FPT HCM UNIVERSITY

FUNDAMENTALS OF MANAGEMENT

HASBRO COMPANY

NAME: BÙI NHẬT HIẾU

LECTURER: NGUYỄN THỊ QUẾ ANH
SUBJECT: FUNDAMENTALS OF MANAGEMENT
CLASS: IB1703
SEMESTER: SUMMER 2022

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TABLE OF CONTENT
I. Introduction 3
II. The organization’s environment 4
1. General environment 4
2. Task environment
III. The corporate social responsibility actions
IV. The success of the organizational structure
V. Ethical issue of the company and solutions
VI. Conclusion
VII. Reference

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I. Introduction

The promotion of the integration process in the modern period has created a chance for
the toy manufacturing sector to grow and advance at a remarkable rate. So which
business in currently the market leader? How is the toy business run and structured?
Hasbro, a leader in the modern toy market, will be interviewed for this piece.

Originally known as Hassenfeld Brothers, HASBRO INC. is an international

organization with offices in Pawtucket, Rhode Island that specializes in toys and board
games and was established in the US in 1923. The majority of the company's goods are
produced in East Asia. The firm primarily works in the design, production, and supply
of toys and entertainment goods. The domestic market, which includes the US and
Canada, accounts for the majority of HASBRO's income in the toy design and
manufacturing industry. With an estimated $5.1 billion in yearly revenue, including
$7.1 billion in 2019, this firm is the biggest toy manufacturer in the world. 1500
legendary brands, including THE GATHERING, NERF, MY LITTLE PONY, PLAY-
DOH, MONOPOLY, BABY ALIVE, et cetera, are part of the company's unmatched
portfolio, along with other top partner brands from across the world. Along with its
purpose of providing the world's finest fun and entertainment, the firm aims to improve
the world for all children, fans, and families.

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II. The organazation’s environment

1. General environment
Political issues are significant in both multinational firms' and domestic
businesses' investment decisions. Hasbro, Inc. operates in the toy and
games industry in more than a dozen nations, where it faces several
political and systemic concerns. The dynamic toys and games market's
success in several nations is a result of diversifying the systemic risks of
the political environment.

Legal aspects offer more precise information on various rules and

regulations, such as employment law, health and safety law, intellectual
property law, and consumer protection law, in contrast to political issues,
which offer a broader perspective. Since Hasbro's patents are protected
from counterfeiting, strict adherence to intellectual property rules makes
the business climate safer for them and results in a long-lasting
competitive advantage. Additionally, by offering complete benefits to
workers in accordance with employment legislation, Hasbro may improve
its employer brand reputation, which is crucial for luring and keeping top
talent in the market. In addition, the legislation is considerably stronger
now that we live in an era of information technology to protect consumer
privacy.

In order to ensure the company's long-term survival in the modern

business environment, where technological development is accelerating
and business organizations are investing heavily in emerging technologies
to stay ahead of the competition, Hasbro must conduct research and stay
current on current and future technological trends. By examining rising
technological innovation trends, Hasbro will be able to grasp the rate at
which new products are developed, how long their life-cycles are, and
which unique features are favored by most customers by examining
technological innovation trends. Hasbro ought to give priority to nations
with advanced technological infrastructures because such nations' ability
to innovate, lower costs, and create value is made possible by those
nations' advanced technological infrastructures. A well-developed
technological infrastructure also illustrates how challenging it will be for
Hasbro to use technology to gain a sustained competitive edge over rivals.

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High financial market efficiency makes it simpler to amass capital and

generate products or services and has a significant positive association
with overall economic growth. Since rising inflation weakens the buying
power of money and deters consumers from spending money on products
and services, it may have a negative effect on Hasbro's revenue growth.
entering established industries. Hasbro must thus select nations with
extremely effective financial markets that can quickly amass financial and
human resources. As a result, it's crucial to forecast major trends, monitor
labor market dynamics, and modify talent management strategies as
necessary. Economic considerations are complex elements that have a
direct impact on an enterprise's capacity to meet its financial objectives.
Hasbro could be able to meet its more challenging growth goals by
entering established markets that are close to saturation. By carefully
monitoring the financial markets, Hasbro is able to successfully lead both
short- and long-term competition in its chosen area. Hasbro may
experience a variety of issues as a result of a restrictive labor market and
strong labor unions. Therefore, while choosing nations for global growth,
the industry's life cycle stage must be taken into account.

2. Task environment

Mattel, Lego, Jarkk, Leaming Curve, Bowen Designs, and Fisher-Price

are the primary market rivals. The market for Hasbro has increased to
$8.91 billion, surpassing Mattel's $6.75 billion. Hasbro's overall revenue
is $3.7 billion, whereas Mattel's total revenue is $5.9 billion. Roughly
28,000 people work for Mattel, whereas about 10,000 people work for
Hasbro. The two biggest rivals in the toy industry are Hasbro and Mattel.
Hasbro's market has grown as a result of the new brands it has created,
whereas Mattel's market has declined over time. Hasbro is a monopolistic
competitor due to its numerous sellers, its uniqueness, interchangeability,
and appropriate pricing for the good.

Younger age groups that like playing with action figures, toy weapons,
etc., are the primary target market for Hasbro's products. With its board
games and DVD entertainment products, the company also targets the
family unit. In addition, Hasbro sells its goods to a variety of retailers,
including Target, Wal-Mart, Toys R Us, and many more (toys,
convenience, discount, etc.). In 2009, Hasbro's biggest client contributed

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25% of total revenue, while its three biggest clients together contributed
49% of total revenue. Although investors would want to see a reduction
in the revenue concentration, the numbers are consistent with the traits of
the toy business as a whole.

Most businesses in the toy and games sector get their raw materials from
a variety of vendors. Suppliers with a monopoly position might limit the
market margins that Hasbro, Inc. can make. Strong consumer goods
suppliers utilize their negotiation position to demand higher pricing from
companies in the toys and games industry. Higher supplier negotiating
power generally has the effect of decreasing Toys & Games' overall
profitability. By creating a productive supply chain with several suppliers,
testing product designs using many materials so that the firm may move
to another if the cost of one material increases, and developing specialized
suppliers whose livelihoods depend on the company. One of the things
that Hasbro, Inc. can learn from Nike and Wal-Mart is how these
corporations establish third-party manufacturers whose operations are
totally dependent on them, creating a situation in which manufacturers are
dependent on these companies. Compared to Wal-Mart and Nike, this
third-party producer has substantially less negotiating strength.

With groups like the Marine Toys for Tots Foundation, Operation Smile,
WAX,.. that have had a big influence on society and the business's
income, Hasbro is now forging strategic collaborations.

Hasbro's worldwide Quality Assurance program employs over 140 unique

Safety and Reliability Standards (SRS). These standards are used by the
company's designers, engineers, and quality assurance workers all across
the world to produce and test goods. SRS incorporates US, European, and
worldwide safety standards and is specifically designed to fulfill Hasbro's
demands as a toy and game producer. The business complies with the
standards established by the Organization for Standardization (OS), the
American Society for Testing and Materials (ASTM), the European
Commission for Standardization (CEN), and the US Consumer Product
Safety Commission (CPSC). Regulations and standards are established by
the International Organization (ISO), which is continually updated. All
Hasbro vendors also uphold ISO 9001 accreditation.

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III. The corporate social responsibility actions

Hasbro strives to provide safe toys, safeguard the rights and safety of its
employees, guarantee that materials are obtained responsibly, and preserve
environmental sustainability. Hasbro reached carbon neutrality in 2016, using
only renewable energy and introducing sustainable packaging practices. For
safer goods, Hasbro also collaborates closely with regulatory agencies. Hasbro
has not had a single product recalled in the past eight years. In addition, Hasbro
offers more than 5,000 workers a series of compliance training to assist them in
understanding their rights. With the support of staff volunteers, Hasbro had a
positive influence on 3.8 million children in 2016 through its humanitarian
initiatives and assisted more than 225,000 young people alongside generationOn.

IV. The success of the organizational structure

Most of the Hasbro administrators work for the game developer. Hasbro has
altered its human resources approach to align with its new focus on creating

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core product lines. To manage its enormous brand portfolio and make new
investments in its human resources system for the development of future
leaders, the firm requires a more strategic leadership team. In order to develop
talent and provide them with the opportunity to take on more leadership
responsibilities, the firm partnered with the Tuck Dartmouth business school to
establish the Hasbro Global Leadership Program in 2003. The corporation
employs this training every year in an effort to develop dynamic executives
who can transition from running a typical toy business to looking after a major
global brand. Employees will receive training for promotion chances, and the
program will aid the business in identifying the next group of executives who
are aware of its strategy. The company can then plan its human resources and
create and manage its organizational structure in the most efficient manner
possible.

V. Ethical issue of the company and solutions

Ethicals issue: In 2020, Hasbro was forced to remove one product from
all stores (Troll dolls) because some components were misplaced.
Hasbro forcibly pulled a Trolls doll from store shelves after a petition
with more than 150,000 signatures accused the toy maker of advertising
child abuse by placing a button on the "lower vagina" of the doll.
"DreamWorks Trolls World Tour Giggle and Sing Poppy" has a button
on its belly that, when pressed, prompts the doll to sing and say things
like "How about a hug?". But many people have problems with the
second button placed at the bottom of her skirt that, when pressed,
causes the doll to make sounds like "Whee!" and "Oh!". This seems to
have had a negative effect on the children's thinking when playing with
and using this type of toy.

Solution: Hasbro needs to pay extra attention to the placement of

components on toys, especially the anthropomorphic toys that are
popular in the market. In addition, the company needs to review the
product designs carefully to avoid errors and negative effects on
children. because this is the main customer segment for the company's
products. The company should pay as much attention as possible to
reduce the ethical issues that arise, as is the case with the Troll doll
mentioned above.

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VI. Conclusion
For the toy production and design business in general, and the Hasbro
corporation in particular, keeping up with new trends and interests of young
people is crucial in today's market. Additionally, to keep customers interested
in the product, the organization should continually learn about and use new
technology. Along with this, fresh client attraction, revenue-boosting, and
human resource management strategies must be developed in order to
effectively sustain and grow the firm.

VII. Reference

1. Anton, R. (2016). An Integrated Strategy Framework (ISF) for Combining

Porter's 5-Forces, Diamond, PESTEL, and SWOT Analysis. University Library
of Munich, Germany.
2. Islam, M. A. (2017). SWOT Mix and PESTEL Analysis: Effective Tools of Risk
Management of Leasing Companies. The Millennium University Journal, 2(1),
1-18.
3. Indris, S., & Primiana, I. (2015). Internal and external environment analysis on
the performance of small and medium industries (SMEs) in Indonesia.
International journal of scientific & technology research, 4(4), 188-196.
4. Hasbro. (2021, July 14). CSR at Hasbro. Retrieved June 29, 2022, from
https://csr.hasbro.com/en-us/csr-at-hasbro
5. Lee, Alicia. “Hasbro Is Removing Trolls Doll from Stores amid Complaints That
Button Is Inappropriately Placed.” CNN, Cable News Network, 7 Aug. 2020,
https://edition.cnn.com/2020/08/06/business/hasbro-removes-trolls-doll-poppy-
button-trnd/index.html.

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