I.

II.

Problem Statement:
Despite precautionary measures, what can Mattel do about the difficulties of
controlling in outsourcing and manufacturing in China?
Objective
Objective 1: Get all information about the recall to the public accurately, quickly, and
efficiently.
Objective 2: Reassure consumers especially parents that Mattel is committed to
making safe toys, fixing the problem, and being open and honest.
Objective 3: Take responsibility for the recall. Solve the problem while maintaining a
stable relationship with China

III.

Brief Description of the Case

IV.

Areas of Consideration
Strength
Reputation of its Brand Name
Strong Capital Capacity
Strong Distributor Network
Licensing with Big Companies
Opportunities
Fast, growing economy of Asia
Market of Asia
Educational products

Weaknesses
Lack of Diversification of their products
Outsourcing management
Quality Control
Threats
Defected products from China
Economic Downturn on toys
Children growing faster than their age
Competition and substitutes from internet,
electronic toys
Unpredictable customers taste

V.

Alternative Courses of Action

1. Re-evaluate production facilities location
Advantage:
Disadvantage:
2. Rebuild and strengthen the brands name
Advantage:
Disadvantage:
3. Research and plan to invest on new technologies, new products, also build new
production plants in other growing countries.
Advantage:
Disadvantage:

VI.

Recommendation

Option number 3: Research and plan to invest on new technologies, new products,
also build new production plants in other growing countries.
VII. Action Plan
VIII. Conclusion