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Discusses managing change
The toy industry is going through a radical change. Children are growing out of traditional toys such as Barbie dolls at a younger age. Mattel is the world's largest toy company and its divisions such as Tyco and Fisher-Price have been affected. Consequently, Mattel is embarking on a program to redefine its core business from that of a traditional toy company to a children's product company. Mattel has a history of nearly falling apart every decade since the 1970s. In the decade of the 2000's, CEO Robert Eckert is moving Mattel to be less dependent on licensed properties from companies such as Walt Disney, which can be very costly. He is also moving Mattel to a system that can better control inventory and to the development of more toys in-house. Eckert has streamlined manufacturing and has made it clear that new ideas are to move quickly out the door. Eckert is looking to expand overseas as the market for toys matures in the U.S. For example, packaging includes multiple languages to save on marketing and production costs. Faced with continuing economic pressures and increasing competition, many other organizations are being forced to radically change and reinvent their processes.
Discuss the challenges organizations such as Mattel face in managing change effectively.
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