Build-a-Bear Case Study

Company Background Build-A-Bears mission statement states, “At Build-A-Bear Workshop®, our mission is to bring the Teddy Bear to life. An American icon, the Teddy Bear brings to mind warm thoughts about our childhood, about friendship, about trust and comfort, and also about love. Build-A-Bear Workshop embodies those thoughts in how we run our business everyday.” (Buildabear.com 2012). Build-A-Bear Workshop, Inc. is the leading and only global company that offers an interactive make-your-own stuffed animal retail-entertainment experience. Founded in 1997, the company currently operates more than 400 Build-A-Bear Workshop® stores worldwide, including company-owned stores in the United States, Puerto Rico, Canada, the United Kingdom, and Ireland, and franchise stores in Europe, Asia, Australia, Africa, the Middle East, Mexico and the South America. Build-A-Bear Workshop extends its in-store interactive experience with its award winning virtual website and entertainment destination at Bearville.com TM (Buildabear.com 2012).
External Factors A decline in general global economic conditions could lead to disproportionately reduced consumer demand for products, which represent relatively discretionary spending, and have an adverse effect on liquidity and profitability.
Since purchases of Build-A-Bear merchandise are dependent upon discretionary spending by guests, financial performance is sensitive to changes in overall economic conditions that affect consumer spending. Consumer spending habits are affected by, among other things, prevailing economic conditions, levels of employment, salaries and wage rates, and consumer confidence and consumer perception of economic conditions.
A continued slowdown in the United States, Canadian or European economies or uncertainty as to the economic outlook could reduce discretionary spending or cause a shift in consumer discretionary spending to other products. Any of these factors would likely cause Build-A-Bear to delay