A.C. Gilbert Case Study: Innovation, Performance & Sustainability

This case study provides an in-depth analysis of A.C. Gilbert, a toy manufacturing firm, focusing on innovation management and continuous improvement. It examines the company's processes, systems, and sustainability measures, evaluating key result areas, performance indicators, and variances in quality, sales, profit, supply chain, and staff performance up to 1966. The study assesses the effectiveness of review strategies and suggests improvements, including the implementation of TQM and PDCA cycles. Furthermore, it analyzes the trends, strengths, and weaknesses of the firm, highlighting the importance of adapting to change and fostering innovation to maintain competitiveness. The case study concludes with recommendations for enhancing quality and ensuring continuous improvement within the organization.

A.C.GILBERT CASE STUDY
Introduction
The study is conducted to deliver a proper understanding of constant improvement as
well as management of the innovation. This report involves the case study of popular
firm named A.C. Gilbert that makes and manufactures toys for kids as well as adults. The
study involves many theories as well as management principles that are regarding
innovation management and also constant improvement. This study will include the
strategy followed by the firm involving both performance as well as sustainability
strategies of the firm
1. Task 1
1.1 Introduction
The study is on the basis of case study of the firm A.C. Gilbert that deals in the toy
industry. The firm makes varieties of toys targeting kids and is also famous for its
quality. The study delivers information regarding firm’s strategies as well.
Process and systems used by A.C Gilbert
a. Supply Chain- Supply chain management refers to the process of investigating
products to various people linked with production. It is all about moving of the goods and
services from supplier to the manufacturer and then to whole seller and to retailer, and
lastly from retailers to the consumers. Supply chain is managed in each and every firm to
transfer the goods to consumers. Supply chain that was involved in the management of
the company A.C. Gilbert included suppliers, manufacturers and the retailers (Abramson
and Littman, 2002).

b. Operational systems
Operational system used by the firm involves several steps. Operational system refers to
those that provide data and information of works undertaken in the firm. The business as
well as all its operational systems are effective plus efficient in the firm and ensure
achievement of targets set by the firm. Definite activities through which firm could
provide operational systems involves-
Designs- designing of toys and other goods, which are made by several designers within
the firm. All the designs are set as per demands of customer’s and their kids. Gender is
also considered while designing these toys.
Planning- it is done for developing the toys and then planning the sales as well as targets
and the ways to attain those targets.
Purchasing- steps of buying is involved in firm’s operational system for delivering the
entire planning in the acquiring of the raw materials as well as packing of the products
from suppliers.
Manufacturing- it involves production as well as packaging of the toys as well as
distribution of the same.

Distribution- distribution involves storage as well as management of the firm’s
warehouse (Cole, 2002).
c. Delivery of products and services
Delivery of the products and services are those where proper management of goods and
services are undertaken. For this firm A.C Gilbert, the production as well as the service
delivery is efficient as well as effective because it provides several factors of completing
delivery on time. Management of the firm comprises of planning about distribution of the
goods as well as delivery of the same to retailers on time (Fojt, 2009).
1.2 Analysis of major systems as well as processes plus sustainability measures and
the assessment tools plus techniques-
Analysis of the major systems that are used by the firm is one that performance of the
firm can be enhanced with use of such systems as well as processes. As the systems plus
processes provided by the firm has properly managed all the resources plus functions and
operations efficiently to gain maximum achievement. There exists several sustainability
measures as ell as assessment tools and techniques that can be undertaken to assess
systems plus the processes of the firm.
a) Key Result areas- major result areas denote to common areas of diverse roles as
well as responsibilities of the firm. The results for crucial performance of several
departments are vital to know and understand (Garza-Reyes et al., n.d.). Major
areas of result include the outcomes which were conclusion of all roles as well as
accountabilities of several departments. It also includes profits attained in the firm
A.C. Gilbert.
b) Key Performance indicators- Main performance indicators refer to those that
supply information of the vital performance of several departments. Several
indicators of performance in the firm involve the quality of toys as well as
satisfaction of customer.

c) Performance review processes- it involves the review as well as measurement of
the performance of the firm. This process of reviewing the performance later
offers performance appraisals (Innovation in information technology, 2003).
1.3 Analysis of variances and result areas of performance up to 1966
1.3.1 Quality of goods in the firm involves designing as well as manufacturing of the
products. In this year the firm improved its manufacturing of some 50 novel toy lines that
also touched some 307 lines within the manufacturing of toys. Designing and
manufacturing of the organization in the year 1961 altered from merely boy’s to varieties
from the kids in pre-school and also dolls for the girls are between age bracket of 6 to 14.
In the year 1962 firm’s manufacturing units also augmented some 50 new lines. 1963 was
considered a very poor year in terms of designing and manufacturing because there was
simply zero innovation within the toys made by the firm. In 1964, quality of the
manufactured toys got declined and also designing got tainted from metal boxes to card
boxes. Also the company used brittle as well as weak parts in place of strong and long
lasting parts. Year 1965 passed away without any alterations or newness or innovation
within the goods or toys. Later in 1966 the firm faced major loss (Quay, 2003).
1.3.2 Sales- Year 1961 saw that sales A.C Gilbert fell from some $1.1 million dollar
showing up of $11.5 million. In 1962, sales of the firm were some $10.9 million. This up
surged the entire loss with about $600,000. In the subsequent year, which was 1963, sales
got down to $10.7 million with an enhancement in the loss to some $200,000. This
depicted constant reduction in sales of the firm. In the year 1964, sales of A.C Gilbert
exhibited $11.4 million later in the year 1965, firm’s sales was depicted to be $14.9
million. In the year 1966 sales $12.9 million and this provided the firm profits as well as
loss.
1.3.3 Profit- Firm did not depict much profit, instead faced major loss since 1961. The
firm in year 1961 summed up with profit of some $20,011 that was level performance of
the company. Later, the organization stepped in 1962, with a proper loss recorded to be

$281,000. Supplementary, in year, 1963 the gains got declined and it moved until 1966.
The firm faced several troubles during this phase.
1.3.4 Supply chain-In entire these years ranging from year 1961 to year 1966, firm lost
its delivery as well as proper performance of its supply chain. The firm performed good
in its supply chain until the year 1962 but with these losses faced and lesser level of
innovation and innovation management it misplaced its supply of goods to several
retailers as per their demand and later the firm’s demand got affected (Smith, 1991).
1.3.5 Staff and management performance and/or turnover- Overall turnover of the
employees for the firm increased from year 1961. The firm worked within some vital
regions of supplying quality toys. The new businessman who bought the business altered
many staffs each year. Jack Warther correspondingly altered even top-level management
staffs of the firm within the firm (Radley and Chamberlain, 2011).
1.3.6 Evaluation of effectiveness of review strategy as well as improvements needed-
Performance of the firm A.C. Gilbert could be measured with use of 3 performance tools
as well as techniques that are explained above. There exist some tools and a technique
that has been used by the firm involves the management techniques refining quality and
never ending improvement. Constant improvement means continuing efforts of the firm
to enhance the business functions and working. This enhances management, services,
processes and products in the firm. Supply chain system within A.C Gilbert was effective
and useful for the firm’s functions. Use of such systems and tools work for the firm
performance A.C Gilbert faced loss of 1.1 million dollar in the year 1961 that led the firm
to sell business to popular businessman named Jack Wrather (Irani and Sharp, 1997).
For the ongoing improvement, it is needed by A.C Gilbert to get PDCA cycle. PDCA
cycle enhances the performance of the firm as they supply several steps to comprehend
the action regarding to the organizations enhancement. This is even known as the
Deming cycle. Steps for perfect quality model inculcates plan, implementation of the plan

and also, checking after implementation. There also exist other tools plus techniques for
nonstop improvement, which are six-sigma and also total quality management. Ongoing
improvement could be effectively attained in the firm by suing proper TQM. Theory of
managing TQM supplies management the proper quality as well as people of the firm.
Appropriate management of quality can be attained through TQM that improves quality
and efficiency of goods and services (Morse, 2004).
Suggestions for enhancement of quality plus maintaining the constant improvement in the
firm demand the firm to follow TQM process properly. A.C. Gilbert delivers the
development in the firm continuously alongside the assistance of TQM.
1.4 Trends in the firm
Trends within a firm refer to constant performance of a firm that is continuing from past
years. These years of a firm demand changes that ensure innovation in the working
pattern plus the results. In 1950’s the firm did not recognize its trends that were referred
to innovation within toys made. To stay in race of the competition trends of the firm has
to be stridden with novel market tactic and strategies as well as competencies.
Before to the year 1960 A.C. Gilbert trailed few Strengths as well as Weaknesses which
are-
Strengths Weaknesses
The firm followed outstanding market
share in and before 1960
Business had no constancy in its trends.
Weakness of firm involved non-stability.
Quality of goods was major strength of Organization did not have universal

this firm. nature because of which, the firm was not
well prepared for adapting alterations
quickly.
Profits of A.C. Gilbert depicted incessant
increase in firm as it had a respectable
reputation as well as market share.
Customers of the firm were fully satisfied
Standards of customer service were major
weakness of firm, as it was not meeting
expectations of buyers in terms of goods
delivery.
This firm also delivers augmentation
within its sales incessantly.
Innovation was rated the lowest in the
firm
Manufacturing as well as production was
seen to be a major strength of firm.
Performance of employee in the firm was
decreasing with alterations in
organization’s economic position.
Source: (Eliwhitney.org, 2018)
Reputation- This business carried a well reputed name and fame within the industry
because of good quality products and no compromise with buyer’s satisfaction.
Stability- The firm carried a very stable form of business, but later the stability came to
an end when the business had to take actions and start being flexible.
Profit- The firm incurred loss due to its non-innovative and less flexible nature.
Traditional dolls and toys for boys were main items sold by the firm. In modern age
because of augmenting competition several novel toys entered the industry. This pulled
the firm’s strategy back and led towards its loss.

Sales- In 1964, quality of the manufactured toys got declined and also designing got
tainted from metal boxes to card boxes. Also the company used brittle as well as weak
parts in place of strong and long lasting parts. Year 1965 passed away without any
alterations or newness or innovation within the goods or toys. Later in 1966 the firm
faced major loss
Ability to adapt to change- Organization did not have universal nature because of
which, the firm was not well prepared for adapting alterations quickly.
Customer service standards- Standards of customer service were major weakness of
firm, as it was not meeting expectations of buyers in terms of goods delivery.
Innovation- The firm was not at all innovative and thereby has to face several difficulties
and negative situation within the market
Employee performance- Performance of employees in the firm was decreasing with
alterations in organization’s economic position.
Production and manufacturing- Performance of A.C Gilbert was not enhanced and the
firm suppressed a loss constantly for 6years. The loss carried a lower value as compared
to earlier loss that was depicting uninterrupted improvement within the firm. There exist
several activities that Jack Wrather performed within the firm.
1.5 Missed opportunities
There are several opportunities within a firm, which could have actually been an opening
to the organization. They can be adaptive nature of the business, innovation or even
competition. Innovation is seen as a vital element that can be utilized as a tool to fight
competition as well as to cope up with forthcoming trends in the industry of toys. A.C
Gilbert worked hard on its regular designs plus pattern targeting to the girls as well as

boys. Traditional dolls and toys for boys were main items sold by the firm. In modern age
because of augmenting competition several novel toys entered the industry. This pulled
the firm’s strategy back and led towards its loss. Entry of novel racecars as well as Barbie
dolls also became targets for the kids. The patterns and designs as well as themes of color
could have been made additionally attractive by the firm and alterations in its varieties
could have been a better option for the business to succeed (Eliwhitney.org, 2018).
Activities What to achieve Days required
Analyzing the changes or innovation Innovative tools and techniques 15 days
Analyzing the innovation made by
competitors
To offer new improved quality as well
as designs
7 days
Calculating budget needed for innovation Margins of profit 20 days
Assessing the amount of raw materials
needed.
Raw materials 15 days
Communicating the techniques and
innovation
Novel technologies as well as designs 10 days
Implementation of the changes Appropriate execution plus
implementation of the innovation
25 days
Action plan

1.6 Recommendations
There exist several recommendations:
a) Experts must try to communicate with this firm.
b) The firm must focus upon changes and flexibilities.
c) To recover its business as well as with an aim to enhance its profitability this firm
must make sure that few novel technologies get installed in their production
system.
d) The firm must look for several available opportunities and must try to grab them.
The vital considerations on opportunities involves-
Internal-
Engineers of the firm should supply the firm all novel and modern technologies to create
toys in majorly effective as well as efficient time. They should stipulate several tools and
techniques of proper quality management like TQM as well as several other activities of
supply chain. The manufacturing as well as production staff should consider several
techniques for enhancing the quality of goods like the quality management process and
the sales personnel of firm should supply good level of customer satisfaction through
delivering products on time plus as well as planning all the team of marketing suitably.
HRM plays a vita role in providing the management its proper roles and responsibilities
of diverse departments as well as to deliver them all properly managed resources with an
aim to gain efficiency plus effectiveness within the business. For this, the HRM team
should deliver proper team building as well as resource management.
External-
The firm should ponder marketing as well as marketing consultants as the most
imperative part of the firm. Organization might think several marketing actions that can
enhance its sales thereby promoting its goods and services. Innovative marketing

crusades as well as appropriate medium selection has to be done for firm’s position in the
market position. Even few professionals in advertising could be refereed regarding
activities that can enhance sales of the firm.
Conclusion
It can be concluded that the firm is extremely famous as well as a branded one in area of
toys for children. A.C. Gilbert faced severe circumstances as well as economic situations
from 1961 to 1966. In 1967 the firm has been shut down because of constant loss. Firm
must emphasize on several skills as well as opportunities that could help the firm to attain
success within tough rivalry.
Task 2
2.1 Performance improvement strategy
It is all about planning to enhance strategy of the firm. The tactic that can enhance the
performance of firm involves vital requirement that is diagnosing opportunities as well as
problems for augmenting the level of performance.
a. Strategic goals
For accomplishing improvement within the performance firm’s priority must be to
recognize its new opportunities as well as some threats and few issues of firm. For A.C.
Gilbert, analysis of tactical goals should be taken into consideration and tactical goals of
firm are to be properly understood. Firm’s strategic aims and goals refer to the targeted
aims and objectives that the firm desires to attain in next fiscal year. Firm’s strategic aims
and goals in this year was-
1) To attain sales of $20 million in the year 1963.
2) To supply the firm with vast sales as well as maximum level of profit.
3) Replacement of existing staffs

4) Introduction of more product lines
5) To enhance promotions
b. Proposed process and changes in the process
Proposed process of the firm refers to steps involving designing, plans, purchases,
manufacturing as well as distribution. This process involves steps for which the firm
attains processes of making goods and selling them to the market.
Alterations within planned process might include the supplementary department of
marketing as well as advertisement that could be needed for the firm. This procedure
might involve designing, plans, procurement, manufacturing plus marketing as well as
advertising plus distribution of goods. They provide the entire process that can work
efficiently.
c. Explanations of enhancing level of performance through the proposal
Novel proposal to the firm will enhance the firm’s performance as well as
competitiveness in very effective way as performance of the firm could be improved with
proper marketing plus advertising team to attain novel ideas as well as tactics to promote
the goods and upsurge the demand for the same. The competitiveness of the goods would
enhance in market because of excessive promotions of goods and services can be
communicated to customers and their capability to work on the same.
Performance of this firm could be enhanced using novel proposal. Marketing as well as
advertisement department could supply the firm with additional sales plus customer’s that
would directly impact profits of this firm.
d. KRAs, KPIs, targets
Key result areas are the several results that is assumed to be supplied by the major
indicators of performance.
Key performance indicators are main achievement space from which performance