Mattel Corporation is a company that operates in the toy industry. The industry is very competitive because the company is facing stiff competition from its rivals, such as Lego and Hasbro. Though the competition from the rivals is very stiff, the company has managed to stay on top of the toy industry for many years. The company has managed to control a large market share in the toy industry. Appropriate use of strategic management and planning process has made the company over the years to come up with good strategies that have made the company to be where it is in the toy industry. The management of the company has been making good use of this method.
The strategies have been working properly for the company both locally and internationally. The strategic planning process has a number of components, which the management has to make good use of in order to come up with a strategy that works for the company. The components of the strategic planning process are strategic analysis, strategic formulation, and strategic implementation. All the component are very important in the process of coming up with a strategy or strategies.
An example of the strategy that the management of Mattel came up with and worked successfully if the realigning of infrastructure. This strategy improved the execution of the company throughout and across the supply chain. This strategy made the company come across the following positive changes: ability to appropriately control the expenses and other costs, reducing capital spending (this was possible by performing only activities that are critical to the business), and managing working capital very tightly (specifically the inventories). This led to significant contributions to the company, such as rise in profitability, creation of a balance sheet that is very strong, and cash flow that is improved that the company made use of to increase cash balance, reward the stockholders of the company through the dividends, and lowering debt. This strategy together with others helps the company to retain its position of being the global leader in the toy industry.
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