Premium Essay

R&R Case

In: Business and Management

Submitted By javi124
Words 671
Pages 3
1. What factors created an opportunity for Bob Reiss and the "TV Guide Game?”
Reiss had previous experience on the game industry, which provided him with good understanding of that business. He knew about the popularity of trivia-based games in the U.S., the preceding Canadian success of Trivial-Pursuit and he envisioned the transferability of this success to the U.S. market. Reiss also hit the target by adding the TV element to the trivia-based game, in a time when the average U.S. family spent 7 hours in front of the television. Finally, Reiss’ good contacts in different industries allowed him to get a partner, to marshal funds, and to make further contacts to secure the required resources for his enterprise’s success, obtaining large benefits, involving low cost and risk levels.
2. What risks and obstacles had to be overcome in order to pursue the opportunity successfully? How did Bob Reiss accomplish this?
Reiss had to confront several risks and obstacles. First, the presence of bigger players offering similar products, which Reiss handle by differentiating its product with the introduction of the TV element. Second, Reiss had to deal with seasonality of the toy industry, with the short life-cycle of game products, and with potential early market saturation. He managed to put its product in the market on time, finding the opportune associates to secure manufacturing inputs, and figuring out ways to simplify processes (i.e. replacing question-cards with printed booklets). Third, Reiss managed to find financing sources and reduce risks, sharing the business with a well-known partner and externalizing the account receivables management. Fourth, he required inexpensive and effective ways of promotion, which he found by three ways: by means of a strategic ad placement on TV Guide, by involving that magazine, with 17M issues/week, in obtaining media publicity, and…...

Similar Documents

Premium Essay

Reiss R and R

...Defining customers as those people and organizations for whom R&R creates value, R&R serves the following customers: 1. TV Guide; 2. American board game players, i.e. adults and children; 3. Retail outlets, which can be classified as mass merchandisers and department/gift stores; 4. The game developer, i.e. ‘a professional inventor’; 5. TV guide employees who develop the questions; 6. Sam Kaplan; 7. Sales representatives; 8. Kaplan’s supplier; 9. Swiss Colony; 10. Heller Factoring. Arguably, TV guide is a supplier/ marketing channel/ licensor, yet R&R creates value for TV Guide in the sense of creating a business opportunity. A similar argument holds for the other customers of R&R as well. If we look at the final consumers of the product, then according to the definition of Osterwalder and Pigneur, R&R serves a mass market. Taking into consideration the remarks of Mr. Reiss, who mentions that his customers are the manufacturers representatives and the buyers of major chains, we can argue that he distinguishes between input and output in his firm. Thus making the business model multi sided, the suppliers need many retail outlets to have their products for sale; and vice versa: the retail outlets require large production. The value proposition describes what value is delivered to the customer. Or, to be more precise, what are the bundles of products and services that create value for R&Rs customers. Given the limited space of 1 page, I will stick to the customers defined by......

Words: 639 - Pages: 3

Premium Essay

Tots-R-Us Case Analysis

...Case Analysis Write-Up #1 Case Study: Tots-R-Us Questions: 1. Compute the cost of a single preschool class and a single birthday party using the current cost system. 2. Would you recommend that TRU continue to allocate the building-related costs only to the preschool program? What alternative allocation method would you suggest? Justify your answer. Ignore consideration of excess capacity discussed in question 3 below for this answer. Please discuss any additional information that you feel is needed. Based upon the information available to us we would not recommend that TRU continue to allocate all of the building-related costs to the preschool program only since doing so results in an inaccurate representation of the actual cost for both the preschool and birthday party segments of the business. The alternative cost allocation method that we believe if the most appropriate for TRU and therefore the one we would suggest that they should use would be the Step-Down Method as it will allocate the cost of one service department to the other service department. It will also define how indirect costs must be allocated to both the preschool service department and the birthday service department and the cost allocation would then be more accurate for each service provided. TRU is using a direct method of cost allocation which is less accurate than other methods that could be used, such as the Step-Down method. TRU has two departments that provide services within their......

Words: 1411 - Pages: 6

Premium Essay

R&R Case

...Analysis of the Case R&R Bob Reiss was an entrepreneur. He saw an opportunity in the market to make a profit and he succeeded. The following describes his market transactions and whether they were right or wrong using transaction cost economics theories. I will use Oliver Williamson’s theories and rules to decide whether the transactions were correct. At the end I will have enough information to decide if every opportunity needs a firm and if there is room for entrepreneurs who depend on the price mechanism. Reiss’s first major market transaction was designing the game. He took this to the market and found a professional inventor, whom he knew. This was the right decision. This game only needed to be designed once. The frequency was low. Therefore there was no point in wasting time and incurring the costs of creating it. Also this product was unique. He would not have been able to create it as simply as the market, which had more experience. Since Reiss knew the designer the uncertainty of him defaulting on the contract was very low. He also knew that the designer would be motivated to complete the project because he aligned their interests together through a sales motivated contract. Next was Reiss’s responsibility to set up operations to take the game to market. He didn’t have the cash flow to do this. Instead of raising the money himself he established a partnership to create the firm Trivia Inc and went to the market to gain the funding. His......

Words: 1129 - Pages: 5

Premium Essay

R&R Case

...Harvard Business School 9-386-019 Rev. November 15, 1987 R&R During the summer of 1983, Bob Reiss observed with interest the success in the Canadian market of a new board game called “Trivial Pursuit.” His years of experience selling games in the U.S. had taught him a rough rule of thumb: the sales of a game in the U.S. tended to be approximately ten times those of sales in Canada. Since “Trivial Pursuit” had sold 100,000 copies north of the border, Reiss thought that trivia games might soon boom in the U.S., and that this might represent a profitable opportunity for him. Reiss’ Background After his graduation from Harvard Business School in 1956, Reiss began working for a company that made stationery products. His main responsibility was to build a personalized pencil division, and he suggested that he be paid a low salary and a high sales commission. He was able to gain an excellent understanding of that market, and by 1959 could start on his own as an independent manufacturer’s representative in the same industry. His direct contact with stores that sold stationery products revealed that many of them were beginning to sell adult games. He decided to specialize in those products. In 1973, Reiss sold his representative business to a small American Stock Exchange company in the needlecraft business in exchange for shares. He then set up a game manufacturing division and ran it for that company, building sales to $12,000,000 in three years. Reiss decided to go into...

Words: 6276 - Pages: 26

Premium Essay

R&R Case

...R&R Case Write UP By: XXXXXXXXX Bob Reiss is an experienced player in the Toy/Game market. Currently he is deciding how to follow his successful TV Guide trivia game. He could try to create a spinoff of the TV guide game. He could launch a new proposed trivia game called Whoozit, where you guess people based on clues. Mr. Reiss has to make a decision launch Whoozit, a new trivia game, or try to spin off the TV Guide game. My recommendation is to launch Whoozit. The Whoozit game allows Trivia Inc. to leverage their skills developed in the launch of the TV guide game. Trivia Inc. has access to the channels, the manufacturers, and the pulse of the trivia market customer. The case indicates that Trivia Inc. had a preliminary royalty deal with the Bettman Archive, keeper of the images necessary for Whoozit. I think the addition of a magazine like People, Life, or Time would create a direct point of touch/access and lend more recognition to the endorsement. Another reason to launch Whoozit is the low cost of the endeavor. If analogous estimation holds true, Trivia Inc. could produce these units for about $5/unit and stand to make profits of about $2.00 per unit on 500,000 units. The total cost to launch The TV trivia game was $50K, but profits were over $2M net for Trivia Inc. If Whoozit could be executed as successfully as TV Guide TV game, it would be money well spent. Finally, the lessons that Reiss had gleaned from Trivial Pursuit’s US launch are......

Words: 375 - Pages: 2

Premium Essay

Toys R Us Case Analysis

...Toys “R” Us Japan (Case No. 3) By: Maria Lemos-Janes INBS501: International Business: CONCEPTS / ISSUES January 22, 2011 Toys “R” Us Japan (Case No. 3) I. Problem Statement: Eager to enter the world´s second largest toy market, Toys “R” Us executives begin in the late 1980s to formulate strategies for opening large discount toy stores in Japan. However, the American company faced setbacks due to Japanese store-size regulation, application procedures, and a long-standing multi-layered distribution system. Continued effort and the acceptance of a Japanese partner enabled the company to prepare for the opening of a Toys “R” Us outlet in 1991. Faced with a lack of direct distribution deals and high land and labor costs, executives of Toys “R” Us Japan worried about the ultimate success of their new venture. Therefore, Toys “R” Us management must decide if entering the Japanese market is worth the effort it will undoubtedly entail. And if they decide to enter the market, they need to consider how to structure their entity; whether to modify their retail format to fit the Japanese market; and how to handle the political outcry that will inevitably accompany their investment. II. Alternatives: a. Status Quo - Continue to work with Mr. Fujita and McDonalds Japan to enter the Japan market b. Abandon the alliance with Mr. Fujita and McDonald's and work directly with the toy manufacturers to build the Toys “R” Us store and retail network c...

Words: 2352 - Pages: 10

Premium Essay

R and R

...encourage compliance rather than risk-taking because most rewards are based only on performance. As a result, associates are discouraged from being creative in the workplace. Extrinsic Motivator: Employers also may use monetary incentives as an extrinsic rather than an intrinsic motivator. In other words, associates are driven to do things just for the monetary reward versus doing something because it is the right thing to do. This can disrupt or terminate good relationships between associates because they are transformed from co-workers to competitors, which can quickly disrupt Employee Opinion and Sentiment: One of the biggest disadvantages to having an employee reward program is how employees perceive certain rewards -- and, in the case of highly compensated executives -- how the general public perceives them. Employee reward programs that receive the most scrutiny are usually within organizations perceived most likely to also grant golden parachutes. During times of high unemployment rates, public criticism of employee reward programs for executives is elevated Employee Entitlement: Organizations that implement rewards programs that increase year after year risk employees believing they are entitled to ever-increasing bonuses and rewards for simply doing their jobs. Human resources best practices definition of employee rewards is more closely aligned with rewarding employees who make remarkable contributions to the organization success. When employees......

Words: 7490 - Pages: 30

Premium Essay

Toys R Us Case Study

...difficult time coordinating care because of a fragmented healthcare system. Studies by Campbell, Craig, Eggert, Cailey-Dorton and Meredith, (2010) suggested hospitals and health care professionals felt care coordination was needed to help connect women to pertinent resources impacting treatment for breast care. Step # Two: Patient navigation (PN) is an emerging trend developed to address the complexity of care in oncology services (Campbell et al.,2010). According to Pedersen and Hack, ( 2010) the concept of patient navigation evolved as care coordinators struggled to reduce systematic problems generated by program inefficiencies in healthcare. Many of the patient navigation programs share characteristics with other management or case management models (Freund, 2011). Most of the PN programs are housed with physician groups and provide a liaison between the patient and health care team (Freund, 2011). Fortunately, the most common approach of patient navigation is centered on individualization, assessment, and identification of resources and needs associated with treatment (Campbell et al., 2010). The navigation process begins from the initial diagnosis to the end of treatment, promoting continuity of care with many multidisciplinary providers (Pedersen & Hack, 2010). The navigator provides the patient with contact information, which opens the door to a trusting relationship by allowing them to ask questions at their convenience (Wilcox & Bruce, 2010).......

Words: 3073 - Pages: 13

Premium Essay

Clothes R Us Study Case

...KEL304 MARK JEFFERY AND JOSEPH F. NORTON Clothes ‘R’ Us Point-of-Sale Initiative: Managing IT Programs Overview Marcus Nord, a program manager for Clothes ‘R’ Us, had an urgent update for the program management team and Nancy Orlin, the company’s chief information officer (CIO). Nord had just learned that four of the six product managers had unexpectedly quit. For Orlin, this was yet another obstacle that was making this program one of the hardest she had managed in her career. In Orlin’s twenty-year tenure at the company, she had managed many technology projects that were vital to the company’s strategy. Despite the extensive use of information technology (IT) at Clothes ‘R’ Us, Orlin could not recall anything that compared to the scope of the enterprise technology initiative currently being put into place. For the past several months, several of her project teams had been working at a breakneck pace to deliver a state-of-the-art point-of-sale (POS) system for the retail stores. The POS system was a key piece in the overall revenue growth strategy for the company, and was intended to combat the Clothes ‘R’ Us declines in both year-to-year same-store sales and sales growth relative to its competitors. Orlin heard the distressing news about the product managers leaving the company just a few days before a review meeting with the executive oversight committee. In preparation for the meeting, Orlin called a meeting of her leadership team for a review of......

Words: 18539 - Pages: 75

Free Essay

Toy R Us Case Study

...Case study Toys “R” Us JAPAN Case study Toys “R” Us JAPAN TABLE OF CONTENTS Introduction 3. Japan Background and facts: 4. Background: 4 Facts: 5 Toys “R” Us Background 7. The Beginning: 7 Market Expansion 8 More ways to shop Toys “R” Us 8 Evolving business 9 Toys “R” Us in Japan 9 Case analysis: 10 Attractive factors of Japan toy market: 10 Barriers to Entry: 10 Success Factors for Toy's "R" Us-Japan 11 TRU Strategy 13 Our opinion: 14 Recommendations: 15 Conclusion: 16 References:: 16 Introduction: Toys R Us is the large distributor in the US and it is one of the more successful foreign retailers in Japan after overcome hard barriers. This successful is a result of right decision-making and strategy in overseas expansion by global retailer’s and gradual changes after entry into foreign markets. Also the strategy in respect of standardization adaption before and after entry has great effect in this successful. Coming lines, shows some factors that attract TRU to join venture in Japan. Then, we will discuss group of barriers that TRU had overcome, and how it’s overcome these barriers. In the end, we will evaluate Toys “R” Us in Japan market. Japan Background and facts: Background: Government: Parliamentary with constitutional monarchy Prime Minister: Shinzō Abe (elected Dec 2012) Capital: Tokyo Population: 127,368,088 Population Growth Rate: -0.077% (2012 est.), World Rank: 198th Birth Rate: 8.39 births/1,000......

Words: 3158 - Pages: 13

Free Essay

R&R Case Study

...Bob Reiss was a passionate entrepreneur with a strong background in the gaming industry. He was very successful with his new game venture with sales of $12,000,000 in three years. Once successful, Reiss decided to continue in this space and started his own business under the name of R&R. The toy and game industry was an established market with a very short lifecycle, frequently of no more than two years. Based on the case, I think Bob did the following things right which made him highly successful with his Trivia game: What did he do right? 1. Market awareness- He was an experienced professional when it came to the gaming industry. He acknowledged that entering an established market is going to be challenging and understood the pros and cons of launching the game in such a market. 2. Experience- Bob Reiss had been successful with his last two ventures providing him the necessary experience and strategic vision to start a new business. He was an operations guy with a clear understanding of how products are manufactured for a niche but steady market. He leveraged his experience and successful track record to connect with individuals who could play an influential role for his venture. 3. Realistic Execution- Bob was aware about his strengths and weaknesses from the beginning whether it was funding, resources, etc. When he decided to enter this market, it was very critical for him to execute the strategy for him to make this venture successful and profitable.......

Words: 544 - Pages: 3

Premium Essay

Mini Case – Deal-R-Us Brokers

...MINI CASE – 1 DEAL-R-US BROKERS Questions a. Classify the two alternatives in terms of what type of application architecture they use. The first alternative in terms of application architecture is a client-based architecture. As it states that the downloaded tool will communicate with the DRUB server to select data and analyze, which is very similar to the client-based architecture where the clients tells the server what data to select and analyze and processes data will be sent back to the client for display. The second alternative in terms of application architecture is two-tier client-server architecture. The application logic can be partitioned between the client and the server. The server is responsible for the data and the client, the application and presentation. Using the web browser the client will talk to the web server using a standard called HTTP (Jerry Fitzgerald, 2009). b. Outline the pros and cons of the two alternatives and make a recommendation to Fred about which is better. 1. Client-based architecture: a. Pros: 1. Much more inexpensive to implement as microcomputers are considerably cheaper versus mainframe. 2. Hardware of different manufactures or platforms can function together on the same network. b. Cons: 1. Data traffic must be sent and received between client and host. 2. Due to the potential amount of information that must be sent between client and host, this can put a significant performance hit against the network,......

Words: 422 - Pages: 2

Premium Essay

R&R Case

...Analysis of the Case R&R Date: September 28th, 2011 Bob Reiss was an entrepreneur. He saw an opportunity in the market to make a profit and he succeeded. The following describes his market transactions and whether they were right or wrong using transaction cost economics theories. I will use Oliver Williamson’s theories and rules to decide whether the transactions were correct. At the end I will have enough information to decide if every opportunity needs a firm and if there is room for entrepreneurs who depend on the price mechanism. Reiss’s first major market transaction was designing the game. He took this to the market and found a professional inventor, whom he knew. This was the right decision. This game only needed to be designed once. The frequency was low. Therefore there was no point in wasting time and incurring the costs of creating it. Also this product was unique. He would not have been able to create it as simply as the market, which had more experience. Since Reiss knew the designer the uncertainty of him defaulting on the contract was very low. He also knew that the designer would be motivated to complete the project because he aligned their interests together through a sales motivated contract. Next was Reiss’s responsibility to set up operations to take the game to market. He didn’t have the cash flow to do this. Instead of raising the money himself he established a partnership to create the firm Trivia Inc and went to the......

Words: 1146 - Pages: 5

Premium Essay

R&R Case Study

...R&R Case Study What factors created an opportunity for Bob Reiss and the “TV Guide Game?” In order for Bob Reiss to be successful with the “TV Guide Game,” he had to be aware of a multitude of factors that would lead to his success. For starters Bob had a background in business from Harvard Business School, one of the most prestigious school in the nation. This business education gave him many key insights into the market and how to conduct a successful business. For example the article cites that when he started his own company he “kept overhead very low, even in good years, and never own or be responsible for a factory.” He had great people skills. This was proven by the fact that he wanted to be paid a low salary and a high sales commission. This is not something that most people ask for when first starting off. He must have been confident in his intrapersonal skills and understanding what people wanted when being sold a product. Bob saw an emerging market, in Canada alone there were 100,000 copies sold of the trivial pursuit game. He knew the market well enough to understand that there were be 10x the sales in the U.S. that would be 1million copies merely starting out. He worked for a couple other companies before starting his own to understand the business and how to build sales. At the time there were not many competitors in the market-space so he was able to act quickly enough before all the major game manufacturers jumped on board. All of these factors......

Words: 756 - Pages: 4

Premium Essay

R&R Case Study

...38–43 Table 1 Profile of respondents Organisation (n = 4) Period studied Number of transformations (n = 11) Number of interviews (n = 49) Role #1 12 years 4 13 3 0 4 2 1 1 2 0 More than 40 years 23% 5–10 years and more than 10 years 2–4 years #2 10 years 3 16 3 5 2 1 0 1 1 3 More than 40 years 44% More than 10 years 2–4 years #3 8 years 3 15 1 2 0 1 2 1 1 7 30–40 years 40% 5–10 years 1 year #4 39 Age Education level Experience in project management Experience in the current job Project Manager PMO Manager Manager in PMO Executives HR Financial Other managers PMO’s Employees Mode % with post-graduate degree Mode Mode 4 years 1 5 1 1 0 1 0 0 1 1 More than 40 years 40% More than 10 years 2–4 years ing’’ to the reality [11]. In the case of PMOs, this position is worthwhile as theories are almost inexistent and the complexity found in the reality cannot be explained using existing simple models and a positivist approach. Just as organisations are complex social entities, so too are the specific organisational project management structures that encompass PMOs. In this perspective, the PMO could be seen as a socially constructed entity that is part of a complex organisational system. Taking this approach will give a completely new vision of the PMO. Instead of having an ad hoc picture we will follow the evolution of this entity along with the evolution of its parent organisation from an historical coevolutionary perspective. Van de Ven [12] proposes the concept of......

Words: 4939 - Pages: 20