Mattel Essays

2328 Words Aug 2nd, 2012 10 Pages
Cynthia D. Marshall
BUS 250
Armando Nunez
April 16, 2012

Mattel Mattel started its business in 1945 and company was incorporated in 1947. Company became publicly held in 1960. In 2007, with turnover of $5.6 billion and net profit of $592 million, Mattel was global leader in design, manufacturing and marketing of toys. At that time, Mattel employed more than 30,000 employees and company was selling products in more than 150 countries. Mattel’s portfolio of toys include some of the best selling and most popular toys such as Barbie, Hot Wheels, Matchbox, Radica, American Girl etc. Mattel was always considered as a responsible company. Mattel earned high reputation in the minds of consumers. Mattel was recognized by Forbes magazine
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In spite of taking several steps to ensure safety and quality of toys, Mattel failed to maintain quality and safety of its toys. 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 safety.
Mattel tried to show that they were vigilant and they had rigorous procedures to ensure high quality and safety. Mattel was known for strict quality control and they were considered as a role model for maintaining safety and quality.

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