Question

Fish-bone or Cause-and-effect or Ishikawa diagram
On March 15th, 2018, it was announced that US operations of Toys “R” Us, an international toy store, after 70 years of operation, were going out of business and selling all 735 locations in the US. Please, create a cause-and-effect diagram or Ishikawa diagram for this situation and provide a detailed description of the most likely causes of the US operations of Toys “R” Us going out of business.

Answer 1

The diagram is as below=

There may be various reasons for the company to go out of business. This could cause due to the higher competition in the market and the government policies which are exerting unfavorable pressure on the company. At the same time, the operations f the company are becoming financially unviable. Apart from this, the manpower of the company may be needing more salaries making it not feasible for the company to lower the cost of the production. At the same time, the manpower is not having the required skill level that puts the company at a disadvantageous position. Machines can be outdated and need upgrading but there is no sufficient fund. The competition in the industry can be quite high and marketing becomes ineffective.