Case Study Toys Should Launch New Range Of Toys For 9-11 Age Group Or Not. Internal Environment
Weakness l Good reputation l Having Efficient and Skilful design team l Issue on cash flow l Issue on products’ safety
Threat l Recent trend towards electronic toys l Customers loyalty l Other competitors enter the new market.
• One of the most serious weakness is the cash flow. According to the statement of financial position in 2015, the amount of cash equivalents was € 21,000 and the trade receivable is € 4,065,000 in 2015. This reflect that the company can get profits on selling the products but cannot receive the money from the debtors. One of the reasons is that Thompson Toys will not chase them too aggressively because of avoiding to influence on the future sales. Although the sales amount is higher, most of retailers often do not pay until at least 60 days. Finally, this situation will influence on our company’s liquidity and will not have enough capital to establish new products. Therefore, the company should re-evaluate…