Mattel’s Chinese Sourcing Crisis of 2007 Bob Eckhart, CEO of Mattel (US), had a problem Mattel had discovered on July 30 that a number of its toys manufactured in China contained lead paint The following month had seen a series of recalls, rising political tensions between the United States and Chinese governments, and a suicide But no company had been in China longer than Mattel; the original Barbie had been created there in 1959 Mattel had a depth of experience and a longevity of relationships
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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
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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
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Mattel Case Study Travis Horbulyk 100119910 February 9th, 2012 Problems: * Decrease in market share * Damage to their brand image Issues: * Unable to keep up with changing technology * Children not playing with toys as much as they use to * Battered reputation due to the safety of their toys SWOT Analysis: * Strengths * Brand Name * Strong customer base * Excellent variety of products for both boys and girls * Mattel has been in the
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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
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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
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CASE: MATTEL AND TOY RECALLS Toy Industry Our presentation started with the industry introduction. Based on the case, toy industry was growing if we compared the results with the previous year. In 2007, the global toy market was around $71 billion business. Though 36% of the market was on the hands of North America, the growth pace was slower than Asia. Especially in China and India it was estimated that market would increase 25% more than previous year. The toy industry in USA had about 880 companies
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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
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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, reducing manufacturing cost significantly. Causes of Mattel’s Recall Problem There are three main causes for Mattel’s toy recall: manufacturing problems which refers
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1.a. How are the tradeoffs between in-house production and outsourcing? In Mattel´s case the tradeoffs between in-house production and outsourcing are: Advantages of Outsourcing (= Disadvantages of In –house production) | Disadvantages of Outsourcing (= Advantages of In –house production) | 1. Low wages and strategic location of the supplier will translate into low prices. Mattel can receive benefits of having as its supplier a company that is located in a country were the wages are low, as
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