Global Management Perspective: A Detailed Analysis of Nintendo

This portfolio project delves into Nintendo's global management perspective, examining its international operations across countries like the United States, United Kingdom, and Japan. It covers aspects such as labor unions, expatriate training programs, internet usage for employee development, and the variety of products sold in different international markets. The project also analyzes promotional strategies, distribution channels, global procurement practices, and production locations. Furthermore, it identifies Nintendo's supply chain members, export and import activities, and the impact of currency value changes. The analysis encompasses Nintendo's cultural dimensions based on Hofstede, modifications needed in managerial communication, assessment of political and economic risks, legal frameworks, intellectual property protections, and corruption perception indices. Desklib provides access to this and other solved assignments, aiding students in their studies.

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Are any employees of your company represented by labour unions or covered by
collective bargaining agreements? Are any of these employees working outside of the
United States?
A great range of Nintendo products including the likes of 3Ds and Amiibo toys are being
manufactured in China. The products reach America through the by cargoes via the west
coast. One commendably big labour union formed by the Dock workers of Nintendo is
operating in this area of China. Again, Aloupis et al. (2015) opines that another popular
forum linked with the Nintendo Corporation is the NeoGAF, which is a gamer’s forum who
are passionate about the Nintendo games. The forum comprises of members form many
progressive nations of America, Asia and Europe. They strongly resented the dropping out of
Alison Rapp on the ground of Corporate Ethics. Other small employees union, both political
and apolitical are present within the realm of the USA also.
Does your company employ expatriates in any overseas operations it might have? If so,
what resources does the company provide to train expatriates before they go to the
foreign location? Does the company also provide training or support for expatriates
during the repatriation phase?
Expatriate employment is common for Nintendo of America. They post Japanese expatriates
in the game designing centres of the company operating in Japan. One loophole of Nintendo
is their prohibitive cost policy for training expatriates from overseas. Resources such as
communication training for the expatriates in countries like Japan and China where most of
the overseas expatriates of the organisation are posted. The organisation also maintain a
stable congregation of managers who have the capacity of acquainting with and working in
foreign cultures. Again the organisation also recruits locals from the home country as HR

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recruiters in other countries. Hence, the HR department is able reflect the skills of the
employees in a better way. During the repatriation phase, the employee provides
technological training to the employees mainly so that they are able to update to the work
standards of the company.
To what extent, or in what ways, does your company use the Internet for employee
training and development?
The DS platform of Nintendo is being used by the company for employee training program.
They belie that since most of the people are acquainted the DS facility, the training time can
be halved by using this. During the seasoning period in the company the employees learn
game development courses and receive induction from the R&D department that is situated in
the home country, over the internet. According to Bower et al. (2014), the monitoring of the
employees’ learning is also done over the internet. The employees also have a chat forum
where they can discuss their issues. The recipients of this forum involves employees all over
the world.
What products are sold in the company’s international markets? Do they vary by
country or by region?
The gaming consoles of Nintendo that have been made by focusing on the gaming needs of
the kids aged under 12 years of age. The elders are accustomed to enjoying gaming in their
PCs, tablets or mobile phones. On the other hand, the Wii U gaming facility have not been
popular in China. The Super Mario gaming series have been a monster launch in the western
countries. The European countries had greatly accepted the game. Recently, the company
made a strategic effort to occupy the South Asian market with single product strategy. They
launched Pokémon Go. The game was a huge success with the customers of all age groups in

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the south Asian Belt. However, it did not make a scratch in the American market. Hence, the
organisation in its production history, willingly, or not have concentrated on creating
products and facilities that have been accepted largely in particular zones of the world.
What types of promotion does your favourite company emphasize in its international
markets? Do they differ from those used in its domestic market?
What kinds of distribution channels are being employed in your company’s
international markets?
In populous countries like China, India and other South Asian countries, Nintendo has taken
the strategy of promoting their products (mainly the gaming consoles) as an entertainment
tool for the women, adults and the whole family in fact. According to the ideas of Chao,
Scherer and Montgomery (2015), the advertisements of the gaming consoles of Nintendo in
these markets, project these as popular home entertainment hubs. The popular gaming culture
of these countries can exaggerate sales of Nintendo. In America, however, Nintendo is
popular among small kids. Elder customers are likely to favour X Box from Microsoft. Dan
Coyner, marketing head of the company in USA I of the opinion that the market
demographics of the Company after the entry of Reggie as the COO have changed. Instead of
focusing on promoting the game brands, Nintendo have started promoting the corporate
image of the corporation in America. They have adopted the marketing policy of promoting
Nintendo as a corporate brand with their Play Out Loud campaign, under which ad
campaigns have been started featuring the Butthole Surfers. The company adopted a strategy
of ironic promotion in Canada, the ad portrays that four out of 5 doctors prescribe that the N
drug (stands for Nintendo) would straightway lead to “too much fun”. The doctor also
advices to consult the ministry of fun which can offer a possible remedy to the problem.

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Is the company practicing global procurement? If the company is procuring globally,
what goods and services is it procuring and from which countries?
Nintendo procures Switch consoles from other countries like Japan or China and imports
them to America where. The franchise companies manufacture these for them. The reason for
choosing these two countries us that the operational cost pertaining to labour cost and price of
raw materials is less. Another procuring site for the company is Congo that supplies Gold,
Tantalum, tungsten and tin for the products of the company (Nicholson et al. 2015). The
company also partners with DeNA, a Japanese agency that creates artificial intelligence
capable circuits for the gaming products of Nintendo. The global company also procures
Chinese technological experience. They have a separate research team in China. The Lite
version f their DS gaming console have been designed by the Chinese R&D division.
Is the company practicing global production? If the company is producing globally,
what goods and services are produced globally and in which countries?
Has the company outsourced goods and services? Has the company insourced goods
and services?
The Gaming consoles like Nintendo DS touch screen is designed in Japan. The game was
researched for, collaboratively by the R&D team of Nintendo for America and Nintendo,
Japan. Games like Super Mario Bros or the Game Boy and new version of Tetris were
invented in Japan. However, China is a big technology partner for the organisation also. The
8 bit processor was invented in America. However this was not adequate to support the
Silicon graphics facility. Hence latter, the company started to purchase 16 bit processor from
Japan for its devices. Although major share of the revenue comes from its American markets,

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the company also makes games and consoles for the Asian Market also. The company has
outsourced services in Europe also. Popular FMCG brand McDonalds has planned to use the
DS console for training the employee (Row, 2015). This led to the outsourcing of
processionals from Nintendo, who managed the training program at McDonalds.
Is the company a member of one or more supply chains? If yes, can you identify the
major members of the supply chain(s)?
The organisation has a diversified and complex supply chain. Particularly the distribution
channel of the company is the Asian countries is maintained by various tertiary partners like
Jesnet and Ajioka. These are among the largest distributors of hardware arrangements in
South Asia with cross national links. However, besides the company has also sourced from
external supply partners for supply of the Nvidia Chip that is to be used in their upcoming
gaming console.
In what countries does your company export goods? Import goods? How would changes
in the values of these countries’ currencies relative to the U.S. ******** affect
transactions and translation risks? Economic risk?
The company exports its products to a lot countries of South America, Europe, Asia, and
America. Among the Asian countries the two largest customer bases are China and Japan.
Other than that other potential Asian markets are India, Malaysia, Taiwan, and Thailand and
so on. These are low end economy countries. However, as per Tarakci et al. (2016), the
customer base in these countries is broad. The culture of video gaming is also strong. Hence
they prove to be potential market for the company. Besides, they have strategic alliance with
China and Japan for technical support. Chinese native companies manufacture a range of

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gaming consoles for the company. Another important market is Europe. After operating
within the European Union, the economic imbalance has not been a troublemaking issue for
the country. Besides, the Super Mario series of games have been very popular in Europe.
Hence, they collected a large part of revenue from the developed European nations.

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Reference List
Aloupis, G., Demaine, E. D., Guo, A., & Viglietta, G. (2015). Classic Nintendo games are
(computationally) hard. Theoretical Computer Science, 586, 135-160.
Bower, K. J., Clark, R. A., McGinley, J. L., Martin, C. L., & Miller, K. J. (2014). Clinical
feasibility of the Nintendo Wii™ for balance training post-stroke: a phase II
randomized controlled trial in an inpatient setting. Clinical rehabilitation, 28(9), 912-
923.
Chao, Y. Y., Scherer, Y. K., & Montgomery, C. A. (2015). Effects of using Nintendo Wii™
exergames in older adults: a review of the literature. Journal of aging and
health, 27(3), 379-402.
Nicholson, V. P., McKean, M., Lowe, J., Fawcett, C., & Burkett, B. (2015). Six weeks of
unsupervised Nintendo Wii Fit gaming is effective at improving balance in
independent older adults. Journal of aging and physical activity, 23(1), 153-158.
Row, H. (2015). Codename revolution: the Nintendo Wii platform.
Tarakci, D., Ersoz Huseyinsinoglu, B., Tarakci, E., & Razak Ozdincler, A. (2016). Effects of
Nintendo Wii‐Fit® video games on balance in children with mild cerebral
palsy. Pediatrics international, 58(10), 1042-1050.