Case: Scotts Miracle$-$Gro: The Spreader Sourcing Decision

Your report should address the sourcing decision described in the case. Here are a few questions that might help you analyze the case as you prepare your report.

$($Include any excel spreadsheets etc. with your report.$)$

$1$ What are the strategic options for Scotts?

$2$ What are the strategic risks and benefits of outsourcing production of the

Temecula plant to a contract manufacturer$($s$)$ in China? Categorize the

incremental cost impact.

$3$ Financially compare the two options $($stay in Temecula, outsource to China$).$

Include all possible data as presented in the case. State any assumptions made.

Perform a Sensitivity Analysis on factor$($s$)$considered$.$

$4$ Provide a brief analysis of the Offshoring Option.

$5$ Make your final recommendations on $$what should Scotts do$?.$b