Toy World, Inc.

run World, Inc. Early in January 1994, Jack McClintock, President and part owner of Toy World, Inc., was considering a proposal to adopt aim monthly production for the coming year. In the past, the companys production schedules had always been highly seasonal, reflecting the seasonality of sales. Mr. McClintock was aware that a label improvement in production efficiency could result from take aim production, but he was uncertain what the impact on former(a) phases of the business might be. Toy World, Inc. was a manufacturer of charge plate toys for children. Its product groups included toy cars, trucks, construction equipment, rockets, spaceships and satellites, musical instruments, animals, robots, and bodily function figures. In most of these product categories, the company produced a tolerant range of designs, colors, and sizes. Dol1ar sales of a particular product had sometimes varied by 30-35% from one year to the next. The manufacture of plastic toys was a highly competitive business. The industry was populated by a large number of companies, many of which were short on capital and management talent. Since capital requirements were not large and the applied science was relatively simple, it was easy for new competitors to enter the industry.

On the new(prenominal) hand, design and price competition was fierce, resulting in short product lives and a relatively high rate of company failures. A company was sometimes able to steal a display on the competition by designing a habitual new toy, often of the fad variety. Such items generally commanded very high margins until competitors were able to offer a confusable product. For example, Toy Worlds introduction of a 1ine of superhero action figures in 1991 had contributed importantly to that years profits. In 1992, however, 11 competitors marketed similar products, and the factory price of the Toy World offering plummeted. In recent years competitive pressures on smaller firms had as well intensified due to an... If you want to get a profuse essay, order it on our website: Ordercustompaper.com

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