“MATTEL: CRISIS MANAGEMENT OR MANAGEMENT CRISIS”

1429 Words Feb 16th, 2014 6 Pages
Based in California, Mattel, Inc. designed, manufactured, and marketed a broad variety of toy products. The company’s core product lines included Barbie fashion dolls, Hot Wheels die- cast vehicles, Fisher-Price preschool toys along with Disney toys and games like Scrabble (Johnson, 2010). Summer of 2007, Mattel, a global leader in toy manufacturing was faced with a tough challenge of restoring their consumer confidence following several recalls of their toys made in China. Mattel known for possessing the gold standard of testing and safety of its products came under scrutiny for several infractions with their toys. One of which had unacceptable lead levels in the paint and another contained a magnet that could un-attach and …show more content…
If Mattel decided on a voluntary recall, it would be faster and could be coordinated with the consumer product safety commission (CPSC) (Baron, 2013). This voluntary recall would seem like an admission of fault and that Mattel chooses to do the right thing for the safety and the health of its consumers. If Mattel chooses to wait for the CPSC to decide to recall the toys it would be a longer wait. The CPSC was understaffed and was required to satisfy procedural requirements before it could order a recall. This delay could continue to produce revenue for Mattel, but the new media would surely broadcast the timeline no doughtily portraying Mattel as more concerned over bottom-line than child safety. The right decision that Mattel must make is imperative to the reputation of the company.

The Decision and Aftermath Mattel chose an ethical course of action. Mattel decided to voluntarily recall the toys but delayed the recall until it could put up a Web site with information for retailers and consumers about how to return the products (Baron, 2013). The majority of the toys in the recall had not yet hit the shelves for sale. This was a good thing for Mattel and consumers. The recall covered more toys than needed to err on the side of caution. Mattel also announced that it was reviewing its procedures for ensuring product safety. Robert Eckert, CEO announced, “We apologize to everyone affected by this recall, especially those who bought the toys in question.

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