Mattel and Toy Safety Case Study Answers
Case Study: Mattel and Toy Safety
1. Introduction
1. Situational Analysis
Mattel Inc., headquartered in El Segundo, California was the global leader in design, manufacture and marketing of toys and family products. Mattel toy lines included such best selling brands as Barbie, Hot Wheels, Matchbox, American Girl, Radica and Tyco as well as Fisher-Price brands including Little People, Power Wheels and a wide range of entertainment-inspired toys. In 2007, Mattel manufactured about 65 percent of its toys in China. Initially they used outside contractors but out of concern over protection of intellectual property at risk, Mattel operated its own factories in China. Mattel contracted production to between 30 and 50 Chinese firms many of which had relationships with other subcontractors.
On August 1, 2007, Mattel issued a voluntary recall of 1.5 million Chinese-made, Fisher-Price products, including the popular Big Bird, Elmo, Diego and Dora the Explorer after the company learned that they contained too much lead. Mattel also recalled the Sarge toy from the cars die cast vehicle line because of high levels of lead. The second recall included 18.2 million toys, such as Barbie, Batman, Polly Pocket and Doggie Daycare play sets that contained small but powerful magnets that could fall out of the toys and be swallowed by young children.
In its investigation, Mattel found that some of its external vendors and their subcontractors used lead paint which was at least 30% cheaper than unleaded paint and some thought that it produced a richer colour and was easier to apply. In the investigation of its problem with the small magnets, Mattel learned that the problem lay in the toys’ design. It did not anticipate that if two or more highly powered magnets were ingested at once they could close off the intestines if they became attached inside a young child.
2. Analysis of the Case
The analysis of the case is done using the Stakeholder
1. Introduction
1. Situational Analysis
Mattel Inc., headquartered in El Segundo, California was the global leader in design, manufacture and marketing of toys and family products. Mattel toy lines included such best selling brands as Barbie, Hot Wheels, Matchbox, American Girl, Radica and Tyco as well as Fisher-Price brands including Little People, Power Wheels and a wide range of entertainment-inspired toys. In 2007, Mattel manufactured about 65 percent of its toys in China. Initially they used outside contractors but out of concern over protection of intellectual property at risk, Mattel operated its own factories in China. Mattel contracted production to between 30 and 50 Chinese firms many of which had relationships with other subcontractors.
On August 1, 2007, Mattel issued a voluntary recall of 1.5 million Chinese-made, Fisher-Price products, including the popular Big Bird, Elmo, Diego and Dora the Explorer after the company learned that they contained too much lead. Mattel also recalled the Sarge toy from the cars die cast vehicle line because of high levels of lead. The second recall included 18.2 million toys, such as Barbie, Batman, Polly Pocket and Doggie Daycare play sets that contained small but powerful magnets that could fall out of the toys and be swallowed by young children.
In its investigation, Mattel found that some of its external vendors and their subcontractors used lead paint which was at least 30% cheaper than unleaded paint and some thought that it produced a richer colour and was easier to apply. In the investigation of its problem with the small magnets, Mattel learned that the problem lay in the toys’ design. It did not anticipate that if two or more highly powered magnets were ingested at once they could close off the intestines if they became attached inside a young child.
2. Analysis of the Case
The analysis of the case is done using the Stakeholder