Question

. Put yourself in the shoes of the CEO of Mattel in 2008. How would you handle the issues Mattel faced in 2008 as it pertains to the product recalls?

Answer 1

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Abstract

This case happened with Mattel Company who is the world’s largest toy company who produces the toys and have portfolio of diverse products.

Company produce the toy procuct and brand names are Fisher-Price, Barbie, Monster High, American Girl, Thomas & Friends etc.

Due to some product quality issue company had to recall its all product in 2008. The main root cause was with the magnetic toys which were involved total 63 products that was produced in China, there was design flaw on Mattel’s part, not a problem with its Chinese contractors.

After extensive investigation of the toys in its distribution chain - Mattel finally found that the main fault was due to lead paint on some of its toys and all this parts were produced by the chinese contract manufacturers since 2002.

The magnetic toys had been produced since 2002 and sold before January 2007. They include 44 different Polly Pocket toys, 11 Doggie Day Care toys, 4 Batman toys, a One Piece toy, and 2 Barbie toys.

Many toy makers have recalled magnetic toys since early 2006 as the consumer safety commission, concerned that children could ingest the magnets, focused on magnets on toys as a rising safety hazard.

Now in this scenario If I was in place of CEO of Mattel , I would take the below appropriate actions immediatly to save the image and brand of Company.

This is my personal openion and It can be different with other Experts

1. Take action on priority to avoid further damages in Supply Chain

I will Confront the issues, don’t hide from them customers, suppliers and stakholders. I will make this issue public and as a CEO of Company I will issue a public apology notice.

This type of quick reaction will make it easier for company to cope with and take control of the situation. Reacting quickly will help company to score “bonus points” with the public, slightly reducing the negative impact that the recall has on the company’s reputation.

2. Keep an Eye on comapany Supply Chain

As the company has manufacturing facility in China, Having multiple offices and operation sites in different location. It will makes very difficult to keep an eye on day-to-day operations.

So I will instruct to all distributors, Wholesalers and retailer do not sell the faulty product and arrange this all products back to company for inspection.

3.Take Responsibility and not to Blame Anyone

As a CEO I will take the responsibility of mistakes and will extend support to all customers by increasing the aggressiveness of toy testing methods, which would likely result in additional recalls as a precautionary measure.

4.Tighter Regulations and Inspections

I will approve the costs for testing, legal expenses, advertising and product returns. I will comply all formalities such as mandatory federal toy-safety standards, which included testing and tough new regulations for lead and chemicals in products intended for children under 12.

5.Take Action and Communicate to Media

As a CEO I will take responsibility to give weekly updates and will make use social media to communicate to consumers about the progress about the company makes as it works toward a solution.

I will take control of the media and communicate company commitment to consumers.

Beause It’s never more important than in a time of crisis to communicate and reassure the public than the spreading of misleading information

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