MGT302 Strategic Management Report: Nintendo Case Study

This report analyzes Nintendo's strategic management, building upon a previous assessment of the external environment. It delves into the gaming industry's lifecycle, emphasizing the need for accessibility and product innovation. The report examines three strategic approaches: stakeholder, sustainable development, and organizational change. The stakeholder approach focuses on satisfying stakeholder needs for long-term success, examining consumers, shareholders, competitors, and other stakeholders. The sustainable approach considers environmental, social, and economic factors, highlighting Nintendo's recycling initiatives and efforts to reduce climate emissions. The organizational change model assesses Nintendo's ability to manage sustainability issues. The research explores Nintendo's responsiveness to stakeholder concerns, including product design flaws and labor practices, and its attempts to maintain its reputation through corporate social responsibility. The findings reveal that Nintendo's stakeholder orientation has been inconsistent, and the report concludes by analyzing the impact of organizational changes and integrating sustainability reports within its business model.

MANAGEMENT

Contents
Introduction................................................................................................................................3
Analysis......................................................................................................................................3
Research- extent and application...............................................................................................7
Findings......................................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................12

Introduction
This report is the continuation of assessment-1, which has analysed the external environment.
Lifecycle stage is the industrial analysis, which includes changes in gaming industry that
need accessibility towards many games. Furthermore, it has been finished bringing
innovation to the product. An assessment-2 discusses and finds three different approaches to
the strategic management. For the report, the selected approaches are sustainable approach,
stakeholder approach, and organisational change approach. Stakeholder approach formulates
that there is an implementation procedure that can satisfy stakeholder needs so that they can
ensure long term success of the organisation. This theory is a capitalism theory, which
interconnects strong relationship between customer, business, suppliers, investors,
employees, and communities. Sustainable development is an approach that can contribute
towards development and growth while managing produced, social, and natural capital for the
welfare of the generation. Five principles while incurring sustainable communities include
enhancement liveability, creating opportunities for the economic prosperity, fostering the
environmental obligations and finally demonstrating leadership and strong governance
(Blake, and Lloyd, 2019).
Analysis
Stakeholder approach for Nintendo`s stakeholders, which often look for weaknesses and
strengths. The consumers of the company of Nintendo who are the main players. It is
important to become more cooperative as well as productive between employees and
company. Shareholders, government, investors, and employees are the main stakeholders
elaborated in the analysis-
Consumers-

The consumers are the “core gamers” where people love game in virtual world. These core
gamers represent a good source of earnings. Furthermore, with the invention of Nintendo Wii
offers a console as a user-friendly fund to the whole family when opening it to new target
group (casual gamers) (Narayanan, and Adams, 2017).
Success factors of Nintendo is its comparable low priced to the play station-3. After the
introduction of new system, Nintendo has been planning a bit fat from casual gamers. One
will try to win back and focus on core gamers again and because of fact, the casual gamers
have the tendency not to purchase several games (First carbon solutions, 2018).
Shareholders-
Nintendo`s shareholders include investors. Importance of these stakeholders “Nintendo” are
of immense pleasure and degree, which represent form of gaining funds for product
innovation. It states that announcement on the investor`s relations website will strive in
creating unique forms of entertainment that is at prior importance to shareholders and the fact
intends in maintaining stronger image.
Competitors-
Nintendo has already been facing severe competition with several companies for its survival
in business environment. Japanese Sony corporation with Play station-3 and American
Microsoft company with the Xbox representing biggest competitors for the Nintendo in
playing console market. Competitors in the gaming industry are quite important to the
stakeholders for following reasons. It includes the belonging of consumers that company
wants to satisfy especially in terms of development and innovation. One have to face fierce
competition in form of revolutionary items with an aim to stay competitive. Although
Nintendo is one of the company, which has introduced gaming system. Wii has the biggest
market share of remarkable 46.26 percent followed by the PlayStation3 and not least

Microsoft`s Xbox with 22.68 percent share. In order to maintain position and stay
competitive with Sony and Microsoft. Nintendo does not have any issue while competing
with the competitors while expanding the market share.
Sustainable approach-
When looking at the sustainability approach, it is seen that sustainability has been used to
indicate programs, actions, and initiatives aiming at preservation of resources. It considers
four areas as the four pillars of sustainability such as social, environmental, economic, and
human services. The core there pillars refers to people, planet, and profit. With an aim to
preserve the environment, Nintendo has recycled products and it is seen that video game
systems retain significant value that offer several options when maximising it to the
continuous use. Nintendo avails to offer recycling options to the businesses and customers to
assist in maximising it while disposing video game products.
Nintendo of America assists to minimise waste disposal of video game products. Nintendo
offer convenient taking back of programs for businesses and customers, where Nintendo likes
to recycle the products. Take back program for businesses and customers use network of UPS
locations in the nation to ship the items at no cost to the customers. One can offer repair
support for the Nintendo systems for the years after retail sales have ended. The company
strives to recycle 100 percent of material from returned products and repair any parts, which
cannot be used and partner with the certified recycler when ensuring responsible recycling
practises. Nintendo of America has processed nearly 200 tons of returned items with 99
percent recycling rate. Nintendo has almost used two-third of the returned products, which is
environmentally friendly option (First carbon solutions, 2018).

(Source: Morgan, 2016)
Nintendo implements many measures with an aim to reduce climate emissions, which is
related to designing the new product in an effective way (Nordin, and Deros, 2017).
Organisational change model-
With an aim to improve the sustainable situation, it is seen that there is a need to change the
organisational change model and fix them by managing sustainability issues. There is a series
of activities that includes unfreezing, movement, and organising them. Unfreezing includes

changing to overcome pressure individual pressure and conformity towards group. Movement
includes changing process, which will transform the company from status quo to ending state.
Nintendo fails to communicate several climate changes, which reduce climate emission, as
clear targeting has not been mentioned. Nintendo uses 100 percent of renewable energy in
several facilities, as renewable energy use total energy has not been published. Nintendo
implements many measures through which it can relate to sustainable packaging but finally it
has not been published in annual packaging weights per material type. Nintendo has also
published list of smelters. Nintendo does not formulate comprehensive report on results
regarding the labour policy (Rosenfeld, 2015). Nintendo states how 78 percent of the
procurement expenditure has been audited.
Research- extent and application
While evaluating Nintendo as stakeholder oriented individual, it is seen that people have
become more individual rather than accounting for actions. There is an underlying concept of
responsibility. People often realise that they have been running business decision, which
make people effective while making decision, which affect more people just as a
stakeholders. When Nintendo`s circumstances understood the value creation and trading
closely when linking them to everyone (Clayton, and Radcliffe, 2018). Nintendo with failing
products and allegation for the child labour have many routes when taken in attempts.
Nintendo sense potential harm created by their products to the society. For 3DS, executives
can laid some workers in order to save the bottom line. Nintendo`s president has cut their
salary with 50 percent and also other executives cut by 20-30 percent. This may lower the
price of 3DS by $70 by making it more affordable (Mustapha, Manan, and Alwi, 2017). One
can put warning regarding the potential to lead to eye diseases visible on product as well as
company`s website. Nintendo often cut the price of system by attracting the price and more
customers but it wants to ensure that children`s eyes are not affected in a bad way. Executives

are against grain through cutting the pay in opposed to create the employees (Rosenfeld,
2015).
Nintendo has saved stock price when maintaining the value as 3DS is profitable. Nintendo
conducted communication with Foxconn. The company ensures that continuous fulfilment of
corporate social responsibility (CSR), and supply chain (as a worldwide company) and
committing them to ethical policy on labour, manufacturing, and sourcing (Ghorabaee,
Amiri, Zavadskas, and Antucheviciene, 2018). The organisation need all the production
partners, which include Foxconn when complying with the guidelines that are based on
relevant laws, guidelines, and international standards. There are certain allegations meeting
with shift action on Nintendo and staff has been continuing when carrying out site inspection
of the partners with an aim to ensure the working conditions meeting appropriate CSR
activities (Carvalho, and Rabechini Jr, 2017). Core two issues have threatened reputation of
Nintendo. One of them is fault of the product design and another is out of control. At many
point of actions “Nintendo” has not maintained their reputation whereas at times, Nintendo is
able to use stakeholder approach and viewpoint when choosing best path for both (Rosenfeld,
2015).
Nintendo has supported several goals of certifications such as e-stewards and R2 where we
believe that successful national recycling certification program has been supported by
government, affiliated association, and business (Rafiaani et al., 2018). Nintendo has
partnered with R2 certified national recycler with an aim to commit environmental
stewardship, which can meet CSR (corporate social responsibility) and it needs from
recycling partners-
Certification in quality, safety, R2 responsible recycling guidelines as being published by
EPA (Environmental Protection Act), environment management systems, and health. This

includes the prohibition of export of the defective items to process it to the non-OCED
nations. The company aims to get full support for zero electronics to the landfill policy and
using the domestic processing to prepare material for refiners (Naujok, Fleming, and
Srivatsav, 2019).
Organisational change approach-
This involves a procedure, which starts from unfreezing which means it has to change the
current strategies that can lead to apply several strategies of CSR (Corporate social
responsibility) (Blake, and Lloyd, 2019). To become sustainable, the company has to comply
with new rules and regulations and conduct such an operational plan to protect the workers.
Furthermore, a company has to get several certification while using the electric power supply.
It is important to conduct new and innovative style of reflecting CSR activities to the
consumer by fulfilling their demands and also providing them with a magazine (Clayton, and
Radcliffe, 2018).
Findings
After applying the approaches, it is seen that situation has underwent to see several issues to
which they are accounted for. The issues is that 3Ds is unprofitable and there is potential
harm to children where the issue with Wii U is underage labour. It is important to look into
the factors so that they can look beyond the benefits. Shareholders often experience either
harm or benefit. One of the less apparent group of stakeholders for 3DS as parents have to
care how children gets hurt. Other circumstance, where the stakeholder group is highly
influenced is the medical services (Missimer, Robèrt, and Broman, 2017). When child`s eyes
get irreparable once damaged and Nintendo have to face several class action lawsuits to deal
with. Among the five identified obligations, Nintendo has always obliged to enhance the
profitability. Nintendo is a family friendly organisation, which is an important feature of the

culture. Furthermore, after the marketing of 3DS as more heavy and issuing a recall, it is
possible that Nintendo can take another route to take on. From the above information and
analysis, it is seen that Nintendo was not true stakeholder-oriented organisation while
reacting to the issues. After the implementation of organisational change in the sustainability
reports announcing new corporate restructuring plan. Nintendo has released a chart indicating
the organisation’s management structure. The organisation has announced merging of
departments as per IGN (Rotmans, 2017). Integration between research and development
division, which will become new platform technology for the creation of Nintendo hardware,
development tools, OS, and network. Entertainment planning and development division is
responsible to creating games, which is not only Nintendo platform but also on the smart
phones. Nintendo in 2015 position in the gaming industry is not different from Nintendo at
the starting of 2015 (Hong, and Chen, 2017). Sales of Wii U home console continues to
languish after the needed injection regarding the critical acclaimed games. Portable 3DS has
appeared much on decline without dwindling hardware sales. After two years, nothing seems
to be changing in the report being assessed with consumer electronics organisation with an
aim to progress towards conflicts and responsible Integrating sustainability reports in
organisation`s business changing model. Processes conserve energy, which will drive
profitability rather than limiting it. Some of the best sustainable ideas have been coming from
the staffs where most company`s activities reside. After the sustainability reports, leader can
provide direction and also coordination where the next step is to educate the entire
organisation regarding the sustainable practises of the organisation (Rotmans, 2017).
Conclusion
Form the above discussion, it is seen that the record of the organisation has not remained so
good in terms of sustainability. Moreover, with ain aim to fulfil the sustainability strategy, it
is important to understand how well activities can create and minimise societal value by

examining type of activities. Furthermore, the company has to think products and services to
understand conflicts goals and demand of the customers. Engage strategically the expanding
list of value chain stakeholders. . The company has refused to acknowledge the
demonstration while making any sort of efforts. It is seen that Nintendo has not been seeing
the application of famous innovative approach, as it not only in believe in changing the
approach to negotiate minerals, which will surely change the performance. Nintendo`s
success is that it is the source of sustainable competitive advantage. Commitment to the
sustainability starts at top, which unwavering commitments from environment, and
management projects. To accomplish sustainability, it is important to critical for sustainable
growth with market perception.

References
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Project Management, 35(6), pp.1120-1132.
Clayton, T. and Radcliffe, N., 2018. Sustainability: a systems approach. Routledge.
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at: https://www.firstcarbonsolutions.com/resources/newsletters/september-2015-how-tech-
companies-are-promoting-sustainability/how-tech-companies-are-promoting-sustainability/
[Accessed on: 23/01/2020]
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Missimer, M., Robèrt, K.H. and Broman, G., 2017. A strategic approach to social
sustainability–Part 1: exploring the social system. Journal of Cleaner Production, 140, pp.32-
41.
Morgan, G., 2016. Organisational change: a solution-focused approach. Educational
Psychology in Practice, 32(2), pp.133-144.