MyToys has received a lot of complaints from its consumer about the fault in recently launched helicopter toy. The problem of the helicopter toys is because of overcharging the product causes overheating and some cases there are smoke coming out from the toy. The company has investigate and found that the protection around the electrical hardware was not intended to be adequately fire and heat resistant for overcharging of the toys by some consumers. It is an error that made by the new designer of the company.
4.2.2 Analysis
There are two option for the company. First option is spend extra cost of €10 per unit to enhanced the protection of helicopter toys, so that the toys will send to customers in a safe condition. MyToys will have to spend extra €10 on remaining products which has 3,200 units before deliver to its customers. MyToys will have a profit of €19,200 (see Appendix 1) if the management choose this option.
Another option is suggested by Manny, the sales director of MyToys, he suggest that the company could just write off the remaining products in order to avoid further damage on the brand reputation. MyToys will have to suffer lost of € 76,800 (see Appendix 1) if the management choose this option.
4.2.3 Recommendation
Option 1 is recommend to MyToys management. MyToys should improve the helicopter toys before deliver it to toy
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MyToys should take the responsible because it did not do much testing on the new products before launching it. Other than that, MyToys should immediately withdraw all the helicopter toys that have been sold to the customers in order to avoid more incident happen. It is the duty of care for the safety of customer through using their products. Furthermore, it is important that the company should always remind the consumer to follow the instructions of the toys before using
h. The ending inventory of merchandise is counted and determined to have a cost of $11,700. Bug-Off uses a perpetual inventory system.
We observed non-viable cost patterns due to high customization and low unit orders by retailers for specialty branded doll #106, hence the management should look at better sales & marketing strategy to take bulk orders
One of specialty’s managers felt that the profit potential was so great that the order quantity should have a 70% chance of meeting demand and only a 30% chance of any stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?
This paper will summarize the ERR articles from the bulleted topics and issues. This paper will also include summaries on toys that may encourage violence and aggression, toys that may promote pro-social behavior, gender stereotyping in toy selection, and cultural stereotyping or, lack of cultural awareness in toys.
7. Though numbers given in the cost data can not be contested, I would definitely contest the way total cost has been computed. The item 345 department operates within a large manufacturing facility that churns out number of other products too. Hence judging the profitability of item 345 on the basis of total cost is not practical.
Why did you spend so much on a little toy of yours, I swear they make a new one every
In order to get toys in its stores by October, Specialty places one-time orders with its manufacturers in June or July of each year. Demand for children’s toys can be highly volatile. If a new toy catches on, a sense of shortage in the marketplace often increases the demand to high levels and large profits can be realized. However, new toys can also flop,
The Specialty Toys Company faces a challenge of deciding how many units of a new toy should be purchased to meet anticipated sales demand. If too few are purchased, sales will be lost; if too many are purchased, profits will be reduced because of low prices realized in clearance sales. Here, I will help to analyze an appropriate order quantity for the company.
This report is about the situational analysis of the Toy R US Company. This company is currently facing some drop in sales, possible reasons and potential solutions are provided in this report. All the detailed analysis are given here. Report has suggested that company lost its main perspective which it famous at the first point. This is main outcome of the report. There are many other reasons as well which are causing the decline of the company. There is a lot of room for improvement which can be tackled, implementation plan is also given in this report along with the possible and potential full recommendations. So lets’ start with the report.
In the past four years, Mattel has had to recall nearly 30 million of toys due to safety concerns such as lead level in paint, magnets and dangerous toy parts or design.
The problem surrounding Mattel Inc. is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends.” This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards.
The purpose of this report is to research and examine Toys "R" Us, the world's largiest toy chain store, so as to provide the company with strategic recommendations for future success. To throughly understand the company, the analysis is divided into multiple focus points: industry analysis, firm strategy analysis and firm financial analysis. The analysis concludes with rating that we give the company's stock as well as our strategic recommendations for the company to increase it's overall preformance.
In the base case, we assumed 11.0% compounded annual growth rate. This is based on modest growth in domestic sales, and optimistic expectations for the international, Babies R Us, and online sales. Online sales can save relevant costs of physical display of products and associated costs of running a store. EBITDA margin is assumed higher and will be higher in the near future as the sales grow. Capital expenditure and depreciation amortization expenses are assumed fairly constant over the years . Overall operation will generate enough cash to support debt and interest payments. If Toys R Us would be able to specialize some of baby products, video games and
Recently, the company commissioned Chinese companies to produce some of its toys. These Chinese-made toys were suspected of containing harmful aspects for children such as magnets which could be swallowed by children, hazardous lead paint, and plastic ignition key that kids can sit on or fall.