spin Master toys

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SPIN MASTER TOYS CASE OF STUDY Question 1: In order to evaluate the two manufacturers Wai Lung (WL) and Wah Shing (WS), we use the weighted point method. (Trent p.24). The advantages of this methodology include the ability for the firm to include numerous evaluation factors and assign them weights according to the organization’s needs. (Khaled, Sanjoy p.3). We allocate an amount of “weight” to the different criteria based on importance. We choose the following criteria to select the supplier: Responsiveness and experience - As a growing company and with this being the first time they ship product for a planogram, Spin Masters needs a reliable manufacturer with a proven track record to keep up with the high expectations and tight…show more content…
Furthermore, the high level of commitment showed from the CEO –owner and their energetic staff with a get-it-done attitude would definitely go to great lengths to achieve their goals. The managers and employees of WL displayed a high level of commitment in the BMX bikes project. On other hand, a company like WL could help Spin Master to succeed solving mechanical and product development issues from an early stage and then manufacture the electric toy plane with high product quality level as they showed in their previous association with Spin Master. Also, the Chinese firm has an impressive production capacity size with 2000 workers and 100,000 square foot factory located close to Hong Kong; which would help to reduce the lead time of the order. In addition the company has about 60% production capacity available. It means they can dedicate enough time and resources (employees and equipment) for the E-charger’s order. Finally, WL presented a very competitive and attractive offer beating his competitor quote with a 9 % lower cost estimate. Not only that, but the CEO is willing to give favorable credit terms with a simple wire transfer of funds, versus a formal credit letter from their competitors, resulting in competitive and substantial cost savings. Based on our choice of WL, we identified 3 main risks: Financial Stability Distress: WL has recently lost business to competitors and
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