The paper 'How to Operate Successfully in an International Environment - Toys R Us " is an outstanding example of a business case study. This assignment deals with a case study of how Toy R Us has scope to further enlarge its market base by entering into the Asian market. It highlights the major challenges which the organisation may face to operate successfully in an international environment. It also highlights the steps the management needs to take to make its operation achieve success in an international environment. Special importance has been given to problems like credit access, governmental rules and regulations, ethical dilemmas, cost-cutting techniques, CSR, emerging markets, competitors move etc which is prominent in an international environment and achieving those shall definitely help an organisation sustain success in an international environment.
In addition to it, the emphasis has been given on developing a process which will help the organization to use the different resources in the most effective manner and will prove as an important guideline based on which the performance will improve. The analysis of the different factors will provide a useful guideline which will guide the management and others to continue in their efforts of developing the required parameters through which better services can be rendered.
This will thereby impact the performance of Toys R Us and provide an opportunity to deliver superior performance over a longer period of time. Introduction In today’ s business environment, conditions keep changing constantly and risks are always on a higher note in every organisation’ s agenda. Changing business invites new risks and an organisation in order to mitigate those risks and achieve success with sustainable development needs to continuously anticipate threats and respond accordingly as per the changing environmental conditions.
In this vast competitive working environment organisation in order to boost up profits and capture a higher market share organisation’ s plans to expand its business and go internationally. However, the main issue lies is to how to operate successfully in the international environment. This assignment deals with a case study where Toy R Us which has achieved success in its international expansions in the European market still has ample scope to tap the untapped Asian market.
The assignment also deals with the challenges that it might face to achieve success in the international environment and how it needs to operate its business in the international environment to achieve success and focusing on its strategic problems which it needs to encounter. Brief about the Company Toys R Us as the name suggests deals in various kinds of toys for different age groups with different variants ranging from wooden toys to electronic toys. The company was founded in the year 1948with its headquarters in Wayne, New Jersey, United States. With an earning of above $500 million and revenue in excess of $8 billion, the company has successfully different brands under its names like Kids R Us, Babies R Us, and Toys R Us International etc (Company Profile, 2013). Toys R Us operates above 870 stores in the United States alone and above 625 international stores covering around 35 countries of the world.
Its international expansion can be dated back to 1984 for which it established a separate unit under its name of Toys R Us International by opening its first wholly-owned store in Canada.
The company tasted success in its international expansion and soon covered countries like Australia, Canada, Germany, Netherlands, Spain, United Kingdom and other European countries. It also has its presence in the Asian market particularly in Japan however, there is still ample scope to cover the Asian countries like India, China, Bangladesh, Pakistan etc. International sales now account for nearly 25 percent of the revenue of the company and the company is definitely looking to higher the same (Company Profile, 2013).
Company Profile. 2013. Toys R Us. Retrieved on May 28, 2013 from http://www.toysrus.com/shop/index.jsp?categoryId=2255956
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