1. What are the core strengths of Baby Dolls as a company operating in the premium doll market?

2. How does Baby Dolls manage its supply chain to meet the highly seasonal demand for its products?

3. What financial factors contributed to Baby Dolls' declining profits after 2005, and how did the
company respond to these challenges?

4. What are the potential advantages and disadvantages of moving production to China from Spain?

5. How would the shift to China impact Baby Dolls' competitive position in the doll market? Support
your answer with data.

6. What financial metrics should Baby Dolls' CEO focus on when evaluating the move to China? Support
your answer with data.

7. How does the highly seasonal nature of Baby Dolls' sales impact its working capital and financing
needs? Support your answer with data.

8. What risks and uncertainties should Baby Dolls consider when making the decision to move
production to China?

9. How might Baby Dolls' stakeholders, including shareholders and employees, react to the proposed
strategic move?

10. What ethical considerations should Baby Dolls consider when deciding whether to outsource
production to China?