Case study 14: Barbie Doll

The issue with Barbie is no different with the issues with children’s ads. Barbie came as adults collectible yet the same adults are complaining that the tattooed Barbie is a bad role model to the young girls. For years has been liked by many people and has become a social icon. There are those people who cannot abide her presence. Every time a controversial Barbie is released, boycotts always arise but the doll remains a significant part of Mattel’s sales. This means that though people boycott, they still buy the doll.

Looking at children ads, most researchers have argued that children ads are negatively affecting the children. Fast foods ads for example are viewed as the major cause of obesity among children. Parents are always arguing that children ads should be abolished. It has been argued that children ads lead to unhealthy habits among the children.  However, the same parents who complain about the negative effects are the same parents who allow their children to watch TVs.

With the development in technology, Parental control is available in all models of televisions and parents now have the power to control what their children view. However, the complaining about children ads still exists. Just like the Barbie doll, parents complain about negative effects of children ads but still allow their children to watch these ads.

In determining what type of Doll to produce and sell, Mattel should consider a number of stakeholders. The major stakeholders include the investors or the shareholders. The major interest of the shareholders is profits. If the doll does not generate profits, it is not viable to the shareholders. Mattel should thus incorporate the interest of the shareholders in the production of any new doll.

The very important stakeholders include the consumers.  When the consumers are happy, it is translated to profits meeting the interest of the shareholders. In the production of any new do9ll, the consumers are major stakeholders since they are the target market. Without the consumers there is no market thus no profits. Mattel should ensure that any new doll is appealing to the consumers. If the Barbie boycotts for example led to low sales, it would mean that Mattel did not consider the consumers in the production of the tattooed Barbie.  Mattel should ensure that the doll meets the needs of the consumers.

Other stakeholders to be considered include the employees. It is the employees who develop and design the new Barbie. If they are not motivated, then they will design something that does not attract the consumers. When the doll does not meet the needs of the consumer, then the sales all low. Low sales translate to low profits and the interest of the investors will not be met. Thus the employee is an important stakeholder in the production of a new doll.

If the tattooed Barbie is a big hit and results in increased sales, then Mattel will harm its shareholders if it decided to withdraw the product. Consumers cannot buy something that does not meet their needs. It is the human nature to complain even when there is no problem. If the tattooed Barbie becomes a big hit, it would only mean that the consumers are satisfied with it. Then there would be no reason for Mattel to withdraw it from the market.

The major interest of the investors is profits. If the Barbie becomes a big hit, it will attract increased sales. Increased sales translate to increased profits to the benefit of the investors. Withdrawing a product that is bringing in large profits for the shareholders at no increased costs is harmful to the shareholders. The shareholders have heavily invested their money for the sole purpose of earning profits and not making anyone happy. If the majority of the people are happy with the product, then the investors are happy with the profits they get. It is upon the parents to control their children from being influenced by the doll and not the responsibility of Mattel.

 

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