The stakeholders in toys r us are customers

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from the company. The stakeholders in Toys "R" Us are customers, shareholders, and employees. Every stakeholder has a stake in the company's success. The shareholders provide the funds needed for the growth of the business. The productivity and profitability of Toys R Us depend on the employees. Consumers pay for the toys and the more they buy, the more successful the company is expected to be. External Environment Variables Just like other companies, Toys R Us has been surprised by changes that occur in the external environment. Many parents are now interested in toys that serve educational purposes. The company was once the biggest supplier of toys but had to change its marketing strategies to address this issue. The toy industry has also been unstable because of the establishment of "hate sites." The websites post information which attempts to convince customers not to purchase toys
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STRATEGIC CONSULTING 4 produced by the company. In addition, the fact that currently these items are subjected to fad buying has promoted the unstable nature of the market. PESTLE Analysis Political Political factors play a major role in determining the performance of companies (Swot & Pestle, 2017). For example, the Brexit vote had a direct effect on rates of interest, currency value and consumer spending. Apparently, fewer customers were willing to spend their money on many commodities including toys. Changes in costs of labor lead to reduced profitability. The relations between China and the US have been subjected to tension thus affecting the company. Economical The economy of a country is crucial as it determines the availability of resources that a company needs for it to exist. Some of economic the factors that have affected this business over the years include translation of currencies and economic development of China. Social As indicated earlier, changes in customer preference significantly affected the company. Parents started to prefer educational toys as opposed to what Toys R Us was making before. Consequently, it shifted the consumer preference. Technological
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STRATEGIC CONSULTING 5 The world has experienced significant technological improvements in the recent years. When such changes occur, companies such as Toys R Us have to become more innovative. In addition, the video game section was made more volatile as different enterprises emerged. Legal Governments are responsible for this part as they make and change the laws in countries. Some of the issues that Toys R Us has had to deal with include safety measures regarding their products and "rambling" production of counterfeits. Environmental Currently, most people are very observant when it comes to environmental issues. They understand the importance of protecting their surrounding, and therefore the products they buy have to be eco-friendly. When environmental factors change, companies are forced to take specific actions or eventually fail. Consequently, the firm was forced to launch eco-friendly products in 2008 (Swot & Pestle, 2017).
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  • Fall '14
  • Prof.Oyawa
  • Marketing, Toys "R" Us, Toys R Us, Strategic Consulting

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