Like their second decision they had no experience of working with Roots or any

Like their second decision they had no experience of

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Like their second decision they had no experience of working with Roots or any company for that matter. Both these decisions were made in a high-risk environment, since they were just starting up, they had no idea of how the outcome will be. The trio is unfamiliar to both these decisions therefore none of these decisions were routine for the managers, thus proving that these decisions are non-programmed. Spin Master is currently a very successful business due to the decision making of its managers, but they can face decision errors and traps in the future. Since they are so focused on innovating and always looking for new ideas, in fact they reinvent 70% of their products based on the constantly changing environment, they might base decisions on availability heuristic, basing a decision on recent information and events, and they tend to reinvent so fast they might not give the original product a chance to succeed to the best of its abilities. The representativeness heuristic can also be applied here as they tend to reinvent so fast on the basis that the market is always looking for a new trend they might take away from the original product. On the other hand, since the company has been so successful in the past, it might not innovate as much and lose its edge. This relates to the Escalating Commitment, as it might lead to bad decisions made based on past decisions. This leads to bad decisions because the market is constantly changing and what has worked in the past won’t necessarily work in the present.
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PROBLEM STATEMENT “How did they break into a North American toy market that is characterized by large operators with equally large product development and marketing budgets?” According to the case study one of the major problems faced by the company was the introduction of a new concept into the market and then turning it into a huge success. A great deal of their success can be attributed to their initial marketing efforts and their focus on getting close to their customers to understand their wants and needs. In the company’s infancy, it was clear the partners had a marketing plan: they would focus on customer knowledge, relationship management, and low-cost strategies. Another major problem faced by the company was innovation. Since Spin Master is manufacturer of Toys, the company needs to innovate and compete with the trend to stay in business.
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DILEMMA The company started as toys company but the change of trend from traditional toys to digital video games, the dilemma faced by the protagonist was the effect of globalization and acceptance of technology. This dilemma was handled by the three founders by converting their traditional toys company into a child entertainment unit, which not only released more traditional games but also online platforms and applications for the children to play upon.
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