Swisher Mower And Machine Company

Essay by EssaySwap ContributorUniversity, Master's February 2008

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Problem In 1996, Swisher Mower and Machine Company (SMC) was faced with a situation which would have the biggest impact on its company since founder Max Swisher received his patent on the gearbox drive assembly. A certified letter from a major national retail merchandise chain outlined a proposal for a two-year contract to provide a private branding business agreement with SMC and its line of riding lawn mowers. In recent years, SMC?s sales and profit figures had reached a plateau far below its all time highest financial figures from 1966. This two-year contractual agreement would provide expanded production in new and existing markets along with the added incentive of broadened distribution in metropolitan areas for SMC. However, the contract did present uncertainties such as increased exposure to liability claims and increased costs due to warranty labor and parts. These reasons along with many others presented new CEO Wayne Fisher with one of the most important decisions he may face with Swisher Mower and Machine Company.

Decision Factors A SWOT Analysis is performed to enumerate the decision factors facing a company when a problem has been defined and a course of action must be taken. In a SWOT analysis, one must identify the strengths and weaknesses surrounding the company, its current business procedures, and external factors relevant to the situation confronting the company. Furthermore, research must be conducted to identify opportunities within the company and those underlying in the newfound situation. Finally, the imposing threats to a company?s current practices and future endeavors must be examined. All of this information, along with financial data must be used to determine the best possible course of action for the company to take.

Strengths There are quite a few strengths in the makeup of the existing Swisher Mower Company. To begin with, SMC...