Mattel Toy Recall Essay

Along with providing customers an affordable price, the company tries to appeal to the customer 's emotions. They search for sofas and accessories that are structurally sound and visually appealing. BDF purchases their inventory from 15 domestic and 60 international factories. However, anything that can go wrong will go wrong. That is why BDF provides its suppliers with “a whole book to make sure that the suppliers fit quality standards”. The number one issue is how manufacturers, so they are putting more attention on the products before they leave the line and the manufacturer at the plant are making products. Their inventory passes multiple checkpoints before it is put on the floor to be sold to the customer. Before the goods can even enter the country they must pass the California fire codes. Occasionally, the inventory may even be sawed in half to look at the strength of the glue or screws used in holding the joints of the furniture together. In addition, the fabric must pass an abrasion test. Then, the inventory is subject to random inspections before it goes to the cross docking station. Inspectors check for broken or shattered glass. Then the

It also affects our dealers and distributers as well. Other companies may be eyed for replacement of like products by our customers, costing us millions in revenue. At the same time, our customers are smart and believing in a company that ensures our products meet Federal and State guidelines for the safety of their kids may bring in millions more.

Due to outsourcing to other developing countries, the toy industry faced many hardships. The products that are made in developing countries that had substandard quality control were recalled many times due to the safety reasons. Mattel too faced a stiff pressure from the government and consumers for the products that were not safe and stable which are made in manufacturing facilities in China. Recently, Mattel recalled several of its products because they were not safe for consumers. Recalling millions of products, not only reduced the total revenues of the company, as well as it hurt the company’s image at the same time. Mattel had been always trusted by its consumers for making providing its consumers high-quality products and stable products.

My favorite Disney Memory is the first time I visited Disneyland at Los Angeles, California. I was in 4th grade and I went with my mom and aunt. I absolutely loved very character walking down the street and dancing. I really loved the Haunted Mansion attraction; it was one of the best. The best thing I’ve seen was the midnight parade with the fireworks and the musical show they perform. It really made me happy and makes me happy now of just thinking about it.

Due to running our own manufacturing plant we are able to implement more strict quality standards. One of every ten products will be thoroughly inspected and one in every 1,000 will be real life tested to ensure that each batch comes out with equally great quality. Western Kicks upper management will also have annual meetings with suppliers to discuss quality expectations. Those meetings can happen more often if necessary and all supplies will be inspected before being used for a batch. If more than 1 in every 50 of an item have to be discarded or returned due to quality problems, a meeting must be held with the supplier as soon as business allows.

1. The decision facing Mattel is whether to continue to produce their products internationally where cost are low, or produce them in the United States where costs are significantly higher but quality is better. Mattel might want to even reconsider going global if there sales are decreasing more internationally than in the United States. Mattel needs to determine how many of the products produced internationally were recalled versus the amount of products produced in the United States that were recalled. Mattel also needs to decide how they are going to advertise their products in a way that will convince consumers in the external environment to buy their products, without having any

I my opinion it takes a decade to build a great reputation, but it only takes 10 minutes to destroy it. By late September in 2008, all of the formula that was produced with melamine had been recalled and taken off the shelves. Including, all dairy farms, and milk stations throughout China where inspected by police to determine, if these milk manufacturers were following the proper procedures. Including, top level inspections, involving other companies, and other products that are used with melamine, to produce other things. One of the biggest companies involving the outbreak of baby formula is Sanlu. They consist of multiple production plants set up throughout China, including, a manufacturing workforce of employees, salaried, and management

Mattel Corporation, known as the largest toy company in the world, is a publicly traded organization with a market capitalization of over $6.5 billion. Employing approximately 36,000 people worldwide in 43 countries, their products are well-known and sold in over 150 nations (Mattel.com). With such winning odds as mentioned, it is hard to imagine that a company readily known to children and adults across the globe would become even better known for the company that produced toys made with lead-based products. This assignment will discuss whether or not Mattel acted in an ethical and socially responsible manner in their decision to recall defective toys, what they perhaps could have done differently to avoid this issue, and the best way

In the contents of this case there are several management and safety issues and areas for improvement. One issue is Mattel, Inc.’s

As we can see Mattel does a pretty good job of of managing risk within its own business. However, it is some of these large multi national companies that often overlook managing corporate integrity risk in there supply networks. Companies have inserted clauses into their standard contracts with suppliers requiring them to comply with the rules and regulations applicable and materials used must exactly that which has been stated in the contract.

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

Mattel requires that their manufacturing partners use paint from approved and certified suppliers and have procedures in place that test and verify but in this particular instance, procedures were not followed. Of the 19 million plus Mattel toys recalled, 2.2 million were because of lead paint. Toys were pulled from the shelves of retailers, media frenzy ensued and public pressure was mounting. By the time the dust had settled from the recall, Mattel had recalled over 19 million toys that were produced in China. Their stock price had declined as they took a $40 million charge for the recalls and their cost increased. Customers were threatening to boycott Mattel and all toys that were made in China. When it appeared nothing could get worse for Mattel, congress sent a letter in 2008 charging that Robert was not honoring the commitment he made to the public during the initial recall incident (Pearce & Robinson, 2011). Mattel had to determine what next steps they would take to recover from such a crisis and move quickly in order to protect their brand.

Clearly  Mattel  did  not  have  sufficiently  tight  quality  control   procedures  in  its  supply  chain  to  compensate  for  the  extra   risks  of  outsourcing  to  relatively  new  Chinese   subcontractors.  Clearly  there  were  design  flaws  in  the  toys   with  the  magnets  that  could  come  loose.   But  Mattel  deserves  praise  for  now  stepping  up  to  its   responsibilities  as  the  leading  brand  in  the  toy  industry.   -­‐What  has  Mattel  done!  :

I think in today’s economy, most industries have a considerable number of players competing for market share. In a highly competitive market, low costs can be a huge component that drives sales. Companies struggle to make products available at lower and lower costs. However, often this comes at a price of compromised quality. In my opinion, companies should focus on delivering quality while also staying focused on maintaining costs to a reasonable level. One way of doing this is to remove dependency on inspection. In any manufacturing process, inspection can be conducted at every

Corporations that wish to become global manufacturers, such as Boeing or Lockheed Martin, may be wary of quality control and safety practices of a company it has never done business with. For operations managers, it should be important to deliver safe and quality products as well as receive the same level of product from other companies (Heizer & Render, 2014). ISO did not exist pre 1947; therefore, trading between companies posed a risk of poor quality goods. Without global standardization, one company’s definition of quality may be vastly different than another. The formation of ISO and its standardization has created a certain level of confidence in global commerce.