Mattel- Toy recalls

SUBMITTED TO:

D R . N I L A N J A N S E N G U P TA

P R O F. H R M & O B

CHAIRPERSON ACADEMIC ENHANCEMENT

SDMIMD, MYSURU

S U B M I T T E D B Y:

N I T H I N S R I N I VA S ( 2 1 1 1 )

M O H A M M E D R AY YA N ( 2 1 1 2 )

RONAK S (2113)
Case Issues
• It all started with the Mattel company discovering lead paint in some of their toys
by a European retailer.
•The death of Zhang Shuhong
•There were two additional recalls by the company, they were:
•The first was recall of toys developed by Chinese Manufacturers
•The second major recall taken to expand the scope of an earlier recall to address 18.2
million toys that had the design flaw
Continued
• The speculation from the public as to whether the company could have given a
warning to the public regarding safety risks earlier.
• The company also the problem of knowingly withholding the information regarding
the problems that “created an unreasonable risk of serious injury or death.”
•The first was related to a failure to report a fire hazard in a timely manner for its
power Wheels motorized toys.
• The other important was the incident of swallowing of the small screws used in the
toys by small children.
Continued
• Additional to all those things the company is facing the scrutiny of toys containing
hazardous magnetic components in their toys.
• The other issue is that Mattel’s untimely practice of and justifying its position for
waiting extend periods before notifying the agency and the public.
Why Recall
1. Lack of internal Control
2. The use of Lead Paint
3. Mattel Products integrity and CSR values.
4. Toys and Product Safety
Consumer
Product Companies must report defective products and
recall within 24 hours of discovery.
Safety
Comission
Mattels Eternal
Environment

1. Fall in stock price due to intense competition.

2. The level of safety checks due to CPSC is very
high.
3. Increased outsourcing & Contracting.
4. Lawsuits
5. CPSC standards
 Safety
1. Child Health
2. Promote the companies integrity & Loyalty to its
standards customers.

of Mattel 3. Legal requirements & industry standards for product

quality and safety.
 1.Low Threat of new entrants

2.Medium Power of Buyers.

Porters 5
Forces 3.High threat of substitutes.

Analysis 4.Low power of Suppliers.

5.Intense Competiton
Questions Microsoft Word
Document

Q1 Identify the major stakeholders in this case and the ethical

issues that affected them adversely.

Q2. What kind of issues management framework would you

suggest to best explain this case and why?