Mattel Inc

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Mattel, Inc: Vendor Operations in Asia 小组成员:葛晔韬、李如妍、陈嘉、黎健兴、马迪 Introduction Mattel is a leading company in the toy industry created in 1945, which owns a number of iconic toys and renowned brands. Mattel differentiate between core and non-core products, manufacturing its core products in-house and outsourcing non-core products. And core products include Barbie, Hot Wheels products, selective Disney and Fisher Price lines, while non-core products tended to be promotional items, or toys with short life cycles. Currently, Mattel wholly owned manufacturing facilities in China, Malaysia, Indonesia, Mexico, and Italy. It also has a subsidiary—VOA, which manages its outsourced production. In the year 1997, Mattel merged its second largest…show more content…
So devaluation just benefits to your initial equipment investment . As in January (See Exhibit 6), exchange rates began to stabilize, the total labor cost (controlling for productivity and quality) in both Malaysia and Thailand remained higher than China. China’s stable currency gives a clear long-term vision to business. Productivity and Quality Productivity and quality also have a significant impact on the decision. Even with the very low wage rate in Indonesia, factoring labor productivity into the analysis made the total cost difference between China and Indonesia much smaller. The very low labor cost of one place usually means that the labor productivity is poor at the same time—because the productivity is poor, the labor price is low. The same reason is to the issue of quality. As known to all, toy security is essential to toy giants. When something wrong with one of your products—maybe some product contain more plumbum than the standard, the consequence may be destructive. So labor cost is important, but it doesn’t mean the whole thing. Political Stability Indonesia had suffered from sporadic political and social disruptions and the economic crisis was increasing the unrest. Additionally, the local inflationary forces would continue to narrow its cost advantage. So Indonesia may be a worse choice than China. Among the choices, China has the most stable policy environment and good market

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