O.M. Scott & Sons Company

DE LA SALLE passe-partout SCHOOLS GRADUATE SCHOOL OF BUSINESS reason ANALYSIS O. M. SCOTT & SONS COMPANY SUBMITTED BY ESTIMADA, ANNA GABRIELLA C. decision maker Summary The O. M. Scott and Sons participation was a ph whizzr which offset started to produce plenty-free grass, but modify into other products related to its product track lawn mowers, fertilizers, and other garden paraphernalia. It encountered the problem of nationally scattering, finding difficulty in the deliverance of its product.The federation solve this problem of nationwide dispersion by first, increasing its confirm force to keep up with the rich roams. Second, by setting up dealerships which testament distribute their products and lastly, establishing a trust recognize payment system in order to assure the quick returns of investments. Problem The come with encountered difficulty in the scattering of its products for devil reasons the nature of its agriculturally based products necessitated the quick distribution of products upon order.The voluminous orders and distances of nationwide coverage rendered the distribution difficult. Corpo invest Objective In care up with the modernization of agricultural products and technology, the gild expanded its product line by diversifying into related products and services. From grass, O. M. Scott & Sons started the production of fertilizers, lawn mowers and other products. This variegation assured the political party against stagnation. Areas of Consideration Shareholders & central Officers Sales Force The companys success can be attributed to the efforts of the sales force since they are the ones who are modify the salesmanship of the dealers in order to be ready(prenominal) to their prospective customers. * Dealers The dealer is one of the make players in the companys sales since the products are made available through them. With the dealership, the company can save gold from overhead expenses and other general and ad ministrative expenses from operations. * ScottThe owner of the company is considered as one of the key players in the company since he had found ways to cope with the securities industry trend. Market Profile * Product Initially, the company is only selling the countrys first clean, weed-free grass informant in 1868. Scotts business began to grow apace in the local grocery in Central Ohio. In 1990s, the company have expanded its product drop from grass seeds to new chemical weed and garden pest controls and special-purpose lawn fetilizers. * Price * level & DistributionWhen the company first started, the weed-free grass seed was available upon order over the skirt and after some time, the seeds go out be delivered to you house. However, as the business expanded, Scott realized that incomplete him nor his competitors were able to tap the potential market of lawn care. In the companys case, this was attributed to the distribution system since the customers could non buy the products easily. To address this issue, the company loose its products to dealerships wherein the sales force is tasked to train dealers how to do a better selling meditate with the companys products. Promotion and advertize When the business became successful during its initial operations, the company began to advertise extensively, In 1927, the company added a free magazine called Lawn Care, which was widely distributed. fiscal Profile * Profitability * The companys usefulnessability for the next 5 days, as computed in the intercommunicate plan, will greatly increase as computed for the gross profit rate and contribution margin rate. thither is a yearly increase of 1% for both rates which is a sober sign for the company. * Turnovers The turnover rate for the first projected year will not be good since it will exit longer for the inventory to be converted to cash. However the succeeding projected years is seen to be improving in cost of the turnover rate. * Capacity Utiliz ation * For the projected years, the rate of capacity utilization will improve as it was projected that the rate will increase by 2% yearly. * Financial Leverage * The liquidity of the company will neither improve nor slump as projected in the plan. on that point was only a little inequality in the yearly computed projected rates.