Fisher-Price Toys, Inc
The assignment is an important part of this module’s assessment scheme. It counts 70%
towards the overall mark. You are required to read carefully the case study provided. In order to prepare your assignment and on the top of the information provided, you should also read the material provided in class, and a couple of additional references, as well.
Assignments are individual pieces of work
that should reflect your own opinions. You should therefore restrain from getting outside assistance or copying and pasting material from the internet or other sources in order to construct your arguments. Assignments are checked for plagiarism as part of the submission process.
The case study selected for this assignment is the Fisher-Price Toys, Inc.,
a popular case in basic economics and management from the prestigious Harvard Business School. The purpose of this case to help students understand how markets work, by studying consumer behaviour, demand, supply and pricing decisions. This case portraits a toy factory in the USA, intending to launch a new product. In order to succeed, managers have to analyse and decide on various important issues. Despite the case looking a bit out of date, the underlying issues and challenges faced then, are still very much valid in today’s corporate environments.
This case provides an excellent opportunity to identify and discuss the key economic and management issues at stake in a corporate environment.
3 Key Questions
Please, read the case study provided. Assume that you are in 1970 in the USA and have been hired as a business consultant to help the top management of Fisher-Price Toys, Inc. to decide on the launching of the ATV Explorer.
Should the company launch or not launch the ATV Explorer? Explain why.
What price tag would you recommend for that product and what kind of measures would you also recommend to take, in order to pursue that price? Would the new product with the recommended price be sustainable in the long-run?
By the early 70’s you realised the market for toys in the US is about to change. What strategies would you recommend for the future (next 10 years) in terms of new products and prices in order to match supply with demand in a profitable manner?
The option(s) you selected
The rationale and analyses that support your decision
Likely risks of the decision
The expected outcomes of the decision
4 Learning Objectives
This assignment provides an opportunity to analyse microeconomic business environments, with a focus on demand, supply and pricing decisions.