KnowTheToe
First Post
I have only worked for much smaller manufacturers and knew they did not have insurance for this type of thing, but I figured larger companies may.
Big Setback for Hasbro?
- Thread starter Mark
- Start date
Desdichado
Hero
We don't. But only our really big recalls have truly significant impacts on the bottom line. But I'd bet our revenue stream is a lot bigger than Hasbro's.
William Ronald
Explorer
In addition to the costs directly associated with the recall, there may be indirect costs resulting from bad publicity. The company may be a bit more cautious about new products, and may wish to take a closer look at its core businesses. If that is the case, they may evaluate which units work best with their business plan. A key question for them might be whether WotC fits into their plan. If the costs of the recall are very high, they may be tempted to sell off some assets. (It might be a quick way to recover costs, increase stock value, and reassure investors. I was a business reporter, after all.)
So, it's hard to predict the impact on WotC because of the news on Hasbro. However, it is not good news for either company. I do not expect much impact on WotC unless this truly becomes an expensive recall that puts Hasbro in a financial pinch. The timing of this news is bad, as it comes a few months prior to the big holiday sales season.
So, it's hard to predict the impact on WotC because of the news on Hasbro. However, it is not good news for either company. I do not expect much impact on WotC unless this truly becomes an expensive recall that puts Hasbro in a financial pinch. The timing of this news is bad, as it comes a few months prior to the big holiday sales season.
Truth Seeker
Adventurer
Ah...it may hurt, a slight small bump, like maybe no D&D books for two years..(just kidding), but in some unknown department or secondary business (like WOtc)...it will show at a later date, didn't those things cost like 30 bucks or something.
Now, it will be funny to see something totally different from left field, if it did impact upon the overall budget.
Recalls are expensive...nuff said.
Now, it will be funny to see something totally different from left field, if it did impact upon the overall budget.
Recalls are expensive...nuff said.
jodyjohnson
Adventurer
If I had one I wouldn't give it up over this.
They'll pull them off the shelves but I wouldn't expect a high return rate from end users.
Dangerous toys have a certain appeal of their own. And Danger is not my middle name.
I'd rate this one below the frisbee, baseball, and football on the danger scale.
8 reported injuries on 200,000 units.
They'll pull them off the shelves but I wouldn't expect a high return rate from end users.
Dangerous toys have a certain appeal of their own. And Danger is not my middle name.
I'd rate this one below the frisbee, baseball, and football on the danger scale.
8 reported injuries on 200,000 units.
swordsmasher
First Post
If the super soaker was hasbro's only product, yeah start worrying. I doubt the huge recall of one product will affect them much in the long term. stuff gets recalled all the time. example: batman in batmobile toy is on the market for like 3 years. 3 years old kid gets one and chokes on a small piece. BOOM: that toy has to be recalled under some law (I do believe the law is named after a child that died from choking on a toy, maybe Anthony's law or something?)
Anyway, next time you're at your local wal-mart, take a look at some of the paper's taped to the customer service desk, or back in layway. You'd be surprised at all the recalled stuff.
my 2 cents.
Anyway, next time you're at your local wal-mart, take a look at some of the paper's taped to the customer service desk, or back in layway. You'd be surprised at all the recalled stuff.
my 2 cents.
Creds?- Practicing attorney & MBA student.
Analysis? - Minor product recall, a few minor injuries (worst so far is a concussion, IIRC), Hasbro is getting out in front of this thing both in terms of swiftness of action and in generating goodwill by offering a product swap. Hasbro is huge, multinational corp.
Verdict?- Virtually no impact on Hasbro or WOTC. At worst, expect a 1 month delay in some products.
Analysis? - Minor product recall, a few minor injuries (worst so far is a concussion, IIRC), Hasbro is getting out in front of this thing both in terms of swiftness of action and in generating goodwill by offering a product swap. Hasbro is huge, multinational corp.
Verdict?- Virtually no impact on Hasbro or WOTC. At worst, expect a 1 month delay in some products.
Effect? On the company? Over a recall like this? Please, the stated "defect" is that the pressure cap can pop off and hit you in the face if you unscrew it too fast when there is still pressure in the tank and that if you stand under the plumeting mylar "rocket" it can hit you as gravity draws it inexorably back to the cold embrace of mother earth.
What will happen is this: product still in the distribution chain will be returned (that will cost a prety penny but probably not too much) menawhile nobody will return product already sold because no consumer knows or cares about most recalls unless there is something catastrophically wrong with the product (ie: explosions). Just a quick glance at the US Consumer Product Saftey Comission website (took me 30 seconds) shows that eighty four ( 84 ) recall notices were issued for toys or childrens products in 2002! How many of those do you remember?
Heck, Hasbro has 16 recalls posted on its website right now. Hasn't hurt business so far. At worst if one of those parents whose kid got stiches decides to sue Hasbro will settle out of court for $10k and admit no wrong doing and then they will make the payoff disapear in some tax code and never feel it at all. As far as PR goes, why do you think they issued the recall in the first place? I mean, eight reported injuries (all of which sound to me like user error) is not a public health concern. Issuing the recall gets them out in front of the issue not only for legal purposes but also gives them something to point to and claim good corporate citizenship.
And even in a worst case scenario this could never effect WotC. The entire point of subsidary companies is to insulate one company from the screw-ups of another (well, and making a lot of questionable tax and accounting practices easier, but we won't go there
). Seriously guys, lighten up. The three mega-corporate overlords who rule our world have little stuff like this well in hand. 
Later
What will happen is this: product still in the distribution chain will be returned (that will cost a prety penny but probably not too much) menawhile nobody will return product already sold because no consumer knows or cares about most recalls unless there is something catastrophically wrong with the product (ie: explosions). Just a quick glance at the US Consumer Product Saftey Comission website (took me 30 seconds) shows that eighty four ( 84 ) recall notices were issued for toys or childrens products in 2002! How many of those do you remember?
Heck, Hasbro has 16 recalls posted on its website right now. Hasn't hurt business so far. At worst if one of those parents whose kid got stiches decides to sue Hasbro will settle out of court for $10k and admit no wrong doing and then they will make the payoff disapear in some tax code and never feel it at all. As far as PR goes, why do you think they issued the recall in the first place? I mean, eight reported injuries (all of which sound to me like user error) is not a public health concern. Issuing the recall gets them out in front of the issue not only for legal purposes but also gives them something to point to and claim good corporate citizenship.And even in a worst case scenario this could never effect WotC. The entire point of subsidary companies is to insulate one company from the screw-ups of another (well, and making a lot of questionable tax and accounting practices easier, but we won't go there
). Seriously guys, lighten up. The three mega-corporate overlords who rule our world have little stuff like this well in hand. Later
Keeper of Secrets
First Post
I worked with products liability cases for awhile when I got out of law school. Whereas Hasbro was not someone I worked with I did work with another company that had a similar set up - subsids that produced other things. The subsids were barely aware of what was going on and it did not affect them at all. Now, if kids had been dying left and right due to the product that could be a problem.
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