The Problems Of Mattel 's Failed Barbie Venture

Business leaders in the US may rely more on formal policies and processes, while Chinese business leaders may stress people orientated practices of loyalty and trustworthiness. These ethical concepts are not necessarily incompatible (many may actually overlap), but do highlight the importance of understanding perceptions from each culture.

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.

Cultural differences are apparent from one group of people to another. Culture is based on many things that are passed on from one generation to the next. Most of the time people take for granted their language, beliefs, and values. When it comes the cultural differences of people there is no right or wrong. People should be aware of others culture and respect the differences that are between them. The United States and China are two very large countries that have cultures that are well known through out the world. There are many differences between the United States and China, but there are many contributing factors that shape the cultures of these two countries.

The differences between Chinese Culture and American Culture are immense. Both cultures have very different values and norms, and these differences come out within the negotiation between Buckeye Glass Company and the Xia Xian Glass Factory. Both parties during this negotiation had different objectives and ways to get what they wanted out of the proposed joint venture.

When decisions are necessary, especially risky ones, Americans do things differently than Chinese people do. Americans like to get involved and, if possible, make the decisions themselves. They are less likely to avoid the situation for fear of embarrassment or uncertainty. If they are uneasy about their authority to make a decision, they are content to defer or delegate. The Chinese are more likely to make decisions in groups where many people participate. This is somethine to consider when doing business with the Chinese because the way we would handle things in America might make them feel slighted or

The following examines the nation of China and its trade relations with the world, particularly the United States. The focus is primarily on China’s culture and how it impacts business dealings with other countries. Areas examined include: Religion, Management Philosophy, and Business Etiquette. Also discussed is China’s growing status as a world super power and how that has impacted the global business landscape. Likewise, various trading partners are examined and the effects of doing business with China, specifically for the United States. Points of concern for the United States are things such as the

Americans have a very straight forward and practical approach towards business. They believe in driving hard bargains and negotiating, while the Chinese put more focus on respect, friendship saving face in their business conduct. Mr. Smith was a typical American businessman who in spite of knowing that

The geographical area of China is more than 9 million square kilometers and as a result, it is the fourth largest country in the world. There are several ethnic groups in China, the Han Chinese is the largest group, and it is found in almost all parts of the country. Other minority groups include Tibetan, Zhuang, Korean, and Mongol. The Chinese society is high context and non-verbal. The Chinese people acquire the knowledge of what they are supposed to do and say even if they are not told through conversation. Voice and facial expressions play a critical role in determining the feelings in a person. They do not have facial expressions when in a conversation. Direct eye contact is avoided because it is viewed as a symbol of disrespect (Clair & Norris, 2011).

     On the other hand, Chinese worker are centered on relationship. Chinese focus on relationship with others and live in the world of trust. Chinese trust people around them in their work place. Often, Chinese did not require signing contract in every agreement unlike American where all agreement must be in contract. By trusting others credibility, it helps create a friendly working environment and promotes intimate relationship among the workers. However, their main weakness is their business culture, where they are quiet and reserved which will reduce their credibility when dealing with American. They weakness also made them a weak immediate decision maker. As for interpersonal problem, Chinese are very concern about the good relationship, and hold it as their top priorities. Chinese would not do any agreement or trade that could harm their relationship with others. Lastly, Chinese are very polite and indirect. They try as hard to prevent the relationship from

The United States and China aspire to command the world economy, but their lifestyle and standpoints look like east and west. When comparing the U.S. and China in Hofstede 6 dimensions model, there were four main dimensions that are strikingly distinctive. These dimensions include individualism, power distance, long-term orientation, and indulgence. Recognizing cultural differences is the first step towards understanding each other. The difference between the United States and China are pronounced, and they merit rigorous examination.

In the past four years, Mattel has had to recall nearly 30 million of toys due to safety concerns such as lead level in paint, magnets and dangerous toy parts or design.

Others felt that they should consider Indonesia as a way to take advantage of low labor costs and very attractive exchange rates. Mattel currently operated a plant in Indonesia that produced Barbie® dolls. Montalto had to decide whether Mattel should go forward with the new China plant, build a plant in Malaysia or Indonesia, expand one of the existing facilities, or outsource the surplus die-cast volume through VOA. Company Background Based in California, Mattel, Inc designed, manufactured, and marketed a broad variety of toy products. The company’s core product lines included Barbie fashion dolls, Hot Wheels die- cast toy vehicles, Cabbage Patch Kids, Fisher-Price preschool toys, and Disney toys. Most of these toys were made overseas, primarily in southeast Asia. Mattel had wholly owned manufacturing facilities in China, Malaysia, Indonesia, Mexico, and Italy. Mattel was founded in 1944 by Elliot and Ruth Handler. Neither Elliot nor Ruth had much business experience or capital, but they both had dreams. The post World War II demographics of a huge baby boom plus a virtually toyless marketplace provided a unique opportunity to gain a place in a growing toy market. Mattel’s first products, simple picture frames and doll house furniture, met with mixed success. The first really big hit was a music box. By partnering with another toy inventor, they developed a music box that could be

As the doll market expands internationally, too, Mattel has not always been successful at matching or selling Barbie to local cultures. Many people from other non-Western cultures want dolls that match their culture, and Barbie frequently does not fit them.

The United States and China boast the two largest economies in the world but, despite this fact, these two countries have very little in common. At first glance, this may seem very obvious to most people but, what exactly is it that makes these two countries so different? How is it that such different perspectives and approaches can both lead to great success? Hofstede’s six dimensions of culture are an attempt to answer these questions and more. Dr. Geert Hofstede, studied employees of the computer firm IBM in over fifty different countries. When he examined his findings he found “clear patterns of similarity and difference along the four dimensions” (Manktelow, Jackson Edwards, Eyre, Cook and Khan, n.d.). The fact that he focused his research on solely IBM employees allowed him to eliminate company culture as a differentiating factor and “attribute those patterns to national and social differences” (n.d.). He used his findings to originally identify four dimensions, later expanded to six, that could “distinguish one culture from another” (n.d.). The six dimensions all on a scale from 0 to 100 are:

Whenever a company is entering a new market it has to take into consideration the cultural differences between countries. Based on the case study analysis, the difference between the two countries in terms of eating out habits and eating preferences seem not to be understood by the Denver headquarter. Denver headquarter believes that it can enforce the same business model applied in the U.S to its stores in China, regardless of local preference. In addition, Foster seems to lack knowledge about the Chinese culture because she was not familiar with the market in China, as she had no experience working internationally. There was a lack of cross-cultural communication between Chen and Foster; even though, Chen had experienced both cultures while studying abroad in the U.S.