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Taj Toy Case Study

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Submitted By mark67
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3. INTRODUCTION

The “Taj” brand was established in 2000 by husband and wife team Cornelio and Imma Cesario. The company designed a small range of toys that were manufactured in their home country. These toys proved to be popular in their home country and Cornelio Cesario then expanded the range of products. By 2005, within five years of starting jot, the founders were encouraged to see Taj’s products ordered by many large toy retailers across Europe. By this stage the companyhad grown considerably, and had annual sales of almost $2 million. Commencing in 2004, Taj toy started outsourcing all of its manufacturing to a range of manufacturing companies in china in order to reduce its cost base and to enable the company to price its products more competitively. By the end of 2010, sales revenue exceeded $8 million and the company had achieved substantial sales revenue growth each year. Taj has seen its sales revenue growth by 16% in the year ended December 31, 2010 and by almost 18% in the year to December 31, 2011.

4. BODY
4.1. KEY ISSUES/GOALS/PROBLEMS
4.1.1. Near-shoring proposal in Vietnam
The first concern is to consider outsourcing part of its manufacturing to Vietnam and the board of directors has asked to consider this proposal from financial, strategic and operational viewpoints with main considerations on demand, production and costs. In some financial matters, Mrs. Cesario thought that there will be no differences in selling price of products made in Vietnam as compare to those made in China. However, he found out that the cost of production in Vietnam have many variations as opposed to the production cost in China. Is it 4.1.2. Fault in new flying spaceship toy
The second issue is how to deal with customer complaints regarding fault in newly launched flying spaceship. This toy uses rechargeable batteries and this will be recharge for two hours and

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