Mattel and the Toy Recalls
‘Mattel and the Toy Recalls’ (Case A)
Related information: Mattel, Inc. is a toy manufacturing company founded in 1945 with headquarters in El Segundo, California. In 2010, it ranked #387 on the Fortune 500. The products and brands it produces include Fisher-Price, Barbie dolls, Monster High dolls, Hot Wheels and Matchbox toys, Masters of the Universe, American Girl dolls, board games, WWE Toys, and early-1980s video game systems. Mattel “designs, manufactures, and markets a broad variety of toy products worldwide through sales to its customers and directly to consumers.”21 Mattel’s position as a leader in the global toy industry was so formidable that Mattel’s international business division with gross sales of $ 2.7 billion in 2006 would be the industry’s third largest company, if it was a separate company, and Mattel’s U.S. business with $3.4 billion would still be No.1.
In 2002, Mattel closed its last factory in the United States, originally part of the Fisher-Price division, outsourcing production to China which began a chain of events that led to a scandal involving lead contamination.
Source: Wikipedia
• Summarize the case.
In June 2007, a French direct importer of Mattel’s products, Auchan, performed pre-shipment tests with the help of Intertek, an independent laboratory. These tests revealed that Mattel’s toys, made by a vendor Lee Der Industrial Company, contained lead above permissible limits. Which leads to many tests run by Mattel on toys made by Lee Der Industrial Company. And as soon as the test results were out, Mattel employees in China notified Lee Der and stopped accepting products made by Lee Der. After the test result which shows the toys made by Lee Der did contained excess lead. Following its investigations, Mattel filed an initial report with the CPSC on July 20 and followed it up with another on July 26, indicating that it would like to issue a recall of all the products manufactured by Lee Der.
On July 30, 2007, the senior
Related information: Mattel, Inc. is a toy manufacturing company founded in 1945 with headquarters in El Segundo, California. In 2010, it ranked #387 on the Fortune 500. The products and brands it produces include Fisher-Price, Barbie dolls, Monster High dolls, Hot Wheels and Matchbox toys, Masters of the Universe, American Girl dolls, board games, WWE Toys, and early-1980s video game systems. Mattel “designs, manufactures, and markets a broad variety of toy products worldwide through sales to its customers and directly to consumers.”21 Mattel’s position as a leader in the global toy industry was so formidable that Mattel’s international business division with gross sales of $ 2.7 billion in 2006 would be the industry’s third largest company, if it was a separate company, and Mattel’s U.S. business with $3.4 billion would still be No.1.
In 2002, Mattel closed its last factory in the United States, originally part of the Fisher-Price division, outsourcing production to China which began a chain of events that led to a scandal involving lead contamination.
Source: Wikipedia
• Summarize the case.
In June 2007, a French direct importer of Mattel’s products, Auchan, performed pre-shipment tests with the help of Intertek, an independent laboratory. These tests revealed that Mattel’s toys, made by a vendor Lee Der Industrial Company, contained lead above permissible limits. Which leads to many tests run by Mattel on toys made by Lee Der Industrial Company. And as soon as the test results were out, Mattel employees in China notified Lee Der and stopped accepting products made by Lee Der. After the test result which shows the toys made by Lee Der did contained excess lead. Following its investigations, Mattel filed an initial report with the CPSC on July 20 and followed it up with another on July 26, indicating that it would like to issue a recall of all the products manufactured by Lee Der.
On July 30, 2007, the senior