Mattel Case Study

415 Words2 Pages
October 23, 2012 Case 3: Mattel’s Misfit Toys BUAD 455 Synopsis Mattel is the United States leading toy manufacturing company. Mattel features toys from Barbie, Fisher-Price, Hot Wheels, etc. On August 1, 2007 Mattel announced their largest toy recall, due to lead paint tainting their product. This caused Mattel’s financial fallout. Critical Factors of Success The high standard of Mattel’s toys and products is a critical factor of success, because it put the company on a petal stool as a role model in the toy industry. The quality and safety are important because parent need know if the products are capable of being played with by their children. Creativity is used to keep the toys fun for the children. Mattel best factor to success was their CEO Robert Eckert, he was determine to get his company’s face back. He willing to do whatever it took to bail his company out of its fallout. Because consumers confidence is factor that keeps the company going. Major Problems Opportunities Mattel biggest problem was the toy recall; they were producing unsafe and defective toys. Lead paint and faulty designing cause Mattel to put over 700,000 manufactured products off the market. The recall brought Mattel lawsuit dealing with children illnesses and deficiencies, Causing Mattel to lose lots of money. Another big problem for Mattel was trade market and not manufacturing their product themselves and allowing the manufacturing to happen in China. This caused Mattel to not have control of what they were producing. This also gave Mattel’s competitors a chance to move up in the industry due to making more sale caused by Mattel’s lost in the consumer base. Alternatives Mattel needs to make a standard set of rules and regulation that need to be followed by everyone associated with the company. Mattel needs to do research, on how to make their product, on who makes the
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