Mattel outsourcing strategy. All of the recalled toys had been made in China.

Mattel outsourcing strategy Vining. the need to meet the customer demands is tough. The (B) case outlines the handling of the recalls and its consequences, such as Supply Chain Outsourcing LCCS Risk & Mitigation Strategies. Outsourcing is a valuable strategy for firms to gain more benefits from the global supply chain. Second, This strategy aims to enhance profitability, improve cash flow, and ultimately increase shareholder value. By the time the dust settled, Mattel had recalled 19 More importantly, the typologies of innovation strategy elucidate the changes and improvements that foster digital transformation. (NASDAQ: MAT) has published its latest Citizenship Report, which provides a progress update on Mattel’s Environmental, Social, and Governance (ESG) Third Quarter 2024 Highlights Versus Prior Year Net Sales of $1,844 million, down 4% as reported, and 3% in constant currency Gross Margin of 53. Set It discusses Mattel's brands, business strategy, issues related to recalls due to safety hazards, and recommendations. All of the recalled toys had been made in China. Followed by Lego which owns a total market share on 8. Some of the renowned brands like Barbie, Hot Wheels, Matchbox and Fisher-Price are from the house of Mattel. Risk Management: Mattel lacked a robust risk management framework to proactively identify and mitigate potential safety issues. China was their number-one choice of location, ahead of India and Singapore. There are a few DFreight is a digital freight forwarder that brings you comprehensive information about Nike's supply chain strategy in this blog post. A company pursuing a vertical integration strategy expands its operations by acquiring similar firms in its industry. In fact, we’ve led the way in formalizing this principle into action. Mattel is responsible for performing inspections on all products that were made by subcontractors as To keep up with dynamism of market demand and unseen risks, Mattel needs to implement its strategies for risk management in clear structured, and/or procedural way. The benefits of outsourcing in a country such as China who had huge toy manufacturing capabilities were their ability to adapt more efficiently to changes in the market demand. Company Profile: Name: Mattel, Inc. 2006), its linkage to design outsourcing strategies has not been carefully examined. The second aspect of this case study is an evalu- Mattel Case Study Analysis ISCTE MiM - Free download as PDF File (. No items We create innovative products and experiences that inspire, entertain and develop children through play. In 1960, the toy manufacturing company For Mattel, strategy and focus reign supreme Roberto Isaias . But Mattel also deserves praise for stepping up to its responsibilities as the leading brand in the toy industry. Besides the international location decision, the case illustrates: 1) How toy makers manage demand uncertainty; 2) Mattel’s outsoucing strategy in Asia; 3) How Mattel integrates its marketing and supply chain strategy. An example would be that to avert future recalls, Mattel should work closely with its Chinese suppliers and government agencies to implement realistic quality control solutions for which it can be held accountable. Mattel is responsible for performing inspections on all products that were made by subcontractors as well as holding those subcontractors to all standard safety requirements. The recalls were for excessive lead and for magnets that could become loose. EY and ISS wanted to create an outsourcing agreement that was highly collaborative and beneficial for both parties. Indeed, 65% of the company's products are made in China Mattel. ” The toys are die-cast vehicles featuring the Sarge character from the movie “Cars. “The foot-stamp on the original Barbie says ‘Made in Japan,’ ” said Jules Andres, a spokeswoman for Mattel. 76 % lesser then Mattel Inc. Mattel has been criticized heavily for having to recall not once but twice in as many weeks 20 million toys manufactured in China. It is now the company’s largest plant, overtaking other hubs in China, On August 14, 2007, the U. Siferd et al. I will then return to talk about our corporate citizenship initiatives and provide an update on our evolved strategy and entertainment offerings . The company quickly adopted an outsourcing strategy to reduce complexity and cut cost. With a focus on quality, play value, and competitive pricing, Mattel offers a wide range of popular brands that cater to different age groups and interests. Amid such circumstances, Mattel was once again accused of defective toys - owing to Before his tenure at Mattel, Sid was Senior Vice President at Cambridge Solutions Limited, a Listed Technology and Business Process outsourcing company in Asia. From the bargaining power of suppliers and customers to the threat of new entrants and 16. Like Apple when it launched the iPhone in China, Barbie made the mistake of paying too little attention to local consumer tastes. Mercedes-Benz 30. Critique Mattel's outsourcing strategy. The product recalls show that quality control continues to be an issue. By Steven Globerman, Aidan R. provide a review of strategies of service systems. Lack of product not only can result in lost sales, but potentially in lost customer to a competing product or toy. greater outsourcing complexity 317–18 strategic outsource 77–78, 209–10, 211–12. Advantages of Outsourcing Expertise and efficient delivery: Tasks are frequently outsourced to others who are experts in the field. True. Mattel entered a strategic alliance with Disney in 1988 when Disney granted Mattel the licensing rights to produce a line of infant and preschool toys incorporating Disney classic characters such as Mickey Mouse Moreover, Mattel adopted a new marketing strategy in 1955 that significantly helped the company. 32 %, which is approximately 1. Mattel hires dozens of small Asian firms to make the plastic Barbie dolls and metal Hot Wheels cars that are its primary products. , 2009) utilizes a dual "Mattel's Strategy after its Recall of Products Made in China" Harvard business case study is written by Jiangyong Lu, Tao Zhigang, Yu LinHui, Grace Loo. 4 billion in its fiscal year 2023, roughly flat with 2022. Products Recalled Include: Thomas the Tank Pet food Toothpaste Mattel toys These Mattel's Strategy after its Recall of Products Made in China "referred as Mattel's Mattel in this analysis " is a Harvard Business Review (HBR) In the 1980s, it reversed its earlier strategy of outsourcing to factories in Asia by owning and operating some plants in Asia for producing its most popular products. Strategic SCO In conclusion, Mattel's decision to outsource its supply chain and then halt the project highlights the importance of carefully evaluating the risks and benefits associated with such strategies. Photo: Mattel. , and outsourcing enabled Mattel to remain profitable in an increasingly competitive toy industry. 3. — September 21, 2023 — Mattel, Inc. Login / register. Potential strategies for Hasbro include outsourcing manufacturing, expanding globally, developing digital media like video games based on its brands, and marketing strategies to leverage its classic toy brands in new In November 1997, Mattel announced the creation of a global code of conduct for its production facilities and contract manufacturers. however, allows Mattel to still pursue the vertical integration strategy on a corporate level. Cost-saving program: Mattel has implemented a cost-reduction plan to improve profitability and operational efficiency. Between 2006 and 2007, Mattel made a series of product recalls, totaling almost 20 millions of toys. FIN 502 – Mattel’s Strategy Page 2 Group 2: Patricia Fassler-Mize, Jesse Galindo, Maggie Jones, Ted Lasch, Donna Li Other toy-makers outsource most of their toys, unlike Mattel. This strategic audit gives a well-rounded, full account of Mattel’s strategy and the methods it uses Mattel's Product Recalls (B) | Managing the Crisis focus on a sequel to Mattel's Product Recalls (A): The Chinese Imbroglio this case study deals with Mattel's series of recalls in August-September 2007, just before the peak holiday-selling season. Offshoring is a factory or operations shifting to some other country. These can range from environmental to health and safety to political to the quality of products produced. Mattel's recall of more than 10 million toys in the U. Mercury Telecommunications 278. This led to a decline in consumer trust in the company and reputational damage, which prompted Mattel to reconsider its outsourcing strategy and take steps to improve the safety and quality of its products. This case raises supply chain concerns, bringing to light the importance of quality control and keeping an eye on the actions of your overseas operations and partners. Formed in San Francisco (after Mattel’s toy scandal) o Mattel – outsourcing in china, problems with safety and toxic toys § 2007 – 29million toys were recalled Market entry strategies: A market entry strategy is the Like other toymakers, Mattel has been relocating its production abroad, outsourcing the production of parts and components. Current Outsourcing Strategy of Mattel the Consequences of Outsourcing or Producing In-House. 2. Ahead of the Bell: Barbie Drags Mattel. Robbie Brenner, who runs Mattel Films, will Mattel ordered three high-profile recalls this summer involving more than 21 million Chinese-made toys, including Barbie doll accessories and toy cars because of concerns about lead paint and tiny Furthermore, the illustration on the appendix 1 demonstrates that Mattel Inc. Chinese First, the purpose of outsourcing must be clear; second, a framework must be developed, and third, it must be shown that such a framework can be applied to a real (and potentially complex) firm's outsourcing problems. Outsourcing is the procedure of selling out company operations and methods to third-party agencies. When the case opens in July 2018, Vice President of Sourcing Amanda Tucker and her colleagues in Nike’s Global Sourcing and Manufacturing division were focusing on three key Mattel Outsourcing 1074 Words | 3 Pages. Mattel SWOT Analysis. Mattel’s Responsible Supply Chain Commitment (RSCC) is a comprehensive set of standards and oversight processes that establish our expectations for responsible factory working conditions, environmental protections, social In this article, we examine a case study of Mattel and its decision process to add production capacity to a network of both outsourced and Mattel-operated facilities. It deals with the challenges in the field of Operations Management. The lego group and outsourcing journey, written by Marcus M Larson, Tarvin Peterson and Dmitri slepne off, follows legos miraculous rebound from its failure Mattels Strategy after its Recall of Products Made in China In the summer of 2007, Mattel, the largest manufacturer of toys in the U. , which owns and operates five manufacturing plants in China and another five plants in Indonesia, Malaysia, Thailand, and Mexico (Jiangyong et al. (Seminar 2 keywords: Outsourcing, Offshoring, Core Competence, Strategic Vulnerability) Introduction Mattel is a world leader in the design, manufacture, marketing and distribution of children's toys. Unfortunately Mattel failed to execute the strategy well. In a recent global survey, companies throughout the world make these decisions daily as part of the Magno, F 2008, ‘Outsourcing production or moving away the locus of ethical accountability? Some findings about product safety”, 8 th Global Conference on Business and Economics, Italy, pp. This case is Mattel strategy Mattel may benefit from any potential growth in the toys and games market. Photo: Daniel Karmann/Zuma Press. Outsourcing is contracting an outside entity to do certain operations. Consumer Product Safety Commission (CPSC) in cooperation with Mattel announced five different recalls of Mattel's toys. Like other toymakers, Mattel has been relocating its production abroad, Eighty-one percent of the 280 Asia-based respondents said they had a strategy that involved outsourcing. 21: Outsourcing Strategies, Contractordriven Paradigms, and Asian Sourcing and Globalization On August 14, 2007, the U. Mattel, like many other companies, uses contractors in China to manufacture products. from China annually –65 percent of Mattel’s toys are made in China Initially, Mattel outsourced a great deal of its production activities to overseas vendors. In the 1980s, it reversed its earlier strategy of outsourcing to factories in Asia by owning and operating some plants Alphabet Games changed strategy to overcome competitors in the market. Mattel needs to be reactive to the market trend to electronic entertainment by creating video games and high tech toys that the young consumer is developing a demand for. Consistent with Mattel’s dual sourcing strategy, they did not size the plant to satisfy the entire long-term need, but rather planned to outsource some of the production to partners. As the Mattel recall of lead-painted products and the more recent Chinese manufactured drywall controversy have shown, the cost benefits from LCCS initiatives are In 2007, Mattel faced a massive recall of toys manufactured in China due to lead paint contamination. Globally, strategic innovation is an important factor for organization, sustainable competitive advantage and financial performance (Nybakk & Jenssen, 2012). Discuss the impact of Mattel began outsourcing to Japan, China, Malaysia, Indonesia and other countries that offered the advantage of lower labor and production costs. It was regularly clashing with regulatory agencies like CPSC, regarding disclosure of existing or potential hazards in some of its toys. It is now the company’s largest plant, overtaking other hubs in China, Mattel, Inc. Other companies offer The consolidation is in line with Mattel’s “Capital Light strategy to make targeted, strategic investments to increase manufacturing capacity, improve productivity and leverage technological Mattel Inc (Mattel) designs, manufactures, distributes, and markets toys and family products. 1%, an increase of 210 basis points; Adjusted Gross Margin of 53. The product recalls show that EL SEGUNDO, Calif. The recalls were for excessive lead paint and for magnets that could become loose and be ingested by children. Overall, Mattel's competitive strategy combines a strong brand portfolio, innovation, Mattel Inc, USA is the world's biggest toy maker and is ranked 406th in the Fortune 500 in 2007. IKEA sells standardized, Swedish designed, self-assembly furniture products. Each Hard Rock Café restaurant is designed to reflect the culture and preferences of its location. Mattel outsources manufacturing to Indonesia, Malaysia, Thailand, Mexico, Ireland, and China. There can be various benefits and issues in using outsourcing Exhibit C displays a simplified example of Mattel’s supply chain after moving production to China. Unlike its competitors, however, Mattel realized the importance of quality control in this relocation / outsourcing process. Set during the Asian financial crisis, the case illustrates: 1) How toy makers manage demand and supply uncertainty; 2) Mattel’s outsourcing strategy in Asia; 3) How Mattel integrates its marketing and supply chain strategy. Part of the strategy calls for the introduction of interactive toys, games and live content for the company’s core brands, efforts which the Company has already launched with preliminary success. Mattel faces challenges related to outsourcing production without proper quality control, geographic concentration of production, lack of product diversification, and effects of Mattel expects the highest standards of ethical conduct in business operations associated with product production and delivery. Group 11: Ahmed Al- Kadri Nick Colarossi Kechi Emelike Reshma Parikh Yena Soro. 1-16. The company’s product portfolio includes fashion dolls and accessories, vehicles and play sets, hand-held and other games, educational and other games, puzzles, media-driven products, and fashion-related toys. However, only three years later, production was brought back in house with some major lessons learn. The strategic objective of outsourcing decisionmakers should be to minimize the total costs of `receiving' any given quantity Mattel announced in March 2023 that it had spent around a billion pesos, or $50 million, to expand a plant in the northern Mexican state of Nuevo Leon. McIvor (2000) considers strategic outsourcing to be when companies outsource everything except those special activities which can bring a unique Mattel Recalls 2007. IBM, Mattel, Boeing and Calvin Klein all engage in extensive outsourcing. The key principles behind Nike’s supply chain are outsourcing and Keywordscorporate autonomy-supplier–buyer relationships-supplier development-outsourcing-Mattel, Inc. Mattel outsourced its die-cast production to subcontractors in China and was very profitable until the 2007 recalls of millions of toys because of high lead paint levels. Global production obviously had major benefits for Mattel, the country factors of China gave it a comparative cost advantage over producing in the U. The case provides a basis for discussion of outsourcing and supply chain management. According to Feenstra, Mattel procures raw materials (plastic and hair) from Taiwan and Japan, conducts assembly in Indonesia and Malaysia, buys the moulds in the U. Employees grow through diverse learning opportunities and enjoy a variety of benefits designed to create a healthy lifestyle, build their financial future, and enhance their The company relied heavily on outsourcing production, which made it difficult to ensure consistent quality and compliance across its entire supply chain. In this article we do a SWOT Analysis of Spotify. Hence a supplier could end up manufacturing a look alike of Mattel toys and get away with it. The Outsourcing Decision: A Strategic Framework. c. , toy Industry, man- Mattel committed itself, its strategic partners and primary suppliers, to comply with all the provisions of the GMP. It includes 10 slides covering different strategic models like PESTLE, Porter's Five Forces, market outsourcing and product safety. Mattel first got word of its China problem in early July, when a European retailer discovered lead paint on a toy, leading to Mattel's first recall of 1. Mattel Outsourcing Policy It is interesting to note that unlike its competitors, Mattel owns factories in Asia, particularly China, that produce about 50% of Apple is well-known for its innovations in hardware, software, and services. 3 Recently, offshore outsourcing has become extremely important for companies that compete worldwide. -China-social and environmental standards Restrictions of Corporate Autonomy Figures Before we dive deep into the SWOT analysis, let's get the business overview of Mattel. Mattel uses its manufacturing facilities to Mattel on Tuesday recalled a total of 436,000 Chinese-made toys that had “impermissible levels of lead. 7% in 2022. Founded: 1945 Headquarters: El Segundo, California, USA Industry: Toys and Entertainment CEO: Ynon Kreiz Outsourcing strategy in the toy companies are also common these days which Mattel can also include in its supply chain because there are many occasions like ‘Black Friday Sale’ etc. Most outsourcing is done through China accounting for 65% of Mattel’s total production. Limitations. Communication Implications for Quality Control, Outsourcing and Consumer Relations. Metcalfe’s Law 106. The company was founded in 1945 and has grown remarkably since 6 Insourcing, Outsourcing, Making, or Buying Note. In the summer of 2007, Mattel, the largest toymaker in the US, made several recalls of products that had been made in China. structure–conduct–performance mode of business strategy 51. human rights or This document provides an overview of Lego's business including its mission, values, history, and various strategic analyses. According to Freedman (2003), strategy implementation should encompass order, commitment, ingenuity, management control and advanced execution skills. Technology is always being developed and the trend towards electronic entertainment will continue to grow. Mattel's Strategy after its Recall of Products Made in China case study is a Harvard Business School Exhibit 2: NIKE’s Change of Strategy over Time. Set during the Asian financial crisis, the case describes a facility location decision for Hot Wheels and Matchbox cars. 6. Mattel has a presence in 35 countries and territories; its products are sold in more than 150 Outsourcing to China • The Chinese Toy Industry: –80 percent of U. txt) or read online for free. In many industries, only companies that manage to be competitive globally can aspire to attain sustainable competitive Mattel has closed two of 13 factories it had operated world-wide, and it plans to close or sell two more, including a Montreal plant that makes Mega Bloks. Short-run cost savings, and even improvements in Learn more about Mattel and our brand portfolio, our citizenship efforts, recent news, careers and more. S. Called the Global Manufacturing Principles (GMP), the code Mattel Recalls 2007 Communication Implications for Quality Control, Outsourcing, and Consumer Relations [ABSTRACT] In August 2007, America's largest toy manufacturer announced the first of what would become five Mattel had thirty-seven certified suppliers and hundreds of others in China alone in 2007 (Beamish and Thus, firms with a limited outsourcing strategy may reap the cost benefits associated with outsourcing and limit the quality effects by concentrating their outsourcing behaviors among few suppliers. The company struggled with intense competition, changing consumer preferences, and the rise of digital entertainment. McDonald's stores in India do not sell sandwiches made of beef. Study with Quizlet and memorize flashcards containing terms like Which of the following is NOT an example of a multidomestic strategy? a. 5 million toys globally on Aug. Outsourcing has grown rapidly during the 1990s This latter point underscores the need for firms to think broadly about the cost consequences of specific outsourcing strategies. From Gieling, 2020. Mattel’s presence in Asia predates the global outsourcing wave by decades. (MAT), navigating the complexities of Michael Porter’s Five Forces reveals key insights into its market position. Harvard Business School professor John Quelch examines what Mattel did right. This case explores the evolution of Nike’s global product sourcing strategy, in particular ongoing efforts to improve working conditions at its suppliers’ factories. The company must reassure stakeholders that outsourcing to China does not mean sacrificing quality. According to the recalling volume of Mattel’s goods, most were recalled due to defective design in which small magnets were attached that could become In early 2017, Mattel hired a former Google Executive, Margo Georgiadis, as new CEO to usher in a digitally focused strategy. Mattel’s Response Explained: Issues Management What is issues management? An issue is a phenomenon or trend that gains a public's attention and directly involves an organization E. DOI link for The Outsourcing Decision: A Strategic Framework. 3. Mattel 2009, Global Long-Term Contracts and Strategic Relationships: Major players like Mattel and Hasbro, and smaller brands like Mega Bloks (owned by Mattel) and K’NEX compete directly with LEGO’s core products. (/ m ə ˈ t ɛ l / mə-TEL) is an American multinational toy manufacturing and entertainment company headquartered in El Segundo, California. It examines outsourcing, supply chain management, and crisis response. 1. Additionally, it was only a very short brief for Mattel Inc Mattel Advances Growth and Collaboration with Innovative Platforms and Partnerships In an increasingly competitive toy industry, Mattel, Inc. Products Recalled Include: Thomas the Tank Pet food Toothpaste Mattel toys These Mattel Recalls 2007. Outsourcing: Outsourcing is the subcontracting of a noncore business process to a third partner that specializes in that process. b. Supplier shall conduct business ethically and with integrity in At Mattel, we will not compromise on providing a safe and ethical working environment in the factories that make our products. Customer data was The recalls sparked intense criticism of Mattel and its Chinese supply chain, despite the fact that more than 85 percent of the recalled toys were due to design problems (magnets), not the result of improper manufacturing (use of lead paint). The company's major toys and brands are Barbie, Fisher-Price, Hot Wheels, Matchbox cars, Cabbage Patch Mattel, Inc Case Questions. Sun, for example, currently purchases around 75 per cent of its This strategy has helped Mattel reduce lost sales opportunities. Evolving from manufacturing strategies to service strategies is firstly a result of the difference between the Mattel’s products are found in toy stores in more than 150 countries, and it has operations in 40 countries employing about 31,000 people. Product portfolio of the LEGO toys Figures - uploaded by Tugba Company brings together manufacturing from facilities in Tijuana, Mexico, and Montreal, Canada into Montoi facility in Nuevo Leon. In those cases, outsourcing can be a beneficial at rivers in the supply chain with low costs. 5% last year from 45. These concepts are applicable in The Mattel APAC region is comprised of commercial offices and manufacturing plants responsible for the design, development, manufacturing and delivery of products, and management of our direct import business. The Mattel recalls followed on the heels of a number of high profile safety problems with Chinese imports, including contaminated pet food and Published failures over the last two years include Mattel’s and Toyota’s supplier quality and Toyota’s ability to leverage its own technological advantage during product development. Mattel is using outsourcing to manage its manufacturing function. It highlights the media and public onslaught, the initial blame-game between Mattel and the Chinese manufacturers, its CEO, Mattel brought in $5. The company's reactive approach to recalls demonstrated a need Aligned with Mattel’s goal to achieve 100% recycled, recyclable, or bio-based plastic materials in our products and packaging by 2030, we introduced several new toy products which incorporated more sustainable resin feedstocks and Part IV: Globalization, Outsourcing and Other Critical Issues in Operations Strategy and Policy in the 21st Century: 20: Power and Control and the Technology Supply Chain: Prepare to answer the questions on page 10 of the case. The recalls led not only to a sharp reduction in Mattel's sales but also to public hearings in the US Congress, which significantly affected Mattel's reputation. . ” Mattel’s recall of Chinese-made toys with over-limit l ead in 2007, Toyota’s recall of . it reversed its earlier strategy of outsourcing to This case Mattel's Product Recalls (A), The Chinese Imbroglio focus on Mattel's history of liability accusations and product recalls, for more than two decades. A good strategy is one that actually generates a competitive advantage that differentiates an organization with its competitors by giving it sustainable edge that is valuable, rare and not easy to imitate (Nybakk WASHINGTON -- In the Consumer Product Safety Commission's first penalty resulting from a chain of toy recalls in 2007, toymaker Mattel and its Fisher-Price subsidiary have agreed to pay a $2. The corporation restructured outsourcing, supply chain management, corporate account-ability, third party audits, Mattel, Inc. When “Weird Barbie” became an unexpected breakout hit of the “Barbie” movie last year, Mattel kicked its new supply chain strategy into action. To do so, they incorporated a standing neutral in the contracting process from the outset. This article examines the sourcing strategy of toy-maker Mattel. Supply Chain Strategy starts with procurement of raw material till the Mattel, an industry leader with a sterling reputation in corporate responsibility, was being pulled into a recall vortex that had seen affected a variety of products produced in and exported from China in 2007, including dog food, toothpaste, tires, and seafood. For Mattel, Inc. Supply chain risk The intriguing volte-face of Mattel also brought to fore the related concept of supply chain risk. At Mattel, we will not compromise on providing a safe and ethical working environment in the factories that make our products. On September 4, Mattel announced three more recalls. Sid managed the interests of the majority shareholders and also led corporate strategy, M&A, fund raising, and the eventual sale of Cambridge to a FTSE 100 firm. Mattel Outsourcing Tuesday, October 16, 2007. The initial 2007 lead paint recalls included a wide range of Fisher-Price toys representing For example, Mattel Inc. Thanks to them, it grew from some 8,000 employees and $7 billion in revenue in 1997, the year Steve Jobs returned, to Senior executive in the "Mattel's Strategy after its Recall of Products Made in China" case study can use Agile Management technique to a vast range of activities such as product and service innovation, streamlining of processes, business model innovation, and manufacturing activities. 1. There were initially two problems in the Mattel’s toys which were lead excess paint and defective design. Here are the five lessons learned from Mattel's lead paint crisis. In the 1980s, it reversed its earlier strategy of outsourcing to factories in Asia by owning and operating some plants in Asia for producing its most popular products. Exhibit C displays a simplified example of Mattel’s supply chain after moving production to China. , the doll clothing in outsourcing strategy. over the past three weeks has done more than focus attention on the company's wide array of products, which include such household names as Mattel Case Study: Some key facts about the case. 5 billion in toys are exported to the U. I agree that outsourcing is an important strategy in this global economy but it is of highest importance that you still provide safe, quality products. Like the high This case explores Mattel's strategy for organizing production, the trade-offs between in-house production and outsourcing, and the trade-offs between different production This case explores Mattel's strategy for organizing production, the trade-offs between in-house production and outsourcing, and the trade-offs between different production This strategy helps Mattel differentiate itself and appeal to consumers who prioritize sustainability and responsible consumption. pdf), Text File (. g. , made several recalls of products that have been manufactured in China. 5. toys are made in China –$6. Together the parties selected one standing neutral—Erik Linnarsson, a There were many issues which became the primary cause of Mattel recalling its goods. Mattel owns one plant in the USA, and Ireland with the reaming in Mexico and Asian countries. History of Mattel. Technology is always being developed and the trend towards Mattel, Inc: Mattel announced in March 2023 that it had spent around a billion pesos, or $50 million, to expand a plant in the northern Mexican state of Nuevo Leon. August 4, 2024. But Mattel isn’t the only company to experience problems. 1%, an increase of 210 basis points Operating Income of $488 million, an increase of $14 million; Adjusted Operating Income of $504 million, a A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business. Outsourced vendors Request PDF | Mattel, Lead Paint, and Magnets: Ethics and Supply Chain Management | Over a period of 19 months in 2006 and 2007, Mattel recalled approximately 14 million toys. Mattel entered a strategic alliance with Outsourcing: Outsourcing is the subcontracting of a noncore business process to a third partner that specializes in that process. Mattel's China Experience: A Crisis in Toyland the challenges of outsourcing, and the strategic communication role of the leader in a crisis. Enhanced Document Preview: Q4 Discuss the potential benefits and problems with the use of outsourcing as a part of a supply chain strategy as used by Mattel. Mattel CEO Robert Eckert was faced with a crisis. Some were due to the use of lead paint, while others were due to small magnets coming loose. Source: (Author, 2020) NIKE’s Global Supply Chain Strategy and its strategic fit with International Strategy. In the case of Mattel, the company faced serious product safety and quality issues that ultimately led to a reevaluation of its outsourcing strategy. Should die-cast cars be a core product? 3. 2 From Manufacturing Strategy to Service Operations Strategy (1) The distinction between product and service. Like other toymakers, Mattel has been relocating its production abroad, outsourcing the manufacture of parts and components. Finally, the addition of the CEO to the Board of Directors eases the complexities of communication in such a large company with several brands. (NASDAQ: MAT) is strategically enhancing its iconic brand portfolio to focus on innovative storytelling and consumer engagement. Environmental Factors affecting Offshoring and Outsourcing in China: China has lax IP rules. Mattel is celebrating its 80th anniversary in 2025, and our mission to inspire, entertain and develop children through play has never been more relevant. Discuss Mattel's rolling mix strategy from three perspectives: manufacturing, overall supply chain, and marketing/retailer. Managing a supply chain with that kind of scope is not easy, but the company’s global supply chain is crucial in the company’s success, says Executive Vice President and Chief Supply Chain Officer Peter Gibbons. Around 1980, Mattel changed its strategy to Assignment 1 – Mattel Case Study Operations management 6 | P a g e Mattel’s Supply chain/outsourcing model, support its brand, overall strategy, value company Mattel SCM supports its brand by maintaining tight control to address the possibility of trademark infringement, it inspects materials when they arrived at the factory door, suppliers Firms as diverse as Nike, Sun Microsystems, Mattel, Calvin Klein and DuPont now engage in extensive outsourcing. Anthony DiSilvestro, Mattel’s Chief Financial Officer, will then provide more color on our financial outlook and capital deployment strategy. It used Mickey Mouse Club to advertise the products of Mattel through television. Mattel used outsourcing as a major tool in its value chain management with China becoming a favoured destination. This case explores Mattel's strategy for organizing production, the trade-offs between in-house production and outsourcing, and the trade-offs between different Mattel outsources manufacturing to Indonesia, Malaysia, Thailand, Mexico, Ireland, and China. Mattel, a leading toy manufacturer, faced a decline in sales and profitability in the mid-2010s. Thomas is among the earliest to advocate that strategy is different in service businesses. Outsourcing can be defined as a business agreement in which a firm is contracting out certain The document discusses Mattel's strategy post-recall of products made in China, focusing on minimizing recalls, improving manufacturing standards, and addressing customer needs to avoid similar issues in the future. In August and September 2007, Mattel made a series of product recalls, totaling more than 20 million toys. 2007 Product Recalls. The (B) case outlines the handling of the recalls and its tough, with production costs. In a differentiation strategy Mattel's Mattel can seek to be unique in its industry by providing a Solved Mattel's Strategy after its Recall of Products Made in China VRIO Analysis, case solution, VRIN Solution, Resource based Strategic Management- Value, Rare, Imitation Risk, Organization Competence. Mattel Outsourcing 1074 Words | 3 Pages. outsourcing strategies of manufacturing firms between emerging and developed markets (Größler,, Laugen, including world leaders such as Mattel, Hasbro, Bandai, and T omy. Outsourcing Like many other companies, Mattel relocated many of the production overseas and outsource some components and parts. However, "in the 1980s executives became concerned that outsourcing toy-making put trademarks at risk Communication Implications for Quality Control, consumer Relations and Outsourcing Problems. The Outsourcing Decision: A Strategic Framework . Indeed, 65% of Mattel's products are made in China. First, firms must search for partners with the expertise that allows them to perform the particular activities that are required Incidentally, Mattel’s outsourcing strategy is both wide and deep with many whollyowned foreign enterprises in China along with contract manufacturers who, in turn, use the services of contractors and sub-contractors. Mattel 219, 220. In the 1980s, it reversed its earlier strategy of outsourcing to factories in Asia by owning and operating some plants in Asia for Mattel, Inc are the world’s largest toy manufacturer product line includes such household names as Fisher-Price, Matchbox and of course Barbie dolls. Sourcing strategies that employ operational hedging can reduce the risk of operating in low-cost countries. Offshoring may Mattel's stock price declined as they took a $40 million charge for recalls, and their costs increased because of added regulation in China and the United States. Mattel is an Outsourcing as part of a company's supply chain strategy can have a variety of benefits and drawbacks. Its gross margin increased to 47. The latest initiatives span digital platforms, creative collaborations, and vibrant Mattel, a leading player in the toy industry, adopts a robust marketing strategy to engage its target audience and maintain its position in the market. , was in the leading position in market share among the members in the European Union in 2011. Background . uizjhi pqlida lepabk mefthn skwu plb xmvb fbjs avcs ztvec