CASE IN POINT and CASE 4-1: Solving Planning Conflicts The Toy Time Company makes and sells a line of popular children's toys. In two months, retail stores will begin buying the company's products in large quantities in preparation for the holiday shopping season. Every year, Toy Time introduces one or two new toys designed to attract the tention and interest of children and their parents and get them into the stores at holiday come. Then they design in-store displays and promotions for the company new toys as well as those that have been popular for many years, bringing in a high volume of sales of both new and tradi- tional toys. Jacob Marks, the marketing manager, has recently reviewed the results of research on this year's newest toy. The toy received the most positive customer response of any toy they have introduced in the past five years. Based on that research, Marks and his staff have projected that sales will be 10 percent higher this year than last. As a result of these estimates, he has committed funds for an advertising blitz to intro- duce the new toy. Several additional salespeople have been hired to begin early work with retailers to make sure both the national chains and inde- pendent stores are prepared with adequate inventory for the upcoming holiday sales period. At the same time Jacob Marks has been working on the expanded marketing efforts, Janice McConklin, the production manager, has been running into problems. She has had difficulty getting an adequate sup- ply of one of the key raw materials from the firm's only supplier. Pro- duction levels for the new toy have been 10 percent below plans during the last two months. It would be possible for Ms. McConklin to devote additional production time to increasing the inventory of the company's traditional products. However, she was not aware of the recent market ing research or marketing plans. The production plans, developed three months ago, were to keep inventory levels of those toys just slightly above last year's level. In discussions with the raw materials supplier, it appears that the supply problem may be solved in two weeks. If so, she might be able to meet the production goals for the new toys but labor costs will have to increase and product deliveries will be delayed to retailers. She knows that retailers like to have the new toys early, but there is little she can do about it right now. THINK CRITICALLY 1. What management problems are apparent in the Toy Time Com- pany? Why have these problems occurred? Are the reasons related more to planning issues or to organizing issues in the company? 2. What is likely to happen to the company this year and in future years if the problem is not resolved quickly? 3. Using the management tools discussed in the chapter, give examples of how each could be used to help solve the company's problems. 4. What would you recommend right now that can help resolve the problems being faced by Toy Time? What should they do to avoid the same type of problem in the future