Meeting with the visitors from corporate hq

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Reference no: EM131090639

After meeting with the visitors from Corporate HQ, Bawcombe spoke to you, his operations managers, "They want to close the plant," he said grimly. "They expect costs to decrease considerably if we manufacture in China through a Scotts subsidiary."

One year and eight million to set up the plant in China, thereafter annually seven million to ship product to the USA.

Bawcombe requested you to consider improvements in the Temecula plant that would improve productivity, decrease costs, improve throughput, increase revenues, or make other gains that would offset the benefits of moving overseas so much that the Temecula plant would not be shut. Your plans need to show low investment (maximum one million dollars) and must break even within three years.

Please assume that the estimates given in the case (year 2006) for changes in coming years in US and China are accurate. Please write your proposals in 1000 words or fewer.

Reference no: EM131090639

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