Failure Analysis Change Strategy
August 19, 2013
People learn valuable lessons by making mistakes. Business is no different. Looking at the history of businesses that succeed and fail can help other businesses from making the same mistakes. Implementing change is not easy, but new CEO’s know the job they have to do to ensure the current and future success of the business. This assignment asks the team to analyze a successful business and a business that has failed within the past five years. Toys “R” Us will represent the successful business and KB Toys will represent the failed business. The objective is to determine what could have been done to save the failed business and draw up an action plan to implement that change. For comparison sake the failed business will be matched against the successful business to see what if anything they could have done differently to be more successful.
Toys “R” Us is a model company for other toy retailers to learn from. That was not always the case. Prior to Gerald L. Storch who took over the Toy “R” Us corporation in 2006 as CEO, he came in at a time when failure was on the horizon. The employees were afraid that they would be laid off so the first thing he did was identify the reason for failure. For him, he recognized that there was a lack of performance that was the impetus of the decline in sales (Sager, 2010). The company is driven to fulfill its mission of becoming the “World’s Greatest Kids Brand” (Visions & Values, 2013 Pg. 1). The company’s core values are based on practicality and fun. The combination of Toys “R” Us and Babies “R” Us is a one stop shop for everything child related and provides parents with the essentials they need for health happy kids. Indications that point to the success of the business are clear.
The leadership is strong, and they take care of all the main shareholders of the company. The rewards system is a valuable asset that...