In the year 1996 during August, a lady named Jill Barad was appointed as the acting chief executive officer (CEO) of Mattel. Barad recorded to be the first woman to head a large United States corporation. Barad was an American citizen who was born on May 23rd, 1951 in New York City. Barad attended Queens College in the year 1973. Her appointment is somehow considered as a fulfillment of the already set fifteen-year career at the Mattel Corporation. Barad is best known for transforming Mattel's flagging line from Barbie dolls into the most profitable toy brand in the world. Barad achieved all this great success by maximum utilization of her marketing ability and eye for consumption trends to remake the Barbie doll to become an American Idol.
The Mattel Corporation was a well-established company whose main strength is believed to lie in its Barbie brand. This brand was considered a fisher of price for young children as it generated revenues in vast amounts. For example, this particular brand generated 1995 revenue which amounted to more than one billion dollars. Another strength which arouses during the era of Barad as the acting CEO was through the sales of the hot wheels brand and the acquisition of the Disney license. Particularly the Disney license gave the Mattel Corporation exclusive right to design products which were based on Disney's movies meant for the kids. The Disney based alone made profits of up to 450 million. The four core products boosted the Mattel power by recording compound annual growths both in sales and in operating income.
This substantially united corporation was also recording weakness during the handing over of power. The flaw was present despite the glittering past the company had experienced through an organization with the Disney world movies. It is believed that Jill Barad's took over the company at a time when it was undergoing a slow growth rate. The slow growth rate was thought to pose a significant challenge for the new CEO. The slow growth rate was recorded due to critiques that the company lacked creativity. This evaluation was based on the fact that the Mattel corporation toy production models were based on the Disney models. This was a significant weakness as it was recorded that the Barbie model has been in existence since 1959. Also, other brands like the Hot wheel and fisher-price had been acquired rather than developed internally. Lack of creativity in the company was considered a significant weakness which curtailed the company's growth ability. Another traditional weakness of the Mattel was its lack of products meant for boys like the board games.
The Mattel Corporation has managed to build and sustain competitive advantage. The Mattel Corporation has remained strong in the market and undefeatable able to employing appropriate managerial skills and taking advantage of opportunities whenever they present themselves. I consider the Mattel Corporation to be an established unit as they have remained strong in the market and its products still dominate and are preferred compared to those of their competitors.
Jill Barad's established strategy which revolved around four main elements. Her approach was meant to increase overseas sales to more than 50% from the current 40%. Jill's Barad also had a plan to improve earnings by driving down costs. Cost reduction was believed to only be achievable through by moving production to low-cost foreign factories in places like China and Thailand. Another strategy that was proposed by Barad was that she intended to develop a new product category which was specific for the boy's toys and board games. This can be accomplished either by establishing the toys in-house or by acquiring existing company and then growing its business through further investment. Barad strategies were meant to record additional strength.
If you are the original author of this essay and no longer wish to have it published on the thesishelpers.org website, please click below to request its removal:
- The Perspective of Requirement Management with Enterprise Architecture
- Research Paper Sample: Nikki Giovanni's Biography
- Person I Admire Most in History - Martin Luther King Jnr
- Gerard K O'Neill - Brief History of the Scientist
- Subject Area Management - Paper Example
- How Can a CEO Lead a Company into Technology and Data Revolution - Research Paper Example
- Studying Presentational Skills