Miami Toy Company

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

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 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 New Heritage Doll Company is founded in 1985 and has long history. The management of company pay attention to the doll developing girls’ the imagination and self-image. The company tends to create some new products to dominate the market. The U.S. retail sales of dolls totaled $3.1 billion in 2008 while the New Heritage Doll Company’s revenue approximately $245 million of revenue, owning less than 10% of market share. There is good reason to believe that the New Heritage Doll Company has a potential future. Based on this assumption, we assume the New Heritage Doll Company’s g (internal growth rate) is not less than 3%(average growth of U.S. dolls market). The data total case flow of 2021 in Exhibit 1, Exhibit 2 we provided are base on

Thirdly, option is to strategically adjust the prices of their products because consumers are often very price sensitive. By doing so the company can either create more value that defines the quality and quantity of the product.

Market Position is very high, and big brand name as one of the largest toy company in the world.

The amount of each item purchased relies on many reasons such as the number of consumers for whom the item is intentional for, storage requirements and facilities available, purchasing power and ready cash, unit of sale, and price. Store operations must be adjusted to connect with the customer’s time of purchase pattern. Store buyers and merchandisers must keep on schedule with it.

Using activity-based costing will allow different overhead set up for each type of doll, production can be done at one time and the results would produce different contribution margins.

While   in   the   traditional   costing   system,   the   Specialty-­‐Branded   Doll   #106   seems   to   be   the   more   profitable   product   with   a   margin   of   34%   compared   to   9%   for   the   Geoffrey  doll,  this  trend  gets  reversed  when  using  the  ABC  system.     Under   the   ABC   system,   the   Geoffrey   Doll   is   generating   a   greater   margin   of   28%   compared  to  3%  for  the  Specialty-­‐Branded  Doll  #106.   This  significant  difference  in   margin  of  19%  for  the  Geoffrey  Doll  and  31%  for  the  Specialty-­‐Branded  Doll  #106   proves  that  the  costing  system  in  the  Chicago  Plant  has  to  change  since  it  is  creating   a   wrong   impression   concerning   the   profitability   of   the   two   dolls.   Based   on   the   assumption   that   the   Specialty   Doll   would   generate   a   greater   margin   than   the   Geoffrey   Doll,   management   had   decided   to   reduce   the   production   of   the   latter   to   increase   the   production   of   the   Specialty   Doll.

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

In this article a Lego factory in Europe is facing the problem of making sure all of the toys will be delivered on time. According to the article, “Lego A/S has spent years overhauling its supply chain to keep up with surging demand.” Lego has such a high demand that they are making 72 million bricks a day. According to the article it states, “Lego faces as it vies with U.S. rival

Hasbro is a publicly traded company founded in 1923 which specializes in toys for children, infants, and toddlers, as well as puzzles and games for consumers of all ages. Although the company has experienced significant annual revenue growth since its inception, due to several factors including the recent economic downturn, it has encountered obstacles in each of its four business units. With several competitors, such as Mattel, vying for the business of increasingly financially conscious consumers, Hasbro must optimize its operations in order to achieve its goal of becoming the world’s leading toy company in an uncertain future, Specifically, the company must pay particular attention to the following

The strategic decisions made by Jorgen Vig Knudstop were effective because he made considerations about that toys are not basic requirements, or crucial need goods. Jorgen’s strategies were internalized by the fact that the demand for toys depends on the accessibility of nonrefundable and personal income. While decisions are commonly linked to personal emotions too, he separated theme parks so as to focus on current subjects that produced the interest of a majority of the target audience. Likewise, he used new marketing strategies to target vigorous market sections focused at specific times of the year. For example, a majority of the superior sales were focused a few weeks near at the end of the year; this means, that is when toys probably

The Doll Video Game is deemed to be a great and strategic investment. The reasoning behind this is that the games industry

The competitive rivalry in the toy industry is intense. Organizations try to sell through their own retailers and online instead of solely through other retailers. Flexibility and responsiveness to the market are