mattel's toy recalls and supply chain management case study

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Unsafe For Children: Mattel’s Toy Recalls and Supply Chain Management

In August and September 2007, Mattel made a series of product recalls, totaling more than 20 million toys. The recalls were for excessive lead and for magnets that could become loose. All of the recalled toys had been made in China. The Mattel recalls followed on the heels of a number of high profile safety problems with Chinese imports, including contaminated pet food and toothpaste, defective tires, and lead-painted toys. The recalls sparked intense criticism of Mattel and its Chinese supply chain, despite the fact that more than 85 percent of the recalled toys were due to design problems (magnets), not the result of improper manufacturing (use of lead paint). The case provides a basis for discussion of outsourcing and supply chain management. The basic toy manufacturing process is fairly simple, providing a forum for discussing these issues without the complication of advanced manufacturing technology or an involved supply chain. In this case, supply chain defects, such as the use of lead paint by vendors, can have severe consequences. The supply chain must be designed to prevent these defects. The case enables discussion of why companies outsource, managing a supply chain, and the appropriate use of inspection and testing. It also provides the opportunity to examine response to a crisis situation, and the relationship between a company and government.

mattel's toy recalls and supply chain management case study

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Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

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Unsafe for children: mattel's toy recalls and supply chain management description.

Case Description Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

Strategic managment tools used in case study analysis of unsafe for children: mattel's toy recalls and supply chain management, step 1. problem identification in unsafe for children: mattel's toy recalls and supply chain management case study, step 2. external environment analysis - pestel / pest / step analysis of unsafe for children: mattel's toy recalls and supply chain management case study, step 3. industry specific / porter five forces analysis of unsafe for children: mattel's toy recalls and supply chain management case study, step 4. evaluating alternatives / swot analysis of unsafe for children: mattel's toy recalls and supply chain management case study, step 5. porter value chain analysis / vrio / vrin analysis unsafe for children: mattel's toy recalls and supply chain management case study, step 6. recommendations unsafe for children: mattel's toy recalls and supply chain management case study, step 7. basis of recommendations for unsafe for children: mattel's toy recalls and supply chain management case study, quality & on time delivery.

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Case Analysis of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management is a Harvard Business (HBR) Case Study on Global Business , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Global Business, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Global Business Solutions

In the Texas Business School, Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

Step 1 – Problem Identification of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management - Harvard Business School Case Study

The first step to solve HBR Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Recalls Toys is facing right now. Even though the problem statement is essentially – “Global Business” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Recalls Toys, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management. The external environment analysis of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study. PESTEL analysis of " Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

To do comprehensive PESTEL analysis of case study – Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Recalls Toys is operating, firms are required to store customer data within the premises of the country. Recalls Toys needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Recalls Toys in case study Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Recalls Toys in case study “ Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Recalls Toys in case study “ Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Recalls Toys can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Recalls Toys needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

Social factors that impact unsafe for children: mattel's toy recalls and supply chain management, technological factors that impact unsafe for children: mattel's toy recalls and supply chain management, environmental factors that impact unsafe for children: mattel's toy recalls and supply chain management, legal factors that impact unsafe for children: mattel's toy recalls and supply chain management, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: unsafe for children: mattel's toy recalls and supply chain management case study solution.

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Segmentation, targeting, positioning, marketing strategic planning, marketing 5 concepts analysis, swot analysis & matrix, porter five forces analysis, pestel / pest / step analysis, cage distance analysis international marketing analysis leadership, organizational resilience analysis, bcg matrix / growth share matrix analysis, block chain supply chain management, paei management roles, leadership with empathy & compassion, triple bottom line analysis, mckinsey 7s analysis, smart analysis, vuca analysis ai ethics analysis analytics, unsafe for children: mattel's toy recalls and supply chain management swot analysis & matrix / mba resources.

Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management
Global Business / MBA Resources

Definition of SWOT Analysis

What is SWOT Analysis & Matrix? How you can use SWOT Analysis for Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

At EMBA PRO , we specialize at analyzing & providing comprehensive, corporate SWOT Analysis of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study. Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management "referred as Recalls Toys in this analysis " is a Harvard Business Review (HBR) case study used for MBA & EMBA programs . It is written by Hau Lee, Mitchell M. Tseng, David W. Hoyt and deals with topics in areas such as Global Business International business, Manufacturing, Organizational culture, Product development, Supply chain SWOT Analysis stands for – Strengths, Weaknesses, Opportunities, and Threats that Recalls Toys encounters both internally and in macro environment that it operates in. Strengths and Weaknesses are often restricted to company’s internal - resources, skills and limitations. Opportunities and Threats are factors that are analyzed in view of the prevalent market forces and other factors such as economic , legal & environmental, technological, political, and social, health & safety. According to global executive survey done by Harvard Business Review & Brightline Initiative – Only 20% of the strategic targets set by organizations are realized. Rest 80% of the strategic targets are not achieved because of incomprehensive planning, limited resource allocation, and poor execution. The successful organizations such as Recalls Toys are the one who able to predict market trends better than others, provide resources to develop products and services to leverage those trends, able to counter competitors’ threats, and meet customers’ expected value proposition.

Case Description of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management Case Study

Case Authors : Hau Lee, Mitchell M. Tseng, David W. Hoyt

Topic : global business, related areas : international business, manufacturing, organizational culture, product development, supply chain, case study solution & analysis of unsafe for children: mattel's toy recalls and supply chain management, pestel / pest / step analysis of unsafe for children: mattel's toy recalls and supply chain management case study, urgent - 12hr.

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What are the Four Elements of SWOT Analysis? How to use them for Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study?

The four key elements of SWOT analysis are - Strengths, Weaknesses, Opportunities & Threats . Recalls Toys can use strengths to create niche positioning in the market, can strive to reduce & remove weaknesses so that it can better compete with competitors, look out to leverage opportunities provided by industry structure, regulations and other development in external environment, and finally make provisions and develop strategies to mitigate threats that can undermine the business model of Recalls Toys.

	Opportunities	Threats
	Using Recalls Toys strengths to consolidate and expand the market position.	Recalls Toys can use two approaches - building on present strengths, or analyze the trend and build processes to two pronged market penetration approach.
	Building strategies based on consumer oriented product development and marketing approach.	Recalls Toys should just get out of these business areas and focus on strength and threats box , or on weakness and opportunities box.

For more detailed SWOT Matrix strategy please go through the detailed analysis of strengths, weaknesses, opportunities, and threats in next section.

What are Strengths in SWOT Analysis

Strengths - Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

Strengths are the Recalls Toys capabilities and resources that it can leverage to build a sustainable competitive advantage in the marketplace. Strengths come from positive aspects of five key resources & capabilities - human resources, financial resources, past experiences and successes, activities & processes, and physical resources such as land, building .

- Strong relationship with existing suppliers – As an incumbent in the industry, Recalls Toys has strong relationship with its suppliers and other members of the supply chain. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , the organization can increase products and services by leveraging the skills of its suppliers and supply chain partners.

- First Mover Advantage – Recalls Toys has first mover advantage in number of segments. It has experimented in various areas International business, Manufacturing, Organizational culture, Product development, Supply chain. The Global Business solutions & strategies has helped Recalls Toys in coming up with unique solution to tap the un-catered markets.

- Superior product and services quality can help Recalls Toys to further increase its market share as the current customer are extremely loyal to it. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt in Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management study – there are enough evidences that with such a high quality of products and services, Recalls Toys can compete with other global players in international market.

- High Margins – Recalls Toys charges a premium compare to its competitors. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study, this has provided Recalls Toys resources to not only thwart competitive pressures but also to invest into research and development.

- Strong Balance Sheet and Financial Statement of Recalls Toys can help it to invest in new and diverse projects that can further diversify the revenue stream and increase Return on Sales (RoS) & other metrics.

- Strong Brand Equity and Brand Awareness – Recalls Toys has some of the most recognized brands in the domestic market it operates in. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , brand recognition plays a significant role in attracting new customers looking for solutions in International business, Manufacturing, Organizational culture, Product development, Supply chain adjacent industries.

- Successful Go To Market Track Record – Recalls Toys has a highly successful track record of both launching new products in the domestic market but also catering to the various market based on the insights from local consumers. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , Recalls Toys has tested various concepts in different markets and come up with successful Global Business solutions.

What are Weakness in SWOT Analysis

Weakness- Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

Weaknesses are the areas, capabilities or skills in which Recalls Toys lacks. It limits the ability of the firm to build a sustainable competitive advantage. Weaknesses come from lack or absence of five key resources & capabilities - financial resources, human resources, activities & processes, past experiences and successes, and physical resources such as land, building .

- Organization Culture – It seems that organization culture of Recalls Toys is still dominated by turf wars within various divisions, leading to managers keeping information close to their chests. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study, this can lead to serious road blocks in future growth as information in silos can result can lead to missed opportunities in market place.

- Track record on environment consideration is not very encouraging – Recalls Toys track record on environmental issues is not very encouraging. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , this can lead to consumer backlash as customers are now considering environmental protections as integral to part of doing business.

- Inventory Management – Based on the details provided in the Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study, we can conclude that Recalls Toys is not efficiently managing the inventory and cash cycle. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , there is huge scope of improvement in inventory management.

- Lack of Work force diversity – I believe that Recalls Toys is not diverse enough given that most of its growth so far is in its domestic market. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , this can reduce the potential of success of Recalls Toys in the international market.

- Implementation of Technology in Processes – Even though Recalls Toys has integrated technology in the backend processes it has still not able to harness the power of technology in the front end processes.

- Recalls Toys business model can be easily replicated even with the number of patents and copyrights the company possess. The intellectual property rights are very difficult to implement in the industry that Recalls Toys operates in. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , Intellectual Property Rights are effective in thwarting same size competition but it is difficult to stop start ups disrupting markets at various other levels.

What are Opportunities in SWOT Analysis

Opportunities- Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

Opportunities are macro environment factors and developments that Recalls Toys can leverage either to consolidate existing market position or use them for further expansion. Opportunities can emerge from various factors such as - increase in consumer disposable income, economic growth, technological innovations, changes in consumer preferences, and political developments & policy changes .

- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Recalls Toys is in prime position to tap on those opportunities and grow the market share. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , growth in international market can also help Recalls Toys to diversify the risk as it will be less dependent on the domestic market for revenue.

- Access to International Talent in Global Market – One of the challenges Recalls Toys facing right now is limited access to high level talent market because of limited budget. Expansion into international market can help Recalls Toys to tap into international talent market. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , it can also help in bringing the talent into domestic market and expanding into new areas International business, Manufacturing, Organizational culture, Product development, Supply chain.

- Growing Market Size and Evolving Preferences of Consumers – Over the last decade and half the market size has grown at brisk pace. The influx of new customers has also led to evolution of consumer preferences and tastes. This presents Recalls Toys two big challenges – how to maintain loyal customers and how to cater to the new customers. Recalls Toys has tried to diversify first using different brands and then by adding various features based on customer preferences.

- Increasing Standardization – Recalls Toys can leverage this trend to reduce the number of offerings in the market and focus the marketing efforts on only the most successful products.

- Reducing Cost of Market Entry and Marketing into International Markets – According to Hau Lee, Mitchell M. Tseng, David W. Hoyt, globalization along with boom in digital marketing and social media has considerably reduced the risks of market entry and marketing in international market.

- Opportunities in Adjacent Markets – Recalls Toys can explore adjacent industries International business, Manufacturing, Organizational culture, Product development, Supply chain to further market growth especially by extending the features of present products and services.

What are Threats in SWOT Analysis

Threats- Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

Threats are macro environment factors and developments that can derail business model of Recalls Toys. Threats can emerge from various factors such as - economic growth, political developments & policy changes, increase in consumer disposable income, technological innovations, and changes in consumer preferences .

- Increasing bargaining power of buyers – Over the years the bargaining power of customers of Recalls Toys has increased significantly that is putting downward pressure on prices. The company can pursue horizontal integration to consolidate and bring efficiencies but I believe it will be a short term relief. According to Hau Lee, Mitchell M. Tseng, David W. Hoyt , Recalls Toys needs fundamental changes to business model rather than cosmetic changes.

- Squeezing Middle Class in Developed and Developing World – The growing inequality is one of the biggest threat to not only globalization but also to capitalism. Recalls Toys first hand witnessed the impact of it where it has seen lower demand of its products from middle class customers in US and EU market.

- US China Trade Relations – Recalls Toys has focused on China for its next phase of growth. But there is growing tension between US China trade relations and it can lead to protectionism, more friction into international trade, rising costs both in terms of labor cost and cost of doing business.

- Growing Protectionism - Recalls Toys should hedge the risk against growing protectionism ranging from – storing data into international market to diversifying risk by operating into countries at different economic cycle.

- Credit Binge post 2008 Recession – Easy access to credit can be over any time, so Recalls Toys should focus on reducing its dependence on debt to expand. The party has lasted for more than a decade and rollback from Fed can result in huge interest costs for Recalls Toys.

- Government Regulations and Bureaucracy – Recalls Toys should keep a close eye on the fast changing government regulations under the growing pressure from protest groups and non government organization especially regarding to environmental and labor safety aspects.

5C Marketing Analysis of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management

4p marketing analysis of unsafe for children: mattel's toy recalls and supply chain management, porter five forces analysis and solution of unsafe for children: mattel's toy recalls and supply chain management, porter value chain analysis and solution of unsafe for children: mattel's toy recalls and supply chain management, case memo & recommendation memo of unsafe for children: mattel's toy recalls and supply chain management, blue ocean analysis and solution of unsafe for children: mattel's toy recalls and supply chain management, marketing strategy and analysis unsafe for children: mattel's toy recalls and supply chain management, vrio /vrin analysis & solution of unsafe for children: mattel's toy recalls and supply chain management, pestel / step / pest analysis of unsafe for children: mattel's toy recalls and supply chain management, case study solution of unsafe for children: mattel's toy recalls and supply chain management, swot analysis and solution of unsafe for children: mattel's toy recalls and supply chain management, references & further readings.

Hau Lee, Mitchell M. Tseng, David W. Hoyt (2018) , "Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management Harvard Business Review Case Study. Published by HBR Publications.

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Unsafe for Children: Mattel’s Toy Recalls and Supply Chain Management Harvard Case Solution & Analysis

Home >> Supply Chain Management Cases >> Unsafe for Children: Mattel’s Toy Recalls and Supply Chain Management

Question no. 4: What is your opinion regarding key players who reacted to this issue?

Mattel had good relationship with their immediate vendors but due to uncertified suppliers which were subcontracted for the supply of paints, the problem raised with the news of excess lead paint. People started criticizing the Chinese products. Mattel apologized immediately and recalled its toys. Mattel’s statement said that the problem was due to production in China which resulted in damaging the relationship between the company and China.

China had a workforce which had to control the quality control issues so-called AQSIC. It had a huge amount of workforce which could test the quality assurance of the Chinese made products. AQSIC immediately banned the usage of lead in toys and canceled Lee Der’s export license but did not revoke the license of ELI due to its governmental influence. It arranged training program for 2600 employees out of 1800 factories.

China also blamed Mattel for its international safety standards and sent back two imports, which had come from US saying that the shipment had not met up to their quality standards. In August 2008, US started an investigation regarding the safety and quality standards for children’s toys and clothes. Furthermore, Senator Barack Obama had promised to ban the Chinese made toys until their quality could be ensured by the Chinese government and quality checking standards.

Question No. 5: How do you think that accountability can be better managed in long global supply chains?

Supply chain would be managed well only if all the chains performed their best. If any of the chain would break, then the whole chain would have to suffer. As discussed in the case, mostly all of the vendors held for accountability except for ELI. Mattel faced the failure of supply chain cost of USD 110 million.

It was a challenging task to control the accountability in the long term. Every supply chain channel would be required to give their best in terms of quality and standard. Lee Der made a huge mistake by subcontracting the supplier which was originally an uncertified supplier as Lee Der did not know about it. The supplier supplied lead containing paint which was directly used by Lee Der without even testing it for lead; this resulted in a problem for the entire supply chain. It could be managed well and Lee Der could inform Mattel about any of its subcontracting with any vendor. This could help both about the awareness and scenarios regarding production process and its procurement. Mattel would have to manage the accountability by keeping awareness about the vendors regarding their procurement and strategic activities.

Question No. 6: Is it worthwhile for companies to invest in helping and supporting their suppliers? How important is measuring supplier performance and providing incentives?

It was discussed above that the supply chain management is a challenging task and it would need to be handled carefully. If any of the chain would fail to perform or break; then it would lead the whole chain to failure, therefore it is very necessary to support the suppliers and to help them. However, Mattel can improve performance of the supplier through trainings and incentives. It is important to observe the performance of the suppliers throughout the process as well as keep on motivating the suppliers and evaluating their performance. Consequently, it would result in improving the performance of the suppliers and they would give their best. Suppliers with good performance would be given more business , which would be beneficial for Mattel and would result in increasing the morale of the suppliers........................................

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Unsafe For Children: Mattel's Toy Recalls and Supply Chain Management
The case provides a basis for discussion of outsourcing and supply chain management. The basic toy manufacturing process is fairly simple, providing a forum for discussing these issues without the complication of advanced manufacturing technology or an involved supply chain.
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management
In August and September 2007, Mattel made a series of product recalls, totaling more than 20 million toys. The recalls were for excessive lead and for magnets that could become loose. All of the recalled toys had been made in China. The Mattel recalls followed on the heels of a number of high profile safety problems with Chinese imports, including contaminated pet food and toothpaste ...
Mattel and the Toy Recalls (A)
On August 14, 2007, the U.S. Consumer Product Safety Commission (CPSC) in cooperation with Mattel announced five different recalls of Mattel's toys. On September 4, Mattel announced three more recalls. Some were due to the use of lead paint, while others were due to small magnets coming loose. The (B) case outlines the handling of the recalls and its consequences, such as consumer outrage ...
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management
What are areas that require urgent change management efforts in the " Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management " case study. Some of the areas that require urgent changes are - organizing sales force to meet competitive realities, building new organizational structure to enter new markets or explore new ...
Unsafe for Children: Mattels Toy Recalls and Supply Chain Management
The case provides an analysis of the reasons why companies outsource the management of the supply chain and the proper use of inspection and testing. It also offers the opportunity to examine the response to a crisis situation, and the relationship between a company and the government. by Hau Lee, Mitchell M. Tseng, David W. Hoyt Source ...
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management
In August and September 2007, Mattel made a series of product recalls, totaling more than 20 million toys. The recalls were for excessive lead and for magnets that could become loose. All of the By continuing to use our site you consent to the use of cookies as ...
Case Study: Mattel and the Toy Recalls (B) (English version)
Mattel and the Toy Recalls (B) This case, which outlines the product recall, is a supplement to Mattel and the Toy Recalls (A). The complexity of multinational operations, particularly the issues of (i) coordination and control, (ii) oversights in global supply chains, and (iii) knowledge management and organizational learning. The recall ...
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management
Case Study Analysis & Solution of Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management , written by Hau Lee, Mitchell M. Tseng, David W. Hoyt, Case Analysis, Assignment Help, PESTEL, SWOT, Porter 5 Forces, Porter Value Chain
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management "referred as Recalls Toys in this analysis " is a Harvard Business Review (HBR) case study used for MBA & EMBA programs. It is written by Hau Lee, Mitchell M. Tseng, David W. Hoyt and deals with topics in areas such as Global Business International business, Manufacturing ...
Unsafe for Children: Mattels Toy Recalls and Supply Chain Management
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management. Questions Analysis. Question No.1: Why do companies outsource? There are several reasons for the companies to outsource some of their non-core business functions. Outsourced company will become a strategic partner who will be coordinating with the company.
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management
The case provides a basis for discussion of outsourcing and supply chain management. The basic toy manufacturing process is fairly simple, providing a forum for discussing these issues without the complication of advanced manufacturing technology or an involved supply chain.
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management. Teaching note. -. Reference no. GS63TN. Subject category: Production and Operations Management. Authors: David W Hoyt (Stanford Graduate School of Business, Stanford University); Hau L Lee (Stanford Graduate School of Business, Stanford University); Mitchell Tseng (Hong Kong ...
Unsafe for Children: Mattels Toy Recalls and Supply Chain Management
Subjects Covered Accountability International business Manufacturing strategy Outsourcing Product recalls Quality control Supply chain management. by Hau Lee, Mitchell M. Tseng, David W. Hoyt. Source: Stanford Graduate School of Business. 20 pages. Publication Date: Sep 15, 2008. Prod. #: GS63-PDF-ENG. Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management Harvard Case Study ...
Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management
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