Assignment- W3 – “Spin Master”(Case 13, p. 411)
Using the case titled “Spin Master: Turning fun into opportunities”, please answer the
1. Describe the key decisions that Harary, Rabie and Varadi faced in the start-up of their
company. Looking at the decision environment, were these more programmed or non-
programmed decisions types? ( minimum 3 decisions)
a. The decisions that Harary, Rabie and Varadi had to face were the following:
i. Initially, they had to decide which product to first create, and they decided
the Buddy. Next, they had to decide where to initiate the first sales, and
Rabie chose Roots, because he felt that the culture of Roots correlated with
the Buddy’s theme.
ii. After the Budy was a huge success, they were faced with a 500,000 order,
and they were now able to choose whether to accept the order, or keep it
nice and small, and able to produce out of a kitchen, however they chose,
and decided to take on the order and expand, moving away from kitchen
productions, and on to a factory. When they decided to produce from a
factory, they could have chosen how to produce in terms of labor, location
etc. they decided to have 200 staff members.
iii. Next, they were faced with a new invention from a British inventor who
introduced an air pressured plane to spin master, made out of a ginger ale
bottle and wings, and they decided to turn this into a new toy that would
later be another success. This was a risk to take, but they did it, deciding yet
again to expand their horizons and accept challenges, rather than turn down
opportunities, making them innovative in the competitive market, and
earning them a spot on the popular science’s annual list of top 100
inventions in science and technology.
iv. Next, they would team up with big names such as Disney and nickelodeon,
to further their expansion and brand name. This could have been a make it
or break it type situation, challenging them to see if they were able to keep
up with the giants of the industry, and they decided to go big, and were
successful, making another decision a success.
v. Picking a winner- they need to make decisions about what toys they will
sell. In making this decision they go through a long process, realizing htat
an average toy’s life span in the market is about 18 months, therefore
updating themselves every year to remain competitive. Rabie spends time in retail stores figuring out and conducting research hands on to figure out
what is in demand, what is going to be successful, and then extrapolating to
invent something new, or create a new strategy, and ultimately deciding
what toy to create, how to create it, where to sell it, who to target etc.
vi. “spin master’s products was fractured and inconsistent, which meant the
company couldn’t make effective decisions” this made spin master make
the decision to really up their game, and organize analysts who would
conduct analysis on a daily basis to have a very up to date database,