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Strategic Initiative Paper

Strategic Initiative Paper

Shaina Boggan, Todd Lawniczak
FIN/370
May 11, 2015
Cindy Bayer

Strategic Initiative Paper

Introduction
Hasbro is one of the largest companies in the 22 billion dollar domestic toy industry.
Hasbro's brands include Nerf, Transformers and My Little Pony. The Company's innovative
product offerings encompass a broad variety of toys including boys' action figures, vehicles and
play sets, girls' toys, electronic toys, plush products, preschool toys and infant products,
electronic interactive products, creative play and toy-related specialty products. Games offerings
include board, off-the-board, digital, card, electronic, trading card and role-playing games.
Hasbro has had a unique strategic planning initiative that has affected the organization's
financial planning. When coming up with initiatives Hasbro has had to think of the cost and
revenues of the supply chain. Ethical concerns are also a concern when Hasbro defines their
organization's strategic planning initiatives. The decisions of the board of directors when making
decisions will affect the stakeholders, shareholders and the communities that Hasbro operates in.
Hasbro appears to be operating on all cylinders as its core franchise brands
Transformers, My Little Pony, Littlest Pet Shop, Monopoly, Nerf, Play-Doh and Magic: The
Gatheringgrew 15 percent in 2013, representing 44 percent of total revenues, up from 38
percent in 2008. More importantly, each of its brands are poised for additional growth and
expansion over the next several years.

Strategic Planning Initiative

Strategic Initiative Paper

A strategic planning initiative that has helped Hasbro grow is their major motion picture
and television programing. Major motion pictures and television programming based on Hasbro
owned and controlled brands provide both storytelling and the ability for our consumers to
experience these properties in a different format, which Hasbro believes can result in increased
product sales, royalty revenues, and overall brand awareness. To support Hasbro strategic
objective of further developing their brands through television entertainment, Hasbro operates a
wholly-owned studio, Hasbro Studios, which produces storytelling across mediums. This
includes television programming primarily based on our brands, which is distributed on a global
basis. In addition, Hasbro Studios has a coordinated development process which aligns with our
40% interest in a joint venture with Discovery that operates Discovery Family Channel, a cable
television network in the United States. Discovery Family Channel is dedicated to providing
high-quality childrens and family entertainment. Through television and movies Hasbro can
release their toys all over the world. Toys like Transformers that were big in the 1980's are
selling because of the recent released Transformer movies.
How the Initiative Affects the Organization's Financial Planning
The initiative Hasbro takes, effects the organizations financial planning in terms of
Hasbros new innovative products and the cost it takes to make and produce them. Hasbro has to
begin by first identifying what it is the consumer is looking for in a toy. Since Hasbro mission
to be the best toy company possible, this is a big step for them. They then have to determine if
the toy is worth it and if it will do well in the current market. They plan the potential growth that
the toy will offer in the future and then invest in making the toy. With this organizations
financial planning the initiative affected the growth as Goldner explains, "2015 is off to a good
start with continued momentum in our business, led by growth in all of our Franchise Brands and

Strategic Initiative Paper

the underlying strength in demand across international markets, including the emerging
markets," said Brian Goldner, Hasbro's President and Chief Executive Officer. "For the first
quarter, we grew revenue, improved profitability and delivered growth in adjusted net earnings
despite significant foreign exchange headwinds.(Goldner 2015) The Hasbro Company was able
to pay out to their shareholders over $53 million dollars. Hasbro stock skyrocketed for an
average of $57.80 per share. These are examples of how the initiative affects the organization's
financial planning.
Hasbro's growth has affected their revenue in a positive way. Their supply chain has to
grow because the company is growing. When a new movie comes out Hasbro has to produce
more toys for the movies, this is a cost on the supply chain but the revenue exceeds the cost.
Hasbro has been moving more towards toys that are movie and television characters, they have
to have a supply of these toys ready as soon as the movies are scheduled to release. Hasbro has
lost money due to the fact that some of their toys have failed, that is why they are trying to
produce more toys that are movie related. The more revenue the movie generates the more the
toys will sell. Pop culture has helped Hasbro and their supply chain succeed, the bigger the
movie the more revenue for Hasbro to cash in on. Hasbro supply chain has grown because of the
success of the movie Transformers, Transformers was a large block buster and they could not
keep the toys on the shelves.
Ethical Concerns
In 2015 Hasbro was named one of the most ethical companies. Some ethical areas that
may present itself with Hasbro building its brand and leveraging its businesses are continuing to
take care of its people to help produce products the public will love and creating new products.
Hasbro leverages all of its brands to build the company and make it profitable. Hasbro has seen

Strategic Initiative Paper

growth of last years earnings in every aspect of the company. The company focuses on new
innovation as well as geographic expansion. Continuously finding new innovation that match
the popularity of My Little Pony, Transformers and Play Doh. Hasbro is helping to build a safe
and sustainable world while providing people everywhere the opportunity to experience the
power of play, and is proud to be recognized for its accomplishments in environmental
sustainability, product safety, ethical manufacturing and philanthropy.(Hasbro 2015) Hasbro
prides itself on being the number one company in creating the Worlds Best Play Experience.
Hasbro is helping to build a safe and sustainable world and to positively impact the lives of
millions of children and families every year.(Hasbro 2015) In doing so produces not just toys
but a culture.
Conclusion
In conclusion, Hasbro company initiative is to produce innovative toys that will in turn
impact the world in a positive manner. Hasbro produces a culture that strives to create the
Worlds Best Play Experience for not only children but adults as well. They continuously strive
to take over the toy market and be the best by getting better every year and being a profitable
company in all aspects such as girl toys and boy toys. Hasbro has continued this trend by
taking care of their people, taking care of their community and producing new and improved
innovations.

Strategic Initiative Paper

References
Goldner, B., Hasbro. (2015) Hasbro Reports Revenue and Operating Profit Growth for the First
Quarter 2015. Retrieved from

://investor.hasbro.com/releasedetail.cfm?ReleaseID=907255
Hasbro. (2015) Hasbro Corporate Information Retrieved from www.hasbro.com/corporate/en_us
Hasbro. (2015) Financials & Filings Hasbro Inc. Retrieved from
http://investor.hasbro.com.financials.cfm
Katz, J., (2015) Continued focus on franchise and entertainment brands should help Hasbro
improve profitability. Retrieved from
http://analysisreport.morningstar.com/stock/research?t+HAS&regioin=USA&culture+enUS&productcode=MLE