Monitor & Control Risks * Project Communications Management * Reason- Report Performance * Project Quality Management * Reason- Perform Quality Control * Project Cost Management Reason- Control Costs * Project Time Management * Reason- Control Schedule * Project Integration * Reason- Monitor & Control Project Work and Perform Integrated Change Control * Project Integration Management * Reason- Close Project or Phase * Project Procurement Management * Reason- Close Procurements Recommendations The biggest threat facing Scotts Miracle-Gro is high plant and labor costs of the Temecula plant (Pearce & Robinson, 2011, p. 26-4). This has led to lower sales both domestically and internally diminishing their market share and global standing. Conclusion This concludes an in-depth analysis of Scotts Miracle-Gro.The major issue that has been identified and addressed is high internal costs of production at Scotts Temecula plant. A solution has been developed and implemented to alleviate higher up market expenses and to cut costs by moving production outside of California. China and other overseas markets have been excluded because quality issues would be increase and decreasing cost with just labor wages will not provide the solution to the problem, but will create other problems. A short term project plan has been identified in the report to be presented to executives and implemented by functional management. The implementation portion includes growth a project charter and identifying stakeholders within one month.A tepid work out will be created using figures submitted from the operations, procurement, human resources, and information technology departments during this process. The planning phase will also be concluded within one month developing a project scope and creating a WBS while a lso conducting a risk assessment of the move versus stay in California. In addition this process will require the creating of a human resources and procurement plan. In three months Scotts should be able to execute the plan provided which includes quality management of improvements of five percent supra last year , procurement management reduce costs of raw material purchases, and human resource management to help reduce labor costs by ten percent.Information technology should have a network set up in this timeframe to protect integrity and integrate run between operations, sales, and distribution. The objectives should be established for the short-term and they will be monitored to regularise if they are followed accordingly. This key issue is important and moving operations should not be the end-all-solution but the beginning of a continuous solution to extend to maximum consumer satisfaction and profitability. When appropriate measures are taken and if the corporate officers c ommunicate and discuss the issue considering all the details, the best solutions will be reached to cause long term objectives. References Badenhausen, K. (2012, December 12). Utah tops Forbes 2012 list of the best states Ffor business. Forbes. com.Retrieved from forbes. com http//www. forbes. com/sites/kurtbadenhausen/2012/12/12/utah-tops-list-of-the-best-states-for-business/ Mays, G. C. (2012, February 08). Can Scotts Miracle-Gro hit its lofty 2012 sales bespeak or will it miss the target again? Seekingalpha. com. Retrieved from seekingalpha. com http//seekingalpha. com/article/351541-can-scotts-miracle-gro-hit-its-lofty-2012-sales-forecast-or-will-it-miss-the-target-again Pearce, J. A. , & Robinson, R. B. (2011). strategical management Formulation, implementation, and control (12th ed. ). New York, NY McGraw-Hill/Irwin. Appendix A SWOT Analysis Template for Scotts Miracle-GroStrengths * Large market share * Consumer loyalty Weaknesses * Increased viewgraph costs * Greater dep endence on large consumers Opportunities * Lawn services * change magnitude online consumer spending * Globalization Threats * Competition * Government Regulation * Increasing prices of energy Project Grading Criteria Grade Content, Focus, Use of Text/Research Analysis and Critical Thinking Writing Style, Grammar, APA Format (when assigned) % 50% 30% 20% 90-100% Response successfully answers the assignment question(s) thoroughly uses the textual matter and other literature. Response exhibits strong higher-order critical thinking and analysis (e. g. , evaluation). Sentences are clear, concise, and direct face is appropriate. Grammatical skills are strong with almost no errors per page. Correct use of APA format when assigned. 80-89% Response answers the assignment question(s) with only minor digressions sufficiently uses the text and other literature. Response more often than not exhibits higher-order critical thinking and analysis (e. g. sure analysis). Sentences are gener ally clear, concise, and direct tone is appropriate. Grammatical skills are fit with very few errors per page. Correct use of APA format when assigned. 70-79% Response answers the project assignment(s) with some digression sufficiently uses the text and other literature. Response exhibits special higher-order critical thinking and analysis (e. g. application of information). Sentences are occasionally windy or ambiguous tone is too informal. Grammatical skills are passable with few errors per page. Adequate use of APA format when assigned. 60-69% Response answers the assignment question(s) but digresses significantly insufficiently uses the text and other literature. Response exhibits simplistic or reductive thinking and analysis but does demonstrate comprehension. Sentences are generally wordy and/or ambiguous tone is too informal. Grammatical skills are inadequate, clarity and meaning are impaired, numerous errors per page. Inadequate use