Unit 6

Unit 4: Mattel’s China Experience: A Crisis in Toyland Case Study Analysis

Kaplan University

School of Business

MT460 Management Policy and Strategy

Author: Danielle Hernandez

Professor: Dr. Dennis Strouble

Date: February 2, 2013

Mattel’s China Experience: A Crisis in Toyland

Introduction

Mattel is a toy making company run by Bob Eckert, CEO. They are a worldwide company that makes some of the most popular toys such as Hot Wheels, Fisher-Price, Power Wheels, Little People, and one of my favorite Barbie. Mattel is a company that has been around since 1945 and was founded by Ruth and Elliot Handler. Mattel is a fortune 500 company that continues to grow more and more each day with creating more toys that our children can enjoy on a day to day basis.

Synopsis of the Situation

Mattel had faced a situation that was brought to their attention by one of their European customers. They had found lead in the paint of their die-cast toy cars which exceeded the U.S federal toy safety regulations.

Key Issues

The key issue that Mattel was facing was that they had to recall 1.5 million Chinese made toys after they found out that lead was found in the paint. Beside the lead being found in the paint Mattel had other problems with some of their other toys. Some of Mattel’s other issues with their toys were magnets that were coming loose on toys such as Batman and Barbie products.

Define the Problem

The problem with these product recalls was who to blame for this carelessness of making these toys. Mattel was pointing their finger at China for the lead being in the paint. This made light of another issue coming forth. Are the products that are being made overseas up to the FDA standards? Are the qualities of the products being made overseas worth the price that the US is paying?

Alternative Solutions

What I think that Mattel should have done was make sure that all products were tested correctly and that all FDA requirements were met...