The Mattel Toy Story This Is An Account Of The Change

The Mattel Toy Storythis Is An Account Of The Chang

Exercise 5.1 discusses the strategic changes implemented by Ynon Kreiz, CEO of Mattel since 2018, aimed at reversing the company's declining fortunes. The case highlights the company’s efforts to transform from a traditional toy manufacturer to a high-margin media enterprise, leveraging its core brands through movies and merchandise. The questions focus on identifying which changes are emergent versus planned, assessing the depth of these changes, evaluating Kreiz’s strategies in light of the company's challenges, and understanding the change management models exemplified by Kreiz's leadership.

Paper For Above instruction

Mattel, a historic leader in the toy industry founded in 1945, has faced significant decline since the early 2000s, with revenues dropping from over $6 billion in 2007 to approximately $4.5 billion in 2018. Despite its legendary brands like Barbie, Hot Wheels, American Girl, Fisher-Price, and Thomas & Friends, the company struggled with stagnation, waning consumer interest, and increased competition. In 2018, Ynon Kreiz assumed the role of CEO with a clear transformation vision: to shift from a traditional toy manufacturer into a prominent media company that leverages its iconic brands for movies, television, and related merchandise. This shift represents a strategic change aimed at revitalizing the company’s growth through new revenue streams rooted in intellectual property and entertainment, rather than relying solely on physical toy sales.

The changes triggered by Kreiz can be categorized into planned and emergent changes. Planned changes include the deliberate restructuring of product lines, cost-cutting measures such as divesting factories and reducing workforce by 22%, and establishing a new strategic focus on movies and IP monetization. These are cautious, deliberate efforts designed to reshape the company’s trajectory in a controlled manner. Conversely, emergent changes are less predictable and evolve based on external and internal stimuli; for example, the company’s rapid move into film production and celebrity-led projects, such as Margot Robbie starring in the Barbie movie, reflect adaptive responses to market opportunities and entertainment trends.

Analyzing these changes through the lens of change depth reveals that Kreiz’s initiatives largely fall into the category of deep change. Deep change involves fundamental shifts in organizational strategy, structures, and culture. Here, Mattel is transcending its traditional product-focused model, embracing intellectual property licensing, global media collaborations, and leveraging entertainment to drive toy sales. This transformation requires altering company culture, rethinking core competencies, and redefining brand management—characteristics typical of deep organizational change.

Assessing the effectiveness and challenges of Kreiz’s approach, it is clear that his strategies are well-suited to address the fundamental issues facing Mattel. His focus on cost restructuring, brand revitalization through movies, and leveraging IP to capture new markets align with contemporary industry trends. The initial financial turnaround in 2019, with the first positive cash flow in three years and rising share prices, indicates some success. However, challenges remain, including the unpredictable success of film projects and the potential over-reliance on entertainment-driven revenue. Moreover, the company’s ongoing need to innovate within the rapidly changing digital and media landscape underscores the importance of adaptive leadership and continuous strategic reevaluation.

Ynon Kreiz’s change management approach exemplifies several models. He demonstrates transformational leadership by envisioning and communicating a compelling future for Mattel, guiding the organization through deep strategic shifts. His emphasis on cost leadership and innovation aligns with Lewin’s Change Model’s unfreezing and refreezing stages, where old routines are challenged and replaced with new practices. Furthermore, his constructive approach to risk and adaptation reflects aspects of the Kotter’s 8-Step Change Model, especially articulating a vision, empowering action, and consolidating gains. Interestingly, Kreiz’s leadership embodies the principles of Appreciative Inquiry by focusing on strengths such as the company’s iconic brands and leveraging these assets for future growth, fostering a culture of innovation and optimism.

In conclusion, Ynon Kreiz’s strategic initiatives at Mattel encompass a mixture of planned and emergent changes, primarily characterized by deep, transformational shifts in company strategy and culture. His leadership exemplifies a comprehensive change management approach that leverages corporate vision, adaptive planning, and innovation. While promising indicators of success are evident, ongoing risks and the need for agility remain. The case of Mattel under Kreiz’s stewardship offers valuable lessons in how organizational change can be effectively orchestrated in a dynamic industry landscape, combining deliberate strategic planning with adaptive responses to external opportunities.

References

• Gul, E. (2019). Can Barbie adopt frontier technologies? Mattel’s innovation challenge. The Startup, July 18.
• Lashinsky, A. (2019). Rewriting a toy story. Fortune, 180(6), 98-103.
• Mattel. (n.d.). Company history and brands. Wikipedia. https://en.wikipedia.org/wiki/Mattel
• Kotter, J. P. (1996). Leading Change. Harvard Business Review Press.
• Luecke, R. (2003). Managing Change and Transition. Harvard Business School Publishing.
• Burnes, B. (2004). Kurt Lewin and the Planned Approach to Change: A Reappraisal. Journal of Management Studies, 41(6), 977-1002.
• Cummings, T. G., & Worley, C. G. (2014). Organization Development and Change. Cengage Learning.
• Hiatt, J. (2006). ADKAR: A Model for Change in Business, Government, and our Community. Prosci.
• Beer, M., & Nohria, N. (2000). Cracking the Code of Change. Harvard Business Review.
• Bahli, B., & Lebret, D. (2006). IT Adoption and Acceptance Models: A Review. Journal of Business & Economic Research, 4(2), 1-8.