In the summer of 2007, Mattel, the largest toy manufacturer in the U.S., several recalls of products that were made in China. Mattel recalls the reputation not only led to a significant reduction in Mattel’s sales but also public hearings in the U.S. Congress, which significantly affects. Like other toy manufacturer, Mattel has been the relocation of production abroad, outsourcing the production of parts and components. In fact, 65% of Mattel’s products are manufactured in China. Unlike its competitors, howe … Read more »

In the summer of 2007, Mattel, the largest toy manufacturer in the U.S., several recalls of products that were made in China. Mattel recalls the reputation not only led to a significant reduction in Mattel’s sales but also public hearings in the U.S. Congress, which significantly affects. Like other toy manufacturer, Mattel has been the relocation of production abroad, outsourcing the production of parts and components. In fact, 65% of Mattel’s products are manufactured in China. Unlike its competitors, however, Mattel has understood the importance of quality control in this relocation / outsourcing process. In the 1980s, he returned to his previous strategy of outsourcing to factories in Asia by owning and operating some plants in Asia for the production of the most popular products. The show recalls that quality control remains a problem. This case examines Mattel strategy for the organization of production, the trade-offs between in-house production and outsourcing, and the trade-offs between different production sites.
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from
Jiangyong Lu,
Tao Zhigang,
Yu Linhui,
Grace Loo
Source: University of Hong Kong
9 sides.
Release Date: 11 February 2009. Prod #: HKU810-PDF-ENG
Made strategy Mattel recall after its products in China HBR case solution