Mattel has been regarded as the undisputed leader in the global toy market. However, the company had experienced several problems during the second half of 2007, which led to the image of the company being tarnished.
Many toys were recalled and this incident was widely reported by the media. This has had a bad effect on its relationship with its consumers and also with its various partners. After the crisis struck, the share price has also fluctuated considerably since last summer.
It is interesting to study the crisis at Mattel by examining the basis and the consequences.
Mattel started in 1945 with the creation of three figures by Ruth and Eliot Handler and "Matt" Matson in an old garage that was used as their workshop where they manufactured their first product, dolls.
In 1955, the company grew and moved to California, and marketed its products through a new television show called The Mickey Mouse Club. This was a new form of marketing and communication. In 1959, the famous Barbie dolls were created. The restructuring of Mattel to Mattel Inc was created in 1972.
Mattel strengthened its external growth by acquiring the company Bandai, a leader in the segment of toys in Asian countries in 1986. In the 1990's, Mattel's acquisition strategy was to take control of firms such as Aviva Sports International Games Inc. The merger of Mattel Inc and Fisher Price toys, a specialist in childhood, took place in 1993.
From 1993 to 2000 Mattel Inc. went through the acquisition of numerous brands and licenses like Nickeledeon (SpongeBob). There was a change of strategy and vision for Mattel Inc. in 2000, where they focused on creating new brands and reducing costs. Mattel Inc. was awarded to the Enterprise Manager by UNICEF in 2003.
Tags: Mattel Inc., history and creation of Mattel Inc., crisis management at Mattel Inc.
[...] A complaint was filed by the Sterling Heights Police & Fire Retirement System at a Delaware court. This was done on behalf of all shareholders. According to the complainants, Mattel delayed releasing its reports for several months, "so that the leaders behind these delays could make substantial profits by selling the shares before the bad news was made public and the massive recalls were ordered." The amount of damages was not specified but focused on the profits that were pocketed by the leaders and the loss of share value by 20%. [...]
[...] They marketed their products through television show that was new at the time - the Mickey Mouse Club. This was a new form of marketing communication. 1959: The famous Barbie doll was created. ← 1972: Mattel Inc. was restructured ← 1986: Mattel strengthened its external growth by acquiring a company called Bandai which was leading the toy market in Asian countries. ″ 90's: Mattel's acquisition strategy led them to take control of Aviva Sports International Games Inc. ″ 1993: Mattel Inc. [...]
[...] Shortly after this, Thomas Deprowski, vice president of Mattel, personally apologized to the Chinese people. The Chinese government said that the recent recalls made by Mattel damaged the credibility of products the products that have the label "Made in China" and it was in everybody's best interest that the trade relations between China and the United States remain good. Change in share prices over one year: (Please note that the names of the months in the diagram cannot be changed to English) Source: www.boursier.com/vals/US/US5770811025-cours-mattel.html 3. [...]
[...] Recently, Mattel Inc. issued a $ 350 million senior bond with a maturity of five years. This capital should is to be used for general corporate activity. Summary data since 2003 2003 2004 Variation 2005 Variation 2006 Variation Turnover in thousands of $ 4960100 5102786 2,88 5179016 5650156 Net income in thousands of $ dividend paid per share $ 0.40 $ 0.45 0.50 $ 0.65 Source: Annual Reports 2003-2006 Mattel 2. The 2007 crisis 2.1 Factual Background ← June 2007: More than a million and a half of wooden ‘Thomas and Friends' toys had to be recalled in China because of the lead based paint they used. [...]
[...] Bibliography ″ G. Dyer, M. Garrahan, D. Pimlott, Mattel apologises to 'the Chinese people 21/09/07, available at: http://search.ft.com/search?queryText=Mattel+apologises&aje=true&dse=&dsz = ″ Agence France-Presse, Mattel: shareholders complain after the recalls, 10/10/07, available at: http://lapresseaffaires.cyberpresse.ca/article/20071010/LAINFORMER/71010099 /5891/LAINFORMER01 ″ PG, U.S. [...]
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