Mattel Lead Paint Recall

Abstract

The usage of lead paint in children's toys was a shocking news for not only all the parents but also for the industry and researchers. Mattel's lead paint scandal caused a substantial loss to the company in terms of money, reputation and perception among its customers. This papers aims to identify the causes of lead paint usage and propose solutions for the company to gain its market share.

Table of Contents

Abstract2

Introduction4

Discussion4

Methods for Improvements5

Advantages and Disadvantages of each alternative6

Advantages6

Disadvantages7

Financial, Legal, and Ethical Considerations8

Conclusion9

References10

Mattel Lead Paint Recall

Introduction

Mattel's announcement, in August 2007, to recall its 83 products received a widespread attention from the industry (Eckert, 2008). This recall of products was announced due to the use excess use of lead paint in their products by the Chinese manufacturers. It is also important to know that this announcement also brought some depressing outcomes as owner of the Chinese factory that used the lead paint in Mattel's product committed suicide. In addition, this incident not only received a political attention but also gained attention of consumers. Parents of children who were using these toys were also found worried. Similarly, media did not left behind to cover this lead story about the usage of lead paint in children's toys (Eckert, 2008).

Discussion

It is a fact that cost reduction is a main agenda of all large and small businesses. That is why many of the western businesses have moved its production to China due to less production cost. Mattel was also one of them, where manufacturing was given to Chinese toys manufacturers. This case can be seen in the light of supply chain as the fault was identified in their supply chain in China. The situation regarding the supply of toys has also become a bit tough for the company. The main issue is the timely supply of these toys to the children before the beginning of their school year. So, it has become important for the production department to resolve this matter quickly in order to avoid any serious problem. There is a need to present three possible decision alternatives that would be taken to address the problem regarding the whistles in the toys. The first alternative would be that toys would need to be produced again to meet the required quality standards for children. It is quite clear that the existing batch of toys cannot be delivered in the market for the children. It can lead to negative consequences because the Quality Assurance Department has not even given their approval regarding the supply of these toys. In order to maximize the production of the toys, the company can put a break on the manufacturing of other toys. It would give an opportunity for employees to focus their attention towards the production of these toys (Cross, 1997).

The second alternative for the company would be to remove the defects from the toys rather than producing them again. This will not only eliminate the unwanted substance in the toy but would also decrease ...