Mattels China Experience

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RUNNING HEAD: Mattel’s China Experience Unit 4 Mattel’s China Experience; A Crisis in Toy-land Case Study Analysis Kaplan University School of Business and Management MT460 Management Policy and Strategy Author:Laura Wesley Professor: Leerburger Date: January 9, 2012 Introduction Mattel is a very well known toy company that was founded by Elliot and Ruth Handler in 1944. Their target market was geared towards young children, because they are still interested in the type of toys that Mattel makes. Mattel decided to take their production to China, where their products would be made. This was due to the low cost for a company to manufacture products. Synopsis of the Situation Mattel is one of the most well known industry leaders in the production of toys. They are also known as an industry leader in corporate responsibility (Mary Teagarden, p. 1). However, their products were being called into question, and they were forced to recall these items. This recall took place when they were conducting a routine audit on their die-cast toy cars. This audit showed that the lead levels was in excess of the U.S, Federal toy safety regulations (p. 1). This is what pulled Mattel into the recall vortex of all the other products that were being produced in and exported from china (p. 1). The Sarge recall was just the beginning, and during the new few months they would be faced with more recall. This is where Mattel’s problems begin, and cause them to take a look at production in China. Key Issues The main issue for Mattel is the audit that took place in 2007 which caused them to recall the die-cast cars that were being made in China. This later lead to a recall of 967,000 toys that were made there due to the levels of the lead (p. 1). With Mattel doing business in China for more than 20 years and always having done a good job, their name and products are

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