Charles Lazarus Mission Statement
History
In 1948, 25-year-old Charles Lazarus turned his dream of creating a child-oriented business into a reality. A visionary for his time, Lazarus started a baby furniture store, Children’s Bargain Town, in Washington, D.C. to cater to the post-war baby boom era. Lazarus filled his store with cribs and baby furniture and ran it single-handedly, overseeing everything from bookkeeping to delivering merchandise to customers’ homes. Continually looking for new ways to satisfy his customers’ needs, Lazarus introduced infant products and toys for older children into the company’s growing product assortment. The first toy he added to the inventory was a cradle gym. When it proved a strong seller, he added tricycles, books and other toys. …show more content…
Lazarus learned early on in the toy business that unlike furniture, toys broke or fell out of fashion with children, prompting parents to return to the store again and again.
The vision of Charles Lazurus’ company soon became an overnight success and with that he included his vision and mission statements of the company. The vision statement “Our Vision is to put joy in kids’ hearts and a smile on parents’ faces." To fulfill our mission, achieve organizational success, drive growth over the long-term, and help our constituents reach their goals, Toys“R”Us, Inc. focuses on creating the right environment to deliver results for our employees, customers, shareholders and community (Toys R Us). The company’s commitments are as follows: Employees – growing and developing our employees by cultivating a great place to work culture that fosters teamwork and collaboration, is based on trust and respect, draws on the diverse perspectives and experiences of our employees and encourages inclusion. Customers – achieving customer satisfaction by delivering a quality experience for our customers each time they shop with us. We do this by creating a one-stop shopping destination with a unique and trend-right merchandise mix, friendly and helpful services, rewards for loyalty, knowledgeable sales associates and offering hot products, in-stock when parents want them. Shareholders – achieving consistent, reliable performance …show more content…
for our shareholders. Community – maintaining and enhancing our position as a good corporate citizen by being a safe, caring and reputable neighbor in the communities we serve ( Toys R Us).
Form of Business Ownership In the beginning this business was a sole proprietorship. Eventually, it became publicly owned in 1978 (International Directories). Then in July 2005 it became a private business. On July 21, 2005 a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts (KKR) and Vornado Realty Trust invested $1.3 billion to complete a $6.6 billion leveraged buyout of the company.
Business Strategies
Positioning the global franchise for the future, Toys“R”Us became a private company in July 2005 when an investment group consisting of affiliates of Bain Capital Partners LLC, Kohlberg Kravis Roberts & Co. (KKR), and Vornado Realty Trust completed the acquisition of Toys“R”Us, Inc. for $6.6 billion.
SWOT Analysis
The company sells many different product ranges.
There are benefits and disadvantages to this. However, a key strength is that the company has a diversified portfolio of products, which means that while some ranges are underperforming, others are outperforming. As long as technology allows them to spot successes, and then to focus upon them, they have a competitive strength. These days, Toys "R" Us has no single and sustainable competitive advantage, other than brand. In the US, its traditional stronghold, the company has lost its number one positions as toy retailer to Wal-Mart. Being large may not be enough, when customers can go to another large retailer and buy the same and similar goods, sometimes getting a better deal.\As with all retailers in Western society, Toys "R" Us is heavily dependent upon successful sales during the final quarter of the year. They need to make profit from Christmas. Retail is notoriously seasonal and Toys "R" Us is no different to other retailers. In fact it could be argued that toys are a key Christmas present product, so are even more likely to be dependent upon seasonal sales. There are opportunities for joint ventures and strategic alliances. Toys "R" Us works closely with Amazon.com and its baby products category. This not only plays to the strengths of both companies, but also provides opportunities. Amazon is strong at the online part of the business, creating the web site, warehousing products and delivering them to customers. Toys "R"
Us will use its buying power, but ultimately carries the inventory risk (i.e. if it doesn 't sell, its money is tied up in physical stock).Toys "R" Us is a good neighbor. For example, in 2005 it went out of its way to help the Louisiana victims of hurricane Katrina. Toys "R" Us donated six trucks full of toys and baby supplies including diapers, wipes, and formula, as well as batteries and water to multiple locations that were housing evacuees. Babies "R" Us has also donated over 17 pallets of baby and children 's clothing to the national charity Kids In Distressed Situations (KIDS). Such associations will help to sustain its brand with key consumers. There is strong competitive rivalry in the toy market, not only form Wal-Mart, but also from Target. The toy brand is often not associated with the retailer. So if a particular kid 's toy has grabbed the imagination and the spending power of its target consumer, any retail outlet is as good as another. Differentiation is difficult, and toy retailers often have to compete on price, range or availability. Let 's face it today China and similar low cost manufacturing paradises are where toys are made. Low manufacturing costs are important if margins are to be retained. The problem, and potential weakness, is that countries and trading communities tend to impose quotas and tariffs in order to protect local manufacturing. All countries do it. However, Toy R Us could potentially be left without the toys people want to buy if embargoes are implemented on countries such as China.
Management
The managerial philosophy of Toys R US is that store managers play a vital role in running a growing business and helping to ensure that customers receive excellent customer service and enjoy their in-store experience. They also have the opportunity to manage a team of sales associates and be responsible for their development through coaching, mentoring and promoting a culture of teamwork. Most of all, store managers will have a tremendous opportunity to grow a career within a world-renowned and respected company and work among the most dynamic professionals in retail.
Operations
When it comes to facility layout Toys R Us purposely adopted the supermarket model for their store, which allowed customers to examine and pick out products on their own and pay for them at a checkout stand. Toys R Us headquarters is located in Wayne, New Jersey. There are 877 stores located within the United States and Puerto Rico, and 755 international stores world-wide. Inventory control these days is easy for the Toys R Us stores because as products are being purchased, the item is getting selected into the computer data system letting the purchaser know that they need to order another product of this kind.
Human Resources
The only way Toys R Us is finding people to hire is through the internet. They no longer take in store walk-ins with resumes. The online site tells future candidates that they must submit their resume online and then a recruiter will call them back if their credentials meet what is needed by the store they applied to. All employees start out at minimum wage unless they have former experience, and then it depends on the amount of experience as to what the employee will make per hour. Training new employees is all done with computer based learning videos and hands on learning. At Toys“R”Us, Inc. they believe in providing their employees with benefits well beyond a paycheck. In addition to competitive pay, the employee benefits program offers one of the best total compensation packages available in retail. Medical, dental and vision insurance coverage are all included, as well as a 401(k) with a generous company match program and a wide range of other benefits (Wade).
Marketing
With Toys R Us there is really no exact target market. Everyone loves toys. There are some items in the stores that are for the very young and some for the much older age group, but if I have to I would just say kids as my target market. Market Segmentation could be looked at in two different viewpoints by age group and gender. The biggest way that Toys R Us advertises is definitely through television commercials on kids’ stations. I swear the day after thanksgiving they run adds constantly. Also, Toys R Us is known for their “Big Toy Book”. It’s a catalog of all the big ticket items that kids want. I remember as a kid going through and circling almost everything in that book.
Financial
Company sales are at $2.4 billion, a decrease of $204 million or 7.8% from the prior year. The decline in net sales for the quarter was primarily attributable to a decrease in comparable store net sales, as well as a foreign currency translation impact of $67 million. Comparable store net sales were down 8.4% in the Domestic segment and 5.8% in the International segment. The overall decrease in comparable store net sales resulted primarily from decreases in the juvenile, seasonal and entertainment (which includes electronics, video game hardware and software) categories. The company’s net loss was $111 million, compared to $60 million in the prior year primarily due to a decrease in gross margin dollars. As of April 12, 2012, the costs of goods sold were at $1,615 and by May 4, 2013 they declined down to $1,508. Assets in April of 2012 totaled $8,832 and by May 2013 they also declined to a total of $8,323. I don’t know why but for some reason the amounts of total assets and liabilities are exact in number.
Summary
Out of all the companies I could have chosen to do a case study on I’m extremely pleased with what I’ve choose. Although I do not have kids, this topic still sparked my interest. I guess that there is no other place like toys r us and not only does it stand out with its branding but also in the hearts of every customer that walks through the doors of business. The whole time I was writing this case study something kept popping into my head and now it’s definitely stuck. I’m sure you know what I’m talking about. You know the one, that catchy song that they used in the 90s to go along with their commercials. The funny thing is that I bet your singing it right now.
WORK CITED
2002 - 2013 Geoffrey, LLC. All Rights Reserved, www.toysrusinc.com/about-us
International Directory of Company Histories, Vol. 57. St. James Press, 2004.
Wade, Brenda. Personal interview, ex-employee, 13 Nov 2013
In 1948, 25-year-old Charles Lazarus turned his dream of creating a child-oriented business into a reality. A visionary for his time, Lazarus started a baby furniture store, Children’s Bargain Town, in Washington, D.C. to cater to the post-war baby boom era. Lazarus filled his store with cribs and baby furniture and ran it single-handedly, overseeing everything from bookkeeping to delivering merchandise to customers’ homes. Continually looking for new ways to satisfy his customers’ needs, Lazarus introduced infant products and toys for older children into the company’s growing product assortment. The first toy he added to the inventory was a cradle gym. When it proved a strong seller, he added tricycles, books and other toys. …show more content…
Lazarus learned early on in the toy business that unlike furniture, toys broke or fell out of fashion with children, prompting parents to return to the store again and again.
The vision of Charles Lazurus’ company soon became an overnight success and with that he included his vision and mission statements of the company. The vision statement “Our Vision is to put joy in kids’ hearts and a smile on parents’ faces." To fulfill our mission, achieve organizational success, drive growth over the long-term, and help our constituents reach their goals, Toys“R”Us, Inc. focuses on creating the right environment to deliver results for our employees, customers, shareholders and community (Toys R Us). The company’s commitments are as follows: Employees – growing and developing our employees by cultivating a great place to work culture that fosters teamwork and collaboration, is based on trust and respect, draws on the diverse perspectives and experiences of our employees and encourages inclusion. Customers – achieving customer satisfaction by delivering a quality experience for our customers each time they shop with us. We do this by creating a one-stop shopping destination with a unique and trend-right merchandise mix, friendly and helpful services, rewards for loyalty, knowledgeable sales associates and offering hot products, in-stock when parents want them. Shareholders – achieving consistent, reliable performance …show more content…
for our shareholders. Community – maintaining and enhancing our position as a good corporate citizen by being a safe, caring and reputable neighbor in the communities we serve ( Toys R Us).
Form of Business Ownership In the beginning this business was a sole proprietorship. Eventually, it became publicly owned in 1978 (International Directories). Then in July 2005 it became a private business. On July 21, 2005 a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts (KKR) and Vornado Realty Trust invested $1.3 billion to complete a $6.6 billion leveraged buyout of the company.
Business Strategies
Positioning the global franchise for the future, Toys“R”Us became a private company in July 2005 when an investment group consisting of affiliates of Bain Capital Partners LLC, Kohlberg Kravis Roberts & Co. (KKR), and Vornado Realty Trust completed the acquisition of Toys“R”Us, Inc. for $6.6 billion.
SWOT Analysis
The company sells many different product ranges.
There are benefits and disadvantages to this. However, a key strength is that the company has a diversified portfolio of products, which means that while some ranges are underperforming, others are outperforming. As long as technology allows them to spot successes, and then to focus upon them, they have a competitive strength. These days, Toys "R" Us has no single and sustainable competitive advantage, other than brand. In the US, its traditional stronghold, the company has lost its number one positions as toy retailer to Wal-Mart. Being large may not be enough, when customers can go to another large retailer and buy the same and similar goods, sometimes getting a better deal.\As with all retailers in Western society, Toys "R" Us is heavily dependent upon successful sales during the final quarter of the year. They need to make profit from Christmas. Retail is notoriously seasonal and Toys "R" Us is no different to other retailers. In fact it could be argued that toys are a key Christmas present product, so are even more likely to be dependent upon seasonal sales. There are opportunities for joint ventures and strategic alliances. Toys "R" Us works closely with Amazon.com and its baby products category. This not only plays to the strengths of both companies, but also provides opportunities. Amazon is strong at the online part of the business, creating the web site, warehousing products and delivering them to customers. Toys "R"
Us will use its buying power, but ultimately carries the inventory risk (i.e. if it doesn 't sell, its money is tied up in physical stock).Toys "R" Us is a good neighbor. For example, in 2005 it went out of its way to help the Louisiana victims of hurricane Katrina. Toys "R" Us donated six trucks full of toys and baby supplies including diapers, wipes, and formula, as well as batteries and water to multiple locations that were housing evacuees. Babies "R" Us has also donated over 17 pallets of baby and children 's clothing to the national charity Kids In Distressed Situations (KIDS). Such associations will help to sustain its brand with key consumers. There is strong competitive rivalry in the toy market, not only form Wal-Mart, but also from Target. The toy brand is often not associated with the retailer. So if a particular kid 's toy has grabbed the imagination and the spending power of its target consumer, any retail outlet is as good as another. Differentiation is difficult, and toy retailers often have to compete on price, range or availability. Let 's face it today China and similar low cost manufacturing paradises are where toys are made. Low manufacturing costs are important if margins are to be retained. The problem, and potential weakness, is that countries and trading communities tend to impose quotas and tariffs in order to protect local manufacturing. All countries do it. However, Toy R Us could potentially be left without the toys people want to buy if embargoes are implemented on countries such as China.
Management
The managerial philosophy of Toys R US is that store managers play a vital role in running a growing business and helping to ensure that customers receive excellent customer service and enjoy their in-store experience. They also have the opportunity to manage a team of sales associates and be responsible for their development through coaching, mentoring and promoting a culture of teamwork. Most of all, store managers will have a tremendous opportunity to grow a career within a world-renowned and respected company and work among the most dynamic professionals in retail.
Operations
When it comes to facility layout Toys R Us purposely adopted the supermarket model for their store, which allowed customers to examine and pick out products on their own and pay for them at a checkout stand. Toys R Us headquarters is located in Wayne, New Jersey. There are 877 stores located within the United States and Puerto Rico, and 755 international stores world-wide. Inventory control these days is easy for the Toys R Us stores because as products are being purchased, the item is getting selected into the computer data system letting the purchaser know that they need to order another product of this kind.
Human Resources
The only way Toys R Us is finding people to hire is through the internet. They no longer take in store walk-ins with resumes. The online site tells future candidates that they must submit their resume online and then a recruiter will call them back if their credentials meet what is needed by the store they applied to. All employees start out at minimum wage unless they have former experience, and then it depends on the amount of experience as to what the employee will make per hour. Training new employees is all done with computer based learning videos and hands on learning. At Toys“R”Us, Inc. they believe in providing their employees with benefits well beyond a paycheck. In addition to competitive pay, the employee benefits program offers one of the best total compensation packages available in retail. Medical, dental and vision insurance coverage are all included, as well as a 401(k) with a generous company match program and a wide range of other benefits (Wade).
Marketing
With Toys R Us there is really no exact target market. Everyone loves toys. There are some items in the stores that are for the very young and some for the much older age group, but if I have to I would just say kids as my target market. Market Segmentation could be looked at in two different viewpoints by age group and gender. The biggest way that Toys R Us advertises is definitely through television commercials on kids’ stations. I swear the day after thanksgiving they run adds constantly. Also, Toys R Us is known for their “Big Toy Book”. It’s a catalog of all the big ticket items that kids want. I remember as a kid going through and circling almost everything in that book.
Financial
Company sales are at $2.4 billion, a decrease of $204 million or 7.8% from the prior year. The decline in net sales for the quarter was primarily attributable to a decrease in comparable store net sales, as well as a foreign currency translation impact of $67 million. Comparable store net sales were down 8.4% in the Domestic segment and 5.8% in the International segment. The overall decrease in comparable store net sales resulted primarily from decreases in the juvenile, seasonal and entertainment (which includes electronics, video game hardware and software) categories. The company’s net loss was $111 million, compared to $60 million in the prior year primarily due to a decrease in gross margin dollars. As of April 12, 2012, the costs of goods sold were at $1,615 and by May 4, 2013 they declined down to $1,508. Assets in April of 2012 totaled $8,832 and by May 2013 they also declined to a total of $8,323. I don’t know why but for some reason the amounts of total assets and liabilities are exact in number.
Summary
Out of all the companies I could have chosen to do a case study on I’m extremely pleased with what I’ve choose. Although I do not have kids, this topic still sparked my interest. I guess that there is no other place like toys r us and not only does it stand out with its branding but also in the hearts of every customer that walks through the doors of business. The whole time I was writing this case study something kept popping into my head and now it’s definitely stuck. I’m sure you know what I’m talking about. You know the one, that catchy song that they used in the 90s to go along with their commercials. The funny thing is that I bet your singing it right now.
WORK CITED
2002 - 2013 Geoffrey, LLC. All Rights Reserved, www.toysrusinc.com/about-us
International Directory of Company Histories, Vol. 57. St. James Press, 2004.
Wade, Brenda. Personal interview, ex-employee, 13 Nov 2013