toys inc

TOYS,INC

Toys, Inc. is a 20-year-old company engaged in the manufacture and sale of toys and board games. The company has built a reputation on quality and innovation. Although the company is one of the leaders in its field, sales have leveled off in recent years. For the most recent sex-month period, sales actually declined compared with the same period last year.

As an operational consultant, our task is to help Toys, Inc gain more gross profit by reduce unnecessary operation cost and cease the sale from declining with highly quality control finished goods, and marketing. First of all, we need to discover where the problem occur the most with our product which is to conduct a customer survey to find out whether it¡¦s customer¡¦s misusage or abuse of use or it¡¦s manufacturing default. By learning the problem with our product, we could either provide a clear usage instruction to avoid misusage or improve product quality control to increase customer satisfaction.

Conduct a SWOT analysis can help a firm identify the strategy-related factors that can have a major effect on the firm. The ultimate goal is to identify the critical factors affecting the firm and then build on vital strengths, correct flaring weaknesses, exploit significant opportunities, and avoid disaster-laden threats. The ultimate goal is not simply to develop the SWOT analysis but to translate the results of the analysis into specific actions to help the firm grow and succeed. It serves as a solid foundation to identify subsequent actions in the marketing plan.

Figure 1 shows the internal and external factors affecting the market opportunities for Toys, Inc. Stated briefly, this SWOT analysis highlights the great strides taken by the company since its products were first introduced. In the company¡¦s favor internally are its strengths of a broadly experienced management team, innovative and high quality products, national distribution, experienced personnel, economies of scale in manufacturing, and continuous efforts in research and development. Favorable external factors (opportunities) include a stable mass market that recognizes the company for the quality of its products, that TOYS, Inc. is a leader in its field with a distinctive name, technological breakthroughs will enable production costs to be...

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...elinquish. Consumers will increase their consumption of any commodity up to the point where the benefit of an additional unit (marginal benefit) is equal to the marginal cost to them of that unit, the market price. Therefore for any consumer buying some of a commodity, the marginal benefit is equal to the market price. By providing a high quality product with acceptable market price to consumer to maximum company profit is our goal.

Beyond the same sales level, reduce manufacture cost means increasing gross profit. Layoff employee will reduce labor cost which will also has a disadvantage as the decrease of productivity; to avoid the decreasing if productivity by standardize the procedures to simplify the working steps, purchase new equipment to substitute automated processing for manual processing to improve average quality. Also, we can reduce the material cost by changed the less popular production line to produce the most popular product which will eliminate the material cost by purchasing different types of material with small quantity but have quantity discount when purchase large quantity of same types of material.