Mattel case study
MATTEL: CRISIS MANAGEMENT or MANAGEMENT CRISIS
Introduction
In late 2006 and early 2007 a number of imports from China were found to pose health risks. In the most serious case the deaths of 200 people in Haiti and Panama were linked to syrup from China containing the chemical diethylene glycol used in antifreeze, British Airways withdrew Chinese toothpaste from its in-flight pouches for the same reason. Large quantities of imported dog food were found to contain the chemical melamine, resulting in death and injury to as many as 4,000 pets. An investigation by the Chinese government found that two suppliers had intentionally used melamine to save money and increase the protein content. The U.S. Food and Drug Administration (FDA) banned the importation of certain seafoods from China because of contamination. Representative Bart Stupak (D-MI) commented, “While I am pleased that the FDA realizes the danger these Asian and Chinese seafood imports pose to the American people, I am concerned that it requires congressional prodding of the FDA to take the steps necessary to keep the American consumers safe. No serious injuries or fatalities were reported in the United States. Safety and health concerns were not limited to food. In November 2006 the retailer Target recalled 200,000 Kool Toyz action figures because of lead contamination and sharp edges. On June 13, 2007 RC2 Corporation recalled 1.5 million of its Thomas & Friends toy trains because of high lead levels in the paint. RC2 quickly fired both the company producing the train vendor but disclose their names. Some 8,000 toy factories in China employed 3 million people, producing most of the world’s toy. Approximately 80 percent of the toys sold in the United States were made in China. China was at first defensive. It banned two shipments of food from the United States and even released a statement that an FDA regulation allowed the toxic chemical diethylene glycol in toothpaste. China
Introduction
In late 2006 and early 2007 a number of imports from China were found to pose health risks. In the most serious case the deaths of 200 people in Haiti and Panama were linked to syrup from China containing the chemical diethylene glycol used in antifreeze, British Airways withdrew Chinese toothpaste from its in-flight pouches for the same reason. Large quantities of imported dog food were found to contain the chemical melamine, resulting in death and injury to as many as 4,000 pets. An investigation by the Chinese government found that two suppliers had intentionally used melamine to save money and increase the protein content. The U.S. Food and Drug Administration (FDA) banned the importation of certain seafoods from China because of contamination. Representative Bart Stupak (D-MI) commented, “While I am pleased that the FDA realizes the danger these Asian and Chinese seafood imports pose to the American people, I am concerned that it requires congressional prodding of the FDA to take the steps necessary to keep the American consumers safe. No serious injuries or fatalities were reported in the United States. Safety and health concerns were not limited to food. In November 2006 the retailer Target recalled 200,000 Kool Toyz action figures because of lead contamination and sharp edges. On June 13, 2007 RC2 Corporation recalled 1.5 million of its Thomas & Friends toy trains because of high lead levels in the paint. RC2 quickly fired both the company producing the train vendor but disclose their names. Some 8,000 toy factories in China employed 3 million people, producing most of the world’s toy. Approximately 80 percent of the toys sold in the United States were made in China. China was at first defensive. It banned two shipments of food from the United States and even released a statement that an FDA regulation allowed the toxic chemical diethylene glycol in toothpaste. China