BU4501: Prepare and submit an Individual report on the Progress of GAMEPLEMENT Inc. during ALL Business Years: Strategic Management: Theory and Practice Report, TCD, Ireland

Prepare and submit an individual report on the progress of GAMEPLEMENT Inc. during ALL business years, focus on all discussed business years and prepare the report like a logbook. The following aspects should at least be considered:

1. What was the situation of the company in the initial period?

2. On what basis were strategic and operational decisions made?

3. Which internal and external impacts led to management decisions in the various periods?

4. Which key figures were used for decision-making in the individual periods?

5. What was the economic development of the company from period to period?

6. In which periods was the company confronted with crises?

Case Study GAMEPLEMENT Inc.

Turbulent Times at GAMEPLEMENT Inc.

Executive Board facing replacement despite good performance – Chairman of the Board, Peter Player, explains the new strategy.

In the past few weeks, there have been rumors in the business press that GAMEPLEMENT Inc. would replace its Executive Board. Today, only a few days after the annual shareholders’ meeting, those rumors were finally confirmed when the chairman of the Board of Directors announced the names of the new management team “Just looking at the facts, this change might come a bit surprising “, Peter Player, chairman of the Board of Directors, stated. Based on GAMEPLEMENT’s most recent financial results, one would have to say that the past year was a success. GAMEPLEMENT’s gaming PC, “GPC Classic”, continues to be in high demand. The company’s financial results and market share are roughly in line with those of its competitors.

Why then was the former Executive Board replaced? Peter Player states that “the former board was not able to present a satisfactory strategy for the sustainable, long-term growth of GAMEPLEMENT Inc. to the Board of Directors.” Outdated manufacturing plants with poor ecology standards, a focus on just one distribution channel and a very conservative marketing mix are just a few of the points that raised questions about GAMEPLEMENT’s long-term development. Several renowned industry experts havenrepeatedly criticized the management for “a lack of vision and economic expertise”. Most financial analysts also agreed with the above statement.

According to Peter Player, “this negative feedback from the analysts was a clear signal for us to act”. The Board of Directors expects that the new management “will work hard to put GAMEPLEMENT Inc. back on the path to sustainable growth.” The new management will take over from 01 January 20X1. Only time will tell if the management is able to fulfill these huge expectations.

The product:

The company is currently producing and selling only one product, which is the GPC Classic. The customer base is currently only domestic. The customers are retailers. So, it is B2B.

Tasks:
Analyze and summarise the situation of the company at the beginning of Year 20X1. Take the following market research report, acquired by the new management from a research institute, into consideration.

Part 2 (Year 20X2)
The new management has made a couple of strategic decisions during the year 20X1. The following key figures provide an overview of Year 20X1 final numbers

Tasks:
Analyze20X1 has affected GAMEPLEMENT’s situation. Compare the key figures and take the market research reports into consideration. Develop a SWOT analysis based on the information known so far.

Part 3 (Year 20X3)
The management team’s decisions are now showing clear results. The following key figures provide an overview of Year 20X2 final numbers which will be considered as a basis for Year 20X3 decision-making.

Tasks:
Prepare an overview of the strategic decisions in Year 20X2 and explain how these have affected  GAMEPLEMENT’s performance.

Analyze gaps in comparison to the strongest competitor (benchmark).

Part 4: General Economic Situation in Year 20X3

As expected, the economy contracted significantly during the second half of the previous year, particularly in the fourth quarter. Although the federal government initiated a number of programs to support the economy, experts are of the opinion that, at best, the decline is likely to continue for most
of the current period, after which things may start to turn around. Overall, experts predict the following for Year 20X3:

• Gross domestic product will decrease by 0.3 % in real terms.
• Investments will decrease by 1.4 % in real terms.
• The cost of living will increase by 1.2 %.
• Wages and salaries will remain stable. However, companies now have to pay costs for additional dismissals for every single lay-off.

Part 5
GAMEPLEMENT’s Key Figures Full Year 20X3

Tasks:
Compare the production-related indicators of the years 20X1, 20X2 and 20X3. What conclusions can be drawn from the analysis and what strategic measures do you recommend?

How would you assess the current financial situation of the company?

Part 6

General Economic Situation in Year 20X4

After the difficulties of the past two years, the economy finally seems to be improving. Experts now expect the following for Year 20X4:
• Gross domestic product will increase by 2-3 %.
• The costs of living will increase by about 3 %.
• The working hours of production employees will be decreased in order to protect and create jobs in the coming year.
• Salaries and wages will increase by 3 %.

Tasks:
When the new management team took over the leadership of the company in the year 20X1, the vision statement shown below was developed. We are now at the beginning of Year 20X4. Where stands the company now?

What are the challenges for this year and the next? Note down some bullet points. Complete the balanced scorecard template to visualize the necessary steps. Insert suitable indicators from the annual key figures and market research reports into the empty fields.