Johnson Toy Company Case 5.1
Essay by Sharon Phong Nguyên • March 14, 2017 • Case Study • 670 Words (3 Pages) • 5,107 Views
JOHNSON TOY COMPANY
Case 5.1
[pic 1]
Felix Anton Huang – 04116623
Benjamin Sandoval – 04576643
Sharon - 04576882
Global Logistics
Dr. Maria
OVERVIEW
The Johnson Toy Company is located in Biloxi, Mississippi.
[pic 2]
The business is run by a family involved in the toy business for three generations.
The firm manufactures and sells toys throughout the United States.
- Relies on several basic design of toys (low profit margin but steady sellers)
- Relies on new designs of unconventional toys (risky introduction, but promises high profit)
[pic 3]
Sales
- Peak sales before Christmas[pic 4]
- Smaller peaks occur in the late spring – early summer period.
Marketing
- Advertising is regularly made on Satuday mornings during
TV shows for children.[pic 5]
PEOPLE INVOLVED IN THE CASE
QUESTIONS
- From the standpoint of an individual concerned with accounting ocntrols, discuss and evaluate Johnson Toy Company’s present policies for handling returned items
Since there have been inventory problems due to the vague return policy, there are going to be many financial records and indicators that will provide inaccurate information. For setting the company’s goals and implement a strategy, the managers should be aware of the losses or the gains experienced, therefore, the return policy should not permit to receive all items back right away (mainly if they are unsold products from retailers)
- Answer question 1, but from the standpoint of an individual interested in marketing
From a marketing view, if there are many restrictions regarding to return policy, there will be a flexibility problem in the relationship with loyal retailers. Since the image of the firm is created by its marketing, there is a need to maintain distributors and retailers satisfied but they will have to readapt themselves to new policies and ways to do business.
- Propose a policy for handling returns that should be adopted by the Johnson Toy Company. Be certain to list circumstances under which exceptions would be allowed. Should it apply to the Jungle Jim Dolls?
Retailers cannot return unsold merchandise
Defective products can be returned (future policy)
For large accounts we can accept them back for a certain discount depending on the returned amount. (Just for Jungle Jim the Jogger doll)
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