RECOMMENDATION: Swisher Mower and Machine Company should reject the offer to produce the Private-Label brand. RATIONALE: • Standard Riding Mower contribution per unit would drop from $97 to $33.98‚ which is $63.02 per mower. (Appendix 4) • Contribution Margin would drop from 14.92% to 5.5%‚ which is 9.42%. (Appendix 4) • Swisher Mower would only profit $62‚819 from producing the 8‚200 units in the Private-Label in the first full year of production. (Appendix 5) o Profit per mower is only $7.66
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Brief #1 Swisher Mower and Machine Company Major Issue: Swisher Mower and Machine Company must decide whether to maintain its current distribution practices or enter into a private-brand distribution arrangement for the riding mower line. 4 Ps and 3 Cs: Product: SMC high quality riding mowers Price: moderate to high Promotion: Push –TV‚ radio‚ newspaper Place: Push – Regional Distribution through wholesalers and direct dealers Company: Swisher Mower and Machine Company – small company image
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Swisher Mower and Machine Company Evaluating a Private Brand Distribution Opportunity Define the Problem Should Swisher Mower and Machine Company accept the private-brand distribution proposal made by a major national retail merchandise chain? If so‚ under what agreement conditions? List the Alternatives 1. Accept the private-brand distribution proposal 2. Employ a more aggressive advertising and sales effort to enter new markets recruit new dealers and assist current dealers 3. Initiate
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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
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Swisher Mower and Machine Company Case Analysis Company History Swisher Mower and Machine Company is located in Warrensburg Missouri. Max Swisher founded Swisher Mowers in 1945. Max began manufacturing riding mowers in 1956.Max’s ingenuity in riding mowers has not been duplicated. Swisher Mowers was the first to introduce the zero turn radius mowers‚ the Ride King. Swisher has prided itself in a customer oriented philosophy‚ which has developed strong relationships with dealers and
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Swisher Mower and Machine Company Market and Marketing Mix Target Market Swisher Mower’s primary target market is industrial users located in the non-metropolitan areas. 75% of the company’s sales come from non-metropolitan areas‚ while 30% of sales are generated from wholesalers and 20% from dealer sales. Their target market is also in the Midwest and Southeast regions of the US. More specifically‚ Swisher targets consumers with over an acre of land and farmers with several hundred acres of
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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
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Selected Companies Pro Forma Apple has become very successful in the technology industry. The company has increased its net sales from 2006 to 2007‚ which proves they are making good capital budgeting decisions. A pro forma income statement and balance sheet showing the future planning and growth of a company. The pro forma income statement and balance sheet will explain a cash budget‚ underlying assumptions of calculations‚ calculations of different ratio analysis‚ and make recommendations to management
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Wayne Swisher‚ President and Chief Executive Office of Swisher Mower and Machine Company (SMC)‚ was weighing the proposal of a private branding arrangement for SMC’s line of riding mowers. He thought the inquiry presented an opportunity but details should be studied more closely. Situation Analysis: Company Background: Established in 1945 by Max Swisher‚ SMC grew steadily with unit volume for SMC riding mowers peaking at 10‚000 units with sales of $2 million in 1966. In the 1990s‚ the unit volume
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tendencies of the ratios‚ such as net interest income margin‚ net income margin‚ return on asset‚ return on equity‚ etc.‚ that could be used for forecasting. (4) Simplify the accounts of Balance Sheet‚ Income Statement and Cash Flow Statement. 2. I/S Pro Forma 1.1 Interest Income Graph 2-1 Interest Income Graph 2-1 shows the total interest income of Orrstown from year 2006-2013. As it takes a longer time for small financial institutions to react on the financial crisis‚ the negative interest income
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