Read the case study and answer the following: 1. Make a Statement of the Problem. 2. Make a SWOT Analysis. 3. Answer the question indicated in the last paragraph.

Toys, Inc. CASE Toys, Inc., is a 20-year-old company engaged in the manufacture and assistant, Keith McNally, has proposed a trade-in sale of toys and board games. The company has built a reputation on program by which customers could replace mal- quality and innovation. Although the company is one of the leaders in functioning models with new ones. McNally believes that this will dem- its field, sales have leveled off in recent years. For the most recent six- onstrate goodwill and appease dissatisfied customers. He also proposes month period, sales actually declined compared with the same period rebuilding the trade-ins and selling them at discounted prices in the com- last year. The production manager, Ed Murphy, attributed the lack of pany's retail outlet store. He doesn't think that this will take away from sales growth to "the economy." He was prompted to undertake a num- sales of new models. Under McNally's program, no new staff would be ber of belt-tightening moves that included cuts in production costs and needed. Regular workers would perform needed repairs during periods of layoffs in the design and product development departments. Although seasonal slowdowns, thus keeping production level profits are still flat, he believes that within the next six months, the When Steve Bukowski, a production assistant, heard Keith's pro- results of his decisions will be reflected in increased profits. posal, he said that a better option would be to increase inspection of fin- The vice president of sales, Joe Martin, has been concerned with cus- ished models before they were shipped. "With 100 percent inspection, tomer complaints about the company's Realistic line of working-model we can weed out any defective models and avoid the problem entirely." factories, farms, and service stations. The moving parts on certain models Take the role of a consultant who has been called in for advice by have become disengaged and fail to operate or operate erratically. His the company president, Marybeth Corbella. What do you recommend