Diversity Training at Toys "R" Us, Inc

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Case Details:

Case Code : HROB080
Case Length : 8 Pages
Period : 1998
Pub. Date : 2006
Teaching Note :Not Available
Organization : Toys "R" US, Inc.
Industry : Toys
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note Contd...

In 1983, TRUI opened its first Kids "R" Us store, which sold clothes and accessories of the 'KRU' brand as well as of other brands. In 1984, the company ventured abroad, opening a store in Canada.

In 1996, TRUI opened the first Babies "R" Us (BRU) store, in Westbury, New York. BRU stocked a wide selection of baby products like baby furniture, infant care products, clothing, and toys. In June 1998, TRUI launched toysrus.com, an e-commerce website. In 1999, TRUI acquired Imaginarium, a chain of 41 stores which sold learning and educational toys.

In order to reach a larger market with BRU, TRUI launched babiesrus.com in June 2000. In August 2000, TRUI formed a strategic alliance with amazon.com and made its toysrus.com into a co-branded online toy and video-game store. The online store sold exclusive brands like Animal Alley and Home Depot, in addition to popular branded toys.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

In early 2001, as part of its strategic alliance with Amazon, the company shifted the website of babiesrus.com also to the platform of amazon.com.

In July 2001, TRUI launched its imaginarium.com website. At the same time, TRUI began selling off its Imaginarium stores in various locations. In October 2002, TRUI launched another website called personalizedbyrus.com, which allowed customers to choose from a wide selection of gifts for the whole family, and personalize them. By January 2004, TRUI had sold off all the brick-and-mortar Imaginarium stores, retaining its presence solely on the internet. In July 2005, TRUI went private after a consortium which included Kohlberg Kravis Roberts & Co.,⁴ Bain Capital, LLC⁵ and real estate developer Vornado Realty Trust, bought the company (Refer Exhibit I for TRUI's financials for the five-year period 2001-05)...

Excerpts >>

4] Kohlberg Kravis Roberts & Co., established in 1976, is one of the oldest private equity firms. The company specializes in management buy-outs. It invests on behalf of itself and institutional investors like state and corporate pension funds, banks, insurance companies and other financial institutions.

5] Bain Capital LLC, established in 1984, is one of the world's leading private investment firms and has offices in Boston, New York, London and Munich. Bain Capital's family of funds includes private equity, venture capital, public equity and leveraged debt assets. The firm has several affiliates like Brookside Capital, Sankaty Advisors, Bain Capital (Europe) Ltd etc.