This could help both about the awareness and scenarios regarding production process and its procurement. It also provides the opportunity to examine response to a crisis situation, and the relationship between a company and government. Often readers scan through the business case study without having a clear map in mind. Step 3 - Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management Case Study Analysis Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. When we are writing case study solution we often have details on our screen as well as in our head. All the toys recalled were manufactured in China and in total more than 1. The case provides a basis for discussion of outsourcing and supply chain management.
Management is on the verge of a major breakthrough in understanding how industrial company success depends on the interactions between the flows of information, materials, money, manpower and capital equipment. They must be forced to watch that the Chinese authorities fulfill the stipulated points. Robert Hamamoto May 11, 2014 In 2007, the Mattel toy company recalled around 20 million of its toy products do to contamination of lead in the paint and safety issues dealing with parts of its products magnets that was manufactured in China. They must be forced to watch that the Chinese companies fulfill the stipulated points. Step 10 - Critically Examine Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management case study solution After refreshing your mind, read your case study solution critically. Some were due to the use of lead paint, while others were due to small magnets coming loose.
According to Fitzsimmons 2012 , core competency is something that the company does so well that it provides the company a competitive advantage. Original suppliers being those that provide products, services and information that add value for customers and other stakeholders. The case enables discussion of why companies outsource, managing a supply chain, and the appropriate use of inspection and testing. Whereas Mattel can do randomly test finished toys, as it should now test every single batch of toys produced. Furthermore, Senator Barack Obama had promised to ban the Chinese made toys until their quality could be ensured by the Chinese government and quality checking standards. At the similar time, the Yuan had appreciated and increasing costs of raw materials such as fuel costs left little room for Chinese manufactures to invest in significantly progressive quality programs. Though the recall of the products had created serious problems for Mattel and for manufacturers of China, the products were highly dangerous for the children which needed serious concern.
Furthermore, expertise in risk management, financial management, and other fields can be contracted through outsourcing. The point of the Exhibit should be instantly clear to the reader. Recommendations for Unsafe for Children: Mattel's Toy Recalls and Supply Chain Management Case Memo Recommendations section will provide details regarding what is needed to be done, how it can be done, when to do it and who will do it. Production of the toys concentrated in China with 60%. Words: 568 - Pages: 3. Mattel should be careful for approaching international supply chain management strategies. Safety checks should also get beefed up at the supplier and subcontractor level prior to the finishing of the product.
For example you can recommend a low cost strategy but the company core competency is design differentiation. Unless they learn to manage these complexities, it is difficult to ensure product quality and safety. It is important to observe the performance of the suppliers throughout the process as well as keep on motivating the suppliers and evaluating their performance. Lead poisoning can occur if the lead content levels are high in the blood. It also needs to have frequent communications with the suppliers and customers.
The company had a workforce of over 7000, and was selling its products in over 130 countries. Designer should ensure that toys intended for very young children did not have loose small parts, and that any small parts attached to toys such as noses and eyes on stuffed animals, or buttons could not be detached. Mattel would have to manage the accountability by keeping awareness about the vendors regarding their procurement and strategic activities. However it was Elliott Handler who had a visionary of a side business in dollhouse furniture out of the converted garage Mattel. Access to case studies expires six months after purchase date. It owned 5 factories in China and had a network of contract manufacturers for the remainder of production.
The contract would be the first line of establishing what is needed from the suppliers, the regulations that need to be followed, as well as the consequences for not adhering to the contract. When a child ingested more than one magnet, the ingested magnet could be bind together across intestinal folds, eventually perforating the intestine and causing serious injury or death. The case enables discussion of why companies outsource, managing a supply chain, and the appropriate use of inspection and testing. Who did Mattel cater to in the recall? The Mattel case shows us, that even with the most trusted suppliers, a favorable contract with clearly stated terms and policies is not enough. Therefore, all those involved in the supply chain must make extra effort to ensure product quality and safety, but Mattel has to leader it. Examples that highlight your conclusion Table of Contents: I.
However, Mattel has had to overcome a few hurdles in order to stay on top; the first major problem they ran into was the recall of millions of products in 2007. Economics Wharton School, University of Pennsylvania, 1993 S. Literature survey has undertaken a thorough search of articles on selected journals relevant to supply chain operations management. Consequently, Dell lost its market leadership to Hewlett-Packard Co. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand.
The supply chain must be designed to prevent these defects. The supply chain must be developed to avoid these shortcomings. Core competency gives the company hard-to-imitate advantage. It arranged training program for 2600 employees out of 1800 factories. In August and September 2007, Mattel has a number of product recalls, totaling more than 20 million toys.
Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Global supply chains that draw parts and producers from every corner of the world, from the best producers at the lowest price, are the way how to beat. At that point China needed to prove that they could produce products to the quality and safety standards expected by the rest of the world. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. This is extremely harmful to children and must be addresses and corrected. Their products are sold in 150 nations mattel.