Question

In: Economics

Who do you think is primarily responsible for the Mattel toy recalls and the problems resulting...

Who do you think is primarily responsible for the Mattel toy recalls and the problems resulting from it - is Mattel primarily at fault? Are the companies Mattel outsourced work to primarily at fault? Or is the primary blame that of the United States government including the product safety groups, the Chinese government the retail stores or is the consumers to blame (since we demand products to be made quickly and not be expensive)? Or do you think someone else is primarily to blame? Explain your answer by giving details and/or specifics to support your opinion of who is primarily to blame - who is primarily at fault.

Solutions

Expert Solution

Mattel is the largest toy company in the world. Recently it had recalled more than 18 million of its toys.
The reason for this recall is that the toys have defective desing, made use of magnets which can be harmful for the kids and also made use of lead paint.

For such recall, the producers of the toys (company to which Mattel outsourced the work) and the Mattel incorporation are to be blamed.

The producers should only use those products for making toys which are not harmful for kids. Also the Mattel before displaying the toys should make sure that they are not harmful for the kids in any way. The company should make certain safety measures and only the toys which conform to those measures should be sold by Mattel.

Both are equally at fault and should be blamed for this huge recall.


Related Solutions

Who do you think is responsible for the Cold War? Is there some way the Cold...
Who do you think is responsible for the Cold War? Is there some way the Cold War could have been prevented? Is there some way that it could have been stopped?
You are preparing an equity research report focusing on Mattel (a major toy manufacturer). You identify...
You are preparing an equity research report focusing on Mattel (a major toy manufacturer). You identify the following from Mattel’s most recent financial statements. Return on Equity (ROE)                          .12 Dividends                                               $288 Accounts Payable                                  $900 Average Days Payable                              33 Total Liabilities                                    $5,000 Retention Ratio                                      0.60 Profit Margin                                            .05 Tax Rate                                                   .24 a. Conduct a three-stage ROE Decomposition (DuPont Analysis) for Mattel b. As you are explaining how to conduct the ROE Decomposition, your assistant...
You are preparing an equity research report focusing on Mattel (a major toy manufacturer). You identify...
You are preparing an equity research report focusing on Mattel (a major toy manufacturer). You identify the following from Mattel’s most recent financial statements. Return on Equity (ROE)       .12 Dividends  $288 Accounts Payable $900 Average Days Payable   33 Total Liabilities $5,000 Retention Ratio  0.60 Profit Margin       .05 Tax Rate      .24 a. Conduct a three-stage ROE Decomposition (DuPont Analysis) for Mattel. b. As you are explaining how to conduct the ROE Decomposition, your assistant asks, “Because increasing the equity multiplier will increase the return on equity...
to what extent do you think agency problems and conflicts of interest are problems in the...
to what extent do you think agency problems and conflicts of interest are problems in the investment industry? To what extent do you think the internet boom was fueled by such problems?
Who did Nader think was responsible for promoting NAFTA?
Who did Nader think was responsible for promoting NAFTA?
What is the great depression? Do you think the current coronavirus is resulting in events similar...
What is the great depression? Do you think the current coronavirus is resulting in events similar to those that happened before the great depression? Suppose another great depression happens; do you think the measures taken by governments that helped the world recover from the great depression of the 1930s will prove equally useful now. [Your answer MUST reflect your understanding of the article related
Do you think that Samuel is unfair in portraying the company as largely responsible for his...
Do you think that Samuel is unfair in portraying the company as largely responsible for his failure? Using psychological insight to understand Samuel’s personal “crisis”, explain your viewpoint. How could an executive development training program to staff international offices improve Focus Pointe’s relocation process?
What factors do you think are responsible for the growth of the larger brain of hominins...
What factors do you think are responsible for the growth of the larger brain of hominins over time?
Who do you think the stakeholders may be and why?
Who do you think the stakeholders may be and why?
Do you think the problems are the same when it comes to budgetary accounting for a...
Do you think the problems are the same when it comes to budgetary accounting for a business or the government? what are those problems seen by you?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT