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Mattel Inc. Problems and Solutions

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by

Lisa Maupin

on 13 November 2013

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Transcript of Mattel Inc. Problems and Solutions

MATTEL INC. SOCIAL RESPONSIBILITY
You've got problems? We have the solutions.
Problem #1
Our Solution
Problems
Problem #3
Solution #1
Solution #2
Solution # 3
- 21,000,000 of Mattel's toys were recalled for being seen as health hazards

- the ingestion of magnets lead to 1 death and 19 injuries

- the amount of lead in the paint used on Mattel's toys was 180 times the amount allowed by law

- some of Mattel's Eastern subcontractors refuse to adhere to their strict safety/production standards

- with their primary user being children, Mattel must produce safe products
Problem #2
SUBCONTRACTOR COMPLICATIONS
- During the magnet dilemma, Mattel was
eager to pass the blame onto their Chinese
subcontractors

- this tarnished Mattel's 2003 UNICEF Corporate
Responsibility Award

and replaced it with...
- implement an inspection line in which workers will test and examine a number of toys in each batch that is manufactured

- start a training program as well as provide constant reminders to further exemplify

- Mattel must aim their primary priority towards customer safety rather than personal profits and revenue
SUBCONTRACTOR COMPLICATIONS
PASSING THE BLAME
Good Morning!
DANGEROUS PRODUCTS
What Happened
2003: UNICEF awards Mattel with their "Corporate Responsibility Award"

2007: large recall of toys containing lead paint

also 2007: recalled several more toys on account of loose magnet pieces
But Why?
Both the lead paint and the loose magnet assembly happened over the watch of Mattel's Chinese subcontractors
The Obvious Solution
the most obvious solution to Mattel's poor production problem would be to pass a new piece of legislation
BUT WAIT!
passing legislation poses a significant problem in itself...

TIME CONSTRAINTS
DANGEROUS PRODUCTS
- the fact that Mattel's products are
imported from foreign countries poses
a major concern
- there is not enough supervision in
place in Mattel's subcontractors'
institutions
"Nearly 97% of all recalled products were foreign made; 81% came from China"
- provide enhanced communication to
their subcontractors

-provide incentives and consequences

- regular board meetings to discuss safety and
progress in Mattel's foreign factories
- position Mattel supervisors within the
foreign subcontractors institutions
FURTHERMORE
..

1. Position their own U.S. Employees into their hired
foreign subcontracting institutions

2. Condense their supply chain to prevent contamination of their products

3. Pre-approve all production decisions made by suboridinates
We strongly believe that Mattel must...
PASSING THE BLAME
Consumers International 2007





"BAD PRODUCT AWARD"
- take onus for the subcontractors'
mistakes

- pre-approve all business decisions
made outside immediate company

- shift responsibility from subcontractor
to Mattel Inc.
Good morning!
- training
- placing U.S. supervisors in foreign
countries
- hiring inspectors
- purchase of quality supplies
- four of the most substantial areas
where costs will be incurred includes:
Costs Incurred
cost distribution
To conclude...
- the constant recalling of products does not
provide a sufficient long term solution to
Mattel's overall problems
SO...
Mattel must enforce pre-existing policies

and additionally...

Must implement new policies such as:
- Mattel's supervision within contractors institution
- To have contractors decisions approved by Mattel
- To implement limitations on Mattel's supply chain
This caused much conflict as to
who was at fault for the recalled toys
Any Questions?
Full transcript