Mattel toy recall case study

Get all information about the recall to the public accurately, quickly, and efficiently. Even though this incident occurred in China, and it was the Chinese governments failure to properly protect the public, Mattel was still held liable for all the products produced under its name Ferrell, et.

This is supported by Mattels legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to todays young audience.

5 Lessons Learned From Mattel's Lead Paint Crisis

Lead can be toxic if ingested by young children and can cause adverse health consequences. Mattel being number one toy making company in the world has been faced with several conflicts due to the industries strict jurisdiction under the Consumer Product Safety Commission.

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The website is corporate and cold. By adopting internal auditing practices, Mattel management will be able to learn new techniques for detecting problems, as well as increase their awareness of potential problems.

The toys must meet a series of strict safety standards before they are put on the market. Two months ago, only one of the ten analysts following the company rated it a "buy.

Here are 5 key lessons learned from the crisis at Mattel: However, there are several other courses of actions Mattel can take in order to remedy their management and socioeconomic issues.

Due to the popularity of these highly stylized dolls among Mattels target audience of tweens, domestic sales of Barbie went down 15 percent in and 12 percent in the first quarter ofwhile international sales increased 6 percent in as opposed to 12 percent the previous year http: China Recently, China has had numerous problems with the quality and standards of the products manufactured within the country.

Mattel recalled millions of toys that year, including those produced under licenses for characters including Elmo, Big Bird, Barbie and Polly Pocket.

The New York Times, 28 Aug. Mattel has a number of classic brands, like Hot Wheels and Barbie, "that aren't talked about but should do a decent volume," according to Byrne. There are many threats that Mattel has to face. In addition to the popularity of these technology-based toys, movies, music, and internet, children and teens are also more active in extracurricular activities for example, sports, music, and volunteerism than ever before Ferrell, et.

In fact, Mattel became overconfident about its ability to operate in China without major problems and failed to recognize that the toy recalls were more of systemic problem http: The complexity of multinational operations, particularly the issues of i coordination and control, ii oversights in global supply chains, and iii knowledge management and organizational learning.

Even well-regarded Chinese companies with no link to toys or any hint of safety problems, such as brewer Tsingtao and appliance maker Haier, could suffer in the backlash against the made in China label. Since its acquisition inFisher-Price has become the umbrella brand for all of Mattels infant and preschool lines Ferrell, et.

The leadership of the company must be involved from day one to act inside and outside simultaneously, investigating the issue and implementing crisis control. They are confronted with increasing global and domestic competition, financial problems that include volatile oil prices, international laws and ethics, the lifestyle changes of their target audience, the role of technology in todays products, and the purchasing power and consumer needs in global markets.

There are a few reports and a lawsuit that claim Mattel knew about the defects of their products long before their announcement to the public, but since announcing it, Mattel has constantly been open with the media and their customers.

In order to keep up with these changing technological and socioeconomic trends, Mattel introduced the new line of My Scene dolls aimed at tweens Ferrell, et. Though the recall of the products had created serious problems for Mattel and for manufacturers of China The recall strategy and the various decisions involved in a recall situation.

In AugustCongress passed the Consumer Product Safety Improvement Act, which gave makers and sellers of children's products such as toys, clothing and books have until Feb. But some industry experts think the worst is over for the company and that the stock is now a bargain for long-term investors.

Inabout 95 Mattel and Fisher-Price toy models were determined to have exceeded this limit, the agency said.

5 Lessons Learned From Mattel's Lead Paint Crisis

In a global public relations campaign, Chinese officials have emphasized that the country does have strong safety standards, and that problems at a few companies shouldn't be used to paint the whole country's products as unsafe. Lessons Learned from Companies Caught in the Act.

The lack of a clear-cut "must-have" toy does not appear to have those in the business worried. In July, Hasbro has recalled Chinese-made Easy Bake ovens, marking the second time the iconic toy had been recalled this year. In fact, one of Mattel's strengths is its wide and easily recognizable portfolio of products.

In a conference call on Aug. The products containing lead paint were mostly from this division of Mattel and were all manufactured in China. Case # Mattel, Inc: The Lead Paint Recall 1 Ron Montalto tossed the newspaper onto a growing pile.

The Sept 22, Wall Street Journal headline read “Mattel Seeks to Placate China With Apology.”. Mattel has successfully practiced these responsibilities making them a global leader in children’s toy products. Mattel recently published its first Corporate Social Responsibility´ report, including a strong statement about its commitment to economic, legal, ethical and philanthropic responsibilities.

Mattel: HotWheels Interactive Video

Case 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 $ billion, employing approximately 36, people worldwide in 42 countries.

The case study reports of a dilemma facing Mattel, the biggest toy producer in the world, in the wake of product recalls due to safety issues. Like other manufacturers, the company outsourced most of its production to developing nations as a way of reducing costs and improving competitiveness.

Mattel’s homepage contains a dedicated bold red link to toy recalls containing information about recalls affecting all countries, what toys are being recalled, where to bring recalled toys, and defining Mattel’s three-point safety check system: 1.

Mattel’s China Experience: A Crisis in Toyland Essay

Intoy company Mattel embarked on four major product recalls. The recalls were the result of large quantities of lead found in the paint used in a number of their products.

Mattel, like many other companies, uses contractors in China to manufacture products.

Mattel toy recall case study
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Mattel Case Study by Raed Figueroa on Prezi