Mattel and the Toy Recalls Case Study

Mattel Corporation has its roots in the Southern California within the garage workshop focusing on the manufacturing of picture frames. Their selling of the dollhouse furniture made provided the opportunity for the company to switch its operation to the opportunity in the manufacturing of toys. In 1959, the organization made a huge step towards success through development of their famous products in the name of Barbie doll. Through the decades, the organization was crucial towards the creation of famous dolls and toys popular within the market and the industry. Despite efforts to remain one of the trusted corporations within the economy, Mattel has faced numerous complaints from the consumers.

These complaints ranges from accusing the company of stealing ideas from other organizations to depicting fake financial information to the public through lying to the media on the revenues and profit levels. In 2007, the organization faced the biggest recall in its history since diverting to the manufacturing of the pubic toys in the United Sates. This occurred due to tow reasons: faulty magnets and the essence of high lead-based paint on the content of the toys. This is a reflection of problem facing the organization towards the achievement of its objectives and goals. In order to offer effective solution to the organization’s situation, it is ideal to focus on the problem.

Problem

The main problem behind the condition facing one of the largest toy manufacturing business entity across the globe is mismanagement of the subcontractors and vendors at the international level. The organization also faces management problems in relation to their production, and adoption and implementation of effective strategies to cater for the changing needs and preferences in the modern society or economy. The mismanagement and oversight of the organization contributed greatly towards violation of the social responsibilities and ethics in relation to safety standards of production. This mismanagement issues by the organization fall into three crucial categories: legal, international supply chain, and technology. Under legal consideration, the problem rests with the Human resource department with its inability to enhance confidentiality of the information thought it employees.

This is evident in the creation of MGA’s line.  The activity in the production of fake and unethical products is a violation of the legality of manufacturing. This is going against the mission and legal standards promoted by the organization on its website. In relation to safety standards, the organization purports that health safety of children is their main concern. The organization goes further by claiming that it has the opportunity to damage the trust of the consumers on the business entity though failing to meet the production standards. The organization’ gain was through outsourcing to China. This is because majority of the United States’ toys within the economy are exported from China. The Recall tactic towards ensuring effective solution to mismanagement in the production and its standards had positive and negative impacts. Recall tactic was essential for collaborating with the CPSC in the development of the international media blitz. It also provided an opportunity for the CEO to apologize to the parents for failure to met standards. Despite this essence, the tactic shifted the blame to China prematurely and delayed the act of reporting to the CPSC for adequate solution.

Solutions

The organization should focus on effective management in relation to communication. This is essential for strategic handling of issues within the market and the industry. Effective management system should focus on preventing the circulation of issues thus becoming a crisis. This is through assessing worst outcome, cases that would make the organization vulnerable, develop question and answers for the crisis, planning effectively on how to handle the situation, influence the policy related to the issue in the favor of the company, and to contain and counteract efficiently. The organization should also focus on addressing the essence of quality control and outsourcing with the aim of avoiding crucial issues that might make the entity vulnerable. It is ideal for the organization to reassure parents though its management system on the efforts to enhance the standards of production. This is through following these crucial principles (see the figure below).

Conclusion

Management of the organization in context should focus on meeting its production standards with the aim of reassuring consumers of the safety of children. This through ensuring that safety of children is the main force towards production of the goods and services by the organization. The organization should also adopt effective collaboration with the international suppliers in relation to quality control solution thus the opportunity to enhance accountability. It is also vital for the organization to focus on improving its communication systems especially in relation to cross-cultural context. This will determine their interaction with the public thus containing and controlling the crisis in future events. The last approach should be adopting an effective balance with reference to consumers, suppliers, media, and government stakeholders.

Principles Guiding Effective Management of Crisis