Hasbro Strategy
Hasbro, Inc
Strategic Management Project
MBA 670
Corporate Description
Company & Industry Description History of the Firm In 1923, two brothers who migrated from Poland started a small business by selling textile remnants. In 1926, the Hassenfeld’s officially organized what is known today as Hasbro Inc. In the 1940’s, the brother duo expanded by offering pencil boxes and school supplies. By 1950, they were ready to leap into another market by introducing its novelty toy, “Mr. Potato Head”. GI Joe was introduced in 1963 producing revenue sells in excess of 28 million dollars the next two years after Hasbro spent nearly 2 million in TV ads (Miller 1998). In addition to toys, Hasbro develops games most notably Monopoly which was first introduced in 1935. Decades later, Hasbro continues to be innovative with product design, introduction of new products, developing brand recognition to maintain being a leader in the game and toy industry. Ownership Characteristics Hasbro Inc is a publicly traded company in the NYSE. Alan Hassenfeld, Chairman of the Board of Hasbro Inc., owns about 4% in shares of the company; while other corporations such as The State Street Corporation and Barkley’s Global Investors UK Holding LTD are the major institutional stockholders and each own approximately 6% of the company. While there are other private stockholders owning significant amount of shares in the company, most of the ownership is comprised by institutional and mutual fun holders. Financial Condition i. Financial Statements (Appendix) ii. Level of Performance Hasbro Inc. has been able to increase its net revenues consistently from 2002 through 2006. Its net revenues rose from $ 2,816,230 in 2002 to $ 3,151,481 while Hasbro Inc. produced Net Earnings starting 2003 of $ 158,000 which are now up to $ 230,000 in 2006. Additionally, Shareholder’s Equity was increased over the last 4 years by almost
Strategic Management Project
MBA 670
Corporate Description
Company & Industry Description History of the Firm In 1923, two brothers who migrated from Poland started a small business by selling textile remnants. In 1926, the Hassenfeld’s officially organized what is known today as Hasbro Inc. In the 1940’s, the brother duo expanded by offering pencil boxes and school supplies. By 1950, they were ready to leap into another market by introducing its novelty toy, “Mr. Potato Head”. GI Joe was introduced in 1963 producing revenue sells in excess of 28 million dollars the next two years after Hasbro spent nearly 2 million in TV ads (Miller 1998). In addition to toys, Hasbro develops games most notably Monopoly which was first introduced in 1935. Decades later, Hasbro continues to be innovative with product design, introduction of new products, developing brand recognition to maintain being a leader in the game and toy industry. Ownership Characteristics Hasbro Inc is a publicly traded company in the NYSE. Alan Hassenfeld, Chairman of the Board of Hasbro Inc., owns about 4% in shares of the company; while other corporations such as The State Street Corporation and Barkley’s Global Investors UK Holding LTD are the major institutional stockholders and each own approximately 6% of the company. While there are other private stockholders owning significant amount of shares in the company, most of the ownership is comprised by institutional and mutual fun holders. Financial Condition i. Financial Statements (Appendix) ii. Level of Performance Hasbro Inc. has been able to increase its net revenues consistently from 2002 through 2006. Its net revenues rose from $ 2,816,230 in 2002 to $ 3,151,481 while Hasbro Inc. produced Net Earnings starting 2003 of $ 158,000 which are now up to $ 230,000 in 2006. Additionally, Shareholder’s Equity was increased over the last 4 years by almost