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Ramtin Soroush
   Mark Villamin
Chung Long Wong
      Sean Young

BUSM 1100 – 002
  Langara College
  March 29, 2009
History
 1967: Created by Victor and Rita Bertrand. Named Ritvik
  Toys Inc.
 1998: Amalgamated with Ritvik Holdings Inc...
What do they do?
 Market products under various brand names
 Invest 3-4% of sales to drive innovation
 Manufactures and...
MEGA Brands’ International Divisional Structure
 President & CEO - Marc Bertrand
 Chief Innovation Officer - Vic Bertran...
Social Responsibility Programs
  Developed safety standards
  Worked with leading safety testing authorities
  Implemen...
Defensive Stance
  Subject of 2 voluntary product recalls
  Uncooperative with government
  Violated the terms of one o...
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...
Customers and Benefits/Value Provided
 Customers are families with young children
 Contribute to development of growing ...
Special Employee Program
 Created in year 2007
 Extended training for qualified young employees
 Create and maintain ex...
Capital Structure
 Stocks: Common Stocks
 Bonds: None
 Utilize Equity Financing
 Primary Capital needs are flexible, v...
Growing? Profitable?
 Sales of stationery and activity branches
 Relocated/outsourced manufacturing
 Partnership with I...
Short-Term Solvency and Activity Ratio
                         Solvency and Activity Ratio
         12.00


         10.0...
Solvency & Activity Comparison 2006
                                   Short-Term and Activity Comparison

         7


  ...
Profitability Ratios
                                       Profitability Ratios
             50.0%

             45.0%

 ...
Profitability Comparison 2006
                                           Profitability

             16.00%


            ...
Earnings per share
                               Earnings per share

         $1.40


         $1.20


         $1.00


 ...
Earnings per share Comparison 2006
                                    Earning per Share


         $1.80

         $1.60
...
Long-term Solvency
                                    Long-Term Solvency Ratio

               $2.50



               $2...
Long-term Solvency Comparison 2006
                 Long-Term Solvency Comparison


         $2.50



         $2.00



  ...
Conclusion
 MEGA Brands’ long journey
 Implementation of safety protocols
 Employee programs
 Growth
 Ratios
 Return...
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MEGA brands

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MEGA brands

  1. 1. Ramtin Soroush Mark Villamin Chung Long Wong Sean Young BUSM 1100 – 002 Langara College March 29, 2009
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. Social Responsibility Programs  Developed safety standards  Worked with leading safety testing authorities  Implemented a zero-defects program  Planned safety programs
  6. 6. Defensive Stance  Subject of 2 voluntary product recalls  Uncooperative with government  Violated the terms of one of the recalls  Improper follow-up after recall
  7. 7. Size and Location  6000 employees  Based in Canada  Have influence worldwide  Outsourced manufacturing in China
  8. 8. Industry and Competitors  Toy industry  Because of MEGA Bloks, their natural competitor is Lego  Other top competitors are Hasbro and Mattel
  9. 9. Customers and Benefits/Value Provided  Customers are families with young children  Contribute to development of growing children  Their mission benefits and places children first
  10. 10. Special Employee Program  Created in year 2007  Extended training for qualified young employees  Create and maintain existing jobs  Sufficiently funded
  11. 11. Capital Structure  Stocks: Common Stocks  Bonds: None  Utilize Equity Financing  Primary Capital needs are flexible, varying depending on the situation
  12. 12. 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
  13. 13. Short-Term Solvency and Activity Ratio Solvency and Activity Ratio 12.00 10.00 8.00 Ratio 6.00 Short-Term Solvency Activity 4.00 2.00 0.00 2006 2005 2004 2003 Years
  14. 14. Solvency & Activity Comparison 2006 Short-Term and Activity Comparison 7 6 5 4 Industry Average Ratio Mega Brands 3 2 1 0 Short-Term Solvency Activity
  15. 15. Profitability Ratios Profitability Ratios 50.0% 45.0% 40.0% 35.0% 30.0% Percentage 25.0% Return on Equity % 20.0% Return on Sales % 15.0% 10.0% 5.0% 0.0% 2006 2005 2004 2003 Year
  16. 16. Profitability Comparison 2006 Profitability 16.00% 14.00% 12.00% 10.00% PErcantage Industry Average 8.00% Mega Brands 6.00% 4.00% 2.00% 0.00% Return on Equity % Return on Sales %
  17. 17. Earnings per share Earnings per share $1.40 $1.20 $1.00 $0.80 Dollar Earnings per share $0.60 $0.40 $0.20 $0.00 2006 2005 2004 2003 Years
  18. 18. Earnings per share Comparison 2006 Earning per Share $1.80 $1.60 $1.40 $1.20 $1.00 Dollar $0.80 $0.60 $0.40 $0.20 $0.00 Industry Average Mega Brands
  19. 19. Long-term Solvency Long-Term Solvency Ratio $2.50 $2.00 $1.50 Dollar ratio Long-Term Solvency $1.00 $0.50 $0.00 2006 2005 2004 2003 Years
  20. 20. Long-term Solvency Comparison 2006 Long-Term Solvency Comparison $2.50 $2.00 $1.50 Industry Average Dollar Mega Brand $1.00 $0.50 $0.00
  21. 21. Conclusion  MEGA Brands’ long journey  Implementation of safety protocols  Employee programs  Growth  Ratios  Return to competitive status

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