O.M. Scott and Company Case Term Paper

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Despite the company's name Horace Hagedorn and his family controlled the business. By 1995, Miracle-Gro became America's leading brand name in gardening.

The Hagedorn family emerged as Scotts' leading shareholders, holding over one-third of the stock. In 1996, CEO Theodore Host was ousted by Horace Hagedorn and the Scotts' board of directors. Host was replaced by Charles M. Berger, a former Miracle-Gro director, who was also made president and chairman of the board of Scotts. Horace Hagedorn's son, James, was promoted to the head of all U.S. business.

Other Risks

In recent years Scotts has been aggressively expanding its LawnService business and has began to explore the possibility of expanding its brands into other segments such as potted plants, pottery, watering equipment and garden tools.

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The threat of EPA suits brought against the company by large governmental entities is very real and diversification is important to steady the high risk portion of a company with low-risk product lines.

Pesticide product contain "active" ingredients, with a few long chemical names, and "inert ingredients." The chemicals used as inerts include some of the most dangerous substances known today. Some of these chemicals are suspected carcinogens and have been linked to other long-term health problems like central nervous system disorders, liver and kidney damage and birth defects (Cuomo 1).

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