Case 1 1. The major problem that has been identified in this case is that The Johnson Toy Company does not have proper return policies set in place. The reason a proper return policy is crucial to the success of an organization is the fact that returns affect numbers and profits. Not having a proper return policy and method of tracking returns affects inventory levels as well as costs in the organization. Without the proper policies how does the company know how much is being returned, where the returns are going, why returns are being made, should they stop producing so many items, etc. With the lack of policies it is apparent that data is not being stored and there is a lack of documentation on numbers. This causes financial issues because the company is unaware of where money is going and if any is being taken or being put back into the company. What happens is the financial documents are then not accurate which could cause major decisions being made to be wrong decisions. I think the main reason The Johnson Toy Company has not created a return policy is because they have never had issues with it before and have always been able to get by without having one. This is not a good approach. The Johnson Toy Company needs to put in place proper policies to ensure the safety of the company. Products must be documented and the company should track or know where products are being shipped, transported, and warehoused at all times. What people do not realize and it seems that the upper management of The Johnson Toy Company does not realize is how important knowing inventory levels are. Knowing the correct inventory levels helps decide how much to order, what to discontinue, etc. Inventory returns are also important to have precise numbers on. You will want to be able to track how much of what products are being returned, the defects, and why. When reading the case study I was very surprised to see a company that has been around for quite some time not has any proper policies put into place. If I were to bring this issue up to upper management I would explain the potential loss of profits/revenues that are occurring due to the lack of structure from these issues. The only dilemma I could see upper management debating about is the fact that it could be costly to begin such initiatives. What they would need to realize is that in the long run this will only help the company. I think after what happened with the jogger dolls the company will DEFINITELY reinforce a return policy. It is just sad that something so terrible would have to occur for the company to improve their organization. 2. With a marketing perspective, it is very difficult to decide what to do with the jogger dolls since the scandal occurred. The Johnson Company will no longer be selling the jogger doll products because of the scandal that occurred. I remember when we turned in this case study someone had mentioned that they did not think the children who enjoyed the show would be happy with not being able to have the toy. The children may not be able to comprehend the situation and the severity of the scandal but the parents can and that is why the backlash of the show is occurring. I completely agree with it too. The worst thing that is happening is the scandal involves children, the children who loved the show. That negative publicity will never be taken away. The show would not even be able to change the main character because the original jogger characters actions will be the only thing everyone can think about. I wonder if The Johnson Company will get any backlash for being the manufacturer of the products. This relationship appears to show that The Johnson Company is affiliated with the jogger show. The Johnson Company should definitely find a way to speak to the public, especially the parents who are now against the products. The Johnson Company would be losing a lot of money if they did complete returns on all the jogger doll products. They will need to find a way to have products returned at a discounted price or find a way to recycle the dolls. The problem that would occur if The Johnson Company does not return or work with the buyers they will lose the relationships they have made with the buyers. That will cause a decrease in sales which will affect the profits/revenues of the organization. If The Johnson Company does not find a solution that will benefit everyone, they could potentially put their company is danger. Relationships are so important in many business endeavors. Once you have a relationship in good standing with buyers, those relationships are most always long term. There is a sense of trust and commitment that is accrued in relationships. If The Johnson Company does not help their buyers they are potentially losing these relationships. The buyers are looking to be out a lot of money now that the sale of the jogger dolls is nonexistent. I think The Johnson Company will definitely find a way to help in the returns, possibly at a discounted price. This will help The Johnson Company from losing future business with buyers when a new product or toy comes out. 3. The only way that The Johnson Company should warrant a full return for the jogger dolls is if there is a defect with the product. I think that most companies will try to defect their jogger dolls that is why The Johnson Company should only take back factory defects which could be if a piece was not put on right or if there was a part missing. The problem is that The Johnson Company does not have a proper return policy which makes it hard to regulate what can and cannot be returned. I think they should definitely require the jogger dolls and any product that could potentially be defective to be reviewed which means an employee of the company would come and inspect the “defective products.” Although this type of process is kind of already occurring they will need to make sure more strict instructions are in place to focus on the safety of the company. Everyone will need to be trained on these new procedures. I think one of the biggest changes that must occur is that the upper management will need to create very thorough instructions and policies to address all issues that could possibly occur. So that if anything like the jogger dolls occurs The Johnson Company is ahead of the time and ahead of any potential losses in revenue. 4.