Discuss how the economic environment in the US culture was changing. How did the changes affect the toy industry and Gilbert? There was a higher demand for low cost, low quality toys that A.C. Gilbert couldn’t compete, until the point where the company introduced 50 new toys for different age groups and toys for girls and preschool children. Although the company tried to change and adapt to the rapidly changing industry, their low quality toys hurt the company a lot, because of the high return rate on some of the poorly built toys. 5.
The LEGO Case Study 2014 Dimensions of Strategy from John Ashcroft and Company experience worth sharing The LEGO Case Study - New for 2014 About the Author In 2003 and 2004 LEGO announced losses of over $400 million dollars on annual sales of just over $1 billion. The reorganisation plan announced in 2001 had begun to falter. The company was forced to take a hard look at every facet of the operation including costs, overheads, margins, sales, marketing and the product offer. John Ashcroft is an economist and expert in Corporate Strategy. The LEGO case study was developed in 2014 following the success of the Apple Case study.
So where did the other sales go if its full-line stores’ sales dropped? Well part of it is due to an increase in sales in its Rack stores due to the increase in amount of customers bargaining for prices due to post-recession behavior. But most of it is due to its 30% online sales jump which enabled Nordstrom’s total revenue to increase in the year of 2013. Unlike some of its counterparts, Nordstrom adapted to new shopping behaviors. Online shopping is definitely the newest and boldest trend for retailers.
Medtronic Case Writeup 1) What were the root causes of why Medtronic nearly lost its position as market leader in the 1970’s and 1980’s? Medtronic was not the market leader in the 1970’s and 1980’s because of a combination of unique industry factors and the lack of a sufficient product planning/development system in place at Medtronic. In the market, competition from other companies was rapidly increasing during this time. As such, technologies were always changing, and there were higher expectations [for product quality and differentiation] for newly released products. Meanwhile, at Medtronic, their product development was falling behind.
There was very little manufacturing footprint in high cost countries such as Switzerland, Denmark and the United States in which the LEGO Group maintained presence. Furthermore, the 200Os saw a rise the consolidation of the retail industry particularly in the United States and the growth of big box retailers such as Wal-Mart and Target. This meant that traditional distribution channels that had been used by companies like LEGO in the past were no longer viable. The consolidation in the retail sector also meant that retailers were amassing power in the toy industry which has an impact of putting pressure on the operating margins of the manufacturers. The intensity in the retail arena saw companies such as Toys R Us being taken over by private equity firms which further intensified the dominance of companies like Wal-Mart.
At this time people wanted to spend their money instead of save it for hard times. Society’s hourly pay rate nearly double and tripled during this era. War factories transitioned from making war materials to making civilian supplies, which lead to the boost in our economy at the time. Today, effects of the Baby Boom have many factors that come into play that affect our economy. According to National Academy of Social Insurance “social security faces a financial challenge from the impending retirement of the largest generation in American history, the 76 million persons born in the “baby boom” years, from 1946 through 1964.
Matthew Schulzki Period 1 Pop Culture Mr. Spilken LEGO's- A universal toy for the young mind Legos, legos, legos, legos. Its quite possibly one of the most ingenious toys ever created for one reason. Your creativity is only limited by the number of pieces you have with you. Lego was originally the brain child of Ole Kirk Christiansen (7April 1891- 11march 1958). He started out as a carpenter from Billund Denmark who opened a shop and began making wooden toys after his carpenter sales fell due to the recession.
Troubles in Toyland Discussion Questions: 1. In 1999 the context of the Toys “R” Us industry started to feel the effects of Wal Mart and Target which was now giving the toy giant a run for their money. The specialty retailer industry and toy industry in general must know what type of changes are occurring and the changes that would be coming up in the near future. Driving forces that could possibly be affecting this industry could possibly be the following; • Changes in Technology • Customer Behavior – (What are their needs, wants, and desires) • Competition – (What are they currently doing) • Economy –(What is the current economy looking like, are consumers spending more or looking elsewhere) 2. Jerry Storch had a very canny approach which his way of thinking was for the good of the company and to differentiate itself from the retail giants.
Since its invention over fifty years ago, television has been criticized by many as being bad for children’s brains. As television has advanced throughout the years, so have the fast paced, mindless shows designed for young children. In the article “Is SpongeBob SquarePants Bad for Children?” Roni Rabin discusses a research study that sought to prove that watching SpongeBob SquarePants has a negative effect on a child’s executive functioning system. The results of this small experimental study found that children who watched nine minutes of a fast paced cartoon had decreased their executive functioning compared to children who participated in nine minutes of drawing or watching educational programs. Connecting fast paced television viewing to losses in cognitive ability has profound significance for children’s social and learning development.
Case objective: For these two cases we can focus on their main concerns: Apple 2002: The PC industry is the fastest growing in the last 20 years, as well as the most changing and challenging one. By 2002 Apple was facing weak unit sales, flat gross margins and declining share in several core markets. While Steve Jobs was implementing new strategies and new products, he was facing the question, if this changes will bring the company back to life. Apple 2005: After releasing new products and shifting strategies, that had positioned the company as the top brand and market leader, Apple was facing the challenge of keep the company in that place, and if this would be sustainable in the long term. Brief history: Apple computers Inc. was founded on 1976 by Steve jobs and Steve Wozniack.