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Please submit a concise report ( Times New Roman Font 1 1 , double spacing ) responding to the topics below. What are the strategic
Please submit a concise report Times New Roman Font double spacing responding to the topics below.
What are the strategic risks of outsourcing production of the Temecula plant to a contract manufacturer in China? Identify the relevant risks for Scottss and briefly explain each one.
What are the strategic benefits of outsourcing production of the Temecula plant to a contract manufacturer in China? Identify the relevant benefits for Scotts and briefly explain each one.
Conduct the appropriate total cost analyses in MS Excel to compare the three production options Hint: The case mentions a discount rate. Therefore, you will need to evaluate the three options as "investment options" over several years Make assumptions where necessary, but be explicit about your assumptions and support each assumption using evidence ie from the real world. Public sources may be helpful here Your detailed Excel sheets should be included in an Appendix and properly referred to in the main text of the case report. Be sure to include important numbers, tables, and figures from your analyses in the main text. Scotts has the following three production options:
Retain production at the Temecula plant.
Outsource production to a contract manufacturer in China.
Offshore production to China.
What are other broader issues to consider when evaluating whether to outsource or offshore production from the US to China? Hint: Here, you can also think about what needs to happen after production is outsourced or offshored
What is your final recommendation to Scotts MiracleGro? Provide a rationale for your recommendation based on your strategic and quantitative analyses.
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