Executive Summary Acct 280

Executive Summary

ACC 280

Executive Summary

Mattel, a well-known name in toy manufacturing opened for business in 1945. The company began when Ruth and Elliot Handler and Harold “Matt” Matson started a business of selling picture frames out of a garage workshop in southern California. The subsidiary company, which developed dollhouse furniture launched by Elliot Handler and made from picture frame scraps, was the beginning of a large corporation named Mattel. Soon after Matson selling out to his partners, the Handlers turned the company business line into a toy manufacturer.

Mattel introduced their first musical toy called the Uke-A-Doodle in 1947, which was the beginning of more than 20 million music making toys to follow within the next two years. The company incorporated in 1948 with its headquarters in Hawthorne, California and later in 1955 Mattel became the first to revolutionize the toy marketing strategies by advertising new toys on the Mickey Mouse Club, an ABC television show. The Burp Gun, an automatic cap gun became one of the most successful products gaining its profitability and popularity through this television show.

The company gained majority of its name as well through toys like the Barbie Doll, made in 1959 and modeled after Ruth Handlers daughter, Barbara. Although not immediate because of controversial issues that mothers had with the Barbie dolls breasts, the Barbie doll ultimately wins the battle and leads the industry boom in toy manufacturing and today Barbie still attracts little girls as their primary customers.

By 1960, Mattel becomes a publicly owned company selling shares at $10 each and in 1965; sales reached $100 million, which offered the company an opportunity to become a part of the fortune 500 lists of companies. In 1969, it lists on the New York Stock Exchange with $211 million in revenues and the $10 shares valued at $522.50 at the stocks peak in 1971. Today their stock symbol known as MAT is still trading...