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Ramtin SoroushMark Villamin
Chung Long WongSean Young
BUSM 1100 – 002Langara CollegeMarch 29, 2009
History 1967: Created by Victor and Rita Bertrand. Named Ritvik
Toys Inc.
1998: Amalgamated with Ritvik Holdings Inc.
2002: Name changed to MEGA Bloks Inc.
2006: Name changes to MEGA Brands Inc. after acquisition of various other brand names
What do they do? Market products under various brand names
Invest 3-4% of sales to drive innovation
Manufactures and distributes toys as well as office supplies for children and businesses
MEGA Brands’ International Divisional Structure
President & CEO - Marc Bertrand
Chief Innovation Officer - Vic Bertrand
Executive VP & CFO - Alain Tanguay
Executive VP & Chief Operations Officer - Anthony Bazan
President, Toys - Gerardo Yepez Reyna
President, Stationery & Activities - Al Hunyadi
Executive VP & Chief Marketing Officer - Kathleen Campisano
VP International - Michel Moggio
Social Responsibility Programs Developed safety standards
Worked with leading safety testing authorities
Implemented a zero-defects program
Planned safety programs
Defensive Stance Subject of 2 voluntary product recalls
Uncooperative with government
Violated the terms of one of the recalls
Improper follow-up after recall
Size and Location 6000 employees
Based in Canada
Have influence worldwide
Outsourced manufacturing in China
Industry and Competitors
Toy industry
Because of MEGA Bloks, their natural competitor is Lego
Other top competitors are Hasbro and Mattel
Customers and Benefits/Value Provided
Customers are families with young children
Contribute to development of growing children
Their mission benefits and places children first
Special Employee Program Created in year 2007
Extended training for qualified young employees
Create and maintain existing jobs
Sufficiently funded
Capital Structure Stocks: Common Stocks
Bonds: None
Utilize Equity Financing
Primary Capital needs are flexible, varying depending on the situation
Growing? Profitable? Sales of stationery and activity branches
Relocated/outsourced manufacturing
Partnership with Intertek
multi-year licensing deal with Nickelodeon and Viacom consumer products
licensing pact with Marvel
Net Loss of: $97,136
Short-Term Solvency and Activity Ratio
0.00
2.00
4.00
6.00
8.00
10.00
12.00
2006 2005 2004 2003
Rat
io
Years
Solvency and Activity Ratio
Short-Term Solvency
Activity
Solvency & Activity Comparison 2006
0
1
2
3
4
5
6
7
Short-Term Solvency Activity
Rat
io
Short-Term and Activity Comparison
Industry Average
Mega Brands
Profitability Ratios
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2006 2005 2004 2003
Pe
rce
nta
ge
Year
Profitability Ratios
Return on Equity %
Return on Sales %
Profitability Comparison 2006
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Return on Equity % Return on Sales %
PEr
can
tage
Profitability
Industry Average
Mega Brands
Earnings per share
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
2006 2005 2004 2003
Do
llar
Years
Earnings per share
Earnings per share
Earnings per share Comparison 2006
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
Industry Average Mega Brands
Do
llar
Earning per Share
Long-term Solvency
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
2006 2005 2004 2003
Do
llar
rati
o
Years
Long-Term Solvency Ratio
Long-Term Solvency
Long-term Solvency Comparison 2006
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
Do
llar
Long-Term Solvency Comparison
Industry Average
Mega Brand
Conclusion MEGA Brands’ long journey
Implementation of safety protocols
Employee programs
Growth
Ratios
Return to competitive status