Premium Essay

Specialty Toy, Inc.

In:

Submitted By specialk5025
Words 2326
Pages 10
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 because many families have already begun shopping for holiday gifts at this time. In order to have the Weather Teddy on the shelf by October, the company must place a one-time order with its manufacturer in either June or July. Due to the large gap between when orders are placed and actual products are produced, the most important question the company faces is determining the correct number of

Similar Documents

Free Essay

Nintendo Game Genie

...Nintendo Game Genie Game Codes Page i # 1942 1943 3D Worldrunner 720 Degrees 8 Eyes …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. 1 2 3 4 5 A Addams Family Adventures in the Magic Kingdom Adventures of Dino-Riki Adventures of Lolo Adventures of Lolo 2 Adventures of Lolo 3 Adventures of Tom Sawyer Adventure Island 2 Adventure Island 3 Adventures of Bayou Billy Adventures of Rocky & Bullwinkle Airwolf Air Fortress Alfred Chicken Alien Syndrome Alpha Mission Amagon American Gladiators Anticipation Archon Arch Rivals Arkanoid Arkista's Ring Astyanax Athena …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. …………………………………. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Nintendo Game Genie Game Codes Page ii B Back to the Future Back to the Future 2 Back to the Future 3 Bad Dudes Bad Street Brawler Balloon Fight Barbie Baseball Simulator 1000 Baseball Stars 2 Bases Loaded 2 Bases Loaded 3 Bases Loaded 4 Batman Batman: Return of the Joker Batman Returns Battleship Battletank Battletoads Battletoads and Double Dragon Battle of Olympus Beetlejuice Bee 52 Best of the Best Championship Karate Bigfoot...

Words: 44940 - Pages: 180

Free Essay

Toys R Us Profile

...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...

Words: 8636 - Pages: 35

Premium Essay

Specialty Toys

...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...

Words: 2071 - Pages: 9

Premium Essay

Amazon.Com

... 1. New Jersey judge ruled that Amazon.com Inc. violated its agreement to give toy retailer Toys"R" Us Inc. the exclusive right to sell toys and baby products on Amazon's Web site. In the ruling,New Jersey Superior Court Judge Margaret Mary McVeigh said Toys "R" Us can sever theagreement it signed with Amazon in August 2000, in which it agreed to sell toys on Amazon.com'sWeb site, effectively putting Amazon in control of the Web address www.toysrus.com. The rulingpaves the way for Toys "R" Us to operate the Web site independently. Judge McVeigh deniedmonetary damages to both parties.Toys "R" Us filed suit in the New Jersey state court in May 2004 alleging Amazon breached thecontract. Amazon countersued in June 2004, alleging the toy retailer failed to keep items in stockand otherwise adhere to their agreement.The Amazon was disappointed to the judge findings they said that they strongly disagree with the judge's ruling, and they are in the process of reviewing a number of different options Regardless of the outcome and they remain committed to ensuring a great selection of toys for our customers atgreat prices. For its part the Toy R Us said that the company are preparing for the decision and iscommitted to providing customers online access to its web store. The Amazon spokesman said that the company disagrees with the suggestion that other retailers will be wary of working withit. They said that this ruling is specific to Toys "R" Us and it really doesn't have any impact on...

Words: 1046 - Pages: 5

Premium Essay

Moul

...Specialty Toys, Inc. WEATHER TEDDY Case study: Specialty Toys, Inc. aims to identify the best order quantity of its new product “Weather Teddy” to meet with the demand of the market for this kind of products. The Management department sort out different propositions of quantities to order from the Taiwanese manufacturer. The aim of this case study is to perform statistical studies on the propositions of the Management department in order to perform a recommendation for the best quantity to order associated with the best profit projections. PROCEDURE: FIRST: As indicated in the memo of the Management department, we need to use the sales forecaster’s prediction de approximate the demand distribution. We assume “X” to be the demand of the new toy. X follows a normal distribution with a mean “µ=20,000” and a standard deviation “σ” (unknown). As stated before, Specialty’s senior sales forecaster predicted an expected demand of 20,000 unites with a 95% probability percentage that demand would be between 10,000 and 30,000 units: P(10,000≤X≤30,000) = 0.95 We know that the Z-score formula is: z=(X-μ)/σ so the probability can be written as follows: P((10000-μ)/σ ≤ (X-μ)/σ ≤ (30000-μ)/σ ) = 0.95 P((10000-20000)/σ ≤ Z ≤ (30000-20000)/σ) = 0.95 From tables of areas under the standard normal curve with a 95% prediction score: (30000-20000)/σ = 1.96 σ = (30000-20000)/1.96 =10000/1.96 = 5102 So the demand “X” follows a ND with a mean “µ=20,000” and a standard...

Words: 791 - Pages: 4

Premium Essay

Gg Toys Case Analysis

...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...

Words: 1257 - Pages: 6

Premium Essay

Baker Adhesives

...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...

Words: 2421 - Pages: 10

Premium Essay

103 Licensing Compan

...the power of the licensing business. As for this year’s list, which reflects 2006 worldwide retail sales of licensed merchandise, No. 1 Disney recorded a $2 billion increase in retail sales fueled, in part, by consumer demand for all things Pirates of the Caribbean, High School Musical, Cars, and Disney Princess. Sanrio also saw a significant uptick in sales, rising from $4.2 billion in 2005 to $5.2 billion in 2006. Phillips-Van Heusen makes its debut on the list at No. 2 with $6.7 billion in sales driven by proprietary brands Van Heusen, Arrow, Izod, Bass, and Calvin Klein. Other newcomers include: Carte Blanche Greetings ($700 million); Sean John ($450 million); Taffy Entertainment ($98 million); Bang on the Door ($77 million); Just Born, Inc. ($33 million), and Jetix Consumer Products ($29.1 million). Tommy Bahama ($220 million) returns to the list after a brief hiatus. To be included on License! Global’s Leading Licensing Companies list, companies had to provide 2006 retail sales figures, licensing contact information, and...

Words: 11474 - Pages: 46

Premium Essay

Business

...comic book archives online through its Digital Comics division in 2007. By the end of the decade, Marvel was well on its way to becoming a leader in the entertainment industry, with two self-produced feature films in 2008.The company transitioned From a traditional publisher and toy maker into a new media and entertainment company. Online business Marvel made some of its comic book archives available online through its Digital Comics division in 2007. 15% of the segment’s revenues came from sales of advertising and subscriptions, including its online business. Because of the growth of the Internet and the potential for online readership, online comic books were launched in 2007 through Marvel Digital Comics Unlimited, in an attempt to reach existing readers in a new medium while also further extending Marvel’s reach to new readers. Expand distribution channels and product lines In the 1980s, Marvel began to target different demographics in the market, and began to use new distribution outlets including shopping malls. In 2008, Marvel was focused on expanding its distribution channels as well as its product lines. Comic books were distributed through three main channels: comic books specialty stores, traditional retail outlets such as bookstores and newsstands, and on a subscription basis....

Words: 1035 - Pages: 5

Free Essay

Toy R Us Case Study

...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...

Words: 3158 - Pages: 13

Premium Essay

Case: Fisher-Price Toys, Inc.

...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 ...

Words: 1032 - Pages: 5

Premium Essay

Toy Time

...It’s toy time Educational products for developing minds 1. Executive Summary: It’s toy time is a specialty toy retailer, operating in Banani 11 no. shop no.1. We are a company that helps to grow the creative power of our children.Our success is our employees and the unique service they render. The large variety of toys at lower prices, the fun-filled atmosphere and service is all that It’s toy time provides its customers.We are the only company who thinks about a childs mental development but not only entertainment. 2. Company Information: * Name: IT’S TOY TIME Inc. * Location: Shop no. 1, Banani 11 no. (Beside Mother Care) Dhaka, 1213 Bangladesh. (We chose it because we were looking for such an area which will help us increase our sales and eventually grow our profit consistently as this location can attract our target market as it’s beside MOTHER CARE) * Shop Size: 750 sq. feet * Rent Expense: 262,500 k ( including water expense) * Advance deposit: 30,00,000 k (for 3 years contract) * Electricity Expense: (2000-3000)k (depending on the usage) * Telephone Expensek with International roaming (depending on the usage) * Color Pattern of Showroom: Yellow, Baby pink and Sky Blue * Type: Privately held Company * Industry: Retail * Website: www.Its’toytime.co.bd * Logo: It’s toy time * Goal: * Short term: To provide innovative, educational toys and...

Words: 767 - Pages: 4

Premium Essay

Bankruptcy and Restructuring at Marvel Entertainment Group

...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...

Words: 5077 - Pages: 21

Premium Essay

Crayola Analysis

...[pic] Crayola LLC 1100 Church Lane Easton, PA 18044-0431 Phone: (610) 253-6271 Fax: (610) 250-5768 www.crayola.com Parent Company Crayola became a wholly-owned subsidiary of Hallmark Cards, Inc. in 1984. Subsidiaries Crayola’s subsidiaries include Portfolio Series and Silly Putty. Binney and Smith acquired the rights to Silly Putty in 1977. Mission Statement Crayola does not have a formal mission statement. This is probably due to the fact that they are a subsidiary of Hallmark Cards, Inc. If they were to ever formalize a mission statement it should be the following: “The business we're in: The best quality, safest products for colorful visual expression for enjoyment, learning and work.” Core competency Crayola’s core competencies, taken from the vision section the website, include: Obsessed with Consumer Needs: Be passionate about meeting consumer needs. Constantly ask: What are the implications for the consumer? Take the initiative to learn about our consumers and competitors. Make decisions based on insights about the consumer. Proudly represent our brands when talking to others. Remind each other about the importance of the consumer. Biased for Action: Be impatient and unsatisfied with the status quo. Move faster internally than the external world. Develop and implement impactful solutions. Exploit ideas and opportunities quickly. Take ownership and accountability for action and results. Act, learn, and make changes as needed. Respectful...

Words: 1516 - Pages: 7

Premium Essay

Crayola Llc

...[pic] Crayola LLC 1100 Church Lane Easton, PA 18044-0431 Phone: (610) 253-6271 Fax: (610) 250-5768 www.crayola.com Parent Company Crayola became a wholly-owned subsidiary of Hallmark Cards, Inc. in 1984. Subsidiaries Crayola’s subsidiaries include Portfolio Series and Silly Putty. Binney and Smith acquired the rights to Silly Putty in 1977. Mission Statement Crayola does not have a formal mission statement. This is probably due to the fact that they are a subsidiary of Hallmark Cards, Inc. If they were to ever formalize a mission statement it should be the following: “The business we're in: The best quality, safest products for colorful visual expression for enjoyment, learning and work.” Core competency Crayola’s core competencies, taken from the vision section the website, include: Obsessed with Consumer Needs: Be passionate about meeting consumer needs. Constantly ask: What are the implications for the consumer? Take the initiative to learn about our consumers and competitors. Make decisions based on insights about the consumer. Proudly represent our brands when talking to others. Remind each other about the importance of the consumer. Biased for Action: Be impatient and unsatisfied with the status quo. Move faster internally than the external world. Develop and implement impactful solutions. Exploit ideas and opportunities quickly. Take ownership and accountability for action and results. Act, learn, and make changes as needed. Respectful...

Words: 1516 - Pages: 7