Question

In the early 2000s, the mattel company was faced with a major problem with some of its toys due to faulty magnets and high levels of lead-based paint. when the company realized it was facing a serious problem, it immediately involved federal agencies on product safety, recalled millions of toys from the shelves, and launched a massive campaign to inform consumers about the recall. in addition, the company set up a crisis link on its webpage and posted updates regularly. mattel's actions can be classified as

Answer 1

In 2007, Mattel managed a crisis involving a recall of toys due to lead contamination and loose magnets by collaborating with federal agencies, informing consumers through various channels, and establishing a crisis link on its website, showcasing an effective crisis management strategy.

Step-by-step explanation:

In 2007, Mattel faced a significant crisis when it had to recall nearly two million toys due to high levels of lead in the paint and loose magnets. This situation required the company to take swift action to address the problem and minimize harm to consumers, particularly children. Mattel's strategic approach to handling the crisis included immediate collaboration with federal agencies like the Consumer Product Safety Commission (CPSC), a thorough recall of the affected toys, and the launch of a comprehensive information campaign to notify consumers.

Moreover, Mattel established a crisis link on its website to offer updates, which showed the company's transparency and its commitment to keeping the public informed. Such measures are critical in managing a business crisis effectively and in safeguarding company reputation in the long term. This type of response can be considered as an example of crisis management best practices.

While it is uncertain if other toys were held to the same standards, Mattel's recall and Japan's blocking of U.S. wheat imports in 2013 illustrate the ongoing global scrutiny and regulatory challenges that businesses face when safety concerns arise, whether those concerns are related to lead-based products or genetically modified organisms (GMOs). The interplay between business, government regulations, consumer safety, and national interests creates a complex environment for companies operating internationally.

Recent concerns over the Flint Michigan Water Crisis and the EU's and California's stricter regulations on toxins in electronics highlight the importance of proactive safety measures and the potential impact on public health and environment. Such issues underscore the responsibility of corporations to maintain high safety standards for their products and to be prepared to act swiftly in the event of a crisis.

Answer 2

The correct answer is crisis management. Crisis management is being defined as a process by which an organization engages to dealing with an unexpected and disruptive event that are likely to harm or threaten the organization or the members of the organization or what makes it as a whole.