While reading the Mattel and Toy Safety case it showed to us how much we need an organization that is one of honesty. Mattel Inc., was thought to have been a role model when it came to safety and quality. However it failed to that high quality and the safety of its toys. In 2007, the company ended up recalling many of their toys several times. The toys were recalled because there was a presence of lead in the paint and also had magnet issues. While Mattel Inc. was responsible for distributing the toys Chinese manufactures were responsible for the issues with the toys. Because of this issues I will investigate in this paper why the safety issue occurred, exactly who was responsible for the mistake and finally how this problem could have been prevented. To go along with this issue I will also talk about what stakeholders had to say on this issue and exactly what role the stakeholders had when it came to in ensuring the toys safety.
Before I start to talk about a lot of the issues that occurred during the reading of this case I want to give a little background on Mattel Inc. The Mattel business started in 1945. Not until 1960 though did it become a publicly held company. By the mid 2000’s Mattel was worth a net profit of $592 million dollars. As most people know Mattel is the leading company when it comes to design, manufacturing and marketing of most children’s toys. Mattel employs around 30,000 employees while the company sells many different products in more than 150 countries. Mattel has many different toys which include some of the bestselling and most popular toys over the years such as Barbie, Hot Wheels, Matchbox and American Girl. Even with the problems that occurred with the toy recall Mattel was always considered a responsible company. They earned a high reputation with most of the consumers of their products. Mattel was even recognized by Forbes magazine in one of their issues as a top 100 most trustworthy U.S. companies and also was a recognized company for being one of the 100 Best Corporate Citizens by CRO magazine. This shows what kind of company Mattel has been and the respect that they receive from their consumers.
As many companies did Mattel decided to outsource a major portion of its manufacturing. This had become a popular decision for so many big companies. In the late 2000’s around 65% of Mattel’s toys had become manufactured in China. To go along with the factories in China they also had factories in Hong Kong, Indonesia, Malaysia, Philippines and Singapore. More than half of the revenue for Mattel had come from the toys that were manufactured outside USA. While they were producing toys in other countries, Mattel also contracted the production of their products to about 50 Chinese companies. In return many of these companies then subcontracted the production to other subcontractors. This made the business for Mattel Inc. much easier to handle while not hurting their sales goals in the long run.
In 1997, Mattel ended up developing a detailed code of conduct. They called this code of conduct “Global Manufacturing Principles”. The code that they created was applicable not only to Mattel factories but as well its subcontractors and suppliers. It mainly focused on improving the working conditions at their factories. Mattel also tried to find a way to ensure their product quality and safety. This would be a way to keep safety with not only their consumers but also their own employees. They wanted to be able to maintain a high quality safety of its products. They did everything that they could to make sure each product was a safe toy. They tested all of its products that were manufactured in China at its facilities. Almost all of their products were given a special test in their labs. (Lawrence & Weber, 2011) They tried to make sure that every toy that went out of their factories was safe and had been well
To franchise or not to franchise, that is the question? There are many advantages and disadvantages of franchising a business. The advantages of franchising are that the franchisee in most cases, especially with big name brands, gets start-up help from the franchisor, the franchisee also gets the ownership rights, automatically has “brand name” recognition, standardized products and/or services, has access to financial advise and/or assistance, reduced pricing of products due to the franchisors large…
paperwork of BUS 250 Week 1 Discussion Question 1 contains: Business Society In one paragraph, supported by evidence in your text and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Business - General Business BUS 250 Week 1 DQ1 Business Society…
Business plan for MAM AND CO Ltd E-mail: info@mamandcoltd.co.uk Website: mamandcoltd.co.uk Legal Page Confidentiality Agreement The undersigned reader acknowledges that the information provided by Mam and Co Ltd in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of the Mam and Co Ltd officer. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature…
Accounting Standards Codification (ASC) 250-10 and 605-35, I conclude that: Using the percentage of completion method was appropriate. Changing from the percentage of completion method to the completed contract method is reasonable. Your changes in the accounting method is the change in the accounting estimate. In this memo, I will…
Question 1 Write a 250- to 300-word short-answer response to the following: · What are two WANs that you have used? What equipment or devices were used? Describe the network design and configuration? Respond to your classmates, and discuss how your examples differ. Discussion Question 2 Write a 250- to 300-word short-answer response to the following: · Chou (2009) discusses a very common situation in business, communications between branch…
Subject: Case 1-1 Ribbons an’ Bows, Inc. Financial Standing I have been asked to share my opinion on the financial standing, profitability, why the decline in cash after three months, and whether I consider the first three months successful for the business, Ribbons an’ Bows. The summary of the financial situation is presented below, followed by my opinion of the situation. Carmen Diaz opened Ribbons an’ Bows, Inc. on April 1, 2010 from the help of two cousins loaning a total amount of $10,000 and her…
Financial estimate / plan Focuses on future performance B. Reasons for Budgeting Review :- Planning Co-ordination Control C. The Cash Budget Describe the definition, purpose and advantages as set out on p.73 D. Lecture Illustration Small Business – Neville’s Nut Shack Prepare the Cash Budget for first year. Review each of the 13 points listed. Ask students to identify if they are receipts or payments. Go through the questions at the bottom of p.75 If you have time, indicate how a monthly…
changes flexibly and positively and taking risks as business opportunities for flexible actions. - Leading domestic and overseas investors to view enterprises as investment targets featuring sustainability. As a business management strategy to meet these requirements, enterprises must conduct “diversity management” to create innovation and generate values by securing a wide range of human resources with various values1 indispensable for business development and allowing them to exercise their potential2…
January 2003 This sample marketing plan has been made available to users of Marketing Plan Pro™, marketing planning software published by Palo Alto Software. Names, locations and numbers may have been changed, and substantial portions of text may have been omitted from the original plan to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to create your own, but you do not have permission to reproduce, publish, distribute or even copy…
Business Strategy Assignment Stakeholder Mapping For an organisation to be successful there are a number of factors and groups of people which they must give significant amount of consideration to. Every organisation has groups of stakeholders who will be affected by decisions and changes made by that company. The external environment of business changes rapidly and especially in recent times due to the tough current economic climate, these changes lead to the creation of groups and individuals…