Research Proposal: Economics After the Incident of Recalling

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Economics

After the incident of recalling over 900,000 Chinese-made children's character toys the top management of Mattel must have been extremely selective in its strategies that it employed soon after the incident, since it was able to successfully sort out the mess with not only the Chinese government officials but was also able to fulfill the regulations set forth by its own government. It must have referred to previous trends, as well as, retained past strategies that were successful, side by side, with the innovative tactics to promote and maintain its position in the market. Furthermore, consistent and two-way communication has assisted Mattel, as well as, its employees to bond and aim for the same objectives, which subsequently assisted them and made the company more dynamic, versatile and adaptive. The history of the company suggests that they have an extremely strong, as well as, constructive sense of shared values that have been developed, which has assisted in the speed and timing of their innovation strategies. Moreover, it must have a bureaucratic setup that makes sure that their management structure is adjustable to the timely execution of new innovation. They, in addition, must have minimized the influence of a rigid bureaucracy, which was being an obstacle towards the possibility of innovation.

The managers at Mattel must have eliminated the beliefs, as well as, values that had been discouraging the utilization of innovation in a constructive way and promoted new values that assisted in the boost of not only production level but also company profits while taking into consideration the health and safety of its customers. The top management of Mattel must have had an outline site created for their business aims. Furthermore, they must have ascertained that they designate all corporate departments within the organization to help and contribute towards the achievement of those aims and objectives. It must not only have had an adaptive management setup but they also must have had introduced only those products in the market that ride well with their corporate values and culture.

The impact on Mattel

Schein (1985) points out that the corporate culture is a set of fundamental beliefs, experience, as well as, norms shared by the workforce of an organization that have been incorporated devoid of any deliberate attempt and are assumed to be the underlying reason for their success (Schein, 1985). Gilbert (1996) asserts that it can also be considered as the way things are carried in that particular organization. It establishes the extent of formality carried out in an organization; for instance, the dress codes, or the styles of fixtures, fittings, as well as, furniture are all part of the organizational culture. The stories of preceding business heroes, as well as, legends only serve to strengthen the culture of the organization. The influences of culture are not only long-lasting but also surpass functional hierarchies of the organization (Gilbert, 1996). Mattel must have referred to previous trends, as well as, retained past strategies that were successful, side by side, with the innovative tactics to promote and maintain its position in the market since the impact on Mattel has not been as grave as expected.

Mattel operates in an oligopoly, meaning that it faces few competitors. It is the main suppliers of toys not just in America, but also worldwide. Unlike perfect competition, where no single entity has control over the market, Mattel operates and controls a major share in the global toy industry. This can be due to the people Mattel has at its workforce. Hart (1992) points out that when it comes to the execution of innovation in any organization, employees are one of the most significant elements that make it successful. When it is the workforce themselves who would have suggested newer ideas and paved the ground for innovation, they will be more enthusiastic and excited to recognize it and the company's willingness to modify will augment as is appropriate in the dynamic and flexible environment of today (Hart, 1992). Thus it means that consistent and two-way communication has assisted Mattel, as well as, its employees to bond and aim for the same objectives, which subsequently assisted them and made the company more dynamic, versatile and adaptive.

The culture and history of an organization, as suggested by many authors is, in addition, characterized by time, as a collective shared value. When it comes to the collective or shared aim/objective or performance of an organization, these shared values are augmented and strengthened. They allow and promote innovation to occur in high-velocity organizations. They create a sense of importance and augment the pace and timing of the innovation (Davis, 1984; Deal & Kennedy, 1982). The history of the company, Mattel, suggests that they have an extremely strong, as well as, constructive sense of shared values that have been developed, which has assisted in the speed and timing of their innovation strategies.

Managers have got to be conscious about the management structure, that is to say the bureaucracy; which translates into:

little likelihood of innovation,

Pre-defined functions and jobs,

High level of uncertainty avoidance

Lack of risk-taking behavior display,

An official, as well as, rigid structure

Documented rules, regulations along with processes.

Daft (1982) and Thompson (1969) point out that such organizations don't welcome sudden and/or rapid innovation. They, however, change and make way for newer methods step-by-step in a sluggish way. The extremely tardy reaction of this bureaucratic organization towards innovation is due to its management structure that has been transformed by its founder, history, management and environment (Daft, 1982; Thompson, 1969). Mattel must have a bureaucratic setup that makes sure that their structure is adjustable to the timely execution of new innovation. They, in addition, must have minimized the influence of this form bureaucracy, which was being an obstacle towards the possibility of innovation.

At the observable level, corporate culture has been characterized by the use of not only symbols, but also signs and codes. The style of corporate governance plays a significant role in instituting a culture that leads to success. A corporate leadership can give importance to and highlight those principals that they wish to keep in the organization and can overlook some beliefs and values by dejecting them (Gilbert, 1996). Similarly, the managers at Mattel must have eliminated the beliefs, as well as, values that had been discouraging the utilization of innovation in a constructive way and promoted new values that assisted in the boost of not only production level but also company profits while taking into consideration the health and safety of its customers.

Gilbert (1996) points out that most companies, when designing their products, are not lucid about the areas which they need to focus. This single move can and does seriously hamper the company profitability. For case in point, a sales oriented business is most likely to position much significance to (1) sales successes; (2) meetings; (3) trainings and (4) profit issues whilst other business sectors, such as accounting, marketing advertising will not be the focus of their attention (Gilbert, 1996). The top management of Mattel must have had an outline created for their business aims. Furthermore, they must have ascertained that they designate all corporate departments within the organization to help and contribute towards the achievement of those aims and objectives.

In the market economy, demands for a certain product changes consistently. Organizations with strong cultural roots not only have a strong bond with their customers but they also can adapt quickly with the changing demands. Gilbert (1996) points out that it is the culture of the organization that influences not only its willingness but also its ability to transform. It represents not only the collective thought but also the mindset of the workforce. Therefore, it is highly unlikely that innovation in any organization will be a triumph if it is not in… [END OF PREVIEW]

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Economics After the Incident of Recalling.  (2008, November 1).  Retrieved July 19, 2019, from https://www.essaytown.com/subjects/paper/economics-incident-recalling/84088

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"Economics After the Incident of Recalling."  Essaytown.com.  November 1, 2008.  Accessed July 19, 2019.
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