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Module Title: Organisations and Strategy Student Name: Student ID: Submission Date:
ORGANISATIONS AND STRATEGY 2 Executive summary The culture develops the environment within the firm that tends to have a considerable impact on the firm decision making The firm makes consideration of different strategies to acquire a competitive edge in a highly complex environment. This strategic consideration gets modified when the firm acquires a considerable idea of the sector structure within which it operates. This report tends to reflect the importance and impact of industry structure on the firm's ethical conduct and strategic decision-making process. The company to be considered is Juego Studios and the ethical dilemmas impacting the firm operation were monitored to develop a sound recommendation.
ORGANISATIONS AND STRATEGY 3 Table of Contents Introduction ................................................................................................................................ 4 Discussion and critical evaluation .............................................................................................. 4 Evaluating Industrial structure impacting organization culture ............................................. 4 Company Background ............................................................................................................ 5 Analysing sector environment ................................................................................................ 5 Evaluating Industrial structure impacting strategic decision and Ethical Conduct ................ 7 Recommendation and Conclusion .............................................................................................. 7 Recommendation mitigating ethical dilemma ........................................................................ 7 Conclusion .............................................................................................................................. 8 References .................................................................................................................................. 9
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ORGANISATIONS AND STRATEGY 4 Introduction This report is going to stress evaluating the effect of industry structure and the way it impacts strategic decisions as well as ethical conduct by considering the gaming sector. Most probably the structure of the industry is majorly reliant on the aspect of ethical norms and cultural values concerning the firm culture along with the process of undertaking the task by the considered firm. The gaming sector is a segment of the entertainment sector and is constituted of the three main variants of players. Involving the gaming engines that support the "developer to formulate the games", "publisher of gaming house" and lastly the "gaming consoles". The business model to be adopted by the sector is mainly selling the cost of consoling along with the money made from the games. Moreover, digital games changed the process by which games are distributed as well as sold and they supported the development of the "free-to-play models". Discussion and critical evaluation Evaluating Industrial structure impacting organization culture In recent times the gaming industry has emerged as a vital sector in the corporate world that is the role paled by the cultural medium. Having considerable size as well as significant growth, the firm has attracted many new entrants. In the year 2020, the gaming sector formulated $155 billion in revenue and analysts predict that the sector will generate $260 billion in terms of revenue ( Landoni et al., 2020 ). The rate of growth of the sector is directly reliant on the market opportunities present as well as variation of competition within the market, simultaneously the firm operating in the growing sector generally possesses organisational culture which influx freedom in the decision-making, as well as approaches to solve customer issues to acquire a competitive advantage, then distinguished to the firm operating in the sector having low growth. Moreover, the company selected is based in India thus the Indian gaming market is booming at a great pace ( Johnson & Woodcock, 2019 ). As regarded by the economic times, the country possesses affordable mobile data when compared to the global market. The average rate of gigabytes in the country is around USD 0.26 while that of the UK is USD 6.66.
ORGANISATIONS AND STRATEGY 5 Company Background Juego Studios started its operation in the year 2013 and has expanded its operation from operating as a game design firm to a completely fledged technology firm handling AR/VR, AI and IoT and other technologies. The team incorporate skilled game developer, artist, animator, AR/VR specialist and others ( Juegostudio.com., 2021 ). The firm has more than 70 staff working for it and more than 500 apps and games. The organisation's vision is earning the commemoration of emerging as an exemplary unique software-developing firm. Moreover, the firm is known for providing services associated with games, and art design, along with developing applications. The headquarters of the firm is located in Bangalore, India. Figure 1: Gaming development process adopted by Juego Studios (Source: Juegostudio.com., 2021 ) Analysing sector environment In order to understand the gaming sector environment and present competitive pressure the concern is given on using Porter's five forces to analyze the sector and the pressure exerted on firm exposed to it. The threat of competitors: The industry competition reflects a huge threat to Juego Studios as it does not possess a higher brand loyalty toward game manufacturing. Even the firm cannot depend on the brand name of for providing an edge over the competitors. The firm when operating in the gaming sector requires to formulate cutting-edge games and then significantly market them to the public.
ORGANISATIONS AND STRATEGY 6 The threat of new entrants: The new entrant's threat is more in an aspect of the multimedia as well as graphics software sector and specifically the gaming sector. The sector entry barrier is low having limited regulation of government and managing cost. Bargaining power of buyers: the bargaining power of buyers revolves around the external aspect which develops the risk to Juego Studios. The threat of substitutes: The substitute product is not the identical product provided by the company but is a different niche-based product that can be selected by the customers as a substitute for the firm`s offering. Application-based games that enable the user to play on phones reflect the most effective approach and the stated company already provides smartphone-based games. Bargaining power of suppliers: Juego Studios`s suppliers provide applications and games and a huge rate of ingredients are needed for the Juego Studios game, the firm makes utilization of the wide range of suppliers. This reflects that the bargaining power of suppliers is not more. The bargaining of buyers: The bargaining power of the buyer is much when compared to the gaming community's collective behaviour ( Goyal, 2020 ). The firm Juego Studios can make use of strong marketing opportunities to regulate competition and develop positive perceptions about the new game produced by the firm among the buyers. After undertaking the port five analysis it was understood that the gaming sector structure imposed tough competition on the Juego Studios in the Indian market and global market. It reflects that suppliers' bargaining power was low but buyers' power was high imposing challenges for the firm.
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ORGANISATIONS AND STRATEGY 7 Figure 2: Porter's Five Forces (Source: Goyal, 2020 ) Evaluating Industrial structure impacting strategic decision and Ethical Conduct The industrial structure of the gaming sector develops a considerable impact on ethical conduct as well as strategic decisions functioning in the sector. Impact on the strategic decision The structure of the sector tends to develop an impact on the rules of the competitors as well as reflect the considerable strategies present to the firm for developing its operation and developing its competitive edge. The company Juego Studios making recognizing the gaming sector structure will be able to make significant utilization of the data to improvise its decision-making and ensure that it indulges in developing innovative products to reduce the competition in the market. Impact on ethical conduct Industrial structure has a considerable impact on the ethical conduct within the sector The sector encouraging misconduct and unethical tolerance tend to impose a generally negative impact on the firm also operating in it. The values of the sector and firm ethics are generally linked to one another. Moreover, ethical conduct violation is seen in the gaming sector leading to violent serotyping issues and others ( Johnson & Woodcock, 2019 ). It was observed that game development has emerged and been valued since the year 1970s when the first video game was commercialization. But there is complex security along with ethical concerns in the sector. Unwavering focus and a culture of confidentiality are some prime prerequisites for the firm acquiring outsourced game formation. Breach of data and losing control of intellectual property are some ethical conduct concerns. But the firm Juego Studios have “information security protection qualities” and do not violate any rule leading to questioning the firm ethical conduct. Recommendation and Conclusion Recommendation mitigating ethical dilemma 1. The firm must develop a close observation approach to recognise the issues associated with an ethical dilemma
ORGANISATIONS AND STRATEGY 8 2. The firm must adhere to government legislation to exceed the ethics level and reduce the rate of ethical concern. 3. Ongoing feedback from the customers indulging in firm gaming applications will help the firm to modify the situation 4. The transparency development will help the firm to keep customers aware of the issues in their gaming application to make the user aware and attentive Conclusion From the above discussion, it can be concluded that the industrial structure tends to develop a considerable impact on the firm culture and performance. It helps the firm to make effective business decisions and reduce competitive pressure by recognizing the gaming sector structure. It is vital for the firm to recognise the situation of the sector to ensure that its weakness can be transformed into its strength. In order to understand is in thai work the gaming sector structure impact on the Juego Studios has been considered by making use of the Porter five forces.
ORGANISATIONS AND STRATEGY 9 References Chen, C. H. (2022). The mediating effect of corporate culture on the relationship between business model innovation and corporate social responsibility: A perspective from small-and medium-sized enterprises. Asia Pacific Management Review , 27 (4), 312- 319.Accessed from: https://www.sciencedirect.com/science/article/pii/S102931322200001X [Accessed on: 20.4.2023] Goyal, A. (2020). A Critical Analysis of Porter's 5 Forces Model of competitive advantage. Goyal, A.(2021). A Critical Analysis of Porter’s , 5 .Accessed from: https://www.researchgate.net/profile/Anchit- Goyal/publication/348550277_A_Critical_Analysis_of_Porter's_5_Forces_Model_of _Competitive_Advantage/links/6003480392851c13fe17e878/A-Critical-Analysis-of- Porters-5-Forces-Model-of-Competitive-Advantage.pdf [Accessed on: 20.4.2023] Johnson, M. R., & Woodcock, J. (2019). The impacts of live streaming and Twitch. tv on the video game industry. Media, Culture & Society , 41 (5), 670-688.Accessed from: http://oro.open.ac.uk/68726/3/Woodcock%20The%20impacts%20of%20live %20streaming%20and%20Twitch.tv%20on%20the%20video%20game %20industry.pdf [Accessed on: 20.4.2023] Juegostudio.com., (2021). Strategy games archives . Retrieved April 6, 2023, from https://www.juegostudio.com/category/strategy-games Landoni, P., Dell’era, C., Frattini, F., Petruzzelli, A. M., Verganti, R., & Manelli, L. (2020). Business model innovation in cultural and creative industries: Insights from three leading mobile gaming firms. Technovation , 92 , 102084. Accessed from: https://re.public.polimi.it/bitstream/11311/1115805/1/Landoni%20et%20al. %20%282019%29_T_Business%20Model%20Innovation%20in%20Cultural%20and %20Creative%20Industries%5BRePublic%5D.pdf [Accessed on: 20.4.2023]
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