Blue Buddies: Global Strategy, M&A, and Code of Conduct Report

This report presents a detailed analysis of Blue Buddies' strategic decisions, covering corporate-level strategy, the Boston Consulting Group (BCG) matrix, international and cooperative strategies, mergers and acquisitions, code of conduct, and corporate governance. The analysis includes the application of the BCG matrix to evaluate product portfolios, exploring various international strategies like multi-domestic, transnational, and global approaches, and examining the rationale and implications of mergers and acquisitions, particularly the potential merger between Blue Buddies and Nazara Technologies. The report also delves into the code of conduct, corporate governance pillars, and the monitoring of strategic performance, providing insights into the company's operational framework and its approach to achieving strategic competitiveness in the market. The report concludes with references and an executive summary that highlights the key findings and recommendations, emphasizing the importance of market analysis, strategic frameworks, and cooperation for sustainable growth and development.

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Table of Contents
Executive Summary...............................................................................................................................4
1. Corporate Level Strategy and Boston Group Consulting Matrix....................................................5
2.0. Growth Share Matrix......................................................................................................................6
2.1. The procedure for computing the Boston Consulting group’s product portfolio matrix.......6
1. International and Cooperative Strategy.......................................................................................10
1.1. Type of international strategies.......................................................................................10
1.1.1. Type of strategy used...................................................................................................10
3.1.3. The nature of the alliance..................................................................................................12
1.1.2. Core competencies of the company selected..............................................................13
1.1.3. Strategic competitiveness outcome.............................................................................13
1.1.4. Type of market cycle....................................................................................................13
1.1.5. Compliance requirements............................................................................................14
2.0. Merger and Acquisition Strategy..................................................................................................14
1.2. Type of merger recommended for Blue Buddies.................................................................14
1.3. Reason for merger between Nazara Technologies and Blue Buddies.................................14
1.3.1. Advantages of merging to Blue Buddies......................................................................15
1.3.2. Demerits of merging to Blue Buddies..........................................................................16
1.4. Complementary resources...................................................................................................16
1.5. Potential issues or challenges..............................................................................................16
2. Code of Conduct..........................................................................................................................18
2.1. Objectives of code of conduct.............................................................................................18
3. Corporate Governance (C.G).......................................................................................................20
3.1. Pillars of corporate governance...........................................................................................20
3.2. Roles of corporate governance........................................................................................20
3.3. Key stakeholders and their roles..........................................................................................20
4. Monitoring Strategic Performance..............................................................................................22
5. References...................................................................................................................................24

Executive Summary
Investment decisions require proper market analysis and clear agenda from the investing experts.
Organizations that conduct thorough market research often come up with the best strategies to edge their peers in
the market. The modern market that focuses in innovation and discovery of new methods of production requires
firms to develop their strategies based on clear frameworks for expansion and diversification of production.
This paper contains an analysis of Blue Buddies Company strategies used for cooperating or competing
other firms in the industry. The first part deals with investigation of the corporate strategy and the Boston
consulting Group matrix. The following section deals with internationalization and co-operatives strategy. Next
in line is an evaluation of the concept of mergers and acquisition. This is followed by an insight into corporate
governance then the code of conduct used guiding the operations in the organization. The final section deals with
a monitoring strategy that guides the implementation process in the organization to ensure fruition of the project.
Based on the potential existing in the industry, Blue Buddies have the opportunity to expand and
establish many branches in countries such as India and China. Based on the assumptions and literary appreciation
of this paper, there is potential for growth and development when firms co-operate rather than compete blindly.

1. Corporate Level Strategy and Boston Group
Consulting Matrix
A corporate level strategy is established when an organization makes a unit decision that affects
operations in all its branches. Blue Buddies relies on such strategies as diversification to maximize the
profitability of its two main products, that is, Red Box and Blue Box ventures in Roundland and
Starland to maintain its streams of financial capital flows in the future. Besides, this is its approach to
deal with the stiff competition facing the organization in the international market.
According to Bartes (2015), firms that rely product diversification as a corporate level strategy
like blue Buddies have ample time to focus its attention on what it can produce best by specialising. As
stated in the simulation report, the focus of Blue Buddies is to maximize the share price index.
The design of Boston Consulting group’s product portfolio matrix follows a long-term strategic planning
to make investment decisions. It is a decision protocol made of a quadrant design using the results from
marketing research (Djordjevic, 2018).
Advantages that Blue Buddies can get from diversification strategy
Guaranteed economies of scope: Blue Buddies will enjoy the capability of using existing technological
resource to produce diversified commodities and sell in the same market.
Assured on market availability: given the market demand for its wireless video games and its unique
technology, the firm has the opportunity to sell its commodities at a relatively higher price compared to the
market price adopted by competitors.

2. Growth Share Matrix
The growth share matrix also known as the Boston Consulting group’s product portfolio matrix (BCG
matrix) is one of the corporate tools used by managers for strategic planning to make decisions either to wind up
or continue investing in a given product (Gracia, & Quezada, 2016). This tool can be used by Blue Buddies to
investigate the strategic position of its major products for making investment decisions.
2.1. The procedure for computing the Boston Consulting group’s product
portfolio matrix
Determination of the relative market share and the market growth rates
It is common knowledge that higher corporate market share yields higher returns on investment.
This comes from the experiences of economies of scale. Higher market growth corresponds to higher
earnings and higher operational costs. The market growth rates are obtained from the simulation report.
Relative market share= the fir m' smarket share ( revenue )
main competitors market share∨revenues ∗100
%of corporate revenues for Round Red box= 851
6276 * 100 = 13%
%of corporate revenues for Round Blue 1= 1265
6276 *100 = 20%
%of c orporate revenues for Round blue2= 1941
6276 ∗100=31 %
%of corporate revenues for Round blue 3= 2219
6276 * 100 = 35%
Step four: the matrix table 1
No Brand Total Revenues %of corporate
revenues
Largest rival’s market
share
1 Round Red box 851 13% 14%
2 Round Blue 1 1265 20% 22%

3 Round blue 2 1941 31% 30%
4 Round blue 3 2219 35% 32%
Blue Buddies product market share table 3 simulation result
As seen in the simulation results presented on table three, the market share and the growth rate of Blue
box increased significantly from year 46 to 49.
On the contrary, Blue Box recorded small changes in revenue generation over the simulation period
between year 46 and 49 as seen in table 3.
Decision criteria:
STARS QUESTION
MARKS
CASH
COWS
POOR
DOGS
HIGH
Market
share
LOW
HIGH MARKET GROWTH LOW

The stars are the most valuable commodities for the company since they have higher returns on
investment. The organization should invest more in the shares since they are able to contribute to the revenues for
the firm (Normand, Cassagne, Gautier, Becker, Ranque, Hendrickx, & Piarroux, 2017). Buddies Blue Box
fits this class. The cash cows yield immediate but lower cash flows and the Buddies should invest in them for
current returns, (Saaty, 2016). The Red box fits the category. The question marks are the yellow bananas while
shiny station and purple player are the poor dogs.

3. International and Cooperative Strategy
This is the process of expanding the branches of an institution to the world platform for the
purposes of trade adopted by Blue Buddies.
3.1. Type of international strategies
There are three international strategies that could have been adopted by Blue Buddies to form a
multinational corporation, namely; multi-domestic strategy, transnational strategy and the global
strategy (Mohajan, 2017).
Blue Buddies will conduct environmental analysis using the PESTEL approach as follows
No. Element description
1 Political Assessment of political good will for gaming products
India experiences strict regulations for entry into the online gaming industry
2 Economic There is a high rate of increase in customers purchasing the gaming
products. The national currency of India has been relatively stable making
the consumers’ purchasing power predictable.
3 Social Investigation of the literacy level of the market
Most potential clients for Blue Buddies are literate according to education
statistics of the two regions
4 Technological Buddies will be keen to tap the top cream in one of the world’s leading
technology conscious markets in India.
5 Legal Online Gaming industry is characterised by stringent rules and regulations in
India.
3.1.1. Type of strategy used
Blue Buddies adopts a Multi-domestic strategy for capturing the international market through
geographic and product diversification. In this strategy, the organization focuses on a two trading blocs-

that is, Roundland-resembling the region of North America and Starland that resembles Europe. Blue
Buddies often conduct proper analysis of factors affecting investment decisions such as economic
factors, political factors, technological and legal factors.
3.1.1.1. Company to form partnership with
The company of choice is Dumadu games- An organization based in India and connects the
world through video games.
3.1.1.2. Justification for the joint venture
1. The gaming technology used by Blue Buddies has a slow life cycle and remains relevant
over a long period of time with longer patent protection hence do not require yearly development. The
monitoring authority also finds it easy to set standards for the items since it is done from a central point
(Chiu, & Lin, 2019, July).
2. Strategic alliance helps firms to pool resources together to fund projects that require large
capital outlays. This undertaking will enable Buddies to gain a competitive edge over the rest hence
maintaining their leading position in the market (Bennett, Teh, Ota, Christie, Ayers, Day, ... & Koehn,
2017).
3.1.3. The nature of the alliance
BlueDuma
intl.
Blue Buddies
Inc. Dumadu intl.

3.1.1.3. Merits of the alliance to Blue Buddies
The organization will be able to easily access the new market without having to conduct further
market research. Secondly, the current operations of the firm will be greatly enhanced due to economies
of scale. Besides, risks will be shared between the parties hence minimising the extent on the new firm
(Pinto, Applebaum, Volchenboum, Matthay, London, Ambros, ... & Valteau-Couanet, 2015).
3.1.1.4. Demerits and challenges of the alliance to Blue Buddies
The potential trading partner may lie about what they are willing and capable of bring to the new
venture. Dumadu gamers may misrepresent their contribution to the new deal to get an edge over Blue
Buddies during sharing the profits. Secondly, as Ijedinma, Vincent and Onyemachi (2018) note, some
partners seldom commit their knowhow and potentials to their trading colleagues.
3.1.2. Core competencies of the company selected
Technical expertise and analytical skills: One of the minimum thresholds for recruiting
employees of the company is possession of in-depth knowledge and expertise in the field of gamming
application design (Cai, Pinheiro, Geschwind, & Aarrevaara, 2016). This will help in applying the set of
professional knowhow to develop best items that can compete favourably in the market.
3.1.3. Strategic competitiveness outcome
Alliances enable the firms to operate under large scales and therefore enjoy economies of scale.
Such organizations often sell their commodities at relatively low prices hence gaining an edge in
competition (Uhlenbruck, Hughes-Morgan, Hitt, Ferrier, & Brymer, 2017). The alliances also result into
strategic alignment of the organizations’ products.
3.1.4. Type of market cycle
The firms will engage in a slow product cycle. In this kind of commodity, there is no need for
restructuring and rebranding of the product in the short run.

3.1.5. Compliance requirements
Purpose: The partners must conduct due diligence to ensure familiarity with local regulations.
Control: Proper control is necessary to minimise the effect of potential risks in the joint venture.
2.0. Merger and Acquisition Strategy
Mergers are firms that come together to form a new business entity with the former institutions
ceasing to exist (Lebedev, Peng, Xie, & Stevens, 2015).
3.2. Type of merger recommended for Blue Buddies
The merger process begins with the managing directors from Blue Buddies coming together
with the managers from Nazara Technologies and approves the proposal about the merger. They then
seek the approval of the stakeholders who later endorse the proposal for it to come to fruition (Howson,
2017). The original companies cease to exist as the new firm is born. Examples of mergers include:
TPG and Vodacom Australia.
3.3. Reason for merger between Nazara Technologies and Blue Buddies
Firstly, competition and costs associated with it will be eliminated as the two companies will
come together to form a unit venture hence eliminating competition between them to save the
advertisement cost. Blue Buddies will enjoy the possibility of diversification: As noted by Alimov
(2015), companies that come together due to mergers often face little risks when it comes to
diversification.
Justification for the company choice
Nazara technologies have a large capital base since it is a well-established firm in India therefore
Blue Buddies will be guaranteed of sufficient capital for expansion. Besides, Nazara company is known
for its culture of collaboration with other organization, hence will provide better terms of engagement to
Buddies.

3.3.1. Advantages of merging to Blue Buddies
To begin with, there will be ready access to a large pool of capital since Nazara Technologies is
a large and established. Likewise, it will be possible for the Buddies to use the assets as collateral for
acquiring more money from other financial institutions in India (Jagtiani, & Maingi, 2018). Moreover,
Blue buddies will be assured of timely access to expertise hence will not have to train or conduct
orientation of new staff on the new production methods (Park, & Gould, 2017).
3.3.2. Demerits of merging to Blue Buddies
a. Challenges of integration: The process of margin the activities of the old firm and the new
organization may be difficult.
b. Loss of focus: The management may have priority problems as they may focus more on
the newly acquired premises and neglect internal development and need for improvement.
c. Managerial diseconomies of scale: due to merging, the firm may realise unrelated
diversification leading to managerial problems and lack of competency in unfamiliar niches.
3.4. Complementary resources
Complementary resources represent vital asset combination used by firms in making investment
decisions. Just like investment decisions, acquisition strategies are designed based on complementary
resources.
3.5. Potential issues or challenges
a. Acknowledging and communicating the need for merger to all stakeholders-including
employees since they normally feel the first effects of transitions in an organization.
b. The challenge of forming a responsive team and choosing proactive mentors to be merger
coordinators: It is not always easy to find a manager with non-partisan interest who can focus on the
project without being entangled with the affairs of the main business (Avgerinou, Bertoldi, &
Castellazzi, 2017).