The 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 to the CPSC by a month and a half after they found out that the toys contained lead paint, even though the CPSC guidelines state that a re-call should be issued in 24 hours.
2. Who are Mattel’s stakeholders, who did Mattel cater to in the recall?
Mattel’s stakeholders are the parents buying the toys, the retailers, the employees, the shareholders, management, China, business partners, CPSC, the government and third party contractors. The recall catered to the shareholders thus putting the bottom line ahead of the customer safety.
3. What values did Mattel exhibit during the recall? How did it affect Mattel?
By waiting over a month to make a potential toy hazard public, Mattel evaded the truth. Even though a little late, Mattel did work with the CPSC to launch an external media blitz to alert the customers. Also the CEO of the company Robert Eckert apologized to parents in a video posted on website and expressed Mattel's emphasis on family when he spoke to parents from his perspective as a father. In addition, posting news releases and video interviews on its website kept the customers informed and created a degree of transparency and honesty. The company praises itself in the safety and care for all their products and has been a leader in the industry in regards to corporate responsibility. The company also emphasized the new three-point safety check system. When the recall was issued Mattel came across as untrustworthy and lacking integrity to admit its own flaws and mistakes. In the months that follow though Mattel did do the right thing and addressed all the issues head on and worked diligently to fix or improve them. Given the circumstances Mattel did what it had to do from the standpoint of communication to reduce the reputational damage and keep the stock price afloat.
Regaining consumer confidence and controlling the dissemination of product safety information requires strong corporate communicators who can deliberately balance supplier, customer, governmental, media, and investor relationships.
4. What should Mattel do know and in the future?
First and foremost Mattel should improve two-way, interpersonal communication with two key customers: parents and the retailers. Corporate communication campaigns should increase interaction with consumers online via message boards and social media. Retailers have the most face-to-face contact with consumers. Mattel should equip them to answer consumer questions comprehensively and accurately.
In the future Mattel should aim to anticipate future crises by scanning domestic and international consumer watch groups, industry websites and work even closer with CPSC. The understanding of domestic and international markets is crucial in being ready to prevent any safety related issues that are on the horizon. Mattel should strive to ensure that each country receives products held to the same safety standards as the US. Sub-standard products should not be dumped on developing markets. The one miss for a lot of international companies is the lack of understanding cultural nuances and Mattel is one of them. In addition Mattel should make it crystal clear that every single one of its factories worldwide should implement the three-step safety check process. Last but not least Mattel should work closely with its Chinese suppliers and government agencies operating within the toy industry, to ensure realistic quality control solutions for which it can be held accountable. Improve international, cross-cultural communication.
5. Who is responsible for product quality?
In the end Mattel is responsible for product quality even this requires implementing additional checks and balances and resources.
6. How does a company maintain a quality reputation?
Monitor each step of the process closely and make swift decisions in fixing a small issue before it becomes a calamity. Be transparent and stand by your product. Contractually limit suppliers to outsource to third parties. The same actions in good times and bad should convey the company's character: toy safety and product safety, quality control when outsourcing to China, and toy safety inspection processes.