Write 7 pages with APA style on Worlds Largest Toy Company. The company has gone through many ups and down for many reasons. The growth by acquisition strategy adopted by CEO Jill Barad had failed to show an 82.4 million loss in 1999. following the heavy loss, Jill Barad was replaced by Robert Eckert, who decided against a cost-cutting strategy to amplify the profit. He better focused on workforce management, giving its managers sophisticated training which included the global leadership program and seminars on leadership. How did the strategy of training managers to become leaders ultimately turn out to be The workforce strategy was aiming at developing effective teams. Trying to foster teamwork and break down the silo mentality within the organization was a Herculean Task for the prevailing corporate set up of Mattel. What were the challenges they came across during the process?
In order to understand the intensity of the developments and the fruitfulness of the outcome close to look at the company, the background is essential. Mattel’s was founded by Elliot and Ruth handler in the year 1945. Gaining from the absence of quality and verify in the toy’s market the company had recorded a $100,000 sale in the first year even with the least experience they had. The company made use of the popularity of television westerns when they have introduced toy replicas of the classic western guns and holsters in 1957. Later on, they introduced Barbie Doll with its clothes and accessories, the company kept on conquering the market with its sale on the increase hitting the $100 million mark in 1965. By the end of the decade, they were the world’s number one toy makers. It was the time when the company established and developed itself with diverse operations into a worldwide enterprise with a host of acquisitions. Some of those major acquisitions are Dee & Cee Toy in 1962, Standard plastic Products Hong Kong Industrial and Precision Moulds in 1966, Rosebud Dolls in 1967, monogram models and A&A Die casting in 1968, Ratti Vallenscasca, Mebetoys, Ebiex, H&Hpalstic Company and Met frame in 1969.
However, in spite of the acquisitions by the year 1985 Mattel fell behind the Hasbro as the world’s largest toy Maker. The 70s have seen many financial irregularities and finally, new management under former vice president Arthur S. Spear had taken control of the organization in 1975, by when many of the business acquisitions the company had been running on loss. “John W. Amerman, who became the CEO in 1987 moved to quickly to cut Mattel’s overhead by closing 40% of the company’s manufacturing capacity, including plants in California, Taiwan, and the Philippians. He laid off workers at Mattel’s corporate headquarters in California saving at least 30 million annually. He turned the company around by focusing on brand names with staying power such as Barbie and hot wheels and by making a selective investment in the making of new toys. Despite a . lackluster economy and generally flat sale in the toy industry, Amerman’s strategy paid off for Mattel. Between 1987 and 1992 Barbie’s sale shot up from $430 million to nearly $1 billion, accounting for about half of the company’s $1.85 billion sales. Mattel also concentrated on international expansion. In 1993 Mattel acquired Fishers Price, the world’s leading maker of toys for infants and preschoolers, further cementing its unrivaled position in the toy industry. Mattel continued with strategic acquisitions and in 1997 Amerman was replaced by Jill Barad as the CEO” (Verma M. 2007). Barad continued with the tradition of forceful spreading out. In July 1998 Mattel acquired Pleasant Company for $715 million, which bore out to be highly successful. Then as a part of further broadening its product line, in the year 1999 Mattel purchased the Learning company in a $3.5 billion deal. But, Even before the process was over the learning company began accounting losses, resulting in a net loss of $82.4 million in Mattel.
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