Mattel is the world’s #1 toy maker with more than 30,000 employees and more than $4 billion in sales. A well-established core product portfolio has set Mattel’s established position in the toy market much higher than their competitors. Its products include Barbie, Fisher-Price toys, Hot Wheels and Matchbox Cars, American Girl dolls books, and licensed Disney and Sesame Street products are just a few that have helped them reach such great profits throughout the world. Although Mattel leads the industry, it recognizes the complexity of staying on top in a highly competitive and shifting business. While keeping their sales outlets current, toy companies must constantly seek to achieve the next big hit. In addition the rising pressure of big-box retailers, the Internet, and catalog sales have affected the direction of the industry in more ways than one.…
We as a manufacturer of tangible products must ensure our merchandise is of the best quality before it reaches the consumer. This is imperative if we are to maintain a competitive advantage in the marketplace, while in addition earning repetitive and referral business from our customers.…
Our firm is the producer of tangible products. We, as a company, must ensure that we are delivering the highest quality products to our customers to maintain a quality reputation and in order to earn repeat and referral business. We have identified the three types of costs associated with the implementation of quality considerations. We believe that if we are mindful of the following costs our quality will improve, our customer satisfaction will improve and our business will prosper. The three types of costs associated with quality considerations are prevention costs, appraisal costs, internal and external failure costs. Prevention costs are the most effective way to avoid unnecessary problems with production and sales quality. These costs are defined as any steps we as a company can take to pre-emptively avoid any future defects by providing our employees with things such as, proper tools to complete their assigned work, safe and proper working conditions, proper and effective training of all new employees and continual training and education for all existing employees, and by implementing quality control systems to ensure all products produced are up to the company’s and customer’s quality standards. Appraisal costs are the costs associated with the testing and inspection of purchased materials used in the productions process, inspection of the items the company is producing, checking items produced for conformance, quality control audits and field testing of items produced and the cost of the labor associated with all of these items. These costs are ultimately the quality costs resulting from quality control and while they may be high in numbers but are imperative during the manufacturing and production processes. Internal failure costs are the costs that we would incur should we fail to meet the quality standards of the…
* A review of Tom’s previous case files shows four female clients who terminated counseling with no explanation…
SUN, H. and CHUNG, W. W. (2005). “Critical success factors for new product development in the Hong Kong toy industry”, Technovation, Vol. 25, No. 3, March 2005, pp.293-303.…
Production: 3% of net variance in material, labour, variable overhead, labour rate variance, and the variable and…
A reduction in market share during these three years indicates that Woodty’s brand is becoming less preferred among competitors. There may be one reason to explain the decline in the revenue market share of Woodty’s brand. Jones toys came into existence in 2015 that posing a potential threat on it, Jones brand quickly seized 31% of revenue market share through lower price (£300) and cost leadership strategy (£180) when it entered…
A main decision error that the company can fall into is making predictions and decisions based on earlier success. It is proven that in the toy industry the average lifetime of a product is known to be 18 months which makes it important for the company to be up to date with style. The company shouldn’t make the mistake of innovating a product in this constantly changing environment because each product should have a unique competitive advantage. These types of decisions should not be made because it is programmed and known to be available heuristics which should be avoided at all times. The original product should not be reinvented since it will not allow for an opportunity to reach success at its peak. According to the fast pace speed of the market, representative heuristic is also something that should be avoided since a reinvention will take away from the original invention. Since the toy industry is mainly marketed towards children, it is crucial that predictions based on reactions are not made. If these types of predictions are made, then framing error will take place which is defining something as a positive or negative without looking at the product as…
This article discusses the organizational growth, obstacles and changes of toy maker, Mattel. Over their 50 years of experience, Mattel has grown from a garage run shop to an international super star. The case mainly addresses CEO, Bob Eckert’s organizational changes that catapulted Mattel to industry leadership. In a 2008 interview, Mr. Eckert says “if you can consistently try to do the right thing, life is so much easier. If you live by your basic values, a) you'll get through it, and b) you'll feel satisfied that you did the best you could” (Yang, 2008). By examining Mattel’s admirable reactions to adversity, the article demonstrates how the CEO really lives by these words. Through effective change and excellent communication both internally and externally, Mattel has become an industry leader and a positive example of doing the right thing. It finishes by analyzing Mattel’s efforts to correct its errors by enforcing stricter oversight on its manufacturers, in future efforts to avert future mistakes.…
The scope of social work practice is remarkably wide. Social workers practice not only in the traditional social service agency, but also in elementary schools; in the military; in business, factories, and offices, in federal, state, and local government agencies and legislative bodies; in private practice as individual, family, and marriage therapists; in hospitals and in mental health facilities; in courts and correctional settings; in home health care; and in services to the elderly. In fact social workers can be found anywhere and everywhere there are people who need the help of a professional to alleviate personal or social problems. (Senator Daniel Inouye, D-HI, April 1986)…
Failing investments can create crisis for companies and huge revenue losses and can wipe out all of their profits. Johnson Toy Company was challenged with such situation when its investment of the Jungle Jim dolls failed because of a sexual incident caused by the television actor who portrayed the Jungle Jim the Jogger dolls. The company realized that its current return policy is ineffective and incapable of handling the large stocks of Jungle Jim dolls returns. The company is taking immediate measures to overcome the problem and effectively deal with its large stocks of returns appearing at its warehouses. A new return policy is recommended by developing a new customer service department to strictly deal with product returns while maintaining customers’ satisfactions.…
By the end of 2003 Lego was already facing crisis owing to dipping profits and declining market pool for toys. Lego had planned to expand into markets beyond building toys and needed huge investment to be made in it. But it found difficult to compete when fad players and other toy manufacturers were giving them stiff competition in a market that already was supposed to be giving lesser returns every year. This was mostly due to factors out of the control of Lego and other toy companies because, firstly, a research suggested that the demand of children who were primary customers of these companies were changing rapidly to fashionable and electronic products. They had lesser attention span and looked for instant gratification, and were lesser inclined to play with toys involving physical activity. Also Lego found it difficult to be competitive when its manufacturing base was in European markets while toy companies were moving to Far East and Middle East where labor was comparatively cheaper.…
Case analysis 1) Current Market strategy (“4P” / “4C”) (1) (2) (3) (4) 2) Product → Commodity: innovative products / safe, durable and educational Price → Cost: moderate price / good value for money Place → Channel: Aggressive to increase the market reach and improve sales Promotion → Communication: focused strategies for advertisement and promotion of differentiated range and group of products SWOT analysis (1) Strengths (Internal) 1Internal operation 2 well-run established professional management expertise from diverse industries excellent sales history (continuous sales increase during the last 10 years) effective product testing and marketing programs facilitate internal toy design sound financial condition A leading toy manufacturer with a wide range of quality toys at moderate prices. has relatively good market for specialty toys, which has grown substantially over recent years 3Brand & Reputation (2) the best know brand for toys, has the largest market share (64.7%), and is brought most often (82.7%) Enjoys a reputation for…
ADDITIONAL INFORMATION ........................................................................................... 1 CASE ANSWERS .................................................................................................................... 2 1. Question 1 .......................................................................................................................... 2 2. Question 2 .......................................................................................................................... 3 3. Question 3 .......................................................................................................................... 4 4. Question 4 .......................................................................................................................... 6 5. Question 5 .......................................................................................................................... 7 6. Question 6 .......................................................................................................................... 8 7. Question 7 .......................................................................................................................... 9 8. Question 8 ........................................................................................................................ 10…
It is a family-run business which has been producing high-quality and expensive nostalgic wooden toys for over 50 years. The products, targeting at both children and parents, are distributed via up-market retailers and department stores. It strives to continually improve the quality of its existing products and does not focus greatly on developing new product. The business strategy of it is to sustain its competitive advantage by differentiating itself in terms of high product quality, superior customer services and unique product feature which is ‘nostalgic’ focus. Its challenges include how to maintain the high quality of products and services: how to source and retain the skilled labor, e.g. craftsmen, how to expand production capacity to…