Mattel case study

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Case Study Mattel’s Toy Recall And Supply Chain Management Susita Asree5/11/2014 MGMT 516 By: Divangi Shah CWID: 802164541 Why do firms contract overseas for production of products they sell? Answer: The firms contract overseas for production of the products they sell to gain certain advantages from the different countries. One of the biggest advantages is cheap labor that cut down the cost of the products. To get the advantage of the cheap fuel prices and raw materials to make the products at effective cost. The companies can get the tax benefits and other government policy advantages by producing their products at overseas. The companies can also get the lower cost suppliers from different countries. The company can get…show more content…
The CEO of the Mattel had taken personal charge of the situation. He has apologized publicly and taken immediate steps to tighten quality assurance requirements on Mattel 's suppliers. What should Mattel do now? What should China do now? Answer: Mattel has faced a series of difficult and potentially crippling challenges, including the lawsuits. Mattel should attempt to rectify its mistakes and to prevent future mistakes as well. Mattel should work hard for restoring goodwill and faith in its brands, even as it continues to be plagued with residual distrust over the lead paint scandal. Mattel should upgrade its safety standards and quality control. Mattel should be careful for approaching international supply chain management strategies. Mattel should make sure its Chinese suppliers operate ethically, including treating their workers fairly. Whereas Mattel can do randomly test finished toys, as it should now test every single batch of toys produced. Safety checks should also get beefed up at the supplier and subcontractor level prior to the finishing of the product. Reputations are hard won and easily lost, but Mattel should appear to be steadfast in its commitment to restoring its reputation. After the recall by Mattel, China’s export manufacturing sector, an important factor driving country’s economic growth, had been stung by suffering highly visible problems. The “made in china” brand was in real danger. At that point

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