Analysis of Mattel's China Experience - Case Study Example

Following the launch, Mattel transformed the toy commerce with the production of talking dolls and toys. Mattel went public in the year 1960 and almost immediately managed to feature among top five hundred largest U.S industrial syndicates. Mattel introduced Hot Wheels in 1968. This was an instant success, second to only Barbie in terms of popularity and sales. Mattel experienced massive recall of a variety of its products manufactured in and shipped from China in 2007. They included toothpaste, automobile tires, dog food, and seafood.

CEO Robert Eckert was staring a crisis in the eye and by the time things cooled down, the firm had recalled 19 million toys Chinese manufactured toys. Upset customers threatened to shun Chinese made toys as the recalls elicited concerns over the quality of outsourcing in China. Key Issues In August 2007, Mattel recalled millions of their toys as a result of threatening amounts of lead paint. Mattel had contracted Chinese manufacturers to produce toys on their behalf, but overlooked the fact that some restrictions enforced in the U. S. were not valid in China.

Because Mattel had contracted Chinese manufacturers for 20 years without hiccups, they found no reason to doubt their workmanship in 2007. Definition of the Problem The problem for Mattel was not the recall of the products, but the events, which occasioned the recall. The management neglected the fact that the regulations in China were different for the U.S. Disappointed customers warned of shunning Chinese made toys as the recalls elicited concerns over the toy safety assessment procedure, the quality of outsourcing in China.

Alternative Solutions Some effectual plans, which the company may have utilized, include adding-on to and re-innovating their current product lines, stepping up its advertising endeavors in its main product lines and also leadership change. These would steer the company to even greater height in terms of revenues, staff commitment and implementation of safety regulations. Selected Solution to the Problem Apart from being business oriented, leadership should also be a key priority for Mattel. Before Robert Eckert became its CEO, Jill Barad, the former CEO had presided over a period of deteriorating performance in terms of sales and production and many found her management approach unacceptable.

Robert Eckert can be credited by bringing steadiness and certainty in addition to introduction of new packaging procedures, among them labeling in various languages to dispatch them to the various destinations. Eckert managed to boost international through globalization. Some of their most distinguished products like Barbie were availed in international markets and did remarkably well. The numerous leadership changes could be party responsible for the recall incident, since every leader had their own approach for making Mattel successful.

Some stability in leadership can ensure consistency in performance and stem oversight which may adversely affect business. Implementation Some of their Mattel’s most distinguished products like Barbie were availed in international markets and did remarkably well. Simply put, the better the manager, the more engaged the staff. Best leaders supervise the happiest, most engaged, and most committed employees, translating to higher returns and happy clients. Recommendations For Mattel to remain an industry trailblazer, it must utilize leadership skills to