Case 7: Mattel: Overcoming Marketing and Manufacturing Issues The Problem:
The challenge surrounding Mattel Inc., one of many world's greatest toy corporations, is their mismanagement of international subcontractors and distributors and the creation of particular toys (the manufacturing process), as well as all their inability to adapt their particular marketing strategy or product for the constantly changing " demographic and socioeconomic trendsвЂќ (Ferrell, et. most 466). This is supported by Mattel's legal struggle with Carter Bryant and MGA, their compelled recall of certain gadgets that were manufactured overseas, and the increasing charge at which classic toys are getting to be less attractive to today's young audience. Essentially, Mattel's mismanagement and oversight lead to violations in terms of ethical and interpersonal responsibilities and safety requirements. Issues Highly relevant to the Problem:
Mattel's problem of mismanagement can be divided into many issues that should be considered: legalities, international supply chain concerns, and an increase in technology-based toys and games. In regards to legalities, Mattel has become involved in long term litigation with Carter Bryant and MGA over a breach of an employment contract and copyright violation. Due to Mattel's poor managing of it is overseas suppliers, in which not authorized subcontractors and third-party suppliers were chosen and dangerous materials used, several plaything products were recalled. Developments in technology and within socioeconomic and demographic developments have created promoting, privacy, and product development concerns for Mattel. Analysis of Issues:
It truly is evident that Mattel has used poor administration practices, through which their HOURS and Procedures Departments have failed to make certain that employees adhere to confidentiality nature in their work contracts. The creation of MGA's line of Bratz plaything and the legal battle that ensued really are a direct representation of this practice. Since 2004, Mattel, their ex - employee Carter Bryant, and MGA Entertainment, Inc. have been " involved in a unhealthy intellectual home battleвЂ¦over rights to MGA's popular Bratz dollsвЂќ (Ferrell, et. all 459). Though Barbie remains one of Mattel's core goods, Barbie's popularity has suffered over the last several years because of new and innovative competition. Unlike Mattel, this new competition, like MGA's Bratz plaything, has been capable of successfully sustain the changing lifestyles of today's youngsters by creating dolls that feature " contemporary, cultural designs and skimpy clothesвЂќ (Ferrell, ainsi que. all 459). According to Mattel, Carter Bryant designed the Bratz dolls although he was employed with Mattel. He then still left Mattel " to am employed at MGA, which began creating Bratz in 2001вЂќ (Ferrell, et. almost all 459). Mattel then decided to sue Carter Bryant and MGA pertaining to engaging in deceitful activities. Mattel and analysis jury decided that Carter Bryant was at breach of his work contract if he developed the Bratz concept while employed by Mattel. The jury also available MGA guilty of copyright infringement, " intentional interference with contractual associations, aiding and abetting breach of fiduciary duty, and aiding and abetting infringement of the duty of loyaltyвЂќ (http://www.msnbc.msn.com/id/26410627/). That they " regarded MGA as well as CEO responsible for what it called вЂintentional interference' regarding Bryant's contract with MattelвЂќ (Ferrell, et. almost all 459). When it comes to copyright infringement, MGA constructed the popular Bratz brand " to include a lot more than 40 personas and expanded it with spin-offs just like Bratz Babyz, Bratz Petz, Bratz Boyz and products such as helmets, backpacks and bed sheetsвЂќ (http://www.msnbc.msn.com/id/26410627/). As a result of popularity of these highly stylized dolls amongst Mattel's potential audience of " tweens, вЂќ domestic product sales of Barbie went " down 15 percent in 2007 and 12 percent in the 1st quarter of 2008, although international product sales increased six percent in 2008 as opposed to 12 percent the previous yearвЂќ...
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