Economic and financial management You are required to select and research a commercial organisation, based in the UK, which is currently in administration… You are required to identify and research an...

WHY DID TOY “R” US FAIL IN UNITED KINGDOM ?
ABSTRACT
We are analysing why TOY “R” US failed in UK by evaluating the root cause in from both micro and macroeconomic perspective. This paper identifies and evaluates the impact the economy has on business organisations, appraises and applies economic theory to a range of contemporary business related ideas and also analyses the microeconomic and macroeconomic forces on contemporary business.
KEYWORDS
Contemporary business issues, microeconomic causes, failed and poor execution of the strategies.
CONTENTS :
1.INTRODUCTION
2. BACKGROUND OF THE COMPANY
3. WHY CHOOSED TOY “R” US
4. MICRO ENVIRONMENTAL FACTORS WHICH LED TO FAILURE
5.CONCLUSION
6.REFERENCES
1.INTRODUCTION:
“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages”
― Adam Smith, “ An Inquiry into the Nature and Causes of the Wealth of Nations”.
These words, written and explained by the Scottish Economists, Adam Smith in his famous book, “ An Inquiry into the Nature and Causes of the Wealth of Nations” which was published in the year 1776. Adam Smith wrote this fundamental book on how free markets work. The Wealth of Nations offered a number of important ideas about what makes an economy work, including the crucial role that human self-interest plays. Smith is saying that participants in the economy are motivated by self-interest and the “invisible hand”- the demand and supply, of the market place guides this self-interest into promoting general economics. The invisible hand is powerful, but it is not omnipotent.
A modern economy produces millions of goods and services for people to choose from. It provides jobs for most people who want to work.
Toys "R" Us  is an international business organization which retails toys, clothing , baby products and other various products all around the globe. It was established in April 1948 by Charles Lazarus, with its headquarters located in Wayne, New Jersey in the New York metropolitan area. The company had been in the toy business for more than 65 years and operated around 800 stores in the United States and around 800 more stores around the globe.
2. BACKGROUND OF THE COMPANY :
The number of stores has decreased with time and so has the popularity of the company.  At its peak, Toys "R" Us was considered a classic example of a monopoly in the toy market. However, with the emergence other toy makers online retailers and e-commerce Toys "R" Us began to lose its share and popularity in the market.
The company faced a lot of...