Mattel Toys Recall Case - 1068 Words

Mattel’s Motivations for Outsourcing Companies outsource for a variety of reasons. Most companies primarily outsource manufacturing, labor-intensive jobs to companies located in developing countries at a lower cost. If quality level is maintained, outsourcing can be a great value-added strategy. Through outsourcing, companies can achieve flexibility and are able to focus on their main business. Outsourcing may also enable companies to have access to resources and technology, which may be not have been available locally. Furthermore, expertise in risk management, financial management, and other fields can be contracted through outsourcing. As far as Mattel is concerned, the key motivation for outsourcing is to have access to cheap labor,†¦show more content†¦safety standards. Actions taken by Chinese government did solve some problems such as regulation inconsistency and lacking corporate responsibility, but they also created bottlenecks that led to shipment delays at an additional cost to the manufacturers. Uni ted States politicians criticized both Mattel and China and U.S. government along with the European Union threatened to ban toy imports from China unless government inspectors ensure safety. Suggestions for Mattel and China To completely eliminate the trust issue, Mattel should consider moving from outsourcing to offshoring. While it may be costly at first, long-term benefits can be realized as both quality and imitation issue can be successfully addressed. Rather than changing their strategy, Mattel can send their own highly trained employees to work cooperatively with outsourcing manufacturers, supervising their daily activity to ensure quality and compliance instead of testing every toy after the production process is complete. These supervisors should directly report to top officials of the company to ensure an effective information flow. Mattel can also set up compensation incentives to reward contracted manufacturers that offer consistent best quality products. While enforcing manufacturers to sign documents and enhance productionShow MoreRelatedMattel Toys Recall Case Study1197 Words   |  5 PagesMATTEL TOYS RECALL CASE STUDY Product   recall:    On   August   14,   2007,   the   U.S.   Consumer   Product   Safety    Commission   (CPSC)   in   cooperation   with   Mattel   announced   five    different   recalls   of   Mattels   toys.   On   September   4,   Mattel    announced   three   more   recalls.   Some   were   due   to   the   use   of   lead    paint,   while   others   were   due   to Read MoreCase Case Study : Mattel Toy Recall1263 Words   |  6 Pages Case Study 2 – Mattel 1. Do you believe that Mattel acted in a socially responsible and ethical manner with regard to the safety of its toys? Why or Why not? What should or could Mattel have done differently, if anything? As the makers of children’s toys, Mattel has the ultimate responsibility to ensure that every toy is made within the tightest of safety standards. With the case of the Mattel toy recall, the company acted within the spectrum of their code of conduct that was titled Global ManufacturingRead MoreCase Study 2.Mattel Toys Recall5090 Words   |  21 Pagesan overview of the toys industry. The global toy market was estimated to be $71 billion business in 2007. About 36 percent of the global market was concentrated in North America(about $24 billion), but annual sales in this region were growing at a slower pace. However, the asia market had grew at 12 percent in 2006, and were expected to grow by 25 percent , especially in China and India.There are about 880 companies in the toys industry. The main key players such as Mattel, Hasbro, RC2, JAAKSRead MoreMattel and Toy Safety Case Study Answers1026 Words   |  5 PagesCase Study: Mattel and Toy Safety 1. Introduction 1. Situational Analysis Mattel Inc., headquartered in El Segundo, California was the global leader in design, manufacture and marketing of toys and family products. Mattel toy lines included such best selling brands as Barbie, Hot Wheels, Matchbox, American Girl, Radica and Tyco as well as Fisher-Price brands including Little People, Power Wheels and a wide range of entertainment-inspired toys. In 2007, Mattel manufactured aboutRead MoreMattel case study1229 Words   |  5 Pages Case Study Mattel’s Toy Recall And Supply Chain Management Susita Asree5/11/2014 MGMT 516 By: Divangi Shah CWID: 802164541 Why do firms contract overseas for production of products they sell? Answer: The firms contract overseas for production of the products they sell to gain certain advantages from the different countries. One of the biggest advantages is cheap labor that cut down the cost of the products. To get the advantage of the cheap fuel prices and raw materials to make the productsRead MoreMattel and the Toy Recalls1684 Words   |  7 Pages‘Mattel and the Toy Recalls’ (Case A) Related information: Mattel, Inc. is a toy manufacturing company founded in 1945 with headquarters in El Segundo, California. In 2010, it ranked #387 on the Fortune 500. The products and brands it produces include Fisher-Price, Barbie dolls, Monster High dolls, Hot Wheels and Matchbox toys, Masters of the Universe, American Girl dolls, board games, WWE Toys, and early-1980s video game systems. Mattel â€Å"designs, manufactures, and markets a broad variety of toyRead More‚Äà ºMATTEL: CRISIS MANAGEMENT OR MANAGEMENT CRISIS‚Äà ¹1429 Words   |  6 Pagesï » ¿Based in California, Mattel, Inc. designed, manufactured, and marketed a broad variety of toy products. The company’s core product lines included Barbie fashion dolls, Hot Wheels die- cast vehicles, Fisher-Price preschool toys along with Disney toys and games like Scrabble (Johnson, 2010). Summer of 2007, Mattel, a global leader in toy manufacturing was faced with a tough challenge of restoring thei r consumer confidence following several recalls of their toys made in China. Mattel known for possessingRead More2007 Mattel Recall Case Study1704 Words   |  7 Pages Caltagirone OPMG 486 November 18, 2014 MATTEL TOY RECALLS SUMMARY Mattel Incorporated is now the second largest global toy manufacturing company after being the largest toy manufacturer for years (Soloman). Mattel Inc., headquartered in El Segundo, California, produces well-known toys such as Barbie, Hot Wheels, and Fisher-Price toys for children. Mattel is not only a leader in the toy industry with over $6 Billion in sales in 2013 (Soloman), Mattel also leads the industry in corporate responsibilityRead MoreCase Analysis: Mattel and Toy Safety Essay1721 Words   |  7 PagesCase Analysis: Mattel and Toy Safety Introduction Mattel Corporation is the largest toy company in the world, a publicly traded organization with a market capitalization of over $6.5 billion, employing approximately 36,000 people worldwide in 42 countries. Their products are sold in 150 nations (mattel.com). In the summer of 2007, Mattel suffered a major product recall incident. The first recall was the result of vendor failure in China where traces of lead paint were discoveredRead MoreMattel and Ttoy Recalls732 Words   |  3 PagesThe Mattel and the Toy Recalls integrative case poses six questions (four from the case and two from the professor) which will be addressed in this analysis. 1. What went wrong with Mattel’s recall strategy? The strategy used by Mattel in the toy recall was focused on passing the blame to China’s work practices and materials used. Mattel prematurely placed disproportionate blame on Chinese manufacturers and appeared defensive and somewhat fearful. In addition, the toy manufacture delayed reporting