This document provides a summary of how to analyze a case study in 5 steps: 1) Identify important facts, 2) Identify key issues, 3) Specify alternative courses of action, 4) Evaluate each alternative, and 5) Recommend the best course of action. It describes each step in detail, explaining how to determine if a problem stems from management, technology, or organizational factors. The document also provides a company profile for Galaxy Toys, Inc., detailing its history, vision, products, organizational structure, and current business status.

1. APPENDIX 1
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APPENDIX 1
Hands-On Guide: How to Analyze a Case Study
Management Information Systems, Ninth Edition provides a
number of case studies for you to analyze. Included in these
cases are questions to help you understand and analyze the
case. You may, however, be assigned other case studies that
do not have questions. This Hands-On Guide presents a
structured framework to help you analyze such cases as well
as the case studies in this text. Knowing how to analyze a case
will help you attack virtually any business problem.
A case study helps students learn by immersing them in a
real-world business scenario where they can act as problem
solvers and decision makers. The case presents facts about a
particular organization. Students are asked to analyze the
case by focusing on the most important facts and using this
information to determine the opportunities and problems
facing that organization. Students are then asked to identify
alternative courses of action to deal with the problems they
identify.
A case study analysis must not merely summarize the
case. It should identify key issues and problems, outline and
assess alternative courses of action, and draw appropriate
conclusions. The case study analysis can be broken down
into the following steps:

2. 1. Identify the most important facts surrounding the case.
2. Identify the key issue or issues.
3. Specify alternative courses of action.
4. Evaluate each course of action.
5. Recommend the best course of action.
Let’s look at what each step involves.
1. Identify the most important facts surrounding the case.
Read the case several times to become familiar with
the information it contains. Pay attention to the infor-
mation in any accompanying exhibits, tables, or fig-
ures. Many case scenarios, as in real life, present a great
deal of detailed information. Some of these facts are
more relevant that others for problem identification.
One can assume the facts and figures in the case are
true, but statements, judgments, or decisions made by
individuals should be questioned. Underline and then
list the most important facts and figures that would
help you define the central problem or issue. If key
facts and numbers are not available, you can make
assumptions, but these assumptions should be reason-
able given the situation. The “correctness” of your con-
clusions may depend on the assumptions you make.
2. Identify the key issue or issues. Use the facts provided
by the case to identify the key issue or issues facing
the company you are studying. Many cases present
multiple issues or problems. Identify the most impor-
tant and separate them from more trivial issues. State
the major problem or challenge facing the company.
You should be able to describe the problem or chal-
lenge in one or two sentences. You should be able to
explain how this problem affects the strategy or per-
formance of the organization.

3. You will need to explain why the problem occurred.
Does the problem or challenge facing the company
come from a changing environment, new opportuni-
ties, a declining market share, or inefficient internal or
external business processes? In the case of information
systems-related problems, you need to pay special
attention to the role of technology as well as the
behavior of the organization and its management.
Information system problems in the business
world typically present a combination of manage-
ment, technology, and organizational issues. When
identifying the key issue or problem, ask what kind of
problem it is: Is it a management problem, a technol-
ogy problem, an organizational problem, or a combi-
nation of these? What management, organizational,
and technology factors contributed to the problem?
❏ To determine if a problem stems from
management factors, consider whether managers
are exerting appropriate leadership over the
organization and monitoring organizational
performance. Consider also the nature of
management decision making: Do managers have
sufficient information for performing this role, or
do they fail to take advantage of the information
that is available?
❏ To determine if a problem stems from technology
factors, examine any issues arising from the
organization’s information technology
infrastructure: its hardware, software, networks
and telecommunications infrastructure, and the
management of data in databases or traditional
files. Consider also whether the appropriate

4. management and organizational assets are in place
to use this technology effectively.
❏ To determine the role of organizational factors,
examine any issues arising from the organization’s
structure, culture, business processes, work groups,
Appendix 1 Hands-On Guide: How to Analyze a Case Study 631
divisions among interest groups, and relationships
with other organizations, as well as the impact of
changes in the organization’s external
environment—changes in government regulations,
economic conditions, or the actions of
competitors, customers, and suppliers.
You will have to decide which of these factors—or
a combination of factors—is most important in
explaining why the problem occurred.
3. Specify alternative courses of action. List the courses of
action the company can take to solve its problem or
meet the challenge it faces. For information system-
related problems, do these alternatives require a new
information system or the modification of an existing
system? Are new technologies, business processes,
organizational structures, or management behavior
required? What changes to organizational processes
would be required by each alternative? What manage-
ment policy would be required to implement each
alternative?
Remember, there is a difference between what an
organization “should do” and what that organization

5. actually “can do.” Some solutions are too expensive or
operationally difficult to implement, and you should
avoid solutions that are beyond the organization’s
resources. Identify the constraints that will limit the
solutions available. Is each alternative executable
given these constraints?
4. Evaluate each course of action. Evaluate each alterna-
tive using the facts and issues you identified earlier,
given the conditions and information available.
Identify the costs and benefits of each alternative. Ask
yourself, “What would be the likely outcome of this
course of action?* State the risks as well as the rewards
associated with each course of action. Is your recom-
mendation feasible from a technical, operational, and
financial standpoint? Be sure to state any assumptions
on which you have based your decision.
5. Recommend the best course of action. State your choice
for the best course of action and provide a detailed
explanation of why you made this selection. You may
also want to provide an explanation of why other
alternatives were not selected. Your final recommen-
dation should flow logically from the rest of your case
analysis and should clearly specify what assumptions
were used to shape your conclusion. There is often no
single “right” answer, and each option is likely to have
risks as well as rewards.
BMGT 364 Galaxy Toys, Inc. Company Profile
Welcome to Galaxy Toys, Inc.! The assessment projects for this
course will examine different facets of the management of
Galaxy Toys and students will be exploring various scenarios

6. and providing analysis and recommendations from the
perspective of a management consultant. Each project has been
carefully designed to provide students with opportunities to
demonstrate mastery of various management concepts that
students have been developing through various learning
activities presented in the classroom (both in the face-to-face
discussions and online discussions).
· In Project 1, students will demonstrate their understanding of
the broad role of managers within an organization and how
various organizational theories (historical and current) affect
these roles.
· In Project 2, students are expected to apply course concepts
and materials to provide real-world recommendations for
managers that relate to the planning process
· In Project 3, students will present their analysis and
recommendations that demonstrate their ability to organize,
lead, and control employees in ways that ultimately support the
organization’s vision and strategy for business success.
COMPANY PROFILE
History
Galaxy was founded in 1956 by George Jepson and his wife,
Nan after their son Rusty became consumed with the idea of
traveling to the moon. Jepson who had worked previously in
manufacturing, selling, and advertising of games for a company
in Toledo, Ohio, crafted a new spacecraft that delighted his son
and his friends. Nan, who had worked in retail toy sales in the
local Toledo department store, suggested the idea of producing
and selling the toys as a side business. At that time, Nan
persuaded her boss, Jack Mercury, to allow her to produce and
sell the toys. After approval was given it did not take long
before the orders exceeded the Jepson’s ability to produce the
product. Seeing the success of the product, Mercury
approached the Jepson’s and proposed a partnership to
manufacture the spacecraft and other related toy ideas. Galaxy’s
fundamental toy-making principles were centered on strong

7. construction, ingenuity, intrinsic playability and action. Early
adopted toys were made of heavy steel parts and ponderosa
pine, which resisted splintering and held up well to heavy use.
The details and charm were added with colorful lithograph
labels. Nan Jepson, who had attended art school, was the Art
Director and designed push-pull space toys for the opening line
of toys for very young children.
In 1956, the founders took 8 of their toys to the American
International Toy Fair in New York City, and they quickly
became a success. The first Galaxy toy ever sold nationally was
"Space-IX." in 1957 (The same toy, in excellent condition,
would be worth a considerable amount of money in today's
collectibles market.) In the early 1960s, Galaxy identified
plastic as a material that could help the company incorporate
longer-lasting decorations and brighter colors into its toys. By
the end of the 1960s, Galaxy manufactured 39 toys
incorporating plastics. During the 1960s, with America’s
entering the Space Race the “Space Rocket” product line was
introduced and soon overtook popularity of the earlier toys.
The Jepson and Mercury children took over the running of the
company in 1970, when George, Nan and Jack retired. The
children hold the company shares equally and now occupy both
Board and functional positions, making Galaxy Toys the largest
privately owned toy company in the USA. The headquarters for
the company is still located in Toledo, Ohio with factories in
Daytona, Florida, Huntsville, Alabama and White Plains, and
Juarez, Mexico.
Company vision:
To create toys that inspire children all over the globe to dream
of space exploration and provide a yearning to achieve that
dream
Mission:
We create both classic and contemporary space-related toys for
all ages. All products will be safe. We are committed to using
sustainable processes and materials in making our products.
Galaxy’s fundamental toy-making principles center on strong

8. and durable construction, ingenuity, intrinsic playability, and
action while providing toys that are affordable for all.
Products:
Galaxy Toys has created approximately 2500 different toys
since the early 1950s. One of the best-known product lines is
the Apollo Space Rocket line that includes launchable rockets
of various sizes and NASA vehicles that are replicas of the
earlier ones used at Cape Canaveral.
In addition to the Apollo product line, some of the toys and toy
brands that have remained popular for many years include the
Canaveral building set, Create a Moon Surface Kit, Astronaut
Training Center, and the Curious George in Space book and
character set.
In 2000 Galaxy Toys joined forces with NASA to sponsor the
First Annual International Rocket Launch Meet to encourage
children’s interests in space exploration.
In 2009, Galaxy landed the exclusive right to manufacture and
sell all NASA toys sold in the United States and in 2012, this
exclusive right extended to all NASA toys manufactured and
sold overseas.
Current Business Status
Current Business Philosophy:
In desiring to remain on the cutting edge of space exploration
and toy design, the owners of Galaxy Toys have decided that
“long term” planning is limited to the span of a two-year
timeframe, which will allow for them to remain agile in the
current business environment. The needs for innovation and
implementation of cutting-edge ideas are the main focus for the
next two years. The owners acknowledge that incorporating
state-of-the-art technology in both toy design and production is
crucial in meeting its two-year goals. The use of 3D printing as
a means of production, reducing material and labor costs while
shortening production time is the innovative competitive-edge
technique. Sustainability is also a concern because current
sales are slowing. Technology “action” in the toys must
augment the current proprietary toy designs to increase sales

9. and surpass the NASA sales making the company less dependent
on that sector for sales. Growth is achieved through innovation.
The use of “green-friendly” shipping materials and toy
recycling programs are under consideration. Integration of
these two ideas, sustainability and innovation, in new product
line development is the current business driver.
Since the change, Galaxy Toys treats its employees like family.
Employees are valued for their input in the business and
measures are taken to assure their success. The result is the
current small business clan culture atmosphere. The expansion
of the business to Mexico and the possibility for more global
expansion has caused the company to adapt a new hybrid flat
functional structure. This change has pushed the clan culture to
a mixture with a collaborative culture. This new structure and
culture is bringing the company’s decision making closer to
those who have to implement the decisions, thus empowering
more workers and motivating others.
Galaxy Toys, Inc. 2015 Sales Figures:
·
· Gross Toy Sales Per Branch:
· Toledo- $400 million
· Daytona- $225 million
· Huntsville- $200 million
· White Plains- $175 million
· Juarez- $125 million
· Anticipated Sales for 2017 are estimated at 15% over 2016
sales due to a new product line roll out.
Organizational Structure

10. CEO and President
George Jepson, Jr.
Bart Aldrin
Shipping Manager
Daytona
Millicent Marsden Shipping Manager
White Plains
Justin Winter Production Manager
Dayton
Julio Rodriquez, Production Manager
Juarez
Jordan Yaffe
Production Manager
White Plains
Itza Yu
Production Manager
Toledo
Maris Baker
Manager
White Plains
Jordan Miles
Production Manager
Huntsville
Mark Willis
Manager
Juarez
Ann Southern Shipping Manager
Huntsville

11. Kelly McConnell
Manager
Dayton
Samuel Studebaker Manager
Huntsville
Jessica Hare
Manager
Toledo
Juan Valdez
Manager
Juarez
Martin Martinelli Manager
Huntsville
Henrick Huber Manager
White Plains
Board of Directors
Carol Gallay
Manager
Administration
Vice President
Shared Services
Rusty Jepson
CFO
Edward Mercury
Vice President Marketing
Nan Jepson
Vice President Sales
Jose Fuentes
Vice President Quality Control
Terry Mercury
Vice President Production and Shipping
Keith Wisternick
Atsushi Hashmi Manager
Dayton
Alex Beaumont Manager
Toledo

12. Marilyn Moos Manager
Human Resources
Leroy Jethro Disney
Manager
Design & Engineering
Chris Leibowitz
Manager
Finance
Sheldon Cooper
Manager
IT
Alonso Quijano
Manager
Juarez
Randy Eberhart Manager
Huntsville
Allison McKinsey Manager
Dayton
Jillian Michaels Manager
Toledo
George Washington, Jr.
Manager
White Plains
Hernando Gonzalez Shipping Manager
Juarez
Ursula Andress Shipping Manager
Toledo

13. Sales
Percentage of Sales Nasa Rocket Classic 55 25 15