Mattel sourced some of its toys by Lee Der Industrial Company in China. Although Mattel ceased all business relations with Lee Der, it still continued to do business with its other foreign suppliers without implementing better controls. Recall Timeline In the year 2007 From www. It does not own the factories in Europe and Asia, from which Bangladesh, where the clothes are produced. The following are the 4 elements of her strategies: 1.
Eilola held executive positions with Honeywell International Inc. The rolling mix strategy from the perspective of overall supply chain was that the supply chain had to regularly produce different models to meet the market need for variety and two changes every year of production. From March 1999 to February 2011, he was Senior Vice President, General Counsel and Secretary. Rather than changing their strategy, Mattel can send their own highly trained employees to work cooperatively with outsourcing manufacturers, supervising their daily activity to ensure quality and compliance instead of testing every toy after the production process is complete. Add Remove Please see attached files. The region with the largest production capacity is Guangdong province in southeastern China. Answer: The primary goal of Jill Barad for Mattel was to increase earning per shares by 15% per annum compounded before the effects of any acquisitions.
Mattel used outsourcing as a major tool in its value chain management with China becoming a favoured destination. Once notified, Mattel began an investigation and closed operations at. From June 1992 to August 1994, he served as Assistant General Counsel. However, in 1997, it established the Global Manufacturing Principles. However, in 2007, Mattel made several recalls of products that had been manufacturing in China. Earlier in his career, Mr. Outsourcing may also enable companies to have access to resources and technology, which may be not have been available locally.
These recalls were for safety reasons in that testing at the manufacturing sites and special test laboratories showed that millions of their toys were coated with dangerous amounts of lead in the paint. Set during the Asian financial crisis, the case describes a facility location decision for Hot Wheels and Matchbox cars. Mattel was incorporated in 1948 in with headquarters in Los Angeles, California. The pedagogical objectives are: 1 to understand the concept of outsourcing and its rationale; 2 to analyse the importance of outsourcing in value chain management; and 3 to analyse the significance of quality maintenance and supervision during outsourcing. The product recalls show that quality control continues to be an issue that even Mattel which is known for having a tight quality control procedure with a sophisticated inspection and testing system in its supply chain of subcontractors. Gerjets was Director, Information Technology, at Symantec Corporation. This company designs, to manufacture, markets, and distributes a large amount of different toy products to over 150 countries worldwide.
Should die-cast cars be a core product? The company shuttered the store after just two years in operation. It has put an even more powerful microscope on long-standing issues regarding quality control in China and the relentless push to cut prices along every step of the supply chain. While it may be costly at first, long-term benefits can be realized as both quality and imitation issue can be successfully addressed. Richard Dickson has been President and Chief Operating Officer since April 2015. For example, 177 recalls in the United States post-2006 have involved products manufactured in China. If the suppliers did, in fact, knowingly substitute the appropriate paint with the lead based paint, they deceived their stakeholder, Mattel.
Access to case studies expires six months after purchase date. Thompson was Senior Director, Employee and Organization Development, at Ticketmaster Corporation. Some of the renowned brands like Barbie, Hot Wheels, Matchbox and Fisher-Price are from the house of Mattel. In August and September 2007, Mattel made a series of product recalls, totaling more than 20 million toys. Then you might have to pay to ship the product back. Cite this chapter as: Johnson M.
Knowledge Wharton 2007, August 22. While this would be impossible in a sector like the automotive industry — where foreign investors are limited to less than 50% ownership — the toy industry is not considered strategic and there are no such limitations. A continual problem for manufacturing companies who outsourced their production to China is controlling the quality of products manufactured overseas. Barbie is still among their top rated brands, which now followed by their Monster High doll collection Mattel, 2014. Mattel undertook many measures to undo the damage and it remained to be seen if it could regain the trust of its consumers. But, because of the ever-increasing demand for its toys, Mattel looked to Asian manufacturing plants for support.
Chinese officials have gone out of their way to stress the safety and quality of its exports, blaming the problems on small number of companies. Since going public in 1960, the brand has expanded and Mattel has even acquired Fisher-Price, Kransco, Tyco, Pleasant Company, Blue Bird Toys, and the Learning Company. Mattel originally viewed Lee Der as a reliable supplier, so it delegated the responsibility to control the quality of the paint to the Chinese manufacturer. Cost reductions by outsourcing production to low-cost foreign factories in places such as China. We are all familiar with the iconic Barbie dolls and Hot Wheels cars of Mattel, Inc.