Mattel in Chine: Toy Crisis
Introduction
Mattel, the world’s leading toy and children’s good manufacturer has cultivated a strong portfolio of well known brands and products while being recognized as a highly responsible corporate citizen that makes ethics and safety a priority.
However, Mattel has had to overcome a few hurdles in order to stay on top; the first major problem they ran into was the recall of millions of products in 2007. The recall of toys because of health concerns has hurt the company’s brand image with the consumer, making them lose faith in the safety of their products. Part of this was due to the numerous leadership changes over the years. Each leader had a different idea of what would make them number one in their business. Also, children are leaving toys, which is Mattel core product, at a much earlier age than before and moving to more high tech play things. The company must build on its heritage, while defending itself from threats. At the same time faced with maintaining its market position in the face of many challenges.
Quality control and product safety are key challenges for companies that manufacture in third-world countries. In the event of a safety or quality control crisis, corporations must respond quickly and efficiently using clear crisis communication and image repair strategies.
Q1 Mattel operates Global Management Practices. What are these, who is involved and how are they implemented?
Prior to the problems being faced by Mattel, Mattel implemented their global manufacturing practices(GMP). This applied to all businesses that produced or distributed their products. The GMP’s provided structure for both subcontractors and contractors to abide by. This also helped to maintain safety for employees as well as the consumers.
Because of the company’s product and designs primarily for children, it must be sensitive to social concern about children’s right. By assuring parents that their children’s privacy will be respected, Mattel demonstrated that
Mattel, the world’s leading toy and children’s good manufacturer has cultivated a strong portfolio of well known brands and products while being recognized as a highly responsible corporate citizen that makes ethics and safety a priority.
However, Mattel has had to overcome a few hurdles in order to stay on top; the first major problem they ran into was the recall of millions of products in 2007. The recall of toys because of health concerns has hurt the company’s brand image with the consumer, making them lose faith in the safety of their products. Part of this was due to the numerous leadership changes over the years. Each leader had a different idea of what would make them number one in their business. Also, children are leaving toys, which is Mattel core product, at a much earlier age than before and moving to more high tech play things. The company must build on its heritage, while defending itself from threats. At the same time faced with maintaining its market position in the face of many challenges.
Quality control and product safety are key challenges for companies that manufacture in third-world countries. In the event of a safety or quality control crisis, corporations must respond quickly and efficiently using clear crisis communication and image repair strategies.
Q1 Mattel operates Global Management Practices. What are these, who is involved and how are they implemented?
Prior to the problems being faced by Mattel, Mattel implemented their global manufacturing practices(GMP). This applied to all businesses that produced or distributed their products. The GMP’s provided structure for both subcontractors and contractors to abide by. This also helped to maintain safety for employees as well as the consumers.
Because of the company’s product and designs primarily for children, it must be sensitive to social concern about children’s right. By assuring parents that their children’s privacy will be respected, Mattel demonstrated that
References: 1. The stories behind the mattel recall,CSR Asia weekly,Vol.3 week 32, August 8,2007 2. Mattel china experience (08.2011) studymode.com 3. Mattel Tackles Crisis with Solid Comm," http://www.mmm-online.com/Mattel-tackles- crisis-with-solid-comms/article/96308/ 4. www.mattel.com