The O. M. Scott & Sons Company

6011 Words Apr 11th, 2011 25 Pages
THE O. M. SCOTT & SONS COMPANY
Between 1955 and 1961, management of The O. M. Scott & Sons Company launched a number of new programs aimed at maintaining and increasing the company 's past success and growth. Largely in response to these activities, Scott 's field sales force grew from 6 to 150 men, several entirely new and expanded production facilities went on stream, and the number of products in the company 's product line tripled. Sales increased from about $10 million to $43 million. In late 1961, company officials were preparing to review the results of all these changes to ascertain how, if at al1, Scott 's plans and financial policies should be changed. The O. M. Scott & Sons Company commenced operations in 1868, when it began
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In 1959 sales increased to $30.6 million and profits to $1.5 million. A large proportion of these sales comprised new products that had been developed and patented by the company within the past few years. Reviewing the company 's progress again in early 1959, management was still not satisfied that the company was marketing its products as effectively as possible. For one thing, it was estimated that an annual market potential of at least $100 million existed for Scott products. Another important consideration was that several nationally known chemical firms had either begun or were expected to begin competing against Scott in certain lines. These facts led management to conclude that the most effective way for Scott to preserve its preeminent market position would be to push for immediate further market penetration. If successful, such a strategy would enable Scott to eclipse competition as completely as possible before its competitors could establish a firm market position against the company. In this contest an annual growth rate in sales and profits of up to 25% was thought to be a reasonable goal for the company over the next few years. Apart from the need to continue strengthening the company 's field sales force and dealer organization, management thought in early 1959 that the most important factor standing in the way of further rapid growth and market

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