Mattel Case Study

2328 Words 10 Pages
Register to read the introduction… In 2007, Mattel made five recalls of its toys. These recalls involved 21 million toys. Most of these toys were made in China. The toys were recalled for two problems: 1. Due to presence of lead paint in toys, this is dangerous for health. In USA, lead paints are not allowed in toys. 2. Due to poorly designed magnets. If these powerful magnets were swallowed by children, it could attract each other and cause potentially fatal intestinal.
Mattel blamed Chinese firms for these problems in toys. Repeated recalls of toys reduced consumer trust of Mattel toys as well as other toys produced in China. Mattel tried to reassure consumers saying they were working with CPSC and other regulatory bodies around the world to ensure quality of products. They also provided comprehensive list of recalled products on its website and opened a toll free no. to respond to consumer’s questions regarding safety of its toys. Mattel published full page ad in leading newspapers and assured consumers that they had rigorous procedures to enforce quality and
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The main stakeholders are parent consumers, toy selling companies (like Mattel), toy manufacturers (like Chinese contractors of Mattel), subcontractors, government and regulators, toy retailers, standard setting organizations, and media. The government and regulators need to become proactive to ensure that defective products are not entering the market. As import from China has increased drastically, the regulators need to be more vigilant to check the imported goods. They also need to remove defective goods from market. CPSC should investigate the companies to ensure that standard is maintained companies are complying with the regulation. Implementation of regulation is as important as having the regulation in place. The standard setting organization needs to review the standards regularly and make necessary changes in standard with changing environment. The toy companies and manufactures need to implement testing and inspection procedures to ensure that products not complying with the standard are not coming to market. Having a third party testing and inspection can improve the

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