...Swisher Mower&Machine Company | ------------------------------------------------- | Evaluating a Private Brand Distribution Opportunity | ------------------------------------------------- By: Waleed Kassabo | Problem definition Strategic issue Wayne Swisher is facing his first major decision which is accepting the offer of private branding distribution for SMC’s line of riding mowers or not From his point of view doing that sounds good opportunity, but he must take deeper look on the situation before making his final decision Objectives 1- Increase distribution coverage 2- Increase sales 3- Stabilize seasonal sales patterns Concerns 1- Financing costs for inventory and receivables 2- Cannibalization of current sales 3- Relations with existing wholesalers and dealers Situation Analysis Company / Products Swisher Mower is family based business founded by Max Swisher in the early 1950s, during the last 50 years (1950 -1996) Swisher Mower faced a lot changes in the market, demand and production. Swisher produce three type of lawn mower units with strong depends on the Ride King product which is three wheel riding mower that has a zero turning radius, Developed by max swisher in the 1950s. Swisher products are distinct from its competitors in simple design, high quality and longevity Demand According to the last industries report the sales trend is going up. Riding lawn mower sales are seasonal, about 33 % from the sales occur...
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...Swisher Mower and Machine Company Problem: Wayne Swisher the new president and CEO of Swisher Mower Company (SMC), is unsure of what the future holds for his firm. He was contacted by a major national retail merchandising chain about a private-brand distribution arrangement. Wayne Swisher needs to determine if he should accept the offer that was proposed by the national retail merchandising chain or reject it and continue on normal business. SWOT: Strengths: • Facilities have an annual production capacity of 10,000 riding mower units on a single 40-hour-per-week shift. • Developed great loyalty with dealers and distributors. • Produced the first zero turning radius riding mower. • Produce high-quality mowers that are reliable and have great longevity. • Remained profitable since its founding. Weaknesses: • Limited distribution channels to only nonmetropolitan areas. • Produce mid-engine riding mowers while front engine mowers are more powerful and can handle the bigger jobs. • Relies heavily and their Ride King and their T-44 trail mower only accounted for 8.2 % of SMC’s total sales. Opportunities: • Plans to develop a walk behind trimmer and edger. • Have distributor arrangements in parts of Europe and the South Pacific which made up 5% of total sales. • SMC could develop a riding snow thrower with their zero turn radius for the winter months. • Private brand distribution. • Sales projections for 1995 and 1996 are increasing from previous years. Threats: ...
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...Swisher Mower and Machine Company The Swisher Mower case is about a major decision faced by Wayne Swisher, the president and CEO of the Swisher Mower company. The decision he faces is for deciding to go with a private-brand distribution arrangement for the company’s line of riding mowers. The distribution arrangement could allow for expanded production in new markets and existing markets. Swisher thought that the arrangement posed a good opportunity, but the details of the proposal need to be analyzed and rationalized first. There were potential issues like increased cost and chance of liability claims. Cannibalization by the national merchandiser could possibly result in 300 units lost per year for Ride King mower. The company sold around...
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...Case analysis: Swisher Mower and Machine Company Alternatives: the tactical plan to be developed: 1. Accept the private label deal being offered by a major retail chain 2. Do not accept the private label deal My chosen alternative: 1st option, accept the label deal with the retail merchandise chain. Justification: This proposal holds too many opportunities for SMC to let it pass or fall into the hands of another competitor. The results of accepting the proposal look far better than the alternative. The proposal will allow for more opportunities to expand with time. Moreover, as retail merchandise chains grow in popularity with consumers, SMC will have its product there for the increasing number of buyers. If the company decides to accept the new proposal, it will bring to company an incrassating quantity of unit sales. Currently, the company has unit sales of 4200 + 8200 = 12,400 units. It could also allow SMC to take advantage of unused manufacturing capacity. Analysis for alternatives: 1st option: Pros: Enter the arrangement because it would provide them the chance to reach consumers they currently do not, this should be one of the advantages for the company. The contract would only lock SMC in for 2 years, so they would be free after the short trail period. Meanwhile, this alternative would create a large additional liability for SMC because of the contract terms that state they will assume liability for personal injury that may occur from use or maintenance on...
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...I. Recommendation: 1. Swisher Mower and Machine Company Case should take the distribution proposal with the Retail Merchandise Chain. The company alone isn’t receiving a large amount of sales and this opportunity is a great one for them to increase sales and receive a larger portion of market share. II. Rationale: 1. They have the opportunity to dramatically increase their sales and lower their sales expenses (Appendix II.B) 2. Sales in national Retailer chains are rapidly increasing which is huge opportunity for SMC to enter into the market. 3. SMC has the opportunity to pull out from the contract with retailer, so if they don't see any improve when entering into the market they can simply terminate it if necessary. 4. They are entering a new market, and have the potential to quickly grab market share and increase their sales within the national merchandise stores. 5. Swisher has a unique design that cannot be replicated which give them an advantage against their competition 6. Even though SMC would be more exposed to greater liability, they have never have an encounter with claims for nay products sold or used since 1956; so it is likely they at least in the short-term they won’t have to worry too much about liability claims Appendix (I) Alternative A: Enter with distribution proposal with Retailer Merchandise Chain 1. Advantages a. Being that current sales are 4200 units, with the arrangement they could increase 8200 units (Appendix II.B) b. They would...
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...MANAGEMENT BUS506 Case Study Analysis: Swisher Mower and Machine Company Danel Trumić, Mirhat Kolašinac, Misala Pramenković International Burch University, Sarajevo MARKETING PROBLEM DEFINITION In early 1996, Wayne Swisher, president and chief executive officer (CEO) of Swisher Mower and Machine Company (SMC) received a certified letter from a major national retail merchandise chain inquiring about a private brand distribution arrangement for SMC line of riding mowers. Wayne Swisher had only recently assumed his position as president and CEO from Max Swisher, his father and company founder. Wayne Swisher was previously vice president of sales, a position he held for six years following completion of the MBA program at Southern Methodist University in Dallas, Texas. Prior to graduate school he has worked in sales and marketing position for three years at a large Fortune 500 corporation. The private brand distribution proposal was the first major decision that he faced as president and CEO. He thought the inquiry presented an opportunity worth serious consideration, since unit volume sales of the SMC riding mower had plateau in recent years. The inquiry received by SMC concerning a private brand distribution arrangement requested a sample order of 700 standard riding mower units to be delivered in January 1997. The national retail merchandise chain expected to make an annual order of approximately 8200 units. The chain wanted to purchase the mowers at a price 5 percent lower than...
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...GOLF COURSE MAINTENANCE MATTHEW A. ANDERSON TUESDAY 12:30 P.M.-2:20 P.M. CONTENTS HIERARCHY CHART DEPARTMENT LIST TOURNAMENT MAINTENANCE SCHEDULE EQUIPMENT MAINTENANCE SCHEDULE EMPLOYEE REQUIREMENTS EMPLOYEE/CORSE EXPECTATIONS EQUIPMENT LIST SALARY SHEET HIERARCHY CHART SUPERINTENDANT ASSISTANT SUPERINTENDANT MAINTENANCE SPECIALIST - MOWING SPECIALIST – IRRIGATION SPECIALIST – TURF SPECIALIST MAINTENANCE CREW – MOWING CREW- IRRIGATION CREW – TURF CARE CREW DEPARTMENTS D01 – SUPERINTENANT D02 – ASSISTANT SUPERINTANT D100 – MAINTENANCE D200 – MOWING D300 – IRRIGATION D400 – TURF MANAGEMENT SCHEDULE OF OPERATIONS EMPLOYEE TRAINING REQUIREMENTS STAFF TRAINING Training is essential for the proper functioning of the golf course maintenance department. The complexity of turf grass management and the equipment and chemicals used makes it imperative that all employees know the requirements of their jobs, the proper operation of tools and equipment, and the correct use and dangers involved in handling various chemicals. This can only be achieved by thorough initial and ongoing training. Departmental Orientation It is the policy of the Club that new employees receive both a Club and a Departmental Orientation. While the Personnel Administrator conducts the Club Orientation, the Golf Course Superintendent is responsible for conducting his Departmental Orientation. A detailed outline of the material...
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...1. For differentiation by style or type I think he could also offer services such as bush trimming, raking, edging. I think he could include these services for a small few in addition to mowing lawns. For differentiation of location, I think he should pass out flyers and in these flyers say how far he will go to do lawn work. He should also say that anyone’s house in his neighborhood is fair game, no matter how big it is, for getting their lawns mowed. The last, differentiation by quality, he needs to say how he will also take care of the lawn, not just mow it. Maybe he will fertilize the lawn after it’s freshly cut. People would pay more knowing that their lawn is getting all the care is needs. 2. a. If the EU has one fleet, the US will have a profit of $12,000 instead of $10,00. If they both send two fleets, they still make more if each was to send out one. The US will have higher profits even if the EU sends one or two. However, they both are equal if they send out one or two fleets earning $10,000 and $7,500 respectively. The two fleets is a better idea because they get $15,000 total if they really had just sent one for $10,000. b. If they go by the “tit-for-tat” strategy they will just start out by sending one. They will then wait to see who does what. So they will each just send out one a week and both will have a $10,00 profit. 3. a. HHI= 21.82 + 15.22+132+10.12+9.32+7.42+3.32+2.42+2.42+1.52= =475.24+231.04+169+102.01+86.49+54.76+10.89+5.76+2.25=1,137.44...
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...from receiving products wanted (McConnell, Brue, & Flynn, 2015, p. 153). Therefore, dissonance-reduction is one type of consumer behavior that explains a customer’s high involvement with products or services but has a perception that there is little to no difference between the brands. For example, Edward has plans to purchase a lawn mower, he knows he wants a riding mower and price shops around at the variety of stores to find the perfect one. Edward looks at Husqvarna, and Cub Cadet riding mowers; both has the same horse power, deck size, and specifications (color) that he wants but Edward cannot decide on which one to choose. The only difference between the two is the price; Husqvarna sells its 54” deck for $2,699.00 with a delivery charge of $225.00; and Cub Cadet sells its 54” deck for $3,099.99 with no delivery charge – delivery is free. Edward does not think there is a difference in the mowers but decides that he will purchase one or the other based on the size of his yard. After careful consideration he purchased the Cub Cadet riding mower specifically with the color he wanted, orange. A few weeks later, he likes the way the mower feels, its cutting techniques, and the way the lawn looks after a fresh cut. Four months after making the purchase under certain circumstances, Edward experiences dissonance reduction, he realized that the Husqvarna brand or any other brand would have been just as good, if not slightly better than the Cub Cadet brand. In fact, according...
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...Abstract The robotic lawn mower, which is like the Roomba robotic vacuum, where it can mow the lawn by itself can attract two main target markets that will be covered in this paper. One target market is the elderly people, because simple task, like mowing the lawn can get harder for them. The second target market would be people that are always on the go, because they are always busy and may not have the time to cut their grass. The product positioning will be high be cause its more for people that have a higher income because they will most likely have nicer yards then people who have lower income. Keywords: Robotic Lawn Mower, Positioning, Segmentation, and Target Market Technology is always advancing to try and make things better or easier; the first lawn mower in1868 that was just a “reel type spiral-bladed cutter”, it came from a long way from now, a self-propelled robotic lawn mower (Haster). The robotic lawn mower is similar to the concept of Roomba robotic vacuum cleaner; it mows the lawn by itself and is able to get around obstacles. The robotic lawn mower is controlled by what it hits and has sensors that can make sure it is only cutting grass and prevent it from going out too far. The robotic lawn mower is great for many people because they can maintain their lawn without having to deal with the hot weather or the hard work that usually comes along with cutting the grass, which are the two main reason people do not like mowing their lawn. People who want a...
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...neighbors. Hazel is facing the problem of whether to remain & expand her business in the long run or still search for a job in a company. IV. OBJECTIVES * To generate more clients for the business to sustain and become financially stable. * To have a stable source of income. V. AREAS OF CONSIDERATION External: Threats: Hazel is new to business, competition with the existing professional lawn mower in the market. Opportunities: Because the quality of Hazel’s work is tested, her neighbor recommend her services to others. She will gain more clients from it so more client more sales mean more profit. And for Hazel to maintain a good relationship with her client she must offer lower prices but with high quality of work, she must also have a regular schedule of maintaining the lawn and on time service schedule. Internal: Strength: Her working experience with the company and the quality of her work. Quality assurance is very important in her business. Since some of her customers had terminated the service of a professional lawn mower she must see to it that her clients are always satisfied with her services, also quality of her work will reflect on her business . And in order for Hazel to gain more customers, stay in...
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...ride-on lawn mower. Patrick wants to calculate the annual cost to himself of owning the ride-on lawn mower (this is called the user-cost or user-cost of capital). He has the following information: Initial purchase price of lawn mower = $5,000 Nominal interest rate = 6% per annum (Patrick has to borrow the $5,000) Physical rate of depreciation on a lawn mower = 10% per annum Expected sale price of lawn mower at end-of-year = $4,800 (i) Calculate in $s the cost to Patrick of owning the lawn mower for a year. (Hint: You will get a slightly different answer depending on how you treat depreciation. Either way is acceptable) One issue with this question is how to interpret the expected sale price at the end of the year. (I will make sure to be clearer in the future). One way is to assume that it is the market price of the depreciated lawn mower at the end of the year. In this case $4,800 will reflect two things: - The effect of physical depreciation and - Any change in the market price of new lawn mowers (a pure capital gain or loss) Under this assumption User-cost = initial purchase price + interest cost on borrowing – expected sale price User-cost ($) = 5000 + 0.06(5000) – 4800 User-cost ($) = $500 An alternative approach (and the one we will use) is to measure physical depreciation and the capital gain (loss) separately. In this case we have: User cost = initial purchase price + interest cost on borrowing – [(depreciated lawn mower)×end of year price of new lawn mower)] User-cost...
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...Analysis and Recommendations The GreenMower survey that was conducted revealed many conclusions regarding the project and whether it is profitable and possible to move forward with the concept. Most of the people who took our survey were students which may have led our data to some invalid conclusions; however, this data is appropriate to work with for the moment. Students most likely live in dorms or apartments without grass lawns, therefore our results may be off in terms of the average household in the United States and around the world. Analysis: Nearly half of the people who took our survey answered that they do not have a grass lawn and if they do have a grass lawn, they have between 500-1000 square feet of grass; however, most people are unsure as to how much grass they have. Since lawn services are expensive, most people do not have a lawn service and targeting people who do and do not have a lawn service should be our main priority. The cost of the GreenMower would outweigh the cost of a lawn service in the long run, therefore benefitting those who do have a lawn service currently. With most people mowing their lawns 2-3 times a month, the purpose of the GreenMower is significant. Mowing your lawn can be both physically and time demanding, which means that purchasing the GreenMower is a practical solution for those who are too busy, elderly, or disabled. According to the data collected, our survey participants seem to think the idea of a hands-free lawnmower is...
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...careservices? ~ Hazels customers will most likely judge the quality of her lawn care services by thequantity of Hazels other customer, how efficient she does her work and her credibility. 2 . Hazel is the operations manager of her business . Among her responsibilities areforecasting inventory management, scheduling, quality assurance, and maintenance . a. What kinds of things would likely require forecasts? ~ Weather and climate condition would likely require forecasts as well as thedemand for lawn mowing services.b. What inventory items does Hazel probably have? Name one inventory decision shehas to make periodically. ~ The inventory items that Hazel probably has are rake, grass cutter, fertilizers,mower, seeds, and other lawn mower equipments.c. What scheduling must she do? What things might occur to disrupt schedules andcause Hazel to reschedule? ~ It depends upon the demand of the customers. Basically, Hazel will accept one totwo customers five times a week. She will do her lawn services approximately once amonth. The things that might occur to disrupt schedules and will cause Hazel toreschedule are fortuitous events such as storms, floods, earthquake and othercalamities.d. How important is quality assurance to Hazels business? Explain. ~ The quality assurance to Hazels business is indeed very important. It willdetermine the number of Hazels customers. It will also reflect on her businesscredibility.e. What kinds of maintenance...
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...Quality of Hazel's Work operation management if an ordinance is passed... Should hazel send that student a check for the idea? Group 5 trade-offs In what ways are Hazel's customer most likely to judge the quality of her lawn care service? Hazel's Case 4. The town is considering an ordinance that would prohibit putting grass clippings at the curb for pick up because local land fills cannot handle the volume. What options might hazel consider if the ordinance is passed? If this law would be passed it would be both a benefit and a loss for hazel. Name 2 advantages and drawbacks of each option Advantages: As we have researched grass clippings are said to be fertilizers. After mowing the lawn you do not need to sweep it any more leave it and it would breakdown on its own. It would be less effort for hazel and less cost for the fertilizer and trash bag. Plus hazel would also help the environment. Disadvantages: We are not sure if customers would like that grass clippings would be left on their backyards. 5. Hazel decided to offer the students who work for her a bonus of $25 for ideas on how to improve the business, and they provided several good ideas one idea that she initially rejected now appears to hold great promise. The students who proposed the idea has left, and is currently working for a competitor. Should hazel send that student a check for the idea?what are the possible trade offs. We think Hazel should not send the student a check because the student is currently...
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