A Crisis in Toyland Case Study
A Crisis in Toyland
Introduction
Mattel stands as the largest toy company in the world. They were established in 1944, and since then have brought us some of the most iconic toys of our time. These groundbreaking ideas include Hot Wheels and the extremely popular Barbie Doll. Once 1965 had rolled around, Mattel was a $100 million company, and became a staple on the Fortune 500 list.
Synopsis of the Situation
Despite being a leader in their industry, they found themselves with some problems. The largest one being a toy recall. Mattel toys were found to have excessive levels of lead in them. As more and more products from China were being recalled, Mattel was suffering. Once it was all said and done, over 19 million toy products produced in China had been recalled.
Key Issues
The key issue here is clearly the recall. The start if the problems came in the year of 2007. Mattel was doing business in China, and due to the lead levels in the toys 976,00 toys had to be recalled. Given that Mattel had been doing business in China for so many years, it was surprising to see that they had manufacturing issues.
Alternative Solutions
• Correct the issue of using non-approved lead paint pigments.
• Include warning labels on all products, so that customers are aware toys may contain lead.
• Focus more on customer safety
• Report progress publicly, so that the public can see you are taking corrective action.
Selected Solution to the Problem
Mattel has to make a more concerted effort to have their products be safe. They have to improve system production, which could potentially mean getting rid of certain manufacturers. This may also mean conducting more independent inspections, and again reporting the results for public viewing.
Recommendations
Should I be in charge of Mattel, I would preach to the public our reputation of being a company that produces high quality products. I would certainly try and prove that the overall health and safety of our guests is
Introduction
Mattel stands as the largest toy company in the world. They were established in 1944, and since then have brought us some of the most iconic toys of our time. These groundbreaking ideas include Hot Wheels and the extremely popular Barbie Doll. Once 1965 had rolled around, Mattel was a $100 million company, and became a staple on the Fortune 500 list.
Synopsis of the Situation
Despite being a leader in their industry, they found themselves with some problems. The largest one being a toy recall. Mattel toys were found to have excessive levels of lead in them. As more and more products from China were being recalled, Mattel was suffering. Once it was all said and done, over 19 million toy products produced in China had been recalled.
Key Issues
The key issue here is clearly the recall. The start if the problems came in the year of 2007. Mattel was doing business in China, and due to the lead levels in the toys 976,00 toys had to be recalled. Given that Mattel had been doing business in China for so many years, it was surprising to see that they had manufacturing issues.
Alternative Solutions
• Correct the issue of using non-approved lead paint pigments.
• Include warning labels on all products, so that customers are aware toys may contain lead.
• Focus more on customer safety
• Report progress publicly, so that the public can see you are taking corrective action.
Selected Solution to the Problem
Mattel has to make a more concerted effort to have their products be safe. They have to improve system production, which could potentially mean getting rid of certain manufacturers. This may also mean conducting more independent inspections, and again reporting the results for public viewing.
Recommendations
Should I be in charge of Mattel, I would preach to the public our reputation of being a company that produces high quality products. I would certainly try and prove that the overall health and safety of our guests is
References: Teagarden, M. 2013. Mattel’s China Experience: A Crisis in Toyland. [e-book] http://content-bus.kaplan.edu/MT460_1303C/highresmedia/case25_mattel.pdf [Accessed: 28 Nov 2013]. S- Leading toy manufacturer worldwide W- Recent safety problems O- Create new toys and products T – Competition from other manufacturers.