Analysis of the Topps Company

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Analysis of the Topps Company The Topps Company, among other things discussed later, is in the business of manufacturing chewing gum and confections. According to the Business and Company Resource Center, the Topps is involved in ten different industry categories. They are listed here with their respective SIC/NAICS codes: Commercial Printing (2759), Chewing Gum (2067), Candy and Other Confectionary products (2064), Periodicals Publishing and Printing (2721), Dolls and Stuffed Toys (3942), other Commercial Printing (323119), Confectionary Manufacturing from Purchased Chocolate (311330), Non-Chocolate Confectionary Manufacturing (311340), Doll and Stuffed Toy Manufacturing (339931), and Periodical Publishers (511120). All of these product industries allowed Topps to accumulate sales of $302.9 million in fiscal year 2002. Topps primarily manufactures sticker collections, confections, comic books, and collectible trading cards. These are the company’s most popular and principally produced products within its international market. Most of Topps’ success has come from the production of the confections and trading cards. These two aspects of their overall industry are by far the most important and beneficial to the company as a whole. With all of the products that Topps produces, there are of course many raw materials that contribute to each entertainment product. In fiscal year 2002, Topps spent $6,395 on their raw materials as compared to $2,860 spent in 2001. The company’s sports cards are the most popular and require a few materials. Film must be on hand constantly, as photographs must be taken of each athlete before computerized technology adds graphic designs to be put on the cards. Other materials needed for their collectible trading cards include large sheets of paperboard for the photos to be printed on, and plastic coating or foil lining to add additional interest to each card. These substrates are purchased in sheet form from specialty printers and are added to the paperboard before being placed on a pressing machine that cuts the paperboard into the individual cards. Raw materials for their confectionary products include many different types of sugars and both natural and artificial flavorings to be mixed in large vats before being processed through another pressing machine which cuts the candy into individual pieces. Eventually, each confectionary product is wrapped in paper or plastic to secure freshness. Paper and adhesives are the primary materials used for the sticker collections produced by Topps. Inks and dyes are used on all products in some shape or form whether it be on a wrapper or on the collectible trading cards being printed up.

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