Case Study: Mattel

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TRAN BAO YEN Operations Research Columbia Southern University Unit V – Case Study Mattel is one of the world’s biggest corporations in toy industry. In 2007, the company had a remarkable toy recalls relevant to its supply chain in a wide range of products: Cars, Barbie, Batman, Polly Pocket and Fisher-Price toys. The causes were determined by some compound problems in the process of designing, manufacturing, and distributing products, leading to mismanagement. 1. Why do firms contract overseas for production of products they sell? Outsourcing production refers to the contracting and subcontracting of manufacturing activities to occupy labor, time, money and facilities which give business a competitive edge. It is regularly a vital part of reengineering and downscaling. There will have various strengths that businesses could contract out such as designing, data processing,…show more content…
However, for long-term corporate sustainability, the company ought to control and synchronize more thoroughly with its outsourcing bases across the world. It is important to focus and develop practical system of quality control and risk management in overseas. The adjacent operation management might help guarantee the entire order of process, lessen unexpected problems after selling goods in the market. In my opinion, the recall crisis also derived from the cross-culture difference in quality standards between China and United States. In order to make sure that American businesses do not face with the same case as the situation of Mattel, the U.S government and related parties must have a solid duty to enforce businesses to an appropriate policy of global standard application, which ensures the safety and benefit of consumers. For example, the CPSC should work with the AQSIC in China in creating new standard and laws for manufacturing

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