Case Study

Events

Difficult Economic Conditions in Bowton

2008 - 2011
  • Unemployment rose by 6,000

GG Toys Plc Moved from Bowton to China

2010
  • Cheaper to manufacture in China

Difficult Economic Conditions in Bowton-Results

2011
  • 14,000/80,000 were out of work
  • Incomes fell by 8% on average
  • 42 Businesses closed
  • ONLY 15 start-ups occurred
  • "Is it the end of Bowton"-Newspaper headline released

Regeneration plan

2012
  • Implemented
  • 10 Years Duration

Acts taken place during Regeneration Plan

January 2, 2012 - 2018
  • To Encourage Businesses-grants where offered
  • 7,000 jobs had been created
  • New multiplex Cinema, 3 new housing developments and a shopping centre had been made

Sales Fall for GG Toys Plc

2014 - 2016
  • Sales fell by 8%

Research Conducted

2014

Research report about the state of the UK Toy Market conducted-by Sanjay Market Research Ltd

Georgie Girl

2015 - 2016
  • Best-selling doll
  • Cartoon character
  • Produced in China
  • Costs, revenues and profits are monitored by Finance Department at GG Toys Plc

New Chief Executive

2016
  • Name: Isobel Liu
  • She was told by board of directors to turn around the declining performance of company

Sales and Production of Georgie Girl Grew

2016
  • A second Georgie Girl movie released
  • Production moved to newly constructed building to increase the scale of production; High Demand on toy

Finance Director brought some issues in view to the Board of Directors

January 1, 2017
  • Issues would effect business success in the next 2-3 years

Points that Finance Director Raised

January 2, 2017 - 2018

He Said:
* 2016-Chinese Gov devalued currency £1 = 10¥ / End of 2018-£1 = 12¥
* 2016-Pound fell by other currencies including euro £1 = 1.1€ from £1 = 1.2€
* 2018-Inflation is forecast to rise in UK/ also cause a raise in the UK interest rate
* Environmental concerns if product is manufactured in China and sold in the UK

Isobel Liu Produced and Presented Development Plan to Board of Directors

January 3, 2017
  • Lasted 5 Years

Key points of Development Plan

January 4, 2017 - 2022

The Key Points were:
* To Reduce the costs of production
* Range of Products sold Reduced-- only focus on Best-selling Toys
* Production will continue in China
* Online selling will be Developed as a Priority
* An automated Warehouse run by Robots will be put in place for Online selling Venture

Some Growth

2018
  • employment increased; low-payed, part-time jobs
  • forecast-there would be a rise in the sales of goods in Bowton

Cash Flow Problems

January 1, 2018 - April 30, 2018
  • Income Decreased
  • Expenditure Decreased MORE
  • Balance gone into negative by April

UK Leaves The EU

2019
  • Not good for Toms Toys-Loss