BMGT 364 – Galaxy Toys, Inc. Company Profile

Subject: Business    / General Business
BMGT 364 Galaxy Toys, Inc. Company Profile
Welcome to Galaxy Toys, Inc.! The assessment projects for this course will examine
different facets of the management of Galaxy Toys and students will be exploring
various scenarios and providing analysis and recommendations from the perspective of
a management consultant. Each project has been carefully designed to provide
students with opportunities to demonstrate mastery of various management concepts
that students have been developing through various learning activities presented in the
classroom (both in the face-to-face discussions and online discussions).
? In Project 1, students will demonstrate their understanding of the broad role of
managers within an organization and how various organizational theories (historical and
current) affect these roles.
? In Project 2, students are expected to apply course concepts and materials to provide
real-world recommendations for managers that relate to the planning process
? In Project 3, students will present their analysis and recommendations that demonstrate
their ability to organize, lead, and control employees in ways that ultimately support the
organization’s vision and strategy for business success. COMPANY PROFILE
Galaxy was founded in 1956 by George Jepson and his wife, Nan after their son Rusty
became consumed with the idea of traveling to the moon. Jepson who had worked
previously in manufacturing, selling, and advertising of games for a company in Toledo,
Ohio, crafted a new spacecraft that delighted his son and his friends. Nan, who had
worked in retail toy sales in the local Toledo department store, suggested the idea of
producing and selling the toys as a side business. At that time, Nan persuaded her
boss, Jack Mercury, to allow her to produce and sell the toys. After approval was given
it did not take long before the orders exceeded the Jepson’s ability to produce the
product. Seeing the success of the product, Mercury approached the Jepson’s and
proposed a partnership to manufacture the spacecraft and other related toy ideas.
Galaxy’s fundamental toy-making principles were centered on strong construction,
ingenuity, intrinsic playability and action. Early adopted toys were made of heavy steel
parts and ponderosa pine, which resisted splintering and held up well to heavy use. The
details and charm were added with colorful lithograph labels. Nan Jepson, who had
attended art school, was the Art Director and designed push-pull space toys for the
opening line of toys for very young children.
In 1956, the founders took 8 of their toys to the American International Toy Fair in New
York City, and they quickly became a success. The first Galaxy toy ever sold nationally
was "Space-IX." in 1957 (The same toy, in excellent condition, would be worth a considerable amount of money in today’s collectibles market.) In the early 1960s,
Galaxy identified plastic as a material that could help the company incorporate longerlasting decorations and brighter colors into its toys. By the end of the 1960s, Galaxy
manufactured 39 toys incorporating plastics. During the 1960s, with America’s entering
the Space Race the “Space Rocket” product line was introduced and soon overtook
popularity of the earlier toys.
The Jepson and Mercury children took over the running of the company in 1970, when
George, Nan and Jack retired. The children hold the company shares equally and now
occupy both Board and functional positions, making Galaxy Toys the largest privately
owned toy company in the USA. The headquarters for the company is still located in
Toledo, Ohio with factories in Daytona, Florida, Huntsville, Alabama and White Plains,
and Juarez, Mexico.
Company vision:
To create toys that inspire children all over the globe to dream of space exploration and
provide a yearning to achieve that dream
We create both classic and contemporary space-related toys for all ages. All products
will be safe. We are committed to using sustainable processes and materials in making
our products. Galaxy’s fundamental toy-making principles center on strong and durable
construction, ingenuity, intrinsic playability, and action while providing toys that are
affordable for all.
Galaxy Toys has created approximately 2500 different toys since the early 1950s. One
of the best-known product lines is the Apollo Space Rocket line that includes launchable
rockets of various sizes and NASA vehicles that are replicas of the earlier ones used at
Cape Canaveral.
In addition to the Apollo product line, some of the toys and toy brands that have
remained popular for many years include the Canaveral building set, Create a Moon
Surface Kit, Astronaut Training Center, and the Curious George in Space book and
character set.
In 2000 Galaxy Toys joined forces with NASA to sponsor the First Annual International
Rocket Launch Meet to encourage children’s interests in space exploration.
In 2009, Galaxy landed the exclusive right to manufacture and sell all NASA toys sold in
the United States and in 2012, this exclusive right extended to all NASA toys
manufactured and sold overseas. Current Business Status Current Business Philosophy:
In desiring to remain on the cutting edge of space exploration and toy design, the
owners of Galaxy Toys have decided that “long term” planning is limited to the span of a
two-year timeframe, which will allow for them to remain agile in the current business
environment. The needs for innovation and implementation of cutting-edge ideas are
the main focus for the next two years. The owners acknowledge that incorporating
state-of-the-art technology in both toy design and production is crucial in meeting its
two-year goals. The use of 3D printing as a means of production, reducing material and
labor costs while shortening production time is the innovative competitive-edge
technique. Sustainability is also a concern because current sales are slowing.
Technology “action” in the toys must augment the current proprietary toy designs to
increase sales and surpass the NASA sales making the company less dependent on
that sector for sales. Growth is achieved through innovation. The use of “greenfriendly” shipping materials and toy recycling programs are under consideration.
Integration of these two ideas, sustainability and innovation, in new product line
development is the current business driver.
Since the change, Galaxy Toys treats its employees like family. Employees are valued
for their input in the business and measures are taken to assure their success. The
result is the current small business clan culture atmosphere. The expansion of the
business to Mexico and the possibility for more global expansion has caused the
company to adapt a new hybrid flat functional structure. This change has pushed the
clan culture to a mixture with a collaborative culture. This new structure and culture is
bringing the company’s decision making closer to those who have to implement the
decisions, thus empowering more workers and motivating others.
Galaxy Toys, Inc. 2015 Sales Figures: Sales
0 Nasa Rocket
Percentage of Sales Classic ?
? Gross Toy Sales Per Branch:
Toledo- $400 million
Daytona- $225 million
Huntsville- $200 million
White Plains- $175 million
Juarez- $125 million
? Anticipated Sales for 2017 are estimated at 15% over 2016 sales due to a new product line roll out.
? ? Organizational Structure
? Board of Directors
CEO and President
George Jepson, Jr. ? CFO
Mercury ? Vice President
? Shared Services
Rusty Jepson Vice President
Jose Fuentes Vice President
Nan Jepson ?
Chris Leibowitz
Finance ? Marilyn Moos
Human Resources Martin Martinelli
Huntsville Samuel Studebaker
Huntsville ?
? Sheldon Cooper
IT Henrick Huber
White Plains Maris Baker
White Plains Leroy Jethro Disney
Design & Engineering Jessica Hare
Toledo Alex Beaumont
Toledo Carol Gallay
Administration Kelly McConnell
Dayton Atsushi Hashmi
Dayton ?
? Juan Valdez
Juarez Mark Willis
Juarez ? Jordan Miles
Production Manager
Jordan Yaffe
Production Manager
White Plains
Itza Yu
Production Manager
Justin Winter
Production Manager
Julio Rodriquez,
Production Manager
Bart Aldrin
Shipping Manager
Millicent Marsden
Shipping Manager
White Plains
Ann Southern
Shipping Manager
Huntsville ?
? Vice President
Production and
Keith Wisternick Ursula Andress
Shipping Manager
Toledo Hernando Gonzalez
Shipping Manager
Juarez Vice President
Quality Control
Terry Mercury
Randy Eberhart
Huntsville George Washington,
White Plains
Jillian Michaels
Toledo Allison McKinsey
Dayton Alonso Quijano
Juarez ?