Case Study Of Mattel

The problem surrounding Mattel Inc. is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends.” This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards.

This report is about the situational analysis of the Toy R US Company. This company is currently facing some drop in sales, possible reasons and potential solutions are provided in this report. All the detailed analysis are given here. Report has suggested that company lost its main perspective which it famous at the first point. This is main outcome of the report. There are many other reasons as well which are causing the decline of the company. There is a lot of room for improvement which can be tackled, implementation plan is also given in this report along with the possible and potential full recommendations. So lets’ start with the report.

This paper will analyse a recent period of strategic change at The Walt Disney Company which began in 2005 with the appointment of current CEO Robert Iger. The company began to experience halted growth during the late 1990s. The former CEO Michael Eisner had been successful himself in the late 1980s in changing the company during what is known as the Disney

Introduction: The Walt Disney Company is on the threshold of a new era. Michael Eisner has stepped down from his position as CEO and turned over the reigns to Robert Iger. A lot of turmoil has been brewing through the company over the last four years; many people are hoping that this change in leadership will put Disney back on the road to success. Issues began around mid-2002; when declining earnings, fleeing shareholders, and

seen great success with its toy product. This company is looking to expand its business

1. About Disney Difference and how it will affect the company’s corporate, competitive, and function strategies.

second largest toy market. A “category killer” that enjoyed phenomenal success in the United States

Through studying the entire retail toy industry, we have been able to understand the complexity of the industry in which Toys "R" Us operates. Upon completion of the analysis, we realized that the industry is growing stably,

company and the industry is based on trends that are constantly changing to the next big hit.  The

In the past, the toy business was just an annex of the publishing industry. Little effort was invested in toys which were not even mentioned strategic plans. Now the toy industry is the second-highest profit maker in Marvel, generating over $20 billion in sales in 2003. The toy business is very promising in the future. However its percentage in revenue will still remain stable or slightly decrease, just as publishing will do, because licensing has such a strong possibility for growth. In addition, while the toy industry competition is too fierce to permit further achievements.

Both Nasdaq director independence standards and Corporate Governance Guidelines of Mattel have strict requirements or rules to evaluate and determine whether these directors on the board are independent members in Mattel. In terms of the Nasdaq director independence rules, independent or outside directors are not allowed to participate in any material and pecuniary management activities and transactions as managers or employees. In addition, executive officers and employees who work in a listed company are not able to qualify independent directors, and members who have intimate relationships with other directors or executive officers also cannot be outside directors. However, the Corporate Governance Guidelines determine that members who take part in the Audit Committee, the Compensation Committee, the Executive Committee, the Finance Committee, and the Governance and Social Responsibility Committee are independent with material transactions and executive managements. As a result, there are ten directors on the board in Mattel, and only Christopher A. Sinclair, the CEO of Mattel, is not independent with the exercise of independent judgement and has no evidence to satisfy requirements of Nasdaq’s and Mattel’s director independence standards. In the other words, there are nine outside directors (90%) and one inside director (10%).

Hasbro conducts business within the Toy, Game and Doll Manufacturing industry. They have strong, brand portfolio that they utilize in a wide variety of entertainment mediums. Hasbro categorizes their brands into four categories which they call their brand architecture: franchise, partner, gaming mega, and challenger brands. Their franchise brands are owned by them and they currently make most of their revenue from these brands. However, their partner brands are quickly becoming more important to their business as a majority the company’s growth recently has come from new ones. In addition to the brand architecture, they report the financial performance of their brands by grouping them into four different categories: boys, girls, games, and preschool. Boys and games has been a majority of their business mostly, but that is beginning to change recently as their girl brands are beginning to grow. (10K and Hasbro quarterly reports).Hasbro is a global company that has sales around the world. They report their sales in four segments: US/ Canada, International, Entertainment and Licensing, and Global Operations. The International segment is further segmented into Europe, Latin America, and Asia/Pacific, where they directly operate (10K). Within these segments and brands, it is difficult to identify which toys and games are their core items because they have almost 2,700 individual products that they currently sell in addition to their non-toy items, digital games,

The toys produced by the company (much more expensive than the local ones) would probably be profitable only in big cities and 80% of the population is still rural.

1. no. 1-0013 Mattel, Inc: Vendor Operations in Asia Only 3% of the world’s children are here in the U.S. Our biggest opportunities are in growth outside the U.S. – Jill Barad President & CEO Mattel, Inc. The sun was just breaking over Kowloon Harbor. From his corner office, Ron Montalto gazed across the water and watched the early morning light reflect off Hong Kong’s famous downtown skyline. Only 24 hours ago Ron had been riding around the Carolina Speedway in Kyle Petty’s blue Pontiac, emblazoned with the Hot Wheels logo. The event was part of the kickoff for a new series of Hot Wheels® replicas of NASCAR racers. Now, back in Hong Kong questions still swirled around the sourcing

1. Do you believe that Mattel acted in a socially responsible and ethical manner with regard to the safety of its toys? Why or Why not? What should or could Mattel have done differently, if anything?