Communication implications for quality control, outsourcing and consumer relations Essay

1. INTRODUCTIONQuality control and product rubber eraser atomic number 18 key challenges for companies that manufacture in third-world countries. In the event of a safety or quality control crisis, corporations mustiness respond quickly and efficiently using clear crisis communication and image repair strategies. By studying the Mattel rejoin bailiwick, we see how a multinational corporation restored its reputation amongst sixfold stakeholders it also implemented policies and processes to divert or lessen future crises.The lessons well-educated from Mattel designate the importance of transparent communication practices and may guide companies veneering similar communication challenges. The teaching notes result firstly introduce the consumption of the Mattel slick study, followed by a brief synopsis. Students will next charter relevant theories and principles from which to understand Mattels corporate communication result, particularly strategicalal crisis communicat ion theory (SCCT) and issues management principles. Students will then compare Mattels communication solvent to the industry best practice principles as draw by Page and suggest a revised, more suitable and useful course of action.2. PURPOSE OF CASE STUDYUpon completion of this case study, students should demonstrate that1. Issues develop over time, not overnight. 2. Through environmental s lavatoryning, crisis anticipation and strategic communications planning, corporations can decrease the damage done by uphill and sustained crises. 3. Prompt corrective action can remedy the flow crisis and avert future crises and criticismin the event that a crisis recurs. 4. Companies can turn a crisis into a long-term competitive advantage if it is handled in good stray from the outset. 5. Outside influences may affect a corporations image. Communicators must demonstrate preparedness to deal with external effects. 6. In the event of a crisis, a corporation must address (and prioritize) a number of audiences with adapt messages, for example investors, customers, the media, government and the industry. 7. Initial responses to a crisis will remain endue doneout a communications campaign, for better or worse, and must be planned carefully. For example, Mattels shifted blame to Chinese manufacturers. This backfired and has remained a controversial target since. 8. Successful cross-cultural communication is essential for corporations operating in unconnected countries.3. SYNOPSISBeginning in August 2007, Americas largest gip manufacturer, Mattel, announced the first of what would become a series of five recalls involving 21 million toys. The majority of the recalls were caused by poorly designed magnets fashioned in the United States, while a smaller number were due to deadly lead paint applied by slipshod Chinese suppliers. On the one hand, Mattels various publics, such as parents, investors and the government, have gratingly criticized the toymaker on the other hand, analysts and industry experts have praised it for its quick response and sloshed safety inspection systems, which are purportedly the industrys tightest. Regardless, the case draws attention to the quality control challenges facing companies that outsource manufacturing to developing countries. Students, through discussion of the case study and the attached study materials, will dismember the positive and negative approaches of Mattels corporate communications response. They will criticism the responses suitability to the level of crisis, and suggest possible alternatives. They will consider the unique communications challenges facing a corporation that operates in an international, cross-cultural arena.4. TEACHING COMPONENTS4.1 Assignments, Activities and Study MaterialsStudents will read the case forrader class. They will browse Mattels website, paying particular attention to the recall page (http//service.mattel.com/us/recall.asp) and the Investors and Media pages (htt p//www.shareholder.com/mattel/default.cfm). They should review Mattels history, financial information, corporate administration documents and social responsibility pages. For additional information, students should visit toy industry websites such as Toy Industry Association (www.toy-tia.org) or consumer action aggroup sites like Healthy Toys (www.healthtoys.org). Students should carefully read the news releases in the case appendix.4.2 Relevant TheoriesStudents must understand the key theories informing Mattels crisis and response strategies.Situational Crisis Communication Theory (SCCT)SCCT posits that each unique crisis requires a unique response tailored to the events and characteristics at hand. It is based on convergent research from Coombs, Benoit, Benson and Hearit that aims to minimize or deflect all possible negative outcomes such as lost sales or low stock prices.? In order to determine the best strategy, corporate communicators must assess the reputational threat of th e crisis. This is a two-step process. The first step is to determine the nature of the crisis.