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Toys R Us Case Study

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Organizational Hierarchy Structure- Toys R Us was a decentralized organization, which had a leadership type setting from country to country. This type of structure was difficult because all the leaders from different countries were not communicating effectively. The company knew they had to make some changes to the system, if they wanted to be successful. Therefore, after careful consideration, the company decided to move to a more centralized structure. This change was needed to strengthen their business with regards to their compatibility amongst countries and creating a more efficient workplace in the United States and abroad. In the company’s business in Europe, instead of their being different leaders across the continent, there will …show more content…

The company hired a law firm named Kirkland and Ellis to handle their case because they have expertise in Chapter 11 bankruptcy proceedings. The company will be reorganizing its $400 million-dollar debt. (Wahba p. 1) Toy R Us was involved in an antitrust settle with attorney generals from 43 different states. The company conspired with a couple of toy manufacturers to restrict the supply of desirable toys to warehouses and price clubs. Toys R Us was aiming to put these other warehouses at a competitive disadvantage (Mikhiber, p. 29). According to the Federal Trade Commission “the company had monopoly power in many local markets and used its dominant position as a toy distributor to extract agreements from and among toy manufactures to stop selling to warehouse clubs the same toys that they sold to other toy distributors” (Investor’s Business Daily, p. 1) Technology and Information Systems- the Company will continue to expand its e-commerce business in the future. Its e-commerce sales today gross over one billion. Its plan is to focus on continued profitability with online sales. Part of the plan included a full assessment of the online business to analyze the main areas of functionality and online improvements. It will also continue its Omni channel capabilities, which includes shipping to store and in-store pickup exclusively during the holidays. Due to the rapid growth of mobility, over 50% of its e-commerce sales

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