...MBA: 633 sTATISTICS FOR BUSINESS DECISION MAKING | Specialty Toys, Inc. | Case Problem: Group Assignment No. 1 | | March 4, 2010 | | [Managerial Report prepared to address issues and recommend and order quantity for the Weather Teddy product for Specialty Toys, Inc.] | Executive Summary Specialty Toys, Inc. is a manufacturer of new and innovative children’s toys which includes the Weather Teddy. The Weather Teddy has a built-in barometer that provides one of five standard responses about the weather when a child presses the teddy bear’s hand. The company recently reached out to our team to prepare a managerial report addressing, but not limited to, the following issues: normal probability distribution in relation to demand approximation, the probability of stock-outs for certain quantities and the projected profits associated with certain order quantities. The purpose of this managerial report is to address the concerns of the management team at Specialty Toys, Inc. and also to provide a recommended order quantity for the Weather Teddy, the probability of stock-outs related to specific order quantities, and the potential profits associated with certain order quantities. Specialty Toys Business Cycle The company sells a variety of toys throughout the year. However, Specialty Toys plans to release the Weather Teddy in October, before the holiday season is officially underway. Management has determined that this is the best time to release a holiday gift...
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...G.G. Toys 1. Do you recommend that G.G. Toys change its existing cost system in the Chicago Plant? In the Springfield plant? Why or why not? In the Chicago plant, G.G. Toys should change its existing cost accounting system from the legacy or traditional costing methodology to activity-based costing (ABC). In allocating overhead as a percentage of direct labor cost, the margins of 9% and 34% in the Geoffrey doll and the specialty branded doll #106 respectively, do not reflect the actual cost of overhead. Currently G.G. Toys is calculating its manufacturing overhead costs on only on one cost driver, the direct labor. From case facts, we know that the manufacturing overhead at the Chicago plant is very high (approximately 95% of the overall GG Toys manufacturing overhead) The 3 different categories of dolls require different amounts of machine hours and other variable costs. By using Activity-based costing, each specific category of doll would have a different manufacturing overhead (and hence different contribution margin) allocated to it and the profit margin analysis for the doll category would yield an accurate result that can be used successfully for measuring controllability and relevance over long run. For the Springfield plant, GG Toys has approximately 5% of the overall overhead and from case fact, we know that GG purchases finished components from local manufacturers and then assemble the components (to form the cradles) using manual labor and there is no machine hours...
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...Case Study 1: Specialty Toys | Group 10 | Amy GarlitzAlison MalzahnRudy RodelasAngad SinghAbigail Webber | Question 1 The data of the sales of the Weather Teddy presented in the Specialty Toys case has a normal probability distribution. The company has a 95% probability of demand for the Weather Teddy being between 10,000 and 30,000 units. Therefore, 95% of the data is within two standard deviations of the mean. The standard deviation is 5,000, or the data deviates from the mean by 5,000 units. The graph below presents this probability distribution for the sales demand of the new product based on the sales forecast. Question 2 The managers of Specialty Toys had identified the suggested order quantities of 15,000, 18,000, 24,000 and 28,000 as noted on Chart A. The order quantities 10,000, 20,000 and 26,000 are included as further analysis for purposes of answering question 5. The out of stock probabilities for each possible order quantity are determined by converting the data to the standard normal random variable or z-score. The z-score is a function of the mean and standard deviation as noted in the formula z = (x-μ)/σ. The second column of Chart A calculates the numerator of the equation and the third column calculates the z-score. Once the z-scores have been calculated, the probabilities are determined by using the standard normal probability table. With an order quantity of 15,000 the z-value probability from the table is .1587 or rounded to .159. This...
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...G. G Toys Case Analysis By Managerial Accounting June 16, 2013 Costing systems are components of a broader accounting system used by a given company or organization. Their main function is to keep a focused eye on expenditures made by the company in question. Synthesis of Existing Cost Models to Meet System of System Needs, p.86. G.G. Toy's production process for dolls started with the basic raw materials needed for the bodies of the dolls, wool and things for the hair and clothing and all of these things were consist in production initially. Then, in its modern Chicago manufacturing facility, the company machine-molded the vinyl and resin into doll bodies and even had varies different styles and designs for the clothing. While using the same equipment and labor, they had to schedule when each of these modern jobs could be completed. I believe that explains why there was less units produced. Today’s new manufacturing environment requires new cost-accounting systems as well as new technology. It’s simple, updating the present system can achieve greater benefits in terms of producing and providing information for decision making in the future. (Updating Standard Cost Systems, Cheatham, C, Quonum Books, 1993). Therefore, I believe that G.G. Toys should change its existing cost accounting system from traditional costing to activity-based costing in the Chicago plant. Activity-based costing also known as ABC is a costing methodology that identifies activities...
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...Baker Adhesives Case Analysis I. Introduction Baker Adhesives is a small manufacturing company of specialty adhesives in the US. It was owned by Doug Baker who recently entered the International market. In early June of 2006, Baker met with his sales manager, Alissa Moreno to discuss the results of the company’s recent penetration in the international market. NOVO, a Brazilian toy manufacturing company, was Baker’s first international sales and Baker Adhesives was very excited to make another deal. The original sale with NOVO had been 1,210 gallons and significantly boosted the company financially. The purpose of the meeting is to decide whether or not Baker Adhesives should go ahead and accept a new order proposal from Novo. The next NOVO order would be 50% larger than the original order and the adhesive will be used for the production of their new toy product line. The toys needed to be waterproof and the adhesives require very specific needs. Also, the payment from the first order had just been received and Baker was looking to pay down some of the balance of their line of credit, which currently stood at $180,000. However, Moreno told Baker that their sale of adhesives to NOVO was not going to be as profitable as they originally anticipated. The first order from Novo was denominated by Brazilian real (BRL) which would be converted into US dollars (US$). Since the time that Baker and Novo agreed to terms on the sale, the value of the deal had dropped significantly...
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...The Synopsis of the problem: Specialty Toys, a retailer of Children’s toys is planning to launch a new toy called “Weather Teddy”. Sales Managers at the stores are working relentlessly to forecast the most appropriate demand order quantity in such a way that profit could be maximized. The analysis of the problem calls for an ideal demand order quantity situation with lower probability of stock-out option. Following is the statistical information given: The cost of goods sold per unit = $ 16 The cost of Sales price Per Unit = $ 24 Surplus inventory sales price per unit = $ 5 Cost of excess inventory per unit = $ 16- $ 5 = $ 11 Expected Demand predicted by Sales Forecaster= 20,000 units Probability of demand between 10,000 units and 30,000 units = 0.95 Solution of the problem: In order to make the most appropriate recommendation to Management, a Managerial report has been prepared that addresses following issues: 1. Normal Probability Distribution sketch used to approximate the demand distribution with the its mean and Standard Deviation 0.4750 0.4750 0.95 10,000 20,000 30,000 10,000 20,000 30,000 Figure 1: Normal Probability Distribution Curve for Expected demand Expected Demand = 20,000 Hence, Mean () = 20,000 The probability of demand units to be in between 10,000 and 20,000 is 0.95 as also given in the Figure 1. In order to compute Standard Deviation, we will use following statistical formula: ...
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...In the Chicago plant, G.G. Toys should change its existing cost accounting system from the legacy or traditional costing methodology to activity-based costing (ABC). In allocating overhead as a percentage of direct labor cost, the margins of 9% and 34% in the Geoffrey doll and the specialty branded doll #106 respectively, do not reflect the actual cost of overhead. Currently G.G. Toys is calculating its manufacturing overhead costs on only on one cost driver, the direct labor. From case facts, we know that the manufacturing overhead at the Chicago plant is very high (approximately 95% of the overall GG Toys manufacturing overhead) The 3 different categories of dolls require different amounts of machine hours and other variable costs. By using Activity-based costing, each specific category of doll would have a different manufacturing overhead (and hence different contribution margin)allocated to it and the profit margin analysis for the doll category would yield an accurate result that can be used successfully for measuring controllability and relevance over long run. For the Springfield plant, GG Toys has approximately 5% of the overall overhead and from case fact, we know that GG purchases finished components from local manufacturers and then assemble the components (to form the cradles) using manual labor and there is no machine hours involved in this (Exhibit # 1). So, I recommend GG to keep the existing cost accounting system as the primary cost driver here is labor hours...
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...Toys "R" Us, Inc. ___________________________________________________________________________________________ Toys "R" Us, Inc. Recent Developments Jan 31, 2011 : Toys "R" Us offers to pay staffers $1m in back pay Fast Facts Headquarters Address One Geoffrey Way, Wayne, 07470, United States of America Telephone + 1 973 6173500 Fax + 1 973 6174006 Website www.toysrus.com Ticker Symbol, Stock Exchange N/A Number of Employees 70,000 Fiscal Year End February Revenue (in US$ million) 13,543.00 SWOT Analysis Strengths Weaknesses Efficient distribution capabilities Dependence on selected vendors Industry recognition Seasonal nature of the business Multiple channel selling strategy Wide geographic presence Opportunities Threats Growth of web-based store concept Increase in counterfeit products Increase in consumer spending in the US Increase in organized retail crime Strategic collaborations Jan 31, 2011 : Toys "R" Us offers to pay staffers $1m in back pay Jan 31, 2011 : Toys "R" Us offers to pay staffers $1m in back pay Toys "R" Us, Inc. - Company Overview Toys "R" Us, Inc. (Toys"R"Us) is a specialty retailer of toy and baby products. The company’s product portfolio includes children’s apparel, juvenile, learning, entertainment, core toy, parenting and seasonal products. These products are sold under various private labels such as Fast Lane, Imaginarium, Dream Dazzlers...
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...Amazing Students CASE SUBMISSION 3 Presented to Professor Ganesh N. Prabhu [pic] Indian Institute of Management, Bangalore On July 26, 2011 Submitted By Case Group – 2J: Arit Kumar Mondal 1011084 Rajarshi Sarma 1011194 Nirupam Das 1011258 TOY DISTRIBUTION INDUSTRY IN USA The toy distribution industry in USA is dominated by top five retailers (50% market share). Sales are seasonal towards the last quarter of the calendar year. The industry is attractive and the per capita contribution to toys is increasing. There has been a growing interest in the educational toys segment where educational value is the primary purchase driver. DIRECT MAIL INDUSTRY In 1993, over 40% of the Americans used mailed catalogs for purchases. Catalog consumers were well educated and had high incomes. Catalog sales were driven by mailing size, response rate & average order amount. Volume discounts, coupons & free gifts served as incentives. New products were extremely important in children’s catalog. CHALLENGES FOR PASSION FOR LEARNING (PFL) PFL’S market positioning is of a direct-mail company offering 100% educational products for 6-12 year old children. Its first catalog mail in 1994 resulted in a disappointing response rate of 0.77% which resulted in a loss of $145000 on revenues of $54000. There was also increasing competition from specialty chains focused on educational toys and big discount retailers...
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...Assessment 1 Course: BSBMGT608 Submitted by: A.C.Gilbert Company 1. Company Overview The A. C. Gilbert Company was an American toy company, once one of the largest toy companies in the world. It is best known for introducing the Erector Set (a construction toy similar to Meccano in the rest of the world) to the marketplace. 2. Key system and Company process a) Supply chain Information gained from planning stage used to purchase raw materials for products and packaging from suppliers. b) Operational System The operational system can explan as Design => Planing => Purchasing => Manufacturing => Distribution Design Toys are designed by a small group of designers who develop the concepts for the products. Planing The planning department translates the concepts into designs and determines resource requirements, including raw materials. Planning also projects sales and develops production plans for each product, timeframes for production runs and scheduling of production runs. Purchasing Information gained from planning stage used to purchase raw materials for products and packaging from suppliers.  Manufacturing Produces and packages toys for distribution Distribution Delivers packaged toys to the warehouse for storage. C Product and Service Deliver The Distribution start by Sale team will take order from customer. The delivery will use the contract transport. It will sent to the retail for sale to the customer. 3. Key...
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...Case study Toys “R” Us JAPAN Case study Toys “R” Us JAPAN TABLE OF CONTENTS Introduction 3. Japan Background and facts: 4. Background: 4 Facts: 5 Toys “R” Us Background 7. The Beginning: 7 Market Expansion 8 More ways to shop Toys “R” Us 8 Evolving business 9 Toys “R” Us in Japan 9 Case analysis: 10 Attractive factors of Japan toy market: 10 Barriers to Entry: 10 Success Factors for Toy's "R" Us-Japan 11 TRU Strategy 13 Our opinion: 14 Recommendations: 15 Conclusion: 16 References:: 16 Introduction: Toys R Us is the large distributor in the US and it is one of the more successful foreign retailers in Japan after overcome hard barriers. This successful is a result of right decision-making and strategy in overseas expansion by global retailer’s and gradual changes after entry into foreign markets. Also the strategy in respect of standardization adaption before and after entry has great effect in this successful. Coming lines, shows some factors that attract TRU to join venture in Japan. Then, we will discuss group of barriers that TRU had overcome, and how it’s overcome these barriers. In the end, we will evaluate Toys “R” Us in Japan market. Japan Background and facts: Background: Government: Parliamentary with constitutional monarchy Prime Minister: Shinzō Abe (elected Dec 2012) Capital: Tokyo Population: 127,368,088 Population Growth Rate: -0.077% (2012 est.), World Rank: 198th Birth Rate: 8.39 births/1,000 population...
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...Case: Fisher-Price Toys, Inc. 1. Basic information 1) Company: Fisher-Price Toys, Inc. (Industry: Child toys) 2) Business dilemma: a rash marketing decision has to be made on carrying out whether a new quality product (product name: ATV Explorer) at exceptional high price or a new less-quality product at moderate price 2. Business dilemma 1) Key problem: 1) price-point: Cost for a projected toy can't be made within budget, resulting in a much higher price ($18.5) than planned. High price disobeys the traditional brand image of the Fisher-Price company –less-than-$5 convention. 2) Marketing strategy: launch the ATV explorer whether as an independent product or as a new product in an existing product line, and corresponding advertising/promotion strategy 2) Fisher-Price must decide quickly before August to catch the sale peak: 1) trade-off between product quality and price; 2) Independence of the product 3. Case analysis 1) Current Market strategy (“4P” / “4C”) 1) Product → Commodity: innovative products / safe, durable and educational 2) Price → Cost: moderate price / good value for money 3) Place → Channel: Aggressive to increase the market reach and improve sales 4) Promotion → Communication: focused strategies for advertisement and promotion of differentiated range and group of products 2) SWOT analysis 1) Strengths (Internal) 1- Internal operation ...
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...Ashley Wechsler Strategic Management- 4010-21 J. Cameron Verhaal Wal-Mart Case Study September 16, 2014 Sam Walton started Wal-Mart in 1962. When Wal-Mart was first introduced, it was believed to be the least likely to succeed in the discount retailing business. The central focus of Wal-Mart was on price. By 1970, Wal-Mart had expanded to 30 towns, all in small towns. In order to expand Wal-Mart beyond its small region, Wal-Mart decided to go public. By the 1990s, 100 shares increased in value from $1,650 to $3,000,000. At this time, Wal-Mart had also spread throughout the United States in both large cities and small towns. Wal-Mart had many different opportunities and threats facing them including, but not limited to, the general environment, five-forces, and their industry structure. Using the VRIO framework, one can assess Wal-Mart’s resources and capabilities and conclude whether or not they have sustainable competitive advantages. The overall general environment of Wal-Mart posed opportunities as well as threats. Technology posed disadvantageous to Wal-Mart and other companies in the discount retail industry. “Internet shopping was appealing because of the convenience and selection available, but perhaps the most attractive aspect was the competitive pricing” (Hesterly, p. 1-13). Less people were coming in to look around the stores, and many items could be ordered at the comfort of the consumers’ home with the click of a finger. The demographics posed an opportunity...
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...Bankruptcy and Restructuring at Marvel Entertainment Group Bankruptcy and Restructuring at Marvel Entertainment Group 1. Why did Marvel file for Chapter 11? Were the problems created by bad luck, bad strategy or bad execution? Before addressing its bankruptcy, it is necessary to have a general understanding of the company being analyzed. Marvel Entertainment Group began in 1939 as Timely Publications, a comic book publishing company that gained fame around the time of the Second World War. One of its most successful characters from this period was Captain America, who was often depicted fighting against the Germans. Other new characters came in the decades that followed, some of which still maintain popularity to this day, including The Fantastic Four, The Incredible Hulk, The X-Men, and Spider-Man. Attempting to reflect the general “psychological spirit” of the era (WWII, Cold War, etc.), many of Marvel’s creations in the mid-20th century fought against Communist foes. Editor-in-Chief Stan Lee helped usher in the ‘Marvel Age of Comics’ of the 1960’s, writing most of the superhero titles himself, and restoring many of the aspects from the late 1930’s superhero genre. Skipping forward a few decades, Marvel Entertainment Group was bought in January 1989 by Ron Perelman for $82.5 million, financed using only $10.5 million of equity. The remaining portion was borrowed from a syndicate of banks led by Chase Manhattan, seeing this as a relatively insignificant amount for Perelman...
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...Case Distressed M&A and corporate strategy: lessons from Marvel Entertainment Group’s bankruptcy Joseph Calandro Jr Joseph Calandro Jr is the Enterprise Risk Manager of a global financial services firm and a Finance Department faculty member of the University of Connecticut (joseph.calandro@ business.uconn.edu). s the current recession unfolds, indications are that corporate executives and strategists will be making decisions in an economically distressed environment for some time to come.[1] Historically, investment and M&A activity tend to decline during periods of economic distress. However, a specialty form of acquisition, known pejoratively as ‘‘vulture investing’’ has flourished during such times. Perhaps because it has been practiced as a specialty by financiers accustomed to balancing high risks for quick rewards, acquiring distressed companies has not been widely viewed as a corporate strategic opportunity. Recently, however, distressed M&A has become more common: A B as of April of 2009, there were 60 distressed M&A deals for the year including Valero Energy Corporation’s purchase of VeraSun Energy Corporation’s assets in bankruptcy; in 2008, there were 220 distressed deals; and in 2007, there were 134.[2] B B When assessing distressed M&A opportunities, corporate strategists should leverage their industry knowledge and expertise to search for hidden value, and also to select qualified industry experts to validate strategic and valuation assumptions...
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