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Identify the key systems and processes used by AC Gilbert.

The supply chain

The chain began with production of the toys and other products which are then taken to the warehouse for storage. Immediately the customers are located, the commodities are later transported to where they are needed by the customers. Before the location of customers in the market, information about the products is relied to general public (Pincus, 2005).

Operational systems

The company’s operational system begins with the formulation of idea of the product they would wish to produce at any given point. This is idea is birthed by the engineers in the designing department who later pass it to the planners who design the idea and the concept at hand and determine the amount of raw materials required and timeframes for the production plans(Tibballs, 1999). The list of the raw materials needed is then taken to the procurement department where purchases are made to aid in the manufacturing process (Muller, 2011). The manufactured products are then packaged and are now ready for the distribution and stored in warehouse a waiting for the market.

Product/Service delivery

The A.C. Gilbert company mode of product and service delivery begins with the sales department team where their products are made available into the market after orders are taken from their various customers. Then the supplies would make arrangement on delivery of good depending on the nature of bargain in the contract of sale. Alternatively, the suppliers would sell the toys and other products to the retailers who later sold these products to the end user, the consumer (Pincus, 2005).

Performance measures, assessment tools and techniques

First, on the supply chain, the key result areas (KRAs) tool is based on the outcome; at the early stages of this company the supply chain outcome was clearly successful but when the management changed hands it began to sink. The operational system of the company at its peak stage was completely interfered with in the course of trying to adapt the new changes in technology and time. This ultimately led to the production of poor quality of toys and dolls changes which had a negative impact on the company’s market share. Second, based on the KPIs tool of assessment the change of the activities previously embedded in this chain is one the factors that have led to the failure of the company. On the operational system, due to the abrupt changes that were done in the production and manufacturing processes, the company ended up in a zone of extreme losses. Third, a performance reviews are well defined tools for the evaluation of the job performance of all employees; the reviews clearly indicate that the members of staff who came in after the company was sold to Jack Wrather were incompetent hence a major factor to the demise of the A.C. Gilbert company. Fourth, the service level agreement (SLA) seems to work at the beginning of the company but later when a more complex and disorganized strategy is introduced the company collapses (Tibballs, 1999). As a result, the measures those were required to be put in place were supposed to be gradually implemented beginning with a change of a small sample and then later the entire process («The Demise of The A. C. Gilbert Company», 2016)

Implementations of the measures

When the above measures are implemented following the right procedure and taking the right period of time, the company would have considered the importance of maintain the quality of its products rather than working on substandard but large amount of output. This means that when quality of the product s is maintained the company will have a comparative advantage over their competitors since they would have won the customers’ trust and confidence. This would have translated to higher level of sales turnover since consumers will have a high preference on their toys and dolls. In addition, it is economically proven that when the sales margin goes up, the profit margin also goes up because the two are directly proportional. Based on KRAs tool, a wrong approach on the supply chain will always cost a company in terms of the absence of right flow of goods from the company to the warehouse and later to the market,. Therefore, the outcome for a prudent approach to this chain of supply would enhance sufficiency in the warehouses and ultimately supply in the market place. Finally, the growth of any business majorly depends on the competence of its employees; Jack Wrather missed a mark by employing individuals that are half- baked in their skills. Thus, the A.C. Gilbert Company began to sink because the sales turnover began to decrease due to the presence of unqualified members of staff. If these was done appropriately, as illustrated above the company could have registered profits from 1961 to 1966 without fail (Tibballs, 1999).

Trends that AC Gilbert failed to identify in the late 1950s?

The company was quite conservative hence change averse. This is because in the late 1950s there were so many changes related to technology and culture but there management failed by not adapting to the changes. They failed to understand that consumers’ preferences and choice are affected at a greater extent by what is happening around them. In fact, the company could have used the information on these major changes to their advantage to improve on the quality of their products to fit the market demand.

Prior to 1960 the A.C. Gilbert Company had an excellent market share in terms a large number of customers which came as a result of production of high quality products which in return created a good reputation of the company since the consumers had confidence and trust in their products (Tibballs, 1999). Because their toys were durable and colorful, most of the customers flocked in their premises to make purchase and this led to increased sales turnover which in return translated into higher levels of profit margin. This therefore was a good sign that at that time the company’s stability and employees’ performance was pretty good. Nevertheless, the company portrayed a great challenge in adapting to change culturally and technologically in the way they failed to tailor the products in order to meet the customers’ demand. Furthermore, innovation was not included in their production and manufacturing processes since they only stuck to the old style of doing things. This weakness in return hindered employees to have maximum level of output in carrying out their personal obligations.

Specialists that could have been consulted to advise on and identify technology and electronic or other commerce opportunities

External specialists in marketing, advertising, engineering and IT could have been consulted to advise the companies on the current market since these are the individuals who have the expertise and exposure. This would have helped the company tailor their products in line with market needs as advised.


Muller, G. (2011). The McGraw-Hill reader. New York: McGraw-Hill.

Pincus, S. (2005). England’s glorious revolution, 1688-1689. Boston: Bedford/Saint Martin’s.

The Demise of The A. C. Gilbert Company | The Eli Whitney Museum and Workshop. (2016). Eliwhitney.org. Retrieved 18 May 2016, from https://www.eliwhitney.org/7/museum/-gilbert-project/-man/a-c-gilbert-scientific-toymaker-essays-arts-and-sciences-october-6

Tibballs, G. (1999). Business Blunders, ‘AC Gilbert: Toy Story’, Robinson Publishing Ltd, pp. 43.