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Case Study Of Mytoys

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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 …show more content…

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

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