Case 7: Mattel: Overcoming Marketing and Manufacturing Challenges
Case 7: Mattel: Overcoming Marketing and Manufacturing Challenges
The Problem:
The problem surrounding Mattel Inc., one of the world’s largest toy companies, 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” (Ferrell, et. all 466). 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.
Issues Relevant to the Problem:
Mattel’s problem of mismanagement can be divided into several issues that need to be considered: legal issues, international supply chain issues, and an increase in technology-based toys. In regards to legal issues, Mattel has been involved in prolonged litigation with Carter Bryant and MGA over a breach of an employment contract and copyright infringement. Due to Mattel’s poor management of its overseas manufacturers, in which unauthorized subcontractors and third-party suppliers were hired and unsafe materials used, several toy products were recalled. Advances in technology and changes in socioeconomic and demographic trends have created marketing, privacy, and product development issues for Mattel.
Analysis of Issues:
Legal Issues:
It is evident that Mattel has used poor management practices, in which their HR and Operations Departments have failed to ensure that employees adhere to confidentiality clauses in their employment contracts. The creation of MGA’s line of Bratz dolls and the legal battle that ensued are a direct reflection of this practice. Since 2004, Mattel, their former employee Carter
The Problem:
The problem surrounding Mattel Inc., one of the world’s largest toy companies, 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” (Ferrell, et. all 466). 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.
Issues Relevant to the Problem:
Mattel’s problem of mismanagement can be divided into several issues that need to be considered: legal issues, international supply chain issues, and an increase in technology-based toys. In regards to legal issues, Mattel has been involved in prolonged litigation with Carter Bryant and MGA over a breach of an employment contract and copyright infringement. Due to Mattel’s poor management of its overseas manufacturers, in which unauthorized subcontractors and third-party suppliers were hired and unsafe materials used, several toy products were recalled. Advances in technology and changes in socioeconomic and demographic trends have created marketing, privacy, and product development issues for Mattel.
Analysis of Issues:
Legal Issues:
It is evident that Mattel has used poor management practices, in which their HR and Operations Departments have failed to ensure that employees adhere to confidentiality clauses in their employment contracts. The creation of MGA’s line of Bratz dolls and the legal battle that ensued are a direct reflection of this practice. Since 2004, Mattel, their former employee Carter
Cited: Ferrell, O. C., and Michael D. Hartline. Marketing Strategy. Fifth ed. Mason, OH: Thomson South-Western Cengage Learning, 2008. Print. “Mattel awarded $100 million in Bratz lawsuit.” msnbc.com. Associated Press – U.S. Business, Web. Fri. 29 Oct. 2010. . Story, Louise. “Mattel Shifts into Crisis Mode after Quality Problems.” Nytimes.com. The New York Times, 28 Aug. 2007. Web. 29 Oct. 2010. . “Mattel – Privacy Policy.” Mattel Inc. Web. 29 Oct. 2010. .