Mattel Catastrophe in China

Barbie was introduced to the world in 1959, and is one of the most iconic dolls ever produced. Barbie is manufactured by Mattel, which was founded in California in 1944, and has dominated the toy market ever since. Barbie helped to create a name and an Empire for Mattel, who later introduced products such as Hot Wheels and Polly Pocket. Mattel, for many years, had a great reputation and produced products that were safe and children loved. Mattel began moving their manufacturing operations overseas about twenty years ago, and until recent years had enjoyed continued success. When Mattel began moving a majority of their manufacturing operations to China and Mexico, they never would have imagined the controversy they would find themselves in the middle of. International manufacturing operations provide companies with an increased bottom line, since labor costs are significantly cheaper than in the United States. However, when companies expand internationally there are a few factors they must first consider: the external environment factors, cultural dynamics, and their strategy and structure in their overseas operations.

July 13, 2007 is the day Mattel learned their Sarge die-cast toy cars, manufactured in China, contained lead levels in excess of U.S. federal toy safety regulations (Pearce & Robinson, 25-1). The United States implemented safety regulation regarding lead-based paint years ago, as officials were aware of the potential health concerns lead can cause. The products manufactured in China leading up to the recalls in 2007 were of substandard quality, and posed serious health risks to the children of the United States. High levels of lead paint can have a detrimental effect on the health of children. Lead can damage chi...

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...attel, the lack of safety standards and cultural issues may have been their biggest downfall. Had they done some research prior to their entry into the Chinese manufacturing industry, their outcome may have been very different. The upfront costs of manufacturing in China may be appealing, but Mattel suffered large financial loss and ended up with a tarnished reputation.

Works Cited

http://abcnewsradioonline.com/world-news/2010/10/25/us-safety-chair-pushes-china-to-raise-toy-manufacturing-stan.html

References…..China's toxic toymaker. (2007). Economist, 384(8542), 58. Retrieved from EBSCOhost.

Joe, W. (n.d). Mattel Cautiously Reveals Closing of Murray, Ky., Toy Factory. Paducah Sun, The (KY), 04/04/2001. Retrieved from EBSCOhost.

Geoff Dyer in Shanghai, M. (2007, September 22). Mattel apology to 'the Chinese people'. Irish Times. Retrieved from EBSCOhost..