Executive Summary
Disruptions to business continuity can occur at any time. The best way to handle unexpected disruptions to the normal business operations is being prepared for these emergencies. As required by regulations of this industry, Toy “R” Us has developed contingency plan outlining how various events disrupting the business will be handled. Due to the unpredictable nature of various events and disruptions, the organization will employ a lot of flexibility while responding to actual events as they unfold. Significant business disruptions can occur to our firm alone or to all the firms in the region in which our organization is located. Our plan will evaluate numerous disruptions and is aimed at mitigating several risks to enable the continuation of critical business operations. As part of the contingency mechanism, Toys “R” Us has an offsite storage location that acts as a backup to the primary location. Vital company and customer information, financial information and other information is replicated in the offsite location to act as a fallback in the event of a disruption. We have designated a secondary site to run critical business operations until we shall be able to go back to the main offices. The organization’s major objective take the least amount of time possible to recover critical business operations in the event of a disruption. Part of the wider organization’s recovery strategy is a location that is able to accommodate all the staff and other associates in the event in case of a disruption. The recovery locations will be installed with backup generators that have the capability to restore over 100 percent of the critical functions of the organization. The complement the generator, a state-of-the-art uninterruptible power supply (UPS) will be installed at the data center.
Company Background
Toys R Us Inc is the leading retailer of baby toys and baby products globally with presence in over 34 countries globally. Through its array of family brands, the company has been offering its customers a unique shopping experience. The organization has over 856 stores in the United States and Puerto Rico alone, with additional 755 stores spread across several countries globally. The organization was founded in 1948 with the main aim of fulfilling the needs of the children. It functioned as a publicly owned company between 1978 and mid-2005. During the period, the organization was acquired for $6.6 billion by an invest group made up of affiliates of Bain Capital LLC, Kohlberg Kravis Robert & Co. (KKR) and Vornado Realty Trust (). All global operations of Toys “R” Us Inc were included in the acquisition(Toys R Us 1). Currently, the organization has two segments namely the domestic segment and the international segment. The company has product ranges for new born babies and children up to four years of age. Example of baby products stocked by the company include: boys toys, girls toys, baby gear, bedding, furniture, dolls, video game software, apparels and other related products.
The company has both physical stores and e-commerce platforms for serving its customers. Successful operation of such a large business requires a large number of staff each contributing uniquely to the success of the organization. With its headquarters in Wayne, NJ, Toy R Us currently have an employee base of over 66,000 globally. As part of its corporate responsibility initiative, the company is committed to fulfilling the needs of its surrounding communities as a caring and trustworthy neighbor by initiating programs devoted to the safety of the kids and assisting them during needy times. Running such a large company with global presence and diverse backgrounds can be a daunting task. The company has realized the need to improve their communication processes as a strategy to improving efficiency and service delivery.
Organizational Mission
Toys “R” Us mission is to” bring the needed joy into the lives of customers”( Toys R Us 1). At the company, we love kids. Since its formation over 65 years ago, the company’s activities have continued to revolve around kids and kids related activities. Kids have continued to define who the company is and what they do. The company conducts its business operations with utmost integrity and trustworthiness, considering the immense trust bestowed upon them by parents to do what is required of them and act as a reliable partner. In 2014, the organization started a campaign to deliver on the stated mission by cementing its position as the leader in toy and baby products, and the “ultimate destination for kid fun and parenting services “(Toys R Us 1). To achieve the mission and organization objectives, the Toys “R” Us has put more emphasis on improving the customer service, cooperating with other business partners to accelerate diversity, innovation putting the business on the growth path (Toys R Us 1). To bring joy to the lives of its customers, the organization is committed to ensuring that their stores are the easiest to shop in, providing expertise in the toys business and charging customers a fair price.
Environmental Scan
Environmental scanning is the process of carrying out surveillance on the external environment of a firm to detect factors within the environment that may impact the profitability of the organization. Toys “R” Us are operating in a business environment that is characterized with very stiff competition. The industry has very low barriers to entry and it is expected that new competitors can join the market anytime. To mitigate the effects of competition, the organization is constantly analyzing the industry to remain competitive and make profits. For instance the company detected reduced birth rates in the United States and crafted a strategy that would ensure that they still maintained the same sales and profits levels despite the fact that the market size significantly reduced. To achieve this, the organization offered discount on infant supplies to attract more mothers with young children and influence their loyalty on the store.
Before making decisions to expand their operations to other countries globally, Toys R Us will conduct a research on barriers to entry in various markets that may hamper their efforts of investing in these markets. The environment scan will also reveal the various investment opportunities available to the organization in the environment it’s currently operating in. As the market leader in toys and baby products, the company has great potential and numerous opportunities than its competitors in the same industry. Environmental scan also involves investigating the threats facing an organization. Threats are uncertainties that pose danger to the survival of an organization. Competitors and substitute products poses the biggest threat to the survival of Toys “R” Us.
References
Toys R Us. (2002). Toys “R” Us Inc, Corporate Vision and Goals. Retrieved from http://www.toysrusinc.com/about-us/vision-values/
