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Mattels's Chines Sourcing Crisis of 2007 - Assignment Example

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The author examines Mattel’s Chinese Sourcing Crisis of 2007 and identifies whether is lead paint on toys or defective sliding sides on baby cribs, whose responsibility it is to assure safety – the company, like Mattel, or the country, in this case, China. …
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Mattelss Chines Sourcing Crisis of 2007
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Download file to see previous pages Mattel’s global sourcing in China, like all other toy manufacturers, was based on both low-cost manufacturing, low-cost labor, and a growing critical mass of factories competitively vying for a contract manufacturing business. Do you think the product recalls and product quality problems are separate from or part of pursuing a low-cost country strategy?
Mattel was founded in the year 1945 by Ruth Handler, Elliot Handler and Harold Matson (Mattel, 2001). Mattel, a toy company from the United States, has been preserving a business relationship with China since 1959. Despite having a long-term trade relationship with China, Mattel had to face numerous ethical problems regarding its production process. Likewise, any other multinational company, Mattel’s functions in the Chinese manufacturing sector was majorly focused on the low-cost production process with the virtues of low-cost laborers. Moreover, with the effect of modernization and globalization, the Chinese industry was also flourishing with growing numbers of small factories which were solely focused on operating as third-party manufacturers for global brands and thus earn a large number of foreign currencies. This further motivated Mattel to shift its production process in the Chinese manufacturing sector with the intention of minimizing its responsibilities towards quantity production and thus attaining a larger market share along with increased sales (Dietz & Gillespie, 2012). With its production functions transferred to the low-cost market of China, Mattel was able to earn various advantages in terms of low-cost laborers as well as low-cost raw materials. However, the shift of Mattel’s production functions to the Chinese economy also led to limitations such as the weakening quality of the manufactured products (Biggemann, 2007).
Focusing on the historical performances of Mattel, it can be apparently witnessed that the organization was long associated with the Chinese government and economic drivers in terms of the third-party manufacturing agreements since the late 1950s.  ...Download file to see next pagesRead More
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