Build-a-bear Workshop Essay Example

of the BBW branding that provides customers their own personal experience to create an original stuffed animal.

The process starts off with choosing your stuffed animal, then choosing a recording you want the bear to say, followed by the stuffing, stitching, and fluffing. The customer then gets to pick out an outfit to dress the animal in and go to a special Build-A-Bear computer and name it. Finally, the customer can take the personalized stuffed furry friend home. This experience is something that no other competitor offers in the market. This company is the first to offer global retail store locations as well a virtual world experience so customers can continue their fun when they get home.

The website is called Bearville. com where the customer brings their new furry friend to life. As stated by the Build-A-Bear corporate website, (2012) “Bearville. com was expanded beyond its virtual world experience into an entertainment destination with a special focus on fun and relevant cultural content for children and families” (sect. Virtual World). Build-A-Bear expanded this website by adding games, shows, a blog, and celebrity interviews. BBW also offers their official award winning website www. BuildABear. com.

On the site their guests can purchase customized stuffed animals, and book a BBW birthday party online. For every party held in a BBW, the company gives St. Jude patients a celebration gift package containing a card from the party guests and a $10 gift card. BBW employs 1200 full time employees and 4800 part time employees worldwide. The world Bearquarters is located in St. Louis Missouri hosting over 100 Associates who all have titles like Bearitory

Leader, Honey Manager, and Professor of Bearology.

The company’s operations team resides at Bearquarters as well with their Chief Workshop Bear, Chief Information Bear, Chief Financial Bear, Chief Marketing Bear and Chief Operating Bear. The founder, Maxine Clark, is referred to as Chief Executive Bear, or Mama Bear. Maxine Clark doesn’t want her company to be so focused on titles. She wants their titles to be fun and doesn’t mind being called the Mama Bear. The Build-A-Bear Workshop operations team is focused on giving their loyal customer base a unique and exciting experience, but also to continue to expand globally.

As stated by Dorfman (2011), “Maxine Clark said the company will continue to implement its strategy of expansion, but also said Build-A-Bear has an obligation to shareholders to consider a broad range of potential strategic alternatives” (para. 1). One of their alternative strategic operation plans has already come to fruition. BBW announced in late 2010 that they have partnered with a children’s licensing company called Squared Entertainment. In this agreement, Squared Entertainment will be helping Build-A-Bear create a stronger external licensing program that includes merchandise to be sold outside of their retail locations.

The merchandise will include DVD’s, apparel, books, and accessories. In addition to this, new programming will be created to expand upon some of the holiday edition Build-A-Bear characters. BBW’s operations strategy is going to continue to expand by adding more new global retail locations as well as in the U. S. As stated by Axler (2010), “The company has decided to increase capital spending by $4m to $12m from last year’s level of $8m for upgrades to infrastructure as

well as the opening of 3 new stores, two stores in the UK in the fall and one new format store in the US” (para. ).

The BBW retail locations are operated by teams of associates. Each associate has a title like Bearitory Leader or Honey Manager. As stated by the Build A Bear website, (2012) “We are an organization that values teamwork. We listen and learn from each other, and we reward and recognize great accomplishments and extra efforts. We look for possibilities, not obstacles, always setting challenging goals to help us strive for breakthrough results” (sect. Our Culture). Team is the name of the game for making sure each Build-A-Bear Workshop customer experiences something magical.

The company insists upon having energetic teams that suggest solutions, independently solve problems, and cultivate a fun atmosphere. According to Griffin (2010), “BBW uses an organization structure that is relatively organic. Sales Associates due to their constant customer interaction are a valuable source of information and expertise for the firm. Relationships are informal and information sharing occurs laterally as well as vertically” (p. 461). Teamwork and culture are a large part of why BBW has experienced growth and financial longevity even amidst the up and downs of the recent global economic downtrends.

Build-A-Bear Workshop has toughed out several years of the dipping global economy however the company isn’t invincible. They have experienced some setbacks that they’ve had to recover from. From 2008 thru 2010, BBW retail locations absorbed a profit decline of 15. 7%. This decline cultivated from producing defective toys and a quality control crisis that came to fruition financially in 2011. Between July

2007 and January 2009, BBW sold toy beach chairs as part of a beach themed bear.

Around 260,000 were sold having sharp edges on their wooden folding frame that could pinch, cut, or even amputate a child's fingertip. In November 2011, BBW recalled 297,200 of their Colorful Hearts Teddy Bears because the toy's plastic eyes could fall out which posed as a possible choking hazard to children. BBW also recalled a pink inflatable inner tube that poses as a strangulation hazard if pulled over a small child's head in December 2011. The inner tube was part of a three-piece Fruit Tutu Bikini swimwear set for teddy bears.

To make matters worse, BBW was accused of failing to report injuries from the toy beach chairs sold in 2009. According to the product safety commission, BBW learned of 10 reports of injury between 2007 and 2009 but did not notify regulators of the incidents until two months before a recall was issued in 2009. As stated by Kumar (2012), “Federal law states that retailers are required to report to regulators within 24 hours upon receiving information that a product contains a defect that could create a substantial hazard or unreasonable risk of serious injury or death” (sect.

Recent Recalls). In BBW defense, the company stated that at the time they did not have enough information or conclusive information that would lead them to believe that any of the products were defective or could cause harm. BBW stated that as soon as the company did have the sufficient information they promptly began working to immediately recall the product and correct the issues. Build-A-Bear also agreed

to pay a $600,000 penalty via the Consumer Product Safety Commission.

This penalty was to settle allegations that they had failed to report a dangerous defect involving its toy bear beach chair. According to Kumar (2012), “Build-A-Bear Workshop discovered the issue while doing ongoing quality and safety checks and immediately reported the issue to the Consumer Product Safety Commission and began the recall process. That we have conducted three products recalls this year despite the fact that we have not received a single injury report related to any of those three products clearly demonstrates how seriously we take product safety” (sect. Recent Recalls).

Despite all of the quality control setbacks BBW communicated with their Operations Team and retail locations that the quality and branding of the BBW products must continue to be held to the highest of standards. The BBW quality standards and return policy has not wavered since the recalls. Once a BBW purchase is made, if at any time the stuffed animal is damaged or ripped due to poor construction, the customer can take it back to the store to be repaired free of charge. The consumers can also flat out return the toy to any BBW store where they will receive a voucher for any other available stuffed animal.

Build-A-Bear Workshop has turned a corner with a larger growth strategy, exciting new product lines, and managing their quality control standards. The company’s substantial industry improvements and continued control of the market share gives BBW a bright outlook for the long term future of the company. Build-A-Bear Workshop’s new customers can look forward to more innovative promotions and the world

class customer service the loyal customer base has come to know and love. Build-A-Bear Workshop continues to be a powerful global brand and families love and trust the brand name worldwide.