...Mattel Recalls 2007 Communication Implications for Quality Control, Outsourcing, and Consumer Relations [ABSTRACT] In August 2007, America's largest toy manufacturer announced the first of what would become five recalls involving 21 million toys—most of which were manufactured in China. This case study and teaching note examine a corporate response to a global crisis and consider the unique communications challenges facing a corporation that operates in an international, crosscultural arena. The teaching note critiques the response’s suitability to the level and impact of the crisis and recommends alternatives. It illustrates that communicators should be cognizant of their international stakeholders and should proactively manage global issues of public concern such as outsourcing and product safety. An example would be that to avert future recalls, Mattel should work closely with its Chinese suppliers and government agencies to implement realistic quality control solutions for which it can be held accountable. The company must reassure stakeholders that outsourcing to China does not mean sacrificing quality. Regaining consumer confidence and controlling the dissemination of product safety information requires strong corporate communicators who can delicately and deliberately balance complex relationships. Table of Contents I. Case Study 1. Overview 2. Company History 2.1 Beginnings 2.2 Reorganization as Mattel, Inc. 2.3 Products 2.4 Accolades for Ethics 2.5 Financial Performance...
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...| Case Study | Mattel’s Toy Recall And Supply Chain Management | | | 5/11/2014 | | 1) 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 products at effective cost. * The companies can get the tax benefits and other government policy advantages by producing their products at overseas. * The companies can also get the lower cost suppliers from different countries. * The company can get the advantage of currency fluctuation to produce the products at lower currency rate. 2) What were the primary causes of Mattel’s recall problems? Answer: There were several causes for Mattel’s toy recall. But the primary causes are problems in manufacturing, design and usage. * Manufacturing Problems: One primary problem is the use of excessive lead paint in toys. Lead was commonly used in paint. However, it is a neurotoxin and is harmful to developing brains in children. Repeated exposure can cause serious brain damage. * Design problems: A second cause for recall was defect in product design. That was the result of increasing use of small powerful magnets in children’s toys. If the designs of these toys were...
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...Mattel Case Study analysis II Problem Statement As per the case study, Mattel’s main issue is that they are not living up to their core mission. The case clearly states that Mattel’s philosophy is to satisfy the customer’s needs and wants. Delivering what the customer needs and wants can be segregated into two broad categories: First, product development: According to the case, Mattel’s product development ensures that its portfolio never stagnates. Unfortunately, Mattel has failed to adapt to the evolving demands of children, as they are becoming increasingly technologically savvy and are therefore interested in electronic and interactive rather than traditional toys such as Barbie or Hot Wheels at a younger age. This is evident, for example, from the demise of the ‘ELLO’ building toys for young girls1.The product development disparity between customers’ needs and Mattel’s production is further demonstrated by their lack of attention to their global market, which, according to the text, account for 46% of gross sales. This is evident in the Malaysian Consumers Association having attempted to ban the Barbie brand, one of Mattel’s core products, because of her non-Asian appearance and the lack of intellectual stimulation that Barbie provides; and many other countries are following suit. According to the text, Asian sales account for a mere 11% of Mattel’s gross revenues. Second, Corporate and Social Responsibility: A strong product is no longer enough; customers increasingly...
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...Summary This case is about the recalls of 2007 by Mattel Toys produced in China due to lead found in paint used to produce the toys and due to loose magnets that could cause serious injury to children if ingested. Mattel blamed the lead paint problem on its Chinese suppliers who had subcontracted with other suppliers. The media storm around the recalls caused a loss of consumer confidence in the “Made in China” brand. Chinese officials felt that Mattel unfairly blamed Chinese suppliers for all the recall problems when in fact, the lead issue was relatively small and the remainder of the recalls was due to design problems over which the Chinese suppliers had no control. They were merely producing the products Mattel had designed in the U.S. and had no control over the design process. Evaluate Alternatives Mattel seems to have lost touch with some of the links in its supply chain for the lead paint related toys and there was a lack of enforcement if the suppliers didn’t follow Mattel’s rules. Some Chinese suppliers also subcontracted to other suppliers who also did not comply with Mattel requirements and Mattel wasn’t aware of the subcontracting. For example, Lee Der was a high quality, trusted manufacturing company which had worked exclusively for Mattel since its founding. Lee Der’s paint supplier was Dongxing New Energy, owned by a best friend of Lee Der’s deputy chair, Chueng. Dongxing was not on the approved supplier list for Mattel and Mattel had not noticed...
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...MATTEL 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 Mattel's toys. On September 4, Mattel announced three more recalls. Some were due to the use of lead paint, while others were due to small magnets coming loose. On August 2, 2007, Mattel's Fisher-‐Price subsidiary recalled almost one million Chinese-‐made toys, including the famous cartoon brands amongst kids:Dora the Explorer and Sesame Street toys, because of potential hazards from parts of the toys which were colored using lead-‐based paint that may have exceeded the US Federal limit of 600 parts per million. Q1. What should the country do to polish its image? -‐First, the central government must ensure that manufacturing quality standards and health and safety laws are tightened and enforced nationwide. Western multinationals...
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...Assignment Case Study A Brawl in Mickey's Backyard Case Study: A Brawl in Mickey's Backyard Read the Brawl in Mickey's Backyard Case Study at the end of Chapter One in your text. In one to two double-spaced pages, supported by evidence in your text and from other research, answer the following questions: Who are the relevant market and nonmarket stakeholders in this situation? What possible solutions to this dispute do you think might emerge from dialogue between SunCal and its stakeholders? Submit to your instructor no later than day 7 (Monday). Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment. Week 1 DQ1 Business & Society In one paragraph, supported by evidence in your text and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's...
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...Assignment Case Study A Brawl in Mickey's Backyard Case Study: A Brawl in Mickey's Backyard Read the Brawl in Mickey's Backyard Case Study at the end of Chapter One in your text. In one to two double-spaced pages, supported by evidence in your text and from other research, answer the following questions: Who are the relevant market and nonmarket stakeholders in this situation? What possible solutions to this dispute do you think might emerge from dialogue between SunCal and its stakeholders? Submit to your instructor no later than day 7 (Monday). Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment. Week 1 DQ1 Business & Society In one paragraph, supported by evidence in your text and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's...
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...Assignment Case Study A Brawl in Mickey's Backyard Case Study: A Brawl in Mickey's Backyard Read the Brawl in Mickey's Backyard Case Study at the end of Chapter One in your text. In one to two double-spaced pages, supported by evidence in your text and from other research, answer the following questions: Who are the relevant market and nonmarket stakeholders in this situation? What possible solutions to this dispute do you think might emerge from dialogue between SunCal and its stakeholders? Submit to your instructor no later than day 7 (Monday). Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment. Week 1 DQ1 Business & Society In one paragraph, supported by evidence in your text and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's...
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...Assignment Case Study A Brawl in Mickey's Backyard Case Study: A Brawl in Mickey's Backyard Read the Brawl in Mickey's Backyard Case Study at the end of Chapter One in your text. In one to two double-spaced pages, supported by evidence in your text and from other research, answer the following questions: Who are the relevant market and nonmarket stakeholders in this situation? What possible solutions to this dispute do you think might emerge from dialogue between SunCal and its stakeholders? Submit to your instructor no later than day 7 (Monday). Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment. Week 1 DQ1 Business & Society In one paragraph, supported by evidence in your text and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's...
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...Assignment Case Study A Brawl in Mickey's Backyard Case Study: A Brawl in Mickey's Backyard Read the Brawl in Mickey's Backyard Case Study at the end of Chapter One in your text. In one to two double-spaced pages, supported by evidence in your text and from other research, answer the following questions: Who are the relevant market and nonmarket stakeholders in this situation? What possible solutions to this dispute do you think might emerge from dialogue between SunCal and its stakeholders? Submit to your instructor no later than day 7 (Monday). Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment. Week 1 DQ1 Business & Society In one paragraph, supported by evidence in your text and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's...
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...Recovery of Trust: Case studies of organisational failures and trust repair BY GRAHAM DIETZ AND NICOLE GILLESPIE Published by the Institute of Business Ethics Occasional Paper 5 Authors Dr Graham Dietz is a Senior Lecturer in Human Resource Management and Organisational Behaviour at Durham University, UK. His research focuses on trust repair after organisational failures, as well as trust-building across cultures. Together with his co-author on this report, his most recent co-edited book is Organizational Trust: A cultural perspective (Cambridge University Press). Dr Nicole Gillespie is a Senior Lecturer in Management at the University of Queensland, Australia. Her research focuses on building, repairing and measuring trust in organisations and across cultural and professional boundaries. In addition, Nicole researches in the areas of leadership, teams and employee engagement. Acknowledgements The authors would like to thank the contact persons in the featured organisations for their comments on an earlier draft of this Paper. The IBE is particularly grateful to Severn Trent and BAE Systems for their support of this project. All rights reserved. To reproduce or transmit this book in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, please obtain prior permission in writing from the publisher. The Recovery of Trust: Case studies of organisational failures...
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...Paper 5 The Recovery of Trust: Case studies of organisational failures and trust repair BY GRAHAM DIETZ AND NICOLE GILLESPIE Published by the Institute of Business Ethics Occasional Paper 5 Authors Dr Graham Dietz is a Senior Lecturer in Human Resource Management and Organisational Behaviour at Durham University, UK. His research focuses on trust repair after organisational failures, as well as trust-building across cultures. Together with his co-author on this report, his most recent co-edited book is Organizational Trust: A cultural perspective (Cambridge University Press). Dr Nicole Gillespie is a Senior Lecturer in Management at the University of Queensland, Australia. Her research focuses on building, repairing and measuring trust in organisations and across cultural and professional boundaries. In addition, Nicole researches in the areas of leadership, teams and employee engagement. Acknowledgements The authors would like to thank the contact persons in the featured organisations for their comments on an earlier draft of this Paper. The IBE is particularly grateful to Severn Trent and BAE Systems for their support of this project. All rights reserved. To reproduce or transmit this book in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, please obtain prior permission in writing from the publisher. The Recovery of Trust: Case studies of organisational failures and...
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...Assignment Case Study A Brawl in Mickey's Backyard Case Study: A Brawl in Mickey's Backyard Read the Brawl in Mickey's Backyard Case Study at the end of Chapter One in your text. In one to two double-spaced pages, supported by evidence in your text and from other research, answer the following questions: Who are the relevant market and nonmarket stakeholders in this situation? What possible solutions to this dispute do you think might emerge from dialogue between SunCal and its stakeholders? Submit to your instructor no later than day 7 (Monday). Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment. Week 1 DQ1 Business & Society In one paragraph, supported by evidence in your text and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's...
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...Assignment Case Study A Brawl in Mickey's Backyard Case Study: A Brawl in Mickey's Backyard Read the Brawl in Mickey's Backyard Case Study at the end of Chapter One in your text. In one to two double-spaced pages, supported by evidence in your text and from other research, answer the following questions: Who are the relevant market and nonmarket stakeholders in this situation? What possible solutions to this dispute do you think might emerge from dialogue between SunCal and its stakeholders? Submit to your instructor no later than day 7 (Monday). Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment. Week 1 DQ1 Business & Society In one paragraph, supported by evidence in your text and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's...
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...Assignment Case Study A Brawl in Mickey's Backyard Case Study: A Brawl in Mickey's Backyard Read the Brawl in Mickey's Backyard Case Study at the end of Chapter One in your text. In one to two double-spaced pages, supported by evidence in your text and from other research, answer the following questions: Who are the relevant market and nonmarket stakeholders in this situation? What possible solutions to this dispute do you think might emerge from dialogue between SunCal and its stakeholders? Submit to your instructor no later than day 7 (Monday). Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment. Week 1 DQ1 Business & Society In one paragraph, supported by evidence in your text and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's...
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