Essay on Mattel Inc. Toy Recall Case
One
of the biggest and most controversial business news that hit 2007 was the
high-profile recall of Chinese-made toys by Mattel. Mattel is one of the
largest toy manufacturing companies in the world. Last August of 2007, the U.S.
based company announced the recall of more than nine million toys made from
China due to the tiny magnets as well as lead paints. The recall includes the
popular Barbie, “Cars” movie items, fisher-Price infant toys, and Polly Pockets
among many others (Fox News 1).
According to the news, the recall was largely
due to the small magnetic parts found in their toys. This resulted to the death
of one child while four others who swallowed the magnets suffered serious
intestinal perforations which required surgery. Similarly, several accounts
reported that some of Mattel’s die-cast toys were painted with lead. Lead is a
toxic material as it could cause serious conditions once ingested. According to
investigations, the children’s toys which includes items from the movie “Cars”
as well as Fisher Price toys such as Big Bird, Elmo, Thomas and Friends, and
Dora the Explorer all contained lead. Reports suggest that the toys were found
containing more than .06 percent of lead, making it a subject for recall (NBC
News 1).
Based on the incident, the
incident could have been avoided if only Mattel was strict in terms of their
quality control. In fact, one of the main faults of the toy conglomerate was
its negligence to include quality control in their Global Manufacturing
Principles (GMP). The lead paint incident for instance could have been avoided
by strictly monitoring the paint quality not just on the manufacturing plants
but also to the paint suppliers. In addition to this, a firm regulatory
procedure should have taken place in order to ensure that Mattel’s Chinese
suppliers are operating under the company’s standard. Additionally, it is important for the
regulatory agencies of the United States to enforce a strict safety standard
that must be applied to items imported from other countries.
The incident will cause
Mattel both ethical and legal problems as well as issues in terms of their
public relations. According to the reports, only about 30 percent of the recall
products actually made it to retail outlets. This means that the liability
damages for the company is very minimal. However, the high-profile recall is a
public relations nightmare for the organization. This is primarily because the
recall could result to major long-term suspicions coming from the customers.
Experts similarly suggest that the incident could cause a change in consumer
perception.
Mattel’s relationship with
their supplier is another aspect behind this incident. Understandably, the
company is goes to developing countries such as China for low manufacturing
cost. One of the dangers however of employing a distantly located supplier is
the company’s inability to monitor the quality of the products as well as the
process involved during manufacturing. Based on Mattel’s case however, it is
evident how the company was negligent in checking and re-checking the materials
used for their products. The excessive
levels of lead paint could have been avoided by performing a strict quality
check for the materials which will be used for the manufacturing process.
In summary, the case of
Mattel is an incident that could have easily been mitigated and circumvented by
applying a standard operating procedure in terms of their quality control. This
includes checking the raw materials and the process involved in manufacturing
as well as a strict quality control of all the items before shipping it to
retailers.
Works Cited
“Mattel issues new massive China toy recall”. August
2007. NBC News. Retrieved 4 July 2013,
from http://www.nbcnews.com/id/20254745/ns/business-consumer_news/t/mattel-issues-
new-massive-china-toy-recall/#.UdVNCvlHLxc
“Mattel
recalls millions of toys”. August 2007. Fox News. Retrieved 4 July 2013 from
http://www.foxnews.com/story/0,2933,293180,00.html
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