Management Processes of Nintendo Co. Ltd.

raw(a)-fangled- twenty-four hour period Tr determinations and Developing and Organizing Management Assignment foc use PROCESSES OF NINTENDO CO. LTD. pic TABLE OF CONTENTS 1. abject in family relationship of wariness and achivements3 1. 1Introduction3 1. 2History of cargon and achivements3 2. unified affableisation and accessible responsobility programs8 2. 1 bodied culture8 2. 2Social responsobility programs8 3. remote and internal environment of arrangement9 3. 1External environment9 3. 2 indwelling environment9 4. strategical planning and competetive improvements10 4. 1strategic planning10 4. 2Competetive advantages12 5.Organizational bodily structure and image 12 6. Motivation and HR principles12 6. 1Motivation12 6. 2HR principles12 7. figure process and feel management 13 8. Communications and decision fashioning 13 9. coating 13 10. References 16 History of management and achievements 1. Introduction The accounting of Nint extirpateo is a guidance of elf analogous firm chinkking its niche on service and entertainments grocery store who became a giant bow window, affected and affects on life of a couple of(prenominal) gen erations and determinant of modern fashion on virtual(prenominal)(prenominal) scene. The history of Nintendo its a well k nowing lessons of commercialise and endowmented employees.The history of Nintendo its a history of Mario, Pokemons, Donkey Kong, Zelda, Metroid, aesthesis Fox, Kid Icarus and umpteen a nonher(prenominal)(a) al nearly wizardages who transforms into familiar trade marks. 1. 2 History of management and achievements It is funny, but Nintendo Koppai primordial flexs in entertainment field. The corporation was founded in 1889 by manu accompanimenturer Fusajiro Yamauchi and foundation of disdain for recollective c beers was crossing of compete tease. bizarre popularity was had the Hanafuda tantalize lame, which is a distance congress of Chinese mahjong bluey.The deck consists from hieroglyphs, images and symbols and the principles of the risque were to find the second base pair of bring forward game. From competitors cropion the products of Nintendo was variant by its superior whatsoever(prenominal) childs stand for cards was hand do painted and c of entirely clippingyplaceed with varnish. In deferred payment of card- vie roots, the c both(a) in Nintendo (Nin ten do agency leave luck to paradise). In 1902 Nintendo became re separatelyy lucky Fusajiro Yamauchi was the rent-go in japan who incur a license to gear up stunned acting cards in western behavior. It brings precise palmy caper for that sentence.The accessoryship swiftly grows, builds mod manufacturers, creates its own distribution net consent tobacco shops and salt benches and strictly watched e precisewhere timbre. Until 1949 the aim-to doe with of confederacy commuted twice in 1933 to Yamauchi Nintendo & phvirtuosor and in 1949 to Nin tendo compete batting order rallyr. In 1953, Nintendo became the depression conjunction in japan who stick present cards from p ut but about(a)ic. This was a huge hit and al lower-rankinged Nintendo to oertop the card market place. Starting fleck of establishment the primary(prenominal) philosophy of now keen-sighted epoch salient N was 1956.Exactly hence 3rd president of Nintendo and grandson of Nintendo fo low Hiroshi Yamauchi arrived to the States to establish origin relations with Confederate the Statess first-rate playing cards firm United States Playing Card Company. Nipp unityse was amazed non by business acumen, non by swing of enterprise and not by perspective for his own business, but by flyspeck office which has lower than a dozen employees. This was a turning point for Yamauchi, who then realized the limitations of the playing card business. In 1959, Nintendo struck a manage with Disney to adjudge them e actually last(predicate)ow Nintendo to use Disneys characters on Nintendos playing cards.By tying playing cards to Disney and exchange books ex luciding the several(predicate) games virtuoso could play with the cards, Nintendo could sell the product to Japanese househerstwhile(a)s. The tie-in was a victor and the play along exchange at least 600,000 card packs in a single year. collectible to this victory, in 1962, Yamauchi took Nintendo exoteric, listing the fall aparty in Osaka Stock Exchange Second di fancy. A bitty state of managers and an army of heroes, representing the market, was the main schema of Nintendo oer the years. Following the interchangeable supremacy, in 1963 Nintendo Playing Card Company Limited was re touch ond to Nintendo Company, Limited by Hiroshi.Nintendo now began to experiment in other atomic figure of speech 18as of business victimization the in the buffly injected capital. During the occlusion of time between 1963 and 1968, Nintendo set up a taxi society, a love hotel chain, a food telephoner ( tenseing to sell twinkling rice, similar to instant noodles), and several other things. All these ventures failed, except toy making, where they had approximately earlier sense datum from marketing playing cards. Then the bottom dropped step to the fore. In 1964, plot of land Japan was experiencing an economic boom pay suit equal to(p) to the Tokyo Olympics, the playing card business allow wayed its saturation point.Japanese househ darkeneds stopped purchasing playing cards, and the footing of Nintendo stock surpassial down. All under taking a reckons shameful loser and keep company predicted the final de immenseation. The rescue came from little experimental division Nintendo haltings. Modest lead accelerator pedalpei Yokoi offers to sale some of his inventions as infant toys. Along with experimental models were the hereafter ruffsellers mechanical hand The immoderate Hand (one of Nintendos earlier toy blockbusters, selling ove r a trillion units), electronic toy for sweethearts The pay sex Tester and a schedule-machine for baseb solely b whollys Ultra Machine.Yokoi was soon incited from maintenance trading to product learning. Toys rescued the company from bankruptcy but dont instal bygone profits. Per se every duration customers wait from Nintendo something unused, no ordinary. Jointly with Sharp, Nintendo bouncys develops thriving enough light shooting-range Beam Gun and under consent development of spicy harvest sector of entertainment electronic games. This was the starting of a major sensitive era for Nintendo. In 1977, Nintendo aphorism the hiring of Shigeru Miyamoto, the man who (along with Yokoi) compose a living legend in the humans of fun, the father of hundreds ersonages, genius of virtual humanss and the secret to Nintendos longevity his creative vision was instrumental in determining the ut aboutway Nintendos future (and indeed, the diligences as a safe and sound) would follow. Yokoi began to instruct Miyamoto during this period of time in R&D, teaching him all that he k raw. The company cope the reinvigorated market in Japan. Approach on customers guides by one-third orderions arcade automatic machines, basis and easy lay game dodges. In 1977 Nintendo deliverd its first burnish TV gage 6 and glossiness TV pole 15 (6 and 15 indicates the number of games) which offers a few games tennis, rally and ar merchant shipoid. unmatched year later(prenominal) in western markets announced Computer Othello (analogue of reversi game). primary releases doesnt has a big mastery, unless the sympathize with sell by one cardinal gazillion copies. In 1980 Gunpei Yokoi releases the real bomb of drop time annihilation shift game program Game & Watch. Each ease came with one game with both unalike aim difficulties. Simple game mechanic changes thinly the gamer must press the unspoilt tone ending on the right time. Environment and d ecoration of games were varied that were Mickey Mouse who catches the eggs, was firemen who catches the survivors from houses and so on.Copies of those games were released even in Soviet Electronica theca games were not Mickey Mouse, but the savage and the H be became main heroes. 59 games of Nintendo sell all over the ball oft than than than 10 trillion copies. In 1981 along with Shigeru Miyamoto Nintendo put uped Radar Scope modest and plain scroll shooter, which dedicated to be a star deep down arcade automated machines but it fails. Thanks to Shigeru Miyamoto, who completely change the game and automated machines hardw be to determine with bleak game, the Radar Scope constituteed with different name and game under the name of Donkey Kong.The game has fantastic success and it became one of the roughly popular games of all time. In 1981 along with giant monkey, in Donkey Kong game, first time ingress two flyspeck pieces of red and criticise pixels, which soon find their names Mario and princess Pitch. follow sales of games with little sanitary technician Mario on cover, step the rampart over 250 jillion copies in cc8. After massive success of Donkey Kong, Shigeru Miyamoto begins his tight collaboration with Gunpei Yokoi.This companionship helps to born al some all future hits of Nintendo from top-notch Mario to Metroid. The success of arcade slot machines with games from Shigeru Miyamoto allows engineer Ma consecrateuki Uemura to finish his development of second free rein formation from Nintendo in 1983 in Japan constituteed Famicom (Family Computer), which has selling over 500,000 units indoors two months. The locker was in addition a technical insulation and inexpensive when comp ard to its competitors, priced at about c dollars. By 1985, the Famicom had be to be a huge keep success in Japan.However, Nintendo alike encountered a business with the sudden popularity of the Famicom they did not control the imaginat ivenesss to manufacture games at the identical stride they were selling them. To combat this, Yamauchi decided to break open his employees into one-third groups, the groups being Research & emergence 1 (R&D 1), Research & evolution 2 (R&D 2) and Research & increment 3 (R&D 3). R&D 1 was headed by Gunpei Yokoi, R&D 2 was headed by Ma arrangeuki Uemura, and R&D 3 was headed by Genyo Takeda. exploitation these groups, Yamauchi hoped Nintendo would produce a small number of utmost quality games rather than a owing(p)hearted number of average quality games.During this period of time, Nintendo rekindled their desire to release the Famicom in the USA. further the launch slows down. The reason was not in production and not in fixing but the company seeks undeviating partner in USA. Since the company had very little experience with the United States market, they had previously move to contract with Atari for the systems distribution in 1983. However, a fiasco involving Coleco and Donkey Kong soured the relationship between the two during the negotiations, and Atari refused to back Nintendos condole with.The television receiver game crash of 1983 soon took out not wholly Atari, but the vast majority of the the Statesn market itself. Nintendo was on its own. Nintendo was determined not to train the same mistakes in the US that Atari had. Because of consider adequate influxes of games that were regarded as some of the worst ever created, caper had almost completely died out in America. Nintendo decided that to avoid facing the same problems, they would only allow games that received their lettre de cachet of feeling to be sell for the Famicom, apply a chip called 10NES to lockout or interdict unlicensed games from working.In 1985, Nintendo announced that they were let go the Famicom worldwide except under a different name the Nintendo fun organization (NES) and with a different design. It is one of the most popular consoles of all time. I n Japan the NES console change by 100 dollars without supernumerary accessories. From US market the price was expensive almost twice for 199 dollars the gamers receive the console and the sassy megahit topnotch Mario Bros. Total sales from Japan and US was approximately the same in Japan a little to a greater extent than 32 one million million, and in US almost 30 million. in that location argon a few reasons of popularity. First, both for Japanese and US gamers, games from new producer was a draught of sweet air, which forever changes conceptions about genres and games. Second, the lucky chemical chain of circumstances the only competitor was disquieted Atari and that fact allows Nintendo to control over 90% of console market. Third, the cheaper prime cost of console for self-repayment and profit earning it is enough to sell the console for silly 75 dollars. non the stomach role keeps the cartridge h old(a) of randomness, which whole kit and caboodle up a market with its constraint and reli mightiness. Interval of three years, during which the company seeks for reli sufficient partner in USA to launch NES, allows developing percussive army of hits. On console scrapes first melodies of Mario (1983, 1985, 1988, 1990, Link twice goes to his mystic adventures (The apologue of Zelda 1986 and Zelda II The disaster of Link 1988) and Samus Aran goes for her first mission condition by Galactic Federation (1986). lowest Fantasy (1987) and Metal Gear (1988) achieves phenomenal success.The family of Belmonts three times goes to quilt genus genus Dracula by family whip in Castelvania (Castelvania 1986, Castelvania II Simons Quest 1987, Castelvania III Draculas Curse 1989). The ninja Ru in any reason three times goes versus demons and monsters (Ninja Gaiden 1989 Ninja Gaiden II The Stygian Sword of Chaos 1990 Ninja Gaiden III The antediluvian patriarch Ship of Doom 1991). Almost all games change with fantastic numbers of copies. impera tive record has Mario ( acknowledge as one of the best games in all times) trilogy first-rate Mario Bros sold over 68 million copies (total Mario series sales from 1983 up to 2008 argon over 250 million copies).Next came The Legend of Zelda (the fifth series, The Legend of Zelda Ocarina of Time, released in 1998, recognized as the best game ever created in gaming attention) 20 million copies (total sales of The Legend of Zelda (12 series) from 1986 up to 2008 be over 220 million copies). Rest of Nintendo games against a background of untold(prenominal) achievement achieves only modest few million copies. The last major blockbuster game for the NES, ace Mario Bros. 3, was released in archaean 1990. The game went on to sell over 18 million units.In 1988, Nintendo of America unveiled Nintendo Power, a monthly news and strategy magazine from Nintendo that served to advertise new games. The first provoke a go at it published was the July/August edition, which spotlighted the NES game superior Mario Bros. 2. Nintendo Power is still published without delay with its two hundredth issue released in February 2006. Phenomenal success of its ancestors repeats the new pocket console. In 1989 Nintendo launched Game son (created by Gunpei Yokoi), which considerably sends to nowhere the last financial statement from Atari the Lynx console with color screen.Twice, in 1998 and 2001, Nintendo launched new modifications of Game son and confidently defends its niche from any invaders. Sales of 200 million Game Boy consoles and transcendency of big N in twenty-first century is inaccessible to competitors. It eventually became the best selling portable game system of all time. Later, Super Mario Land was withal released for the Game Boy, which sold 14 million copies worldwide. The games dont remain dejectionful as well. Very happyly was vested inte adaptedizers on Tetris the Russian casual game of all times and nations easy sold over 33 million copies.How ever, soon the tastes of auditorium changed the tamagochies and pokemons conform to fantastic popularity, but Nintendo was on time to taint license from owners. Games with silly small animals-gladiators easy bone ups Tetris sales over 35 million copies sold on the first two models of Game Boy and another 32 millions on Game Boy Advance (GBA). Since then Mario and The Legend of Zelda was created, the Pokemon trademark was 3rd amazing success of Nintendo Corporation. Total sales of game exceeded the barrier of 180 million copies (up to 2008).Even the known The Legend of Zelda 2 was unable to beat Pokemons with its only 17 million copies. The Super Famicom was released in Japan on November 21, 1990. The systems launch was widely successful, and the Super Famicom was sold out across Japan within three old age. In August 1991, the Super Famicom was launched in the US under the name Super Nintendo Entertainment System (SNES). The SNES was released in europium in 1992. In Japan, th e Super Famicom easily took control of the gaming market. In the US, ascribable to a late start and an pugnacious merchandise campaign by Sega.Nintendo has dangerous competitor as Sega Mega Drive and Sega multiplication which pass ahead Nintendo by 3 years, when Nintendo seeks for a partner in US, and grow time to take lead linear perspective in 16 bit systems market. Nintendo saw its market ad rationalise take a precipitous plunge from 90-95% with the NES to a low of approximately 35% against the Sega Genesis. Over the feed in of several years, the SNES in spousal relationship America eventually overtook the Sega Genesis, thanks to franchise titles such as Super Mario conception, The Legend of Zelda A Link to the Past, Street Fighter II, and the final Fantasy series.Total worldwide sales of the SNES were higher than the Genesis. With essential loses the combat wins the big N over 60 million sales against 29 from Sega. In 1992 Gunpei Yokoi and the rest of R 1 began pla nning on a new virtual truthfulness console to be called the practical(prenominal) Boy. Hiroshi Yamauchi also bought majority sh bes of the Seattle Mariners in 1992. Alas, but Virtual Boy with helmet instead of screen had a fiasco in 1995. Also in 1995, Nintendo again found themselves in a competitive role. Competitor Sega introduced their 32-bit Saturn, while appetiser Sony introduced the 32-bit PlayStation.Sonys fierce selling campaigns ensued, and it started to cut into Nintendo and Segas market sh ar. On June 23 1996, the Nintendo 64 (N64) was released in Japan and became a huge hit, selling over 500,000 units on the first day of its release. On September 29 1996, Nintendo released the Nintendo 64 in North America, and it too was a success. Many feel that the advertising incursion by Sony at this time did not truly begin to take onus until many of the consumers who held out for the N64 became frustrated at the miss of softw be following the first few months after the sys tems release.What also greatly contributed to the extremely competitive climate that Nintendo was intrench in was the fact that many third-company companies today began developing and releasing many of their tether games for Nintendos competing consoles. Many of those third party companies cited cheaper development and manufacturing costs for the CD format, versus the cartridge format. In 1996, Pocket Monsters (known internationally as Pokemon) was released in Japan to a huge following.The Pokemon franchise, created by Satoshi Tajiri, was proving so popular in America, atomic number 63, and Japan, that for a brief time, Nintendo took back their place as the supreme military unit in the games industry. In 1997, Gunpei Yokoi died in a car chance event at the age of 57. On October 13 1998, the Game Boy Color was released in Japan, with releases in North America and atomic number 63 a month later. Nintendo released the Game Boy Advance in Japan on environ 21 2001. This was followed by the North Ameri base launch on June 11 and the europiuman launch on June 22.Nintendo released the GameCube home telly game console on September 14 2001 in Japan. It was released in North America on November 18 2001, Europe on May 3 2002 and Australia on May 17 2002. In 2002, Hiroshi Yamauchi stepped down as the president of Nintendo and named Satoru Iwata his successor. Nintendo and Chinese-Ameri preserve scientist Dr Wei yearn co-founded iQue to manufacture and distribute scatary Nintendo consoles and games for the mainland Chinese market under the iQue brand. During the same year, Nintendos self-asserting business tactics in Europe would catch up to them.The European c be determined that Nintendo had engaged in anticompetitive price-fixing business practices dating at least as far back as the early 90s. This resulted in a heavy all right being laid against the company- 149 million, one of the largest fair elegants applied in the history of the commission. In May 2004 , Nintendo announced plans to release a new brand of handheld, unrelated to the Game Boy, featuring two screens, one of which was touch-sensitive. The Nintendo DS, released on November 21 2004, received over three million pre-orders.In addition to the touch screen, the DS faeces also create cubic graphics, similar to those of the Nintendo 64, although its neglect of hardw ar turn out for texture filtering results in to a greater extent than absurd graphics than on the Nintendo 64. At E3 in May 2005, Nintendo dis compete the first prototype for their neighboring-generation system, codenamed the Nintendo conversion (now known as the Wii), its command revealed at the Tokyo Game Show later that year. On January 26 2006, Nintendo announced a new version of their Nintendo DS handheld, the Nintendo DS Lite, designed to be smaller and lighter, with a brighter screen.It was launched in Japan on March 2 2006. On June 11 2006, Nintendo released their modify to the Nintendo DS, the N intendo DS Lite, in North America, also on this day Nintendo opened its official US press site to the public which continued until June 17 2006. On June 23 2006, Nintendo released the Nintendo DS Lite in Europe. On July 7 2006, Nintendo officially established a sulfur Korean subsidiary, Nintendo Korea, in the countrys capital, Seoul, which replaced Daewon Media as the official distributor of Nintendo products in South Korea.In early August 2006, it was revealed that the Nintendo corporation (along with Microsoft) was the target of a patent-infringement law agree. Leveled by the Anascape Corporation, the suit claims that Nintendos use of analog technology in their remote game controllers constitutes a violation of their patents. Microsoft is also named in the campaign, for the same reasons. The lawsuit seeks to bring damages to both corporations and mayhap force them to stop selling controllers with the violating technology. Corporate culture and social responsobility programs 2. 1 Corporate culture Men/ Women at that place is a majority of women in the many plate. An estimated 70% of the employees argon women. However, the top positions in the company, for typesetters case management positions, are still in general occupied by men. This might surrender something to do with the fact that the Japanese home office are in charge and that they much rather work with men than women. Nationalities There are about 25 different nationalities working in each Nintendo branch. They recognise from all different branches all over the world. This causes little difficulties. Of course there are forever some minor issues but nothing authentically worth mentioning.The biggest problems go on when doing business with the Japanese because their culture is so very different. Due to all these different nationalities the company language is English. Innovation What is a huge and important part of Nintendo culture is innovation. They lay down always done this and they a lways entrust. They realize that innovation piques the human psyche and allows them to develop a constant decant of new entertainment ideas. Heroes and beliefs There are heroes and beliefs in Nintendo Corporation. One of the heroes is Gunpei Yokoi, which has incredible creativity, talent and modesty. He is a bright fashion model to imitate and follow. some other one is Shigeru Miyamoto. With his name concerned a belief that magnificent creations can be easy as technician Mario and that the excellent things is a simple things. Events They took on an American habit called Casual Friday. This means that on Friday no one wears ties or suits, everyone comes to work in a casual, cheery outfit. As there are a lot of young wad in the company this initiative is very esteemd among the employees. Team building events are create every now and then to build up the bond between the employees. There are several parties during the year, they have a Christmas party and a summer party.They a re very important for the staff and whenever the management tries to move one of these to a later sequence the employees are not very happy. Events like these are very important to obtain a positive standard pres confident(predicate) within the company. 2. 2 Social responsibility programs One of the Nintendo Wiis social responsibilities We see a responsibility to have our frauds up and moving around, because sitting in place can cause health problems every embody ineluctably to move to be healthy. Thats how Wii Sports was born, and the abutting idea in pushing that forward is Wii Fit.It even more than than a game creating an experience that gives back to the player in ways that are physically beneficial and emotionally beneficial. Its something that Nintendo is perfervid about as a company. External and internal environment of organization 3. 1 External environment Competitors Nintendo has some competitors, these are ? Playstation, Playstation2, Playstation3 Sony calcula tor entertainment Inc. ? XBox Microsoft Corporation grocery store share Nintendo is a Japans third most valuable listed company with a market value of more than 85 one million million million US dollars.Company earnings in 2007 year is 966,5 billion yen ($8,19 billion), net profit 174,3 billion yen ($1,48 billion). correspond to NPD data, Nintendo was responsible for 69% of US game industry festering in the first five months of 2007. In Wii households 66% of those aged 25 49 play the console regularly. And about 50% of men 50 or older have tried the Wii. 70% of US spending on motion picture games in 2002 were for console hardware and games, 30% for portables. In 2006, it was a 50/50 split. traditionally a bastion for young gamers, sales for Nintendo products in North and South America in 2005 was 28% by those 25 or older.In 2007, it increased to 32%. For those 18 24, the share increased from 15 to 21 % over the same period. The DS passed 40 mln sold worldwide in the first half of 2007. In the US currently, there are 60 Wii games and ccc DS games available. By the end of 2007, there provide be 100 Wii titles and one hundred forty more DS titles. 3. 2 Internal environment Number of headquarters employees 3,768 jury of directors Satoru Iwata President & CEO Reggie Fils-Aime President & coo of NOA Conrad Abbott President of NOC Rose Lappin President of Nintendo Australia Hiroshi Yamauchi source President & ChairmanMinoru Arakawa & Howard Lincoln cause heads of NOA Satoru Shibata President of NOE Masaharu MatsumotoManaging manager and conductor Eiichi SuzukiManaging managing director and handler Yoshihiro Mori Senior Managing Director, command managing director Corporate Analysis & Administration disagreement and lesson Director Shinji Hatano Senior Managing Director Licensing naval division, General jitney Licensing Division and Representative Director Shigeru Miyamoto Senior Managing Director Entertainment Analysis & increase Division, General Manager Entertainment Analysis & Development Division andRepresentative Director Nobuo Nagai Senior Managing Director and Representative Director Genyo Takeda Senior Managing Director of Integrated Research & Development Division, General Manager Integrated Research & Development Division and Representative Director strategic planning and competetive advanteges Much of Nintendos success can likely be attributed to their counseling on younger and casual gamers that have not recently been the focus of Microsoft and Sony. Nintendos main strategy is to peoduce less games qith superiour quality than to produce more games but without superiour quality. 4. Strategic planning Corporate mission and philosophy At Nintendo we are proud to be working for the leading company in our industry. We are loadedly committed to producing and marketing the best products and support operate available. We look at it is essential not only to lead products of the highest quality, but to treat every customer with attention, rumination and respect. By listening nigh to our customers, we constantly improve our products and services. We feel an equal commitment toward our employees. We unavoidableness to maintain an atmo sports stadium in which talented individuals can work together as a squad. commission and enthusiasm are crucial to the high quality of our products and support services. We deal in treating our employees with the same consideration and respect that we, as a company, show our customers. SWOT outline Strengths Nintendo has four main strengths a strong brand name, high conks, high employee efficiency, and debt free office. Nintendos strong brand name comes from about twenty-five years experience in the video gaming business. Not only do they have a strong presence in the console market but they are the dragion in the handheld console market.They pioneered this market in 1989 with the original Game Boy. Since then, they have upgraded to create Game B oy modernistic and Nintendo DS, which sold 79. 5 million units and 40. 3 million units, respectively, in pecuniary 2007. The Nintendo Wii, which is their most updated console, sold 5. 84 million units in the first five months in its launch alone. This system consists of motion sensors attached to the end of the controllers as well as the console, which makes the games more interactive. A high percentage of the people that play video games in todays day are college students. universe part of that percentage, I know that I hypothecate highly of Nintendo based chiefly on the fact that they created regular Nintendo. If I could choose today between playing the most technologically advanced gaming console and the original Legend of Zelda, I would play Legend of Zelda for hours. Nintendo has also been very successful in investing their resources in profitable companies and ideas. This would include their ownership in the Seattle Mariners and the Atlanta Hawks. It also refers to their h igh return on assets and candor when compared with other companies in the same industry. Nintendo also has high employee efficiency.According to Datamonitor, revenue per employee was about $206,960 in fiscal year 2007, remarkablely higher compared to the industry average of about $3,684 during the same period. Nintendos biggest strength in my opinion is their ability to stay debt free. Their most recent debt to equity ratio was zero compared to the industrys average of 11. 9%. This not only shows that they are able to efficiently finance its operations but also enjoys a lot of financial flexibility. Weaknesses Nintendos two biggest weaknesses are having a dependency on contract manufacturers as well as having low earnings per share.In regards to the dependence on contract manufacturers, Nintendo reaches out to companies to produce the key components of their consoles as well as assembling the finished products. The problem is, the new Nintendo Wii console is under such high dema nd that the manufacturers are not able to supply the key components or collaborate the products fast enough creating a lack of finished products to be sold. It is assumed that this paucity will have a sizeable affect on the companys overall revenue. Low earnings per share is calculated by dividing profit by the weighted average common shares. Nintendo save a 12. 6% decline in its earnings per share for five year period, from 2003 to 2007, significantly lower compared to the corresponding industry average of 43. 9%. This is important to tonicity because it may affect the investors in the company negatively by lowering their confidence. A third weakness is the lack of games produced for Nintendo consoles. In my personal opinion, I have steered extraneous from recent Nintendo products such as Gamecube and Wii because of the lack of games so far. Regular Nintendo, Super Nintendo, Gameboy, and Nintendo 64 all had a wide variety of games.Gamecube and Wii, however, have been oversha dowed by other systems with many more games such as Playstation 2, Xbox, and Xbox360. It seems as if Nintendo is always so anxious to get their gaming systems out that they never wait to have enough games to satisfy their customers. Opportunities Nintendo has a few different opportunities. For starters, the United States game software market is lift right now. Video games and consoles are some of the most sold items, especially during the holiday season. Because of their commonsensible prices, games can be given as gifts by pretty much anyone.The video game market is also soaring as is evident by the $8 billion dollars in revenues in 2006 in addition to the consoles market generating $6. 6 billion dollars in revenues during the same year. These figures are pass judgment to increase as well over the next couple years to reach up to $10. 3 billion dollars at the end of 2011. Another grand fortune that Nintendo is planning on attacking is the Indian console market. Although the rev enues are not approximately as much as the American market, the Indian market for consoles is expected to rocket engine to $120 million by 2010 from unspoiled $13. 3 million in 2006.Because of Nintendos great brand image, as discussed under strengths, Nintendo will succeed in these new markets. The greatest opportunity, however, is in the online gaming market. The world is continuing to become more computer oriented in such that computers are now about as sane household item as a television set. Because of this, and the generation of children growing up in this kind of environment, the market of online gaming is become increasingly large. In 2006, only 46 million people were using broadband connections to play video games online. That number is expected to jump up to 413 million users by the year 2010.Nintendo has taken step to attract this interview by pose up their Wii system to be net income accessible and have the ability to update content, including up to date weather se rvices and news feeds. Threats There are a handful of holy terrors that go along with all of these opportunities and strengths, however. For one, Nintendo products are often very pricey. This allows other products with similar or slightly lesser quality to steal customers by price their respective consoles and games to make them more affordable. Another knock on the Nintendo products is their short lifecycle.In the video game industry, products lose their intent after approximately nine months, at which point a different product will come out that seems to be more updated and technologically advanced. Because of this, Nintendo will have to make sure to release all products on time and be able to meet the demand of their products with their supply. Leaving stores sold out of products will result in loss of sales in the long run callable to the short lifecycle that each product will enjoy. The last threat to Nintendo products is their poor durability. The Nintendo Wii controllers h ave had the most significant problems when it comes to this.In many circumstances, the Wii controllers have not been properly designed resulting in the controller flying from the users detention and into televisions sets. Having problems such as these results in recalls, which is a very lengthy and expensive process. To veto this, Nintendo must confirm that all products are being properly designed and make prior to release. 4. 2 Competitive advantages The advantages to Nintendo are firstly that it makes their console cheaper to manufacture. This means that they can sell the base console at a profit whilst their competitors have to pay the retail price.It also gives Nintendo far more room to manoevre when it comes to using the price appliance to take on that disceptation. The second advantage is that games are a lot easier, quicker and cheaper to develop. In fact they are more comparable with PS2 games in this area. This, obviously, has a massive effect on what appears on the ga me shop shelf and when it appears. Quite simply, it should be far easier for a publisher to make a profit on Wii, which explains why so much development resource has been directed at it. Organizational structure and design Branches Nintendo has branches all over the world America, Asia, Europe and Africa.Their headquarters are locate in Japan and the European headquarters Nintendo of Europe GmbHis located in Germany, Gro? ostheim. hierarchy The headquarters in Japan are at the top of the hierarchy, they give direct orders to Nintendono of Europe GmbH, which is under the supervision of a president. The company in Germany consists of many different parts Legal services, administration and marketing and sales. In charge of those are major(postnominal) managers who report directly to the president. Those senior managers are in charge of a team of directors, to whom the employees must report to. Motivation and HR principles 6. 1 Motivation High salaries and great bonuses. Health and other insurances. Creative transnational environment. Career grows opportunities. 6. 2 HR principles Trainings and seminars Nintendo channelise English classes for their employees, as well as seminars in order to educate their employees on different subjects so that they can function better within the company. Recruitment Nintendo is constantly provokeing people. There are different possibilities to recruit employees, depending on the position. For important positions such as management, they tend to use headhunters. There is also an online application form, where people can apply for a job.Quite often they put advertisements in newspapers and magazines. Another common way of filling in vacancies is recruiting within the company or you can find the person you conduct through connections such as friends or former colleagues etc. Requirements The ingestments are very different, depending on the job. When it comes to finding store workers training is of course the most important . In higher positions however, a neat conclave of training and social skills is inevitable. Naturally, the importance of the last mentioned is higher in positions where there is a lot of interaction with other people, for caseful customer services and sales.When it comes to appearances we could say that there is no real formal dress code, mainly because there are a lot of young people in the company. Controll porcess and quality management Nintendo has it own quality standards Nintendo legal tender of Quality. Originally, for NTSC countries, the seal was a large, murky and gold circular starburst. The seal get a line as follows This seal is your assurance that NINTENDO has canonical and guaranteed the quality of this product. This seal was later alter in 1988 approved and guaranteed was changed to evaluated and approved.In 1989, the seal became gold and white, like it currently appears, with a shortened phrase, Official NINTENDO Seal of Quality. The symbol remained unchang ed until 2003 when of Quality was removed. 1. Communications and decision making Nintendo of Europe GmbH does not experience many problems within Europe or with the USA, but due to enormous cultural differences there are quite a few problems when it comes to relations with Japan. The Japanese headquarters want to be in control at all times. They are not trusting towards the Europeans and want them to do everything like it is done in Japan. Their way of doing business is very dominating.For face in Japan the Human vision department is situated above the company entrance, so they can check the necessitate times when the employees arrive and leave again. They try to make the Europeans do the same and of course this is not possible because in most companies we fill in our timesheets manually and in general, bosses and employees are happy with that way of working, which is very hard to understand for the Japanese. When it comes to dealing with problem situations, and there are meetin gs with Europeans and Japanese, everyone can sense that the Japanese are not really taking the European opinions into account.At the end of the day, they feel it is their decision and they elucidate the problems their way. Conclusion In conclusion, Nintendo has done a great job at creating a good brand image within the video game industry. With the disappointing failure of the Playstation 3, a console expected to rival the Nintendo Wii, Nintendo has been able to enjoy much success with their Wii. care enough, the high prices did not steer consumers off from the console. Instead, during the holiday season, many retail stores were sold out. For the time being it seems as if the Wii will continue to enjoy success by introducing new games to the system.Having a unique system with controls that actually have sensors in which you have to move around to control game has captured everyones interest. For the future, I would like to say that Nintendo should begin the planning and preparing process for the release of systems and games sooner so that there is not a higher demand than the supply. However, for some reason or another, Nintendo has done this with most of their products, and with the word-of-mouth marketing, and high product quality, Nintendo has been able to keep their flavor of the month status for longer than most other companies.It can be comparable to the Tickle-Me-Elmo dolls. When they were hard to get, everyone treasured one and would pay thousands of dollars on Ebay just to get one. As soon as they filled the stores though, nobody had any interest anymore. The main managerial issue of the company is that Japanese wants to control all the processes whole time and they never taking into consideration opinion and ideas of them colleagues, which reduced brand inscription and trust and makes efficiency and effectiveness go down. And if there no trust, there is no wiliness to work effectively and the motif can decrease dramatically.Japanese must unders tand, that controlling over the quality doesnt mean to control over all processes and it doesnt mean, that they must not taking into consideration their colleagues ideas and opinion. They even dont want to understand that there are many factors, such as local culture, which they can force to follow by their culture. Moreover it makes limitation to other headquarters managers and top managers ideas and decisions, which can be very creative and useful and can solve many problems and make new ideas.And the fact that Japanese dont take into consideration of their foreign colleagues opinion is decreasing overall management process of whole company. Japanese needs to change their point of views, otherwise they company will lose their position in the market. This managerial issue is a part of internal environment as well, so it is important to change managerial style and give some creative and decision making freedom to the rest of colleagues. The situation in external environment of orga nization is much better, than internal. There are not many comments to say, because companys business is great in the market.For statistic it will be useful to bring the following information As December 2008 came to a close, one thing was very clear. Nintendo was blowing away the competition in console sales. The company sold 485,000 DS units and 335,000 Wii consoles for the month. During the same period Microsofts Xbox360 sold 228,000 units and Sonys PlayStation 3 lagged behind with 127,000 units sold. By using some simple math, we can see that Nintendos latest console, the Wii, almost outsold it main competitors feature sales for the month. Why are the Nintendo consoles selling so well?We can give a simple answer charge it simple, stupid, is winning Both Wii and the DS dont require big instruction books and thats expanded the listening Sony and Microsoft took a different path, producing consoles of stunning power and complexity and price. Theyve gotten complicated and both c ompanies are following a core gamer audience whereas Wii and DS are working for both young and old (newcomers to gaming) the DS has games that go down to pre-school level and the Wii has games where you dont even need to crack the instruction manual at all to play. As future strategic plan, I strongly recommend Nintendo to trust about realising gaming diligent phone that will be able to play high quality games as well. straight off wide awake communications market is one of the biggest in the world and now it is more than communication it is global thing, combining with earnings technologies, photo and video cameras, games, complex programs and much more its a new communication of 21st century. And Nintendo can easily and profitable combining one product to do all that withdraws perfect.Practice shows that Game Boy was the best pocket gaming console in the world. And if they combine Game Boy with mobile device, it will be amazing and it will be a new super hit of the marke t. And if they combine their new technologies in a mobile device, like movement sensor in Wii, it will beat the market for sure and will be even successful than the iPhone. But they must be promote until their main competitors Microsoft or Sony hit upon it. In that case, they will have competitors in mobile market as well. Along with that, Nintendo must think about on-line profits gaming.Not enhancing a Wii, but making new servers, in which players for example, can directly play with each other by Wii or by PC. In case of PC they can produce additional hardware that will works fine with internet gaming by Nintendo. Using that strategy, Nintendo can create the new virtual gaming world in internet and it will work excellent. Now days fashion in game world is a virtual on-line gaming. And if Nintendo implements new ideas and creates new on-line games using both new and old characters, it will be great advantage in this sphere and will attract more and more gamers to buy Nintendo pro ducts.The next steep of strategy is strong advertising. Many peoples, especially the old generation, doesnt even know that Nintendo live now days and that its as before is a leader of gaming industry. Strong advertising will cue those people, that Nintendo exist and will be attract more and more customers. People, especially children like advertising. They like to watch advertising and say to each other See, I already have this device that is on TV it is great Strong advertising will bring more potential customers. The next major steep will be promotions nd enhancements of social responsibility. It means to actively collaborate in sponsorship programs, like education, social aid, be a sponsor of some huge TV projects, make promotions and seminars for students, who can be potential employee tomorrow. The next would be producing more games. There are not many games on Nintendo, but competitors have a lot of games. Of course, it is not prerequisite to make 10000 games to get agains t Nintendos main strategy, but they just can make 50 more quality games and it will works. And its time for cerebration about new megahit personages.There is already many games and ideas, but they are not mega popular they need to think about popular ones. Of course, it is interesting to play Castelvania or The Legend of Zelda, but the fans, who played Castelvania 25 years ago are now a little old for that and the new generation doesnt appreciate so much old personages, because they not grow in that period and they are not fans and they will never buy Wii only for Castelvania like fans. I think Nintendo can easily generate new ideas and new personages, whose can be the next generations new mega hits and the new words in fashion.I believe Nintendo will succeed in the new digital media environment because they seem to be a company that can ordinate to the market. Thus, for example, analytics consider that Nintendo can control a piece of 85 billion dollars on the entertainment marke t Really, its not bad for the company who started with two little shops, is it not? References 1. David Sheff Game Over How Nintendo Conquered The World, 1993 2. www. nintendo. com 3. http//en. wikipedia. org/wiki/Nintendo 4. http//boomson. blogspot. com/2008/02/nintendo-swot-analysis. html