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Introduction

A creative team is a group of persons which bring up unique and ingenious ideas and take steps so as to convert the proposed idea into action. It is essential that effective leadership and management is utilised within organisation to optimally lead such teams. Leaders and managers in an entity set the pace of team by putting forth an exemplary leadership that defines the way in which tasks have to executed within the company. This assignment is based upon Toys “R” Us which is an international clothing, toy, baby product and video game retailer headquartered in Wayne, New Jersey, US. This assignment will take into account the problems witnessed within the company along with its implications. Besides this, leadership theories and frameworks are included that could be employed by enterprise to deal with the problem. Furthermore, leadership and management behaviour required for implementation of change is discussed.

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Case Study

Toys “R” Us has been operating since 1948 by making use of its brick and mortar store model. The company has employed amiable staff who are always willing to welcome customers within the stores and assist them in finding the products of their choice. Yet they failed to implement the aspect of customer touch in their online business. The major drawback of organisation was lack of direct engagement with customers. The e-commerce team of Toys “R” us possessed knowledge that a number of tools and techniques were required to gain additional information about customers through which business can design and implement accessible, engaging and specifically targeted campaigns. Contrary to large scale companies like Electrolux and Whirlpool, Toys “R” us failed to embrace digital transformation. The enterprise was unsuccessful in building a customer touch with its online base, consequently, the revenues as well as profits of company were massively impacted. Toys “R” us was not earning any profits since 2013. As a result of it, this enterprise finally filed for bankruptcy protection by the end of 2017. Company executed liquidation of its operations within United States in March, 2018. Also, the Canadian unit of organisation is up for sale together with their operations within Central Europe and Asia.

(a) The problem

Toys “R” us is a leading toy as well as baby products retailer. Their merchandises are sold in 860+ Toys “R” us as well as Babies “R” us stores within US, Guam and Puerto Rico. This company is headquartered in New Jersey, U.S.A and employs over 65,000 employees. Charles Lazarus found this enterprise in the year 1957 with major focus upon two key areas, namely, needs and wants of customer and the way in which these can be effectively fulfilled. It has been observed company made a number of changes in order to be compatible with the market situations and simultaneously meet the needs, demands and requirements of consumers. For this, enterprise started online selling of toys by entering into a tie up with the leading e-commerce retailer, Amazon. Yet, this failed largely owing to 4 major problems noted below:-

Lack of customer touch: Over years, organisation has been known for the personal touch that it strives to maintain with its large customer base in physical stores. However, when the company tied up with Amazon for e-commerce for increasing the scale of their operations, enterprise failed to take into consideration the aspect of direct customer engagement with online audience. Constant manual input was required from the creative team within Toys “R” us to build an effective communication with online customers and keeping them aware of the products and services being rendered by entity. The emailing system of company was unwieldy and restricted it to generic mails which were distributed in bulk quantity and optimised just for desktop users. Also, company did not much make use of social media platform or digital transformation to establish a direct communication with customers.

Lack of differentiated products: Except establishing a brand value within market, Toys “R” us is unable to gain a competitive and strategic edge in market over rivals. Within US, company has significantly lost its top position as the largest toy and baby product retailer owing to the presence of Walmart within marketplace which offers attractive packages to consumers. Company's brick and mortar store model has failed to render an opportunity to enterprise to gain the trust of customers and maintain their loyalty. Also, when company ended its tie up with Amazon, this massively impacted Toys “R” us. In many of the markets, organisation faced immense competition from retailer firms like Amazon, Kmart, Target and Walmart. It was noted that company failed to adopt and implement pocket friendly price models which could influence buyers to visit the store or make a purchase online. Thus, a very big problem with the entity was lack of unique offerings by company that could attract a large base of


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