Mattel and the Toy Recall

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Case Study 1. Mattel and the Toy Recall 1. Summary In this case, it mainly talks about the toy industry and the world biggest toy company- Mattel, including the overview of the toy industry, the situation of the toy production in China, the how significant the toy safety is and what’s the problem it faces. And it also introduces the basic information of Mattel and its operation conditions, especially the offshoring business, especially discussing the recall which happened in China of 2007 in detail. Mattel is the world’s premiere toy company, taking account for the majority market share. And China, which produces more than 60% of the toys sold in the world, is the principle manufacturing of Mattel. Since its conception, the Mattel Company has done a lot to make sure it is considered a trustworthy company for children and the community. With the U.S. toy companies shifting their production manufacturing from domestic to overseas and the development of the supply chain, China’s role in third-party manufacture is getting more and more important, for the reason that there is lower cost business environment and better phenomenal economic growth there. However, due to the pressures, such as the physical, technical and human resource infrastructures, the problem of product safety of made-in-China is getting more and more serious. As toy safety is a big issue in not only America but also all the world, toy safety issues is sure to draw all the world’s eyes. CPSC whose responsibility is to protect the public from the risks of consumer products lists two major hazards about the toy safety: excess lead use and the small magnets in toys. And China is both involved in the recall associated with these problems. With supply chain developing rapidly, offshoring becomes the effective way to save cost. Mattel has its own policy to choose and manage the offshoring

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