Magnetic Toys Can Hurt – Case Analysis Mega Brands

Magnetic Toys Can Hurt – Case Analysis

Mega Brands has been selling Magnetix toys for many years. It also sells Mega Bloks, construction toys based on Spider-Man, Pirates of the Caribbean, as well as other products in over 100 countries. In 2006, Mega Brands had over $547 million in revenue, including over $100 from magnetic toys, but its share price fell approximately $27 to $20.30 in mid-July 2007. One reason for the fall was that a child, who had swallowed a magnet that had fallen out of a toy, had died in the late fall of 2005. The U.S. Consumer Products Safety Commission (CPSC) had issued a product recall in March 2006.
Subsequently, a number of lawsuits appeared involving other children who had suffered bowel complications. The symptoms resulting from a child swallowing a magnet are similar to those of a stomach ache, cold or flu, and so the problem is sometimes misdiagnosed. The consequences can be much worse if a child swallows more than one magnet, particularly if they are the super-powerful magnets like those in Magnetix toys. They are so strong that they do not pass through the child’s digestive system; instead, the magnets rip through tissue as they are attracted to each other. Complex surgery is required for extraction and complications can continue afterward.
After refusing twice, Mega Brands engaged in two voluntary recalls at the request of the Commission in March 2006 and April 2007. Defective merchandise was still found on store shelves by CPSC investigators in April. Even then, at a hearing on June 18, 2007, Senator Robert Durban stated: “The company did everything in its power to derail the commission’s effort to take the product off the shelf.” In frustration, Senator Durban commented: “When a company is selling dangerous products in America and refuses to co-operate with the CPSC, we have few laws and few tools to use to protect consumers.”
In addition, the company did not quickly comply with CPSC requests for information and violated the terms of one recall. Finally, on December 1, 2007, after failing to respond on time to a subpoena, data was submitted covering 1,500 complaint reports made to Mega Brands or to Rose Art Industries, the toy’s manufacturer. Mega Brands asserted that they had to search through warehouses to gather the data, because they lacked an organized comprehensive reporting system.
A new product, supposedly improved, has been introduced with new labeling that indicates the suitable minimum age to be six instead of three.

Questions
1. If you were an executive of Mega Brands, what concerns would you express to the CEO about the Magnetix toy issues noted above?

2. If the CEO didn’t pay any attention, what would you do?

3. Should the CPSC have more powers to deal with such hazards and companies? If so, what would they be? If not, why not?

4. Indicate which preventive and detective controls can be put in place to prevent this from happening again

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with AssignmentHelpWeb
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Psychology
Thanks a lot the paper was excellent
Customer 452453, October 26th, 2022
Architecture, Building and Planning
The assignment was well written and the paper was delivered on time. I really enjoyed your services.
Customer 452441, September 23rd, 2022
Nursing
The paper was EXCELLENT. Thank you
Customer 452449, September 23rd, 2022
Anthropology
excellent loved the services
Customer 452443, September 23rd, 2022
English 101
Very good job. I actually got an A
Customer 452443, September 25th, 2022
Theology
Job well done and completed in a timely fashioned!
Customer 452451, November 18th, 2022
Business Studies
Thank you!
Customer 452451, November 27th, 2022
Business Studies
Job well done. Finish paper faster than expected. Thank you!
Customer 452451, October 3rd, 2022
Anthropology
Excellent services will definitely come back
Customer 452441, September 23rd, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat