...Toy World, Inc. is a company that manufactures plastic toys for children. It creates toys of many different areas including toy cars, trucks, construction equipment, rockets, spaceships, animals, rockets, etc. The company as a whole has been doing quite well since it opened in 1990 and has experience profitability since early 1993. Although they have been doing satisfactory, there is always room for improvement. They are currently pondering the idea of switching their scheduling production from seasonal to a more level production. It is believed that by switching it will save the company substantial amount of funds and help reserve its factory equipment. Also, they are and need to find a solution to the current loan agreement they have with their bank to coincide with this new plan. Adopting a policy of level monthly production was the idea of Toy World Inc.’s Production manager, Mr. Hoffman. He has stated multiple issues with the current production schedule and exclaimed projected ideas & results with the new level policy. Current problems arising from the seasonal production schedule include overtime premiums reducing profits, seasonal expansion and contraction of the work force resulted in recruiting difficulties and high training/quality costs, machinery was idle for months at a time and subjected to heavy use, frequent set up changes in the machinery, confusion in scheduling runs, and frequent setup changes that resulted in inefficiencies in assembly and packaging...
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...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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...Solution to Toy World, Inc. Case 32A Toy World, Inc. Cash Budgeting Copyright ( 1996 by the Dryden Press. All rights reserved. CASE INFORMATION PURPOSE This case analyzes a straightforward cash budgeting problem. It is designed to illustrate the mechanics of a cash budget and the way cash budgets are used. Discussion questions focus on the rationale behind the use of cash budgets as well as on their inherent problems. The case also raises the issues of the target cash balance, the optimal size of the credit line, the investment of excess cash, and production scheduling for a seasonal business. TIME REQUIRED Without using the model, 3-4 hours of student preparation should be adequate for most students, with possibly another hour or so to write up the case if it must be handed in. Use of the spreadsheet model can greatly reduce preparation time, especially if the completed model or the easy macro version is given to students. COMPLEXITY A relatively simple, but with a fair amount of number crunching for students not using the spreadsheet model. However, a number of related issues can be discussed, so students can put in a significant amount of time on the case. Still, they can get the gist of it without too much trouble. WAYS WE HAVE USED THE CASE We have used this case in two very different ways. First, with both introductory and not very-well-prepared second course students, we ask them to read the case and to become generally...
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...Student Name: Shunde Tu Student ID: 000196745 Course: MGT 121( Financial Management II) Case Study on Toy World I. Situation Audit a) Plastic Toys Manufacturing Industry Overview i. Highly seasonal, with a majority of sale volume generated between Aug. and Nov. ii. Competitive landscape 1. Highly competitive, populated by a large number of companies 2. Fierce design and price competition, with short product lives and a relatively high rate of company failures 3. Low entry barrier resulted from low capital and technology requirements. 4. Influx of imported toys intensified competitive pressure on smaller firms. b) Company Overview The company studied in the case is Toy World, a manufacturer of plastic toys for children. More than 80% of the sale was generated between Aug to Nov. Toy World Inc.’s practice was to produce in response to customer orders. Therefore, the production was highly seasonal, and not more than 25%-30% of manufacturing capacity was used for the first seven months. c) Product Overview i. Produce a wide range of designs, colors and sizes for most of its product categories. ii. Dollar sales of a particular product had sometimes varied by 30%-35% from one year to the next. II. Problem Statement The company’s production had been scheduled to accommodate the seasonality of sales. The production manager proposed to adopt level production to reduce labor costs. The feasibility...
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...TOY WORLD INC, CASE Issues * To change Toy World´s production processes, from seasonal to even monthly production, * cThe arrangement of getting the loan for the bank and how it will be secured by the account receivable and inventory * Toy World is facing several challenges related to its equipment usage and availability, leading to high overhead costs under Seasonal production Inputs * Expected sales for 1994 is $1000000 * 200000 is the minimum cash balance * A loan of $752000 was outstanding at the end of 93, the bank is willing to extand the credit line up to $2million, it will be secured by the account receivable and inventory * Collecting period of account receivables is 60 days * Under the seasonal production cost of goods sold would be 70% of sales , under the level production cost of good sold would be 65.1% of sales . * Under the level production storage and handling cost will increase by $115000, it will be included in operating expenses. Solution Production Cost | | Inventorized production | | balance of enventore at the end of month | | | | | | | | | | 586 | 542.5 | | $464.38 | | $1,050.38 | 542.5 | | $451.36 | | $1,501.74 | 542.5 | | $438.34 | | $1,940.08 | 542.5 | | $451.36 | | $2,391.44 | 542.5 | | $451.36 | | $2,842.80 | 542.5 | | $451.36 | | $3,294.16 | 542.5 | | $438.34 | | $3,732.50 | 542.5 | | -$512.12 | | $3,220.38 | 542.5 |...
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...LGT 3105 Operation Management – Case Assignment 1 (Toys City Inc.) 1. I would have accommodated David Cheung’s vacation request. It is because based on the Critical Path Method (CPM), the network diagram of the work of different audit areas comes as Figure 1, and we can find that the critical path which is the series of activities using the longest time to complete is Activity 1-2-5-7-10-13-15. It means that if there is any delay on Activity 1, 2, 5, 7, 10, 13, 15, the whole project would be delayed also. However, David is only responsible on the auditing of liquid assets which is Activity 4 which is not in the critical path. The vacation or delay made by David would not affect the progress of the whole project. Moreover, by calculating the early start/finish and late start/finish schedule, we find out the slack time which is the available delaying time of the activity without delaying the whole project (Late start time-Early start time= Late finish time-Early finish time). The slack time of Activity 4 is 125 hours (178-53 = 213-88) which means that the maximum time I would be comfortable giving David off is 125 hours. It is much greater that David’s requested vacation time which is 40 audit hours; therefore, I would allow his vacation request. [pic]Figure 1 2. Before setting up the accelerating plan, we should know about the crash time and the crash cost. Crash time refers to the minimum time used to work on those activities which...
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...Fisher-Price Toys, Inc. Fisher-Price, a toy company that was founded in 1930, was known for its durable, safe, high-quality, and fun products sold at low to moderate prices, and had established itself as a leading producer of toys over the years. In fact, 82.7% of participants in a Redbook study named Fisher-Price the brand of pre-school toys that they buy the most often. In the summer of 1970, marketing vice president Jack Asthalter found himself confronted with a difficult decision: whether to produce a new ATV Explorer toy. Ashalter’s production staff had just informed him that the ATV Explorer could no longer be profitably distributed at the preconceived price of $12, and would need to be sold at a price of $18.50 after markups. Asthalter was unsure whether there would be sufficient demand for the ATV at this new price, as all concept tests and market research sessions had been conducted with the idea that the ATV Explorer would be sold at a retail price of $12. Additionally, because most of Fisher-Price’s toys were priced below $5, internal opposition would need to be overcome in order to manufacture the toy. Ashalter had several options: produce the ATV Explorer and sell it at $18.50; lower the price by removing a part but in the process sacrifice quality, going against traditional company policy; market and advertise the ATV Explorer as a single item rather than as part of a line of toys; milk the ATV Explorer and increase the price by $.50 or a $1 and use the added...
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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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...Toy industries used to manufacture toys which consisted of elements which were harmful and hazardous for health. With the onset of globalisation and spread of education parents became aware about the risks associated with the toys manufactured for children consisting of harmful chemicals. To save their market image the major toy industries took this matter seriously and recalled their products. This turned into a great opportunity for toy industrialists to manufacture toys which were environment friendly as well as for safe for children. “Robert von Goeben” took full advantage of this market scenario and established Green Toys Inc. In partnership with “Laurie Hyman”. The founders of Green Toys look after the different segments of the industry. Robert von Goeben responsible for production side of the business and Hyman as a marketing expert looked after the marketing of the products and consumer retention. This essay is about the strategies implemented by the Green Toys Inc. in order to create, diversify and sustain their market share in the toy market. There are several key methods responsible for excelling in the world toy industry. However, three factors play a vital role in the success of a toy company. The most important one is to target a particular segment of society and to retain it to create a consumer base. In 2010 Mattel successfully implemented this method and was able to increase sales of its brand “Barbie” by marketing it as a fashion statement which amused...
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...the popular toys in the 1990s, which are Tamagotchi, Barbie, and Lego. The first digital toy is the Tamagotchi Tamagotchi means a handheld digital device, which can be cared for as a digital pet including feeding, playing, and cleaning up after it. For example, the first Tamagotchi was created in Japan by Bandai in 1996. It went on to sell 76,000,000 units worldwide by 2010 (“Tamagotchi,” 2015). It was quite cheap with the price depending on the different versions available, in total there were 11 different variations, with prices ranging from $10 for the cheapest and up to $70 for the most expensive (“Tamagotchi Price,” 2015). The device was aimed at young children around the age of 6. It was aimed to promote nurturing instincts as the children would actually care for the digital pet, and if they failed at this the digital per would die (Baguley, 2013). Moreover, as there were strict laws governing ownership of pets in some countries, the Tamagotchi was an excellent solution for families unable to buy real pets for their children. This is why the device sold so many units. Some of the devices had communication abilities, which allowed children not only to play but also linguistically interact with the toys. This was seen as an educational component to the toy. As the toy was completely non-violent it became a popular choice for parents as a suitable toy for their children’s development. In summary, the Tamagotchi is the first digital toy. The second popular toy is Barbie ...
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...The year is 1945, when the toy company Mattel is born. Along with truly great toys, this company gives a lot to the community and environment as well as being the world's leading toy company. Mattel is the worldwide leader in the design, manufacture, and marketing of toy products. The company's major brands include Barbie, Hot Wheels, Matchbox, Fisher-Price, and American Girl. With headquarters in El Segundo, California, Mattel has offices and facilities in 36 countries and sells its products in more than 150 nations throughout the world. In 1945, Ruth and Elliot Handler and Harold "Matt Matson develop this new company out of their garage workshop located in Southern California. Although the first products they create are simply picture frames, Elliot takes the left over pieces of these frames and put them to use to make dollhouse furniture. These dollhouse furniture pieces were just a side business for Elliot though. Harold Matson soon sells out his partner, and, being confident from the success of the dollhouse furniture, the Handler's decide to turn the companies' emphasis on toys. In the year 1947, the "Uke-A-Doodle is the first, in a line if musical toys. In 1948, Mattel is incorporated in Hawthorne, California. During the year 1955, Mattel becomes involved with "Mickey Mouse Club . This very popular show soon become the major spot of advertising for Mattel, which revolutionized they way the toys were marketed. It also introduced they another great product, the "Burp...
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...The LEGO Group Introduction Founded in 1932, the LEGO Group is a privately held company headquartered in Billund, Denmark. The vision of Lego Group is to “inspire children to explore and challenge their own creative potential”[1] Lego now ranks 4th in the world as a toy manufacturer. The Lego Group employs nearly 9,000 workers and its own product, Lego Brick can be found in over 130 countries. The financial performance of Lego declined drastically through the 1990’s and early 2000’s. In 2004, the company accumulated losses of DKK1.9 billion.[2] Therefore, Lego tried to implement some changes in order to cut the production cost and reverse the poor situation. In the last step of the process of restructuring Lego’s supply chain, the Group tried to close some of its’ own factories in Korea and Switzerland, upgrade the procurement process and outsource 80 percent of the production. Prior to outsourcing to Flextronics, production plants were located in high-cost countries including Denmark and Switzerland. Apart from the famous Brick, the company entered into other industries including computer games, clothing, licensed products and television. The product diversification was very large since they lost confidence in their core product. This catalyzed inefficiencies and confusion for customers. The result was a disastrous net loss and forced the company to find solutions to cut the cost and recapture the market share. In 2009, the Lego Group ended the outsourcing contract with Flextronics...
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...MATTEL VS HASBRO/BARBIE VS BABY ALIVE Abstract: The two highest toy companies, Mattel and Hasbro have various dolls that every little dreams of having. In this paper, I will compare and contrast the “old school” Barbie to the “new reality” Baby Alive and how both companies address the 4 P’s of Marketing. Barbie, America’s top and favorite doll of dolls for years is continuing to grow strong as a play toy or as a collection item. Barbie was launched in 1959 and has since been the famous in the United States. Barbie was started by a couple while watching their daughter play with a paper doll. Barbie has been about fun, fashion and friends, but in 2004 the company kept those qualities along with evolving girls wants today. The younger girls today want fairy and imagination, older girls want authentic fashion and real-world experience. Fairy’s, DVD’s/music videos and tween dolls. (Crews, 2004) Today, Barbie has much competition with Bratz dollz and Baby Alive along with many other dolls in the market. Baby Alive is the new, innovative, life-like doll for today’s society and children who like to play and feel they are caring for real-life babies. Mattel will need to become stronger and more assertive with their objectives and marketing techniques to stay ahead of Hasbro, Inc. Hasbro, Inc is right in the mainframe with Mattel in the toy industry. Both companies have strong marketing skills, knowledge and strategies to help with their own marketing shares. Mattel’s...
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...Gg Toys Case St G.G.Toys Thedecline margins our popular in on Gtoftry doIIproduct become has intolerable. production Increasing haae costs dropped pretaxmarginto less our than10%, below historical our 257omargins, wearegoing If far to increase margins, need consider our we to drastically shiftingour production towards sfecialtydolts aie that earning large prnniumin priceoaer standard line. a our doll -Robert Parker,President, G.G.Toys Background Robert Parker, president of G.G. Toys, was discussing last month's operating results with Audrey Hausner, G.G.'s conkoller, and David Morehouse, G.G.'s manufacturing manager. The meeting was taking place in an atmosphere tinged with apprehension because margins on thelr most popular product, the "Geoffrey doll," had been declining rapidly in the last few years due to rising production costs (summary operating results for the previous month, March 2000, arc shown in Exhibits 1 and 2). Parker saw no choice but to shift the company's product mix towards specialty dolls that carried a high price premium, and thus, a 34% margin. G.G. Toys was a leading supplier of high-quality dolls to retail toy stores throughout the U.S, The comPany had started with a unique design for molding highly durable dolls using vinyl and resin materials. G.G. quickly established a loyal customer base among retailers because of the high quality and popularity of its manufactured dolls. It soon established a major presence in the market with its high-volume...
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...[Writer Name] [Supervisor Name] [Subject] [Date] Fieldwork Paper In my fieldwork project observed a number of gamers who will be divided into 2 categories of addicts and non addicts. People who play for more than 5 hours a day are called addicts and those who play less time than that are called non-addicts. Which will focus on the specific players in a game called World of Warcraft. This game is a very popular game worldwide with over 5000 people playing at any given time (Cronin 113-147). Its popularity is one of the reasons why people are getting addicted to it. Gamers are all the time looking for new and interesting games and as they find something new they started playing and telling their friends and family about it. In this way those people themselves get obsessed of games as well as they make others overwhelmed with the interest of gaming. I would define this group of players as a culture because they have their own way of life that is very different from anything one is, they spend much of their time in gaming which is no more than a way to get busy. And this activity does not mean anything useful. In addition at one point these 5000 players are playing then a sort of a social group of their own. Some of my songs are complete addicts and play this game at least 8 hours a day without worrying about college, sleep or work. These people have no friends and not have any food because they are busy playing Warcraft all day (Mayra 45-113). We think that it will be a great...
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