Mattel Corporation

Strategic formulation

After successful execution of the strategic analysis, the next thing the company has to do is to come up with long-term objectives. Long-term objectives will be used to show the goals to be achieved by the company. These objectives will be used to enhance the competitive position of the company. They act as a guide to specific strategy selection. The formulation of the strategy in an organisation may be done based on the following stages:

  • Business level strategy
  • The business level strategy is focused on satisfying the needs of the customer or their preferences. The aim of this is to enable the company to achieve above average returns. The business may decide to come up with strategies that target only one item that is sold in the market. These strategies will aim at improving the value of the product to the customers so that it can gain competitive advantage in that line of product. This strategy is busy with the position of the firm in the market or industry. It does not look at the competitors.

  • Corporate level strategy
  • This strategy is normally carried out by the executives who are at the top of the parent company. The decision made at this level affects the entire organisation. Mergers, human resource management, financial performance, allocation of resources, and acquisitions are normally the parts of the corporate level strategy. There are three types of corporate strategies. These are the value-creating strategy, value-neutral strategy, and value-reducing strategy. The value-creating strategy is where the business has the intention of edging out its competitors in the market by attaining more shares in the market. In value-neutral strategy, the business carries out its activities with the aim of continuing staying at the top of the market. The value-reducing strategy may be taken by the company if it feels its size is increasing above its britches or when it feels that only the top executives are benefiting from its expansion and diversification.

  • Global/international strategy
  • This covers international, multinational, and global strategy. These are strategies that will help the business in the quest for achieving the objective of international expansion. The business looks at the world as one large market. The whole market has one supply, but the variations may be a bit different from the different markets.

  • Organisational system together with strategic change
  • The organisational system also refers to the organisational structure. It looks at how the activities are directed to the organisation with the need to achieve the aims of the organisation. The activities, in this case, are supervision, coordination, and task allocation among others. The organisational system together with strategic change entails, how the strategic change will affect the organisational structure of the company, and what changes will be required to be done so that the strategic change works properly.


There are many steps that management can used in the process of strategic implementation. All of these strategies have a goal of coming up with the long-term objective for the company. The steps are:

  • Choosing the action that will help accomplish the mission of the company
  • Selecting the most effective long-term strategies – this involves choosing strategies that will be more effective in the company. The long-term strategies should not go out of the mission and vision of the company.
  • Selecting short-term objectives that are drawn from the long-term objective. The short-term objectives should be in line with the mission and vision of the company.
  • Deciding resource allocation and budget. This should be performed while observing the short-term objectives.
  • Implementation of the strategies. This should be done together with review system that is pre-decided. The short-term plan should be controlled using appropriate measures.


The Strategic formulation of Mattel Corporation will be aimed at coming up with long-term objectives that will provide direction for the selection of a specific strategy for the company. The objectives chosen by the management of the company will help the company to out-compete its competitors. There are four stages that the management has to consider in strategy formulation. In business level strategy, the management can choose one of the toys of the company, such as Barbie, which is performing well in the market and come up with strategies that are aimed at increasing the value of Barbie so that it satisfies the needs of the customers or their preference. The company can do this through exploiting core competencies with regards to the product. Once it succeeds in this step, it now has to look at the big picture of corporate level strategy. The corporate level strategy will be carried out by the top executives of Mattel Corporation who is stationed in El Segundo. Since the company has succeeded in achieving the value-creating strategy, the only thing expected of it is to stay at the top at the top of its industry. This can be done by achieving the value-neutral strategy. Through this method, it will be securing its current position in the market. This can be done through mergers and acquisition. These moves will act as defensive strategies. It can also decide to adopt other strategies that bar the many competitors from entering the toy market. The global strategies taken by the company will be aimed at coming up with objectives that enable the company prospers in the global market. The objectives that the executives will come up with will depend on the market, how the company plans to enter the market, or how it plans to diversify into the market. Change in strategy is likely to affect the organisational system. The management of the company should assess how the strategy change will cause an effect on the organisational change. There are other times that the organisational system has to be modified a little bit so that the strategy new strategy can work properly. All of these have to be analysed by the management of the company because if not, then either the new strategy or the organisational system may not work properly. If a little change is to be done on the organisational system, then the management should identify the required change.

Strategic implementation

The best strategic plan chosen by the company must be implemented. Strategies that are very well executed will create a competitive advantage for the business. Managerial skills are very crucial in this stage compared to analysis. Communication is a very important element at this stage. This is because the new strategy has to be appropriately communicated within the organisation for the effective implementation process. The strategies that are to be implemented are directed towards attaining the goals of the company. The implementation will make the plans of the company to happen. The process of strategy implementation will rely on the following steps for its success:

  • Resource allocation
  • This will entail distributing the resources in order to cater for the new strategy. This part will involve selecting employees within the company for different key positions. The implementation task at this stage will involve assembling a management team that is capable of taking part in the new strategy. At the centre of the recruitment administrative problem here is the type of management team that is required to perform the new strategy and to get the right people to fill the vacant slots. During this time, the existing management team may be qualified for the positions. The only things required will be expanding or strengthening the existing team. This can be done promoting the existing team that is qualified for the positions or bringing in new skills to assist the one that is already present.

  • Changing organisational structure
  • The internal structure should be designed in a way that it becomes to the needs of the new strategy. The organisational structure should be matched to the strategies that are to be implemented. This part will involve introducing some changes to the organisational chart of the company.

    Implementation of a new strategy may affect the above organisation chart of a company. The strategy may require creating a new unit that was not previously available or it may require re-structurization of a department that was previously present. Such changes are necessary in order to make the implementation of the strategy to be successful. Without introducing some changes in the organisational structure, then the implementation process may not go smoothly. The new strategy will cause a redistribution of responsibilities and power within the business.

  • Managing resistance and introducing a new reward system
  • Not everyone will welcome and embrace the new changes being introduced into the company. There must be a group that will try to oppose the new changes. This also the case with new strategies being introduced to the company. The company should find ways of introducing the new implementation so that it does not face resistance from all the employees in the company. Resistance from a small group can easily be managed by the management, but if it is the whole employees, then the implementation process will be very difficult. The management of the company should also have a reward system. This will improve the implementation process. The reward can be given to the individuals who are making good use if the strategy. The reward system can also help to reduce the elements of resistance. This is because everybody will be performing his or her responsibility with the aim of getting the reward. The reward will act as a form of motivation for the employees.


There are some steps that have to be undertaken in the process of strategy implementation. The steps are the following:

  • Coming up with an organisation that has the ability of successfully carrying out the new strategies.
  • Distributing enough resources to the new strategies. This is normally an essential activity in the process of implementation.
  • Formulating policies in the company that encourage the new strategies. This can also involve modifying the policies that are existing in the business so that they favour the new strategies.
  • Putting into practice the best programs and policies that will constantly improve the new strategy that is to be implemented.
  • The management will also have to devise ways of linking reward structure to the strategy that is being implemented. This will ensure accomplishment of results.
  • The final step is utilizing strategic leadership of the company in order to achieve effective implementation of the new strategy


To successfully carry out the process of implementation, the management of Mattel Corporation will have to restructure its organisation structure by matching organisation structure to the strategy. This can be achieved by pointing the tasks and functions that are required for successful implementation of the strategy. The next step is to analyze how organisational units and strategy-critical functions relate to the ones that provide staff support and those that are routine. The management should establish the degree of authority required to manage each and every organisational unit that is created with the new strategy. The management should do this while considering the costs and benefits of the decision that is decentralized. After determining the organisational units, the next step is to put together a management team that will fill the units that have been identified. After choosing the management team, the management should move and determine the other staff to support the functions of the department. The people can be chosen from the existing workforce, and this will involve promoting them, or the people may be recruited from outside the company. They should contain all the required skills. The management of Mattel has to deal resistance from the employees regarding the new strategy that is being implemented. The management should use his position effectively and his power of communication to do away this problem. They can do this by enlightening the team that is resisting the new strategy on its benefits to the company. The management of Mattel should also come up with a good reward strategy for improving the implementation of the strategy. The reward method should be one that is likely to produce positive results in the employees. The reward system should motivate the employees in ways that will make them enhance the process of implementing the new strategy. Motivated employees will make the implementation process to proceed smoothly.