Mattel's China Experience

1822 WordsFeb 7, 20118 Pages
RUNNING HEAD: Mattel’s China Experience: A Crisis in Toyland Unit Three Mattel Case Study Analysis Kaplan University School of Business and Management MT460 Management Policy and Strategy Author: Teresa Binder Professor: Dr. DiMatteo-Gibson Date: January 28, 2011 In 1945, the Mattel brand was born. Ruth and Elliot Handler and Harold “Matt” Matson launched Mattel out of a garage workshop in Southern California. The first Mattel products were actually picture frames, but Elliot soon started using those picture frames to create dollhouse furniture. Harold Matson eventually sold out to his partner, Ruth and Elliot Handler. The Handler’s, encouraged by the success of the doll furniture and turned the emphasis of the company to…show more content…
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. Mattel had to identify an approach to the recalls that would enable them to protect the Mattel brand and their reputation while not undermining their intent to be the “World’s Premiere Toy Brand – Today and Tomorrow” (Pearce & Robinson, 2011). Moving forward a solution this type of dilemma should include increased quality control efforts in all areas, increased audits and inspections to retain compliance
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