Mattel Case Study Strategic Management

1. Introduction
Launched out of a garage workshop in southern California, the first Mattel products were picture frames. Moving on from doll house furniture made from picture frame scraps, the company invested its interest in toys. Barbie and Hot Wheels are among the largest commercial successes Mattel has to its name. Mattel went public in 1960 and joined the Fortune 500 in 1965 with sales of more than $100 million. Mattel went on to acquire brands like Fischer-Price, Tyco toys and American Girl and emerged as a parent company with seven subsidiaries. Over the years, the corporation has faced many ups and downs but due to smart decisions made by competent management, Mattel is still a major force to reckon with in the toy world.
2. History

It is perhaps best understood as any effort designed to ensure the continued effective performance of an organization by making provision for the development, replacement, and strategic application of key people overtime’ (Roth well, 2005)
Mattel strives to implement a systematic succession strategy that would help it to nourish and preserve its local talent. Robert Eckert devised a plan in which executives were to identify possible leaders within the organization and help them in the role.
8.3 Performance Management
Performance management tracking at Mattel assists the employees to assess their progress their objectively and have easy and timely access to actual performance levels. In addition, setting of short term goals helps motivate the employees and instills in them the discipline necessary to achieve those goals.
9. Organization Culture
Mattel claims to provide all its employees the opportunity to thrive, lead and dare in their work but according to a former Mattel executive:
“It has always been a place where people are pitted against each other. It’s a shark pond. You throw people in and see if they can swim fast enough to stay

They're very understanding and supportive. The people who work there are great! I've had a good experience.”
It is perhaps difficult to get an idea of the culture prevalent in Mattel solely on the basis of above mentioned reviews but generally the culture at Mattel is termed competitive. But every Mattel employee is required to act with integrity, treat others with dignity and respect, be honest and fair in all transactions, and consistently strive to do the right thing.
10. Business Strategy
Mattel aims to raise its share in the marketplace, improve its operating margins and create long term stockholder value. To realize these goals, the following strategies have been established: o Deliver consistent growth by continuing the momentum in its core brands, optimize entertainment partnerships, build new franchises, and work to expand and leverage its international footprint. o Optimize operating margins through sustaining gross margins within the low-to mid-50% range in the near-term and above 50% in the long-term, and deliver on cost savings initiatives. o Generate significant cash flow and continue its disciplined, opportunistic, and value enhancing