The company also gets affected by changing in the regulations framework of the country. If the government increases the taxes then the profits earned by the Toys R Us is affected indirectly. Besides taxes, a recession also affects. When the risk arises on the employment of the consumers there will be a sudden change in the priorities or preferences. They avoid buying the products which are not on priority but give only happiness which is called leisure items. Society also affects on the toy company. Children are more attracted towards the technology and the children in between the age 5years to 12years are more devoted for their studies instead of spending their limited time on leisure activities. So it affects on the purchasing preference of the consumers (O’Shannassy.T, 2003). All such factors should not be avoided by any of the company because ultimately the focus of the company is always on the consumers. So external analyses are the only way to solve such problem and make the company be aware about the factors which are occurring outside the company. An internal factor also affects the strategies of the company like changes in the employees and employer relationship, employees are not fully trained etc. which cannot be ignore.