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Please read the case and answer the following question.
1. What are the strategic risks and benefits of outsourcing production of the Temecula plant to a
contract manufacturer in China? Use any frameworks that you feel are relevant.
2. Financially compare outsourcing to China vs. in-house. Include all possible relevant financial factors,
explicitly state important factors not included in a financial analysis, and perform some sensitivity on
3. Comment on how off shoring vs. outsourcing compares strategically and financially for Scotts.
4. Taking all of the above into consideration, make (& defend) a recommendation.