MORG4038: Analyzing Management & Organizations at Rovio Entertainment

This report provides an in-depth analysis of Rovio Entertainment Corporation, a renowned social gaming company, focusing on its management and organizational aspects. It begins with an introduction to the company, followed by an examination of its organizational structure and its influence...Read More

Running head: MANAGEMENT AND ORGANIZATIONS
Management and Organizations
Name of the Student:
Name of the University:
Author Note:

1MANAGEMENT AND ORGANIZATIONS
Table of Contents
Introduction:....................................................................................................................................2
Task 1...............................................................................................................................................2
Task 2...............................................................................................................................................3
Organizational Structure of the Company and its Influence on Functionality............................3
Task 3...............................................................................................................................................5
Modern Management Approach for Improving Organizational Functionality............................5
Task 4...............................................................................................................................................6
Analysis of Company’s Culture Based on Handy’s Cultural Framework...................................6
Task 5...............................................................................................................................................7
Analysis of Innovative Strategic Management Objectives..........................................................7
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

2MANAGEMENT AND ORGANIZATIONS
Introduction:
The report is a discussion on management and organizations in the context of renowned
social gaming company, Rovio Entertainment Corporation. The company is a developer,
distributor and publisher of video games headquartered in Finland. In the year 2003, the
company took to the game development for mobile phones and is known for the creation of
Angry Birds franchise. The report commences by providing a brief introduction about the
company along with identification of its organizational structure. There is discussion on the
management approach used by the company and an analysis of its organizational culture. The
report also discusses about the company’s innovative objectives for strategic management.
Task 1
About the Organization
Rovio Entertainment Corporation initially known as Relude or Rovio Mobile represents a
Finnish entertainment company that develops, publishes and creates games for mobile devices
and acts as the brand licensor in different categories of consumer product and entertainment
(rovio.com 2018). The company is known for its Angry Birds brand that begun as a popular
game for the mobile devices since the year 2009. The company not only produced multiple
games for mobile phones but also produced a movie on the Angry Birds that had an opening
across fifty countries. Rovio Entertainment Corporation also holds the license of the Angry Birds
brand for the consumer products and other content for entertainment. The company however has
its headquarters in Espoo, Finland with operations in the Sweden, China, United States and
United Kingdom.

3MANAGEMENT AND ORGANIZATIONS
The company operates as the part of the video gaming industry having a market value of
$1.06 billion (rovio.com 2018). In the year 2003, three friends of Aalto University School of
Science took part in a competition sponsored by HP and Nokia for the development of mobile
games. The victory of the trio against the multiplayer game known as the King of the Cabbage
inspired them in setting a company known as Relude that later became known as Rovio
Entertainment Corporation.
Task 2
Organizational Structure of the Company and its Influence on Functionality
Organizational structure represents how the activities like coordination, supervision and
the task allocation remain directed towards achieving the goals of the organization (Mullins
2016). Thus, it is necessary for an organization to be not only flexible and efficient but also
caring and innovative for the achievement of competitive advantage.
The organizational structure of a video gaming industry like , Rovio Entertainment
Corporation, consist of Project director, producer and manager who presides over the game
designing and programming team, quality control and the audio team(Gil and Warzynski 2014).
The organizational structure also comprises of teams that takes care of press release and
marketing, information technology (IT), marketing and press release, recruitment and human
resource and administration.

4MANAGEMENT AND ORGANIZATIONS
Figure: Organizational Structure of Rovio Entertainment Corporation
Source: (Nagle and Müller 2017)
The organizational structure can improve an organization’s functionality by (Jones and Jones
2013):
1. Streamlining business operations amongst the various departments thereby helping in
the completion of various business processes not only in an effective but efficient manner.
2. Leading to an improvement in decision making thereby promoting effective flow of
information from the frontline operations to the managers who remain responsible for the
completion of business functions
3. Enabling operations in the multiple location through creation of management chain
4. Improving the performance of employee by outlining the task of the employees

5MANAGEMENT AND ORGANIZATIONS
Task 3
Modern Management Approach for Improving Organizational Functionality
Rovio Entertainment Corporation can adopt the System Approach for improving the
functionality of the organization. The System approach views management as an organized
entity made of subsystems integrated into an orderly totality (Hill, Jones and Schilling 2014).
The approach depends on generalization where everything is interdependent and inter related. A
system comprises of the related and the dependent element that forms unitary whole through
interaction. In other words, a system represents assemblage of the parts or things that leads to the
formation of a complicated whole. This approach comprises of hierarchy of subsystems. For
instance, a firm is considered as system comprising of subsystems like marketing, finance,
accounting and production.
The organizational systems have boundaries that determine the internal and the external
parts. However, a system cannot exist in the vacuum and receives material, energy and
information from the other system as the inputs (Kerzner and Kerzner 2017). The inputs then
undergo the process of transformation within system and leave the system as the output to the
other systems. Organizations represent dynamic system since it remains responsive to the
environment. It is also vulnerable to the change in the environment.
According to system approach, the attention solely remains towards the effectiveness of
overall system instead of effectiveness of sub systems. This approach also considers the
interdependence of sub systems (Vandeveer and Menefee 2010). Therefore, in applying the
system concepts it is not only the organization that is taken into account but also the

6MANAGEMENT AND ORGANIZATIONS
performances and objectives of the different departments. The system approach comprises of the
special and general systems. The special management system consists of the analysis of
information, organizational structure, control mechanism, job design and planning while the
general system is an approach towards management that primarily involves formal organizations.
Systems theory is beneficial to the management of the organization since it focuses on achieving
the required objectives and helps in viewing the organization as open system.
Task 4
Analysis of Company’s Culture Based on Handy’s Cultural Framework
Charles Handy’s cultural framework is classified into power culture, role culture, task
culture and support culture (Russo et al. 2013).
Power Culture: In this culture, subordinates left with hardly any option and strictly
follow the instruction of the supervisor. Here, the employees have no liberty in expressing or
sharing their ideas or views in open forum but follow the instructions of the supervisor.
Task Culture: This culture motivates the individuals with specializations and common
interest in forming a team. Each team comprises of close to four to five people where each of the
team members needs to make an equal contribution and thereby accomplish the tasks in the most
innovative manner. .
Person Culture: Organizations with such type of culture have employees who work
only for money and never remain attached to the organization. Moreover, in such cultures
employees never take a decision in favor of organization.
Role Culture: This represents a culture where each employee remains delegated to the
responsibilities and roles according to their educational qualification, specialization and interest.

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Rovio Entertainment Corporation follows a power culture that leads to its on-going
success. Power culture in video gaming industry is like a spider’s web with all significant spiders
sitting at the centre (Graham, Ashworth and Tunbridge 2016). This implies that the vital
members of the organization sit at the centre surrounded by the widening circles of the influence
and the inmates. In this type of culture, the closeness to the spider’s web describes the influence
of an individual. Organizations having this type of culture respond instantly to the events but
remain hugely dependent on ability of the employees at the centre for determining the continued
success. Such organizations will attract politically minded and power oriented people who can
take risk and do not place higher rating on security.
Task 5
Analysis of Innovative Strategic Management Objectives
These include:
1. By adopting better means for the promoting the existing business and extending the
existing business. This can be achieved by making a list of the thing that the business offers and
by knowing how it is done.
2. By ensuring expansion and achieving the business goals through the determination of
the best methods. This also includes taking a note of the strengths and weakness of a business.
The business must also consider the fact that there always exists opportunities for expansion and
threats for hindering the business (Johnson et al. 2014). Thus, through realistic viewing of what
the business is and what it wants, it is able to form plan on getting what it wants
SWOT Analysis
Strength Weakness

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1. The game offered by the company is
available as a free version so it will remain at
an advantageous position compared to the
other games sold for money. This will enable
every single user in trying the game since it
does not cost much
2. There is reduction in the cost of the
production considering the fact that the games
offered remains available for free. Further, the
usage of the social media for achievement of
goals of the company through promotion of
games of the company is something to be
achieved for free.
1. The game is available only for smart phones
so people who like playing games by other
means like a personal computer(PC) would not
be available for playing the game
2. There exists a limited budget which implies
that the games offered by the company will
have lesser promotional opportunities
compared to the games with stronger budget as
they might get promoted via the magazines and
the television. On the other hand, the games
offered by the company under discussion will
have promotion through cost effective social
media
Opportunities
1. Although the game is successful but the
company can earn some money through
addition of advertisements.
2. Up gradation of the game and selling it
across the web will put forward an opportunity
for the company in starting to earn money from
such games
Threats
Presence of similar types of games across the
web can accuse the company of copyright
issues. Therefore, the company needs to make
sure to be careful and have a unique selling
aspect that differentiates its games from the
competitors.

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Conclusion:
The report ends by critically analyzing the innovative strategic management objectives through
the SWOT framework. Through the report one can not only understand the cultural framework
adopted by Rovio Entertainment Corporation but also the modern management approach that the
company can adopt in improving the functionality. The report also puts forward an
organizational structure and how that helps in facilitation of its functionality. The company
through its focus on human rights, environmental rights, labor issues, consumer safety and
protection of privacy strives in doing good to the world thereby fulfilling the expectation of the
employees and the customers.

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References:
Gil, R. and Warzynski, F., 2014. Vertical integration, exclusivity, and game sales performance in
the US video game industry. The Journal of Law, Economics, and Organization, 31(suppl_1),
pp.i143-i168.
Graham, B., Ashworth, G. and Tunbridge, J., 2016. A geography of heritage: Power, culture and
economy. Routledge.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Johnson G., Whittington, R., Scholes, K., Angwin, D., and Regnér, P. 2014. Exploring Strategy:
Text and Cases. 10th edn Harlow:Pearson
Jones, G.R. and Jones, G.R., 2013. Organizational theory, design, and change. Upper Saddle
River, NJ: Pearson.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Mullins L. J. 2016. Management and Organisational Behaviour 11th edn., Harlow:Pearson
Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
rovio.com 2018. [online] Available at: http://www.rovio.com/about-us [Accessed 5 Jul. 2018].
rovio.com 2018. [online] Available at: http://www.rovio.com/investors?language=en [Accessed
5 Jul. 2018].

11MANAGEMENT AND ORGANIZATIONS
Russo, G.M., Tomei, P.A., Linhares, A.B.J. and Santos, A.M., 2013. Correlation between
organizational culture and compensation strategies using Charles Handy's typology. Performance
Improvement, 52(7), pp.13-21.
Vandeveer R. and Menefee M. 2010, Human Behavior in Organizations 4th edn., FT Prentice
Hall