Toy World

2779 Words12 Pages
Historical perspectives: Toy World, Inc. was founded in 1973 by David Dunton & Jack McClintock was a manufacturer of Plastic Toys for children: cars, trucks, rockets, spaceships, etc. Toy World, Inc. was originally a partnership when it was incorporated in 1974. Company had grown rapidly since its founding, with profits increasing every year since 1976. Jack McClintock assumed presidency in 1991. In 1993 David Dunton & Jack McClintock hired Dan Hoffman as the production manager. The context of the case study is early 1994 and Toy World faced a large number of foreign and domestic competitors in its industry especially with low barriers to entry, short product life cycles, and significant price competition. The production and sales at…show more content…
Hence, operational efficiency was the focus of senior management as the key area to improve to achieve higher profitability. SWOT Analysis: Strengths: Toy World had experienced a rapid growth since the inception. Its production line was very simple and does not take much effort to set up a new batch of product. The workforce employed was extremely flexible in that it could be hired in peak seasons, and lay off during off peak season, and worked overtime in peak seasons as required. Toy World’s profitable product line was also strength. Weaknesses: Toy World did not have any innovative products or was poor in creativity; it simply depended on customer orders and demands. There were no exclusive distribution channels or customers available to Toy World, there were no patents outstanding or pending, Toy World did not have a strong Brand name in the market, and lacked significant cost advantages from proprietary know-how, or exclusive access to high grade natural resources. Toy World’s sales were highly seasonal and customers took around 60 days to pay for the orders. Recruiting posed difficulties as it took long time to find resources during peak seasons and overtime expense peaked in peak seasons. This all lead to strained working Capital. Opportunities: There were numerous opportunities for Toy World, on which it should act on timely to stay competitive. In this industry popular/innovative

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