Case
Teaching Notes
Supplementary Resources
Abstract
Executives at Scotts Miracle-Gro, a Massachusetts lawn and garden products manufacturer, had a passion for employee wellness, and all employees, from the CEO to front-line workers were required to participate. In September of 2006, one month ahead of a transition to a smoke-free environment in all Scotts’ facilities, employee Scott Rodrigues was fired. His offense? Smoking on his own time, at home. Even though the company violated no labor laws, the move jeopardized both employee morale and the company’s hard-earned reputation as a great place to work. Communication officials must determine how to deal with the resulting damage.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Figure 1
The Scotts Miracle-Gro Company Consolidated Statements of Operations for the fiscal years ended September 30, 2005, 2004 and 2003 (in millions, except per share data)
2005 | 2004 | 2003 | |
Net sales | $2,369.30 | $2,106.50 | 1,941.6 |
1,230.8 | |||
Cost of sales | 1,509.20 | 1,313.50 | 0 |
Restructuring and other charges | (0.3) | 0.6 | 9.1 |
Gross profit | 860.4 | 792.4 | 701.7 |
Operating expenses: | |||
Selling, general and administrative | 633.8 | 540.7 | 472.9 |
Impairment, restructuring and other charges | 33.2 | 9.1 | 8.0 |
Other income, net | (7.5) | (10.2) | (10.8) |
Income from operations | 200.9 | 252.8 | 231.6 |
Costs related to refinancing | 1.3 | 45.5 | — |
Interest expense | 41.5 | 48.8 | 69.2 |
Income before income taxes | 158.1 | 158.5 | 162.4 |
Income taxes | 57.7 | 58.0 | 59.2 |
Income from continuing operations | 100.4 | 100.5 | 103.2 |
Income from discontinued operations | 0.2 | 0.4 | 0.6 |
Net income | 100.60 | 100.90 | 103.80 |
Source : Scotts Miracle-Gro 2005 Annual Report
Additional References
- Fark Discussion Forum. (2007). Retrieved April 22, 2007, http://forums.fark.com/cgi/fark/comments.pl?IDLink=1803601
- Website of the Commonwealth of Massachusetts. (2007). Fair Employment Law. Retrieved May 2, 2007, from http://www.mass.gov/mcad/fairemp.pdf
- Americans with Disabilities Act. (2007). U.S. Department of Justice. Retrieved April 17, 2007, from http://www.usdoj.gov/crt/ada/adahom1.htm
- Sharma, Sat. (2006). Nicotine Addiction. Retrieved April 17, 2007, from http://www.emedicine.com/med/topic1642.htm
- 2003 State of the State’s Health Interim Report. (2003). Oklahoma State Department of Health. Retrieved April 17, 2007, from http://www.health.state.ok.us/board/ir03/burden.html
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved