Mattel Recall

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Mattel – Case Study
“The Chinese-Made Toy Recalls at Mattel Inc.” PAPER
submitted at the

IMC Fachhochschule Krems (University of Applied Sciences)

Master Programme

International Business and Export Management
by

Matthias EBNER Stefan RAFFERSEDER Jaroslav SIVY
Course: Strategic Purchase and Global Sourcing

Lecturer: DI Rainer DAUBECK

Submitted on: 04.12.2012

TABLE OF CONTENT

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

The Mattel Case

Additional Information
The Mattel Case

Additional information

The final document should be a word document (working document). There is no need for an additional PowerPoint document.

To answer the questions please think about the following points, discuss it within your group and incorporate the findings in your answers: 1. Assess the initial foreign operations preparedness of Mattel and analyze the methods they used to manage their toy recall problems once they occurred 2. Describe the potential complications and identify the risks involved with international supply chains 3. Critique Mattel´s quality control initiatives with regard to product design and purchased products, particularly when these products originate in a foreign thirdworld country and when Mattel´s brands and reputation are at stake 4. Develop company policies, procedures and controls regarding the way suppliers and customers should be managed when products (a) have the potential to harm customers and (b) actually cause harm to customers.

You may look at these points from different perspectives (Mattel, Suppliers, customers) We will discuss your answers in class on Dec. 11th in such a way, that 8 groups will present just one of the answers and we will discuss this answer then. Time per answer about 6 min.

In order to be able to evaluate your papers I need to have them on hand (on my mail account) before Dec. 11th.

You will receive a feed back from my side and you have the chance to improve your group work (max. one grade) if you want.

Rainer Daubeck Nov. 22nd 2012 1
EBNER, RAFFERSEDER, SIVY

The Mattel Case

Solutions
1. How could Mattel have allowed these problems to happen? Aside from simply not using Chinese suppliers, could Mattel have avoided the toy quality/safety problems to begin with? Explain your answers.

How could this happen: Mattel just wanted to produce their products really cheap. That is why they picked suppliers from China. They only look for economic benefit in the short term and not in the future. When we want to investigate why this happened, we have to go back and see where it all started. Since Mattel didn’t have any product specifications...
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