Barbie
Mattel's managers were slow to adapt because they had become complacent. Barbie is a billion-dollar brand (Mattel 2014 Annual Report) and had been able to beat many prior competitors. There was no motivation for the Barbie team to change, because there were no major challengers, and it had been a long time since a viable threat to the brand had emerged. Without incentive, many managers become complacent and then they refuse to change and to innovate. The financial incentives for these managers were likely tied to profitability, and Barbie was still highly profitable. It was only after Bratz knocked Barbie's sales down 30% that the Barbie managers took notice of the threat (Pimentel, 2007).
The cognitive errors that would contribute to this would include feeling that if Barbie had been able to deflect new entrants in the past that it would be able to do so in the future. The reality is that each new competitor is different, and as a result each unique situation must be taken on its own merits. Further, there was the sense among the managers likely that what appealed to girls in the past would always hold the same appeal. They failed to recognize that...
Task 1 1.1 Evaluate the restraints and constraints on the integration of inter-organisational strategy. Inter-organizational strategy must evaluate the restraints and constraints on the integration of organizations, such as supply chains, shipping, sales and so on. A constraint keeps the organizational from achieving a goal. A restraint places pressure on the organization as it seeks to achieve the goal. The Theory of Constraints can be used to help organizations evaluate their constraints
Companies Assessment Finance is one of the most important parts of the business operations of any entity. Financial Management has a great strategic role to play in the future of any firm and it is the financial management and strategies that are in turn implicated on all other departments of the entity. The firm's financial management precisely deals with how the allocation of scarce resources will be done throughout the business.
Growing Market Share at Olympus When you can buy a Barbie doll that doubles as a video camera, I think that it's official that anything can be a camera. -- Jason Griffey, 2012 The heyday of amateur single lens reflex cameras and developable film has passed, replaced by increasingly sophisticated cameras in all types of handheld wireless devices, especially smartphones. Some camera manufacturers have responded to these trends in different ways,
The combined sales from Wal-Mart and Toys 'R Us account for a smaller percentage than these other distribution channels. Another alternative may be to establish their own category killer store to replace Toys 'R Us. However, this is a risky move and is capital intensive. They would have to make certain that the market would be willing to accept this alternative. This alternative would require a heavy capital outlay and
It is worth noting that like many companies, Mattel has grown since its inception largely on the basis of population growth. Not to take anything away from Mattel's products, but the population of the world and its wealth have increased substantially since 1945. The company now stands to benefit from a surge in growth as the baby boom echo generation enters child-bearing age. This massive demographic will likely have
Capital Structure Analysis: Mattel, Clorox and MGM Resorts According to a report in the Journal of Applied Economics, companies with earnings/price ratios that are higher than their estimated after-tax borrowing costs, like Mattel, demonstrate that managers of publicly traded companies are in fact reluctant to make capital structure changes. Clorox, and MGM Resorts International also fit into this category, per my hypothesis. I suggest a radical move for these risk-averse managers
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