...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...
Words: 652 - Pages: 3
...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: ...
Words: 304 - Pages: 2
...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...
Words: 1508 - Pages: 7
...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...
Words: 491 - Pages: 2
...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...
Words: 902 - Pages: 4
...SIXTH EDITION STRATEGIC MANAGEMENT IN ACTION Mary Coulter Missouri State University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Stephanie Wall Senior Acquisitions Editor: April Cole Editorial Project Manager: Claudia Fernandes Director of Marketing: Maggie Moylan Senior Marketing Manager: Nikki Ayana Jones Marketing Assistant: Gianna Sandri Senior Managing Editor: Judy Leale Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Senior Art Director: Kenny Beck Text Designer: LCI Design Cover Designer: LCI Design Cover Art: Svetoslav Iliev/Shutterstock.com Permission Specialist: Brooks Hill-Whilton Media Project Manager, Production: Lisa Rinaldi Senior Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management and Composition: Integra Printer/Binder: RRD/Willard Cover Printer: Lehigh-Phoenix Color Text Font: 10/12, Times LT Std Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2013, 2010, 2008 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights...
Words: 154599 - Pages: 619
