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M游戏公司是针对手提电脑的游戏软件制造商。杰弗里·洛佩兹被任命该公司的总裁兼首席执行官。公司的新任首席执行官告知目前在潜在积极收购公司的一个主要的PDA制造商。与此同时,他接到一个从北欧电信公司的一位高管电话，他和这位高管形成伙伴关系(Lewicki桑德斯,巴里&明顿,2007)。所有这一切,洛佩兹,CEO,正面临来自公司的董事长的巨大的压力，本森表示会在慎重的解决性能问题。 The mGames is the manufacturer of game-based software for portable computers, PDAs, and cell phones. The mGame company began its operation independently in the year 1995, as a wholly owned partner of BHM Inc. BHM was a video game Development Company that was started by Benson H. Marks in the year 1984. He anticipated that the software companies would absorb the bulk of profits and the companies would incur much profit from the game based software (Engleberg & Wynn, 2007). Jeffrey Lopez was appointed by Marks for the position of president and CEO. The company's new CEO was informed about the prospective aggressive takeover of the company by a major PDA manufacturer. Simultaneously, he received a phone call from a senior executive of Scandinavian Telecommunications Company with a view of forming a partnership (Lewicki, Saunders, Barry & Minton, 2007). With all of this, Lopez, the CEO, was facing the growing pressure from the company's chairman Benson Marks to address on the enduring performance problems. The future environment of the gaming industry is very bright but somewhere the company is suffering from internal issues regarding its strategies. As the CEO and the President of the company, Jaffrey Lopez had to face several challenges. The major concerning points for Lopez were to escalate the costs of developing new games, takeover or acquisition with the major PDA manufacturer and partnership with the Scandinavian Telecommunications Company. There were various internal issues, which Lopez had to resolve (Engleberg & Wynn, 2007). The recommendations that can be provided to Jeffrey Lopez, CEO and president of mGAMES Company are: •Evaluation and analysis should be done to know the current status of company: As Jeffrey Lopez is new to company, it is important for him to make an analysis of company's profit, sale and revenues. It is essential for him to analyze the ways to know how employees are working, how much they are goal oriented (Lewicki, Saunders, Barry & Minton, 2007). From which country the company is earning more profit. It is necessary to analyze the ways to increase the profit in coming years. It is important for the CEO of the company to make an analysis of the company's balance sheet and profit and loss account in order to make the decision whether it is better to do partnership or to be acquired. The analysis would not only help the CEO to know the company's current status but would also help to know the need of the company. This would help him to make the analysis of the company's mission, vision and goals & objective. The mGAMES is involved in making a video game played on a mobile phone, smart phone and PDA or handheld computer (Engleberg & Wynn, 2007). The games are played using the hi-fi technologies present on the device itself. Lopez should emphasis on the growth of the mobile gaming industry as the future of the mobile gaming is very bright. Lopez should identify the potential strategic partners for the development of the company. He should formulate his own strategies and implement them. He should timely evaluate these strategies. 2. Proper research should be done to know whether a partnership or takeover would generate future profit for company: Research in common parlance refers to search for knowledge. Research is a scientific and systematic search for pertinent information on a topic or issue. The purpose of the research is to discover answers to question through the application of scientific procedures. The research would help to portray accurately the characteristics of a particular company, group or the individual. The research would help to understand whether it is good to merge with the PDA manufacturing company or to do the partnership with the Scandinavian Telecommunications Company. The mGAMES Company can adopt various methods to conduct the research. It is very important that proper research methodology is adopted (Engleberg & Wynn, 2007). In business organizations, takeover constitutes the prime role. Takeover is an acquisition of a company by another company. It implies acquisition of controlling interest in a company by another company. It does not lead to dissolution of the companies whose shares are being or have been acquired. The company can come to know about the three forms of takeover like negotiated or friendly, open market or hostile and bail-out (Pandey, 2005). It is recommended that the Lopez should emphasis his managers to conduct the research to know whether takeover is going to benefit the company. Through the research, the top management of mGAMES can make the analysis of both the companies (Lewicki, Saunders, Barry & Minton, 2007). They can judge the companies by the profit, sales or revenues they earn. The Jaffrey Lopez, CEO and president of company can know about the market share of these companies, which would definitely help to know whether takeover is better or partnership (Engleberg & Wynn, 2007). In the course of the research, Lopez can come to know about the strength and weakness of takeover as well partnership. This is the principle component of an organization. Human resources have been defined from the national point of view, the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the view point of the individual enterprises, they represent the total of the inherent abilities acquired knowledge and skills as exemplified in the talent and aptitude of its employees. It is the human resource, which is of supreme importance for the success of any organization because most of the problems in the organizational settings are human and social rather than physical, technical or economic. In the company, there is less number of employees, so it is essential for the mGAMES to recruit more employees for more production, so that the company might be able to increase the revenue by serving more customers. The other benefit of this is that the company can compete with their rivals in the utilization of the human resources very well (Lewicki, Saunders, Barry & Minton, 2007). Lopez should emphasize on hiring and recruiting more and more numbers of employees so as the production increases and the company generates more profit. For every organization, consumers are the main target. The CEO of the company should consider the customer as the main source through which the companies can increase their revenue. In order to establish a strong customer base, it is essential for the company to create the consumer awareness about the products and the services of the company. The key criteria in the consumer's purchase decision for the products in this company are the color capability, communication capabilities, screen size, processor speed, RAM capacity, overall size of the unit and total functionality (Ramaswamy & Namakumari, 2007). The production team should emphasize on all these points so that the customers can get satisfaction and there needs and demands are fulfilled. Lopez should emphasize that latest technologies and new models are released so that the customers get new models constantly. The employees of the company should understand that the in today's world, customers are the king. It is important that there needs and wants are fulfilled and they are satisfied with the products or services provided by the company. They should keep in mind that the customers do not give us the chance to serve but we give them the chance to serve. Despite of the growth of BHM, Marks was constantly wondering about the future of his business; particularly, his distraction was for the new gaming applications. The costs of the company were growing year after year in the face of increased competition and in more complex technologies (Umlas, 2006). The main objective of Lopez is to control all these cost that create hindrance for them. The company should emphasize on minimizing the cost and maximizing the profit. Manager of the company should formulate the strategies, which would help to minimize the cost. Manager of the company should emphasis that company doesn't incur high cost (Engleberg & Wynn, 2007). The mGAMES company has some internal problem related to production, inventory and quality. The rejection rate in the company was nearly twice the industry. According to the employees, cartridge labeling and packaging problems were the reasons for the high rejection rates (Umlas, 2006). For the quality control problems, the staff of the company blamed software developers for producing inferior games. Thus, Manager of the company should emphasize that proper control is maintained by the managers in the production and quality of the products. There is adequate inventory in the company so that the customers and retailers do not find any problem (Umlas, 2006). Manager of the company should ensure that his managers prepare the budget in different departments to differentiate between estimated and projected budget. By this, the company can come to know the present difference. The budget actually tells about the excess of costs in different areas. The budget would help to maintain the accuracy regarding the different project and elucidate whether further investment in 18 months would be beneficial or not. The company is highly based upon the advertising tool to promote the products and services. This is an additional expense for the company, but without the promotion of the products, it would not be able to be operated successfully. Advertising of the product is the cause of increase in the cost of the company (Ramaswamy & Namakumari, 2005). In order to reduce the cost of the company, the company can use other tools for the marketing of the products. In order to promote the products, the company can organize various conferences so that the consumer can attend theseconferences and know about the various products offered by the company. •Merchandising Strategy: The company should use a specific merchandise mix, so that more customers can get attracted towards the company's product. The systematic implementation of the planning would help in saving the extra expenses of the company (Kazmi, 2002). Various steps should be taken regarding the purchasing, selection, database management system, etc. The above strategic recommendations are the very important solutions for the company to increase the revenues and decrease the cost of the company. The proper implementation of these recommendations is essential to improve the competitive position of the company in the industry. By the implementation of these recommendations, Lopez, the CEO of the company can evaluate the effects of the strategies on the future performance of the company. The strategic suggestions and their implementation are based on my knowledge and the content of case. References Engleberg, I. & Wynn, D. (2007). Working in Groups: Communications Principles and Strategies, (4th Edition), Boston, MA: Houghton Mifflin Company (ISBN: 978-0-618-67742-9) Lewicki, R.; Saunders, D.; Barry B.; & Minton W. (2007). Essentials of Negotiation, (4th Edition), New York, N.Y.: McGraw Hill/Irwin. (ISBN-13: 978-0-07-310276-4) Kazmi, A. (2002). “Business Policy and Strategic Management.” (3rd Edition). New Delhi: Tata McGraw Hill. Pandey, I.M. (2005). Financial Management, (9th Edition), New Delhi: Vikas Publishing House. Ramaswamy, V.S & Namakumari, S. (2007). Marketing Management. New Delhi: Macmillan India Ltd. Ramaswamy, V.S & Namakumari, S. (2005). Strategic Planning Formulation of Corporate Strategy, (5th Edition). New Delhi: Macmillan India Ltd. Umlas, Judith (2006). The Power of Acknowledgment, New York, N.Y.: I.I.L. Publishing, a division of International Institute of Learning Inc. (ISBN: 0-97082-764-4) |
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