Beside the political purpose behind it to be blame, the failure of regulation by the Chinese authority is also a big reason why the crisis may happen. Robert Eckert CEO offered an apology to congress on September 12, for allowing lead painted toys into the country.
This is the problem the American government has to solve. Rather to blame the evil mind of the manufacturer in China, the rising price is also one of the key factor which drive them to lost their ethics after so many Mattel outsourcing essay of cooperation with Mattel.
Zheng Xiao Yu, the head Mattel outsourcing essay Chinese State Authority who is responsible to ensure of the safety of Food and Drug was found of taking bribes to approve inferior products.
For the manufacturer in China, in order to survive in the increasing competition environment, the cost advantage is not the only way to dominate the market, but quality does too. However due to the increasing cost of the labor and material of production, the manufacturer has no choice but to switch to a lower cost material to replace to maintain their profit.
Due to the trust toward to the Chinese partner, Mattel has lost its regulation to the Chinese supplier. For the American government, shift the crisis to another country it is a way to solve its own problem.
Mattel and its Chinese suppliers had maintained a partnership over decade. The second issue that involved in this case it the Chinese government failure of regulation Due to the failure of Mattel in China, it caused not only the crisis of Mattel Company but also the product made in China.
Therefore, beside the problem it can be view, we can say it has political purpose at the back. The transparence of government censorship is obviously needs to be improved. The third issue is that the Trust crisis of Product made in China, and its political plot behind the screen.
Elmo Sad… Elmo Covered in Led Paint multiple legal problems was Michigan Pension Fund files a lawsuit in Octobersaying the Mattel knew about the threat weeks before they disclosed the problem and claimed a breach in fiduciary duty. Regarding to the second recall, the majority of the For the Chinese authority of regulation, their failures of taking their responsibility to ensure the safety of product made in china will cause China lose the cost advantages.
However the truth seems to be covered by the western media and more blame was given to the china made product, which cause the discrimination about Chinese product.
It had 17 recalls in the past 10 years. This can be explained by the increasing trade deficit of American toward their trade with China, the rapid increasing Chinese economy has cause the panic of American government. There are rising anxieties over Chinese product. Mattel was unaware of the lead products until a French retailer brought it to its attention July Mattel is the largest toy company in the world, and it has been practicing the outsourcing policy from China for decades due to the cheap cost of labor and intensive production there.
In s Mattel took ownership of factories in China because they worried about imitation being produced. There are likely more strict trade restrictions or barriers toward China Products when they want to enter into foreign markets. The owner of the Chinese manufacture of tainted toys committed suicide in August of that year.
Overall in this case study, the failure of Chinese manufacture industry is a great lesson for all the parties.
The first issue that was found in this case is the reputation crisis of Mattel worldwide and its sourcing failure.Furthermore, expertise in risk management, financial management, and other fields can be contracted through outsourcing.
As far as Mattel is concerned, the key motivation for outsourcing is to have access to cheap labor, reducing manufacturing cost significantly. All Mattel Toys Recall Case Essays and Term Papers. Outsourcing Jobs To Foreign Countries Essay - Outsourcing Jobs to Foreign Countries Due to the lack of employment in foreign countries, companies that outsource work overseas are not only beneficial to themselves but.
In case of Mattel Toys Inc, risk came from the fact that about half of its toys are made in Mattel plants and about half are outsourced to vendor plants. Some of the problems came in when these vendor plants also outsourced to other vendor plants and again these other vendor plants outsourced, thus, making the supply chain very long – or ‘deep’.
Mattel began outsourcing to Japan, China, Malaysia, Indonesia and other countries that offered the advantage of lower labor and production costs. This preview has intentionally blurred sections. Sample Essay Type Questions Savannah State University. Strategic analysis of global operations of supply chains.
Print Reference this. This section of the essay contains the overarching methodology for dealing with Mattel’s situation. For this purpose, the Supply Network Risk Tool put forward by Harland et al., has been used. For Mattel: increasing customization outsourcing of.
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