These corporations are largely interdependent on each other as they have production organizations located in various countries. and need to be able to garner all of the components of a product before assembly. The different parts of the products are typically made in separate entities in different places as the cost to make certain parts is cheaper depending on the location. Logistics is heavily emphasized in globally integrated corporations because every part needs to be working simultaneously.
Multidomestic corporations are independent and consist of products that are simple to replicate. Multidomestic corporations expand by seeking different markets and are independently established to cater to the needs/ to service a local market. Multidomestic corporations expand essentially by creating clones of themselves. Examples of these can be Starbucks and Walmart locations. When consumers go into these establishments, they know what to expect for the most part. Unlike globally integrated corporations that are largely interdependent, multidomestic corporations are largely independent in the sense that if something goes wrong at another establishment, it will not affect their ability to produce the products at their specific local …show more content…
Mattel has been manufacturing overseas since 1959. Mattel dominates factories in China, Thailand, and Indonesdia en Mexico. In addition to this, Mattel offshores several contractors and subcontractors. Mattel outsources largely from China in order to acquire cheap labor, increase output, and remain competitive. Mattel abuses the laborers in these factories by enacting insanely short deadlines and by demanding the goods to be made at the cheapest possible price as the price of materials continues to increase. In order to gain the most profit, Mattel disregards the benefits and overall state of the factory workers. Because Mattel's products are manufactured, but not designed and created in Chinese factories, Mattel has a difficult time regulating the quality of the toys that are being made. In 2007, the company had suffered a 21 million toy recall on their Barbie and Elmo toys as the paint being used had been lethal and the magnets used, small enough for children to swallow. This recall caused for more toys to become recalled as it was discovered that more toys were covered in toxic paints or incorporated small magnets. The contractors associated with this malfunction were Early Light industrial and Lee Der Industrial. Although outsourcing and offshoring may have some benefits to the toy company, there appears to be several drawbacks as previously