ASSIGNMENT NO: 02

• SUBJECT : MANAGEMENT

• TOPIC: CASE STUDY OF TOYS GALORE

• SUBMITTED TO: SIR ZAHID MAJEED

• SUBMITTED BY: GROUP CC (CHARLIES)

 CHARLIES GROUP MEMBERS
• GROUP LEADER • NAWAZISH TAWAB
RAFI ULLAH KHAN  BCOM
( BCOM, WORKED AS HR  ACCA (LAST 2 PAPERS, UK)
OFFICER IN COCA COLA)  CA (C MODULE)
 CIA (LAST PAPER, USA)
• SHAHBAZ SHAKEEL DAR  DIPLOMAS:
(BCOM)  TAX MANAGEMENT
 FINANCIAL ACCOUNTING
• SOHAIL ABBAS (BCOM)  COST ACCOUNTING
 SUPPLY CHAIN
• RANA SAAD (BCOM) MANGEMENT
TOYS GALORE
 TOYS GALORE
INTRODUCTION:
Toys Galore is an Ireland based toy retail shop
having branches in Morningside and Stock Bridge
which has been operating since 1981 and using the
mast head:

“Our view is that happy customers come back”

This is the company whose aim is to target goodwill

instead of short term revenues.
 TOYS GALORE

They deal in all kinds of toys and have large stocks of

international brands like Barbie, Disney,
Sony,Galt,Brio,Haba and Nintendo etc.

They also sale jigsaws, darts, and other board

games for ages 15 to 99.
 TOYS GALORE

SYNOPSIS:

In the above mentioned study case toys galore is

facing high level of uncertainty about sales demand
particularly during Christmas season. There are
different scenarios and conditions which toys galore
can adopt, but according to situations and trends
available.
 TOYS GALORE

DEMAND SUPPLY CHART

CAPABILITY PROFIT

Fully supply $4m profit

Partial supply $3m profit

Low level supply No additional profit

Low level demand No profit

 TOYS GALORE
EXPANSION CHART

MONTH COST CAPABILITY TREND PROBABILITY

ASSUMED OF DEMAND

July $2million Full potential High/low Directly

proportional to
demand

October $2million Partial High/low Directly

proportional to
demand
 TOYS GALORE

PROBLEMS IDENTIFIED:

• The first problem arising here is that when

should toys galore expand its production.

• If there is a probability of 80% low and high

demand.
 TOYS GALORE
QUESTIONS ARISED:

• Will toys galore get a high demand during Christmas

Eve?

• Will toys galore can get 80% demand as per past

trends?

• Whether toys galore should go for expansion in July

or October?
 TOYS GALORE
RECOMMENDATIONS

Being the think tanks of toys galore we would

suggest to first get facts and figures from last 10
years of market trends. There is no difference in the
amount for expansion in July and October. As the
amount is the same, so there is no issue for paying
the money for expansion.
 TOYS GALORE
REASONS

The Reasons behind Investment Being made in July not October are as under:

• The shopping trend during the Festive Season is usually higher than other
parts of the year.

• As the production is high during that part of the year therefore the National
Income is High which satisfies ABS theory about High National Income.

• Worker gets salary bonuses from their offices.

• People start to save money for Christmas shopping from October some even
start in September (Daily Guardian UK).
 TOYS GALORE
• Most of the shopping is done by the people on the Christmas Eve or
on Boxing Day.

• The average money spent by a single family during the festive period
is $800 in the last ten years American Time Magazine Report (Nov
2013).

• The CNN report Aired on 26th October 2012 showed that most of the
child between the age group of 5-15 want toys as their first priority in
their gifts.
 TOYS GALORE
• Toys are the most sold Item after clothes on Christmas (TheSun.co.uk)

• The Average British Parents spending on toys during Christmas is

around $150.

CONCLUSION:
From the above mentioned reasons and researches which are being
published by different magazines and newspapers it makes us easy to
decide that we should go for expansion in July rather than going for it
in October and the our company can easily attain the profit of 4
million dollars.
THANK YOU