Management and Organization Report: Rovio Entertainment Corporation

This report provides a comprehensive analysis of Rovio Entertainment Corporation's management and organizational structure. It begins with an introduction to the company, highlighting its success with the Angry Birds franchise. The report then delves into the organizational structure, emphasizing its hierarchical yet horizontal nature and its functionality in promoting interdepartmental communication. It explores modern management approaches, specifically the system approach, and its advantages and disadvantages for the gaming industry. The report further examines Charles Handy's cultural framework, applying it to Rovio to derive organizational culture and ongoing success. Finally, it identifies two innovative strategic management objectives of Rovio: increasing revenue and increasing investment, along with the strategic tools used to achieve them, such as SWOT analysis and Ansoff matrix. The report concludes by summarizing the key findings and emphasizing the importance of effective management and organizational strategies for Rovio's continued success.

MANAGEMENT AND
ORGANISATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Introduction of an organisation..............................................................................................1
TASK 2............................................................................................................................................2
Organisational structure and its functionality.........................................................................2
TASK 3............................................................................................................................................3
Modern management approach to improve functionality......................................................3
TASK 4............................................................................................................................................4
Charles Handy's cultural framework to derive organisational culture and ongoing success. 4
TASK 5............................................................................................................................................5
Two innovative strategic management objective of Rovio Entertainment Corporation........5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management and organisation play a vital role in managing successful business
operations. The study is based on star firm of video gaming industry that is Rovio Entertainment
group which has marked its growth for Angry bird franchise. The report will outline
organisational structure and culture which helps company in implementing effective innovation
in gaming activity. Besides, it will identify modern management approach which can assist the
entity in improving functioning to maintain ongoing success. Thus, it will determine two
innovative strategic management objectives of the enterprise which helps business in managing
continuous improvement in services.
TASK 1
Introduction of an organisation
Rovio Entertainment Corporation is one of the leading entertainment groups of video
gaming industry and it is marking success with team working and collaboration of innovative
ideas. Rovio is a finished video game developer based in Espoo and its annual turnover of 29.72
crores EUR. Enterprise is the best known for Angry bird franchise. Game has created boom in
world of entertainment across the globe. It is the most played game which is available in angry
bird gaming application. The entity was found in 10th November 2003 and is headquartered in
Espoo and Finland. The owner of business is Trema, with 37% of share value and founders are
Kim Dikert, Jarno Vaakevainen, Niklas Hed and Mikael Hed.
However, the consistent working of firm is reflected by its fair management in team
working practices. Moreover, the foremost concern of entertainment group is on implementation
of effective leadership and managerial practices in order to attain competitive business goals and
objectives (Rovio Entertainment Corp.: Changes in management, 2018). Further, traditional
managers of ROVIO are focused on managing creative and innovative business environment to
meet with the requirements of worldwide customers. Thus, the firm has joined fair play alliance
which is a global initiative for promoting positive online communities and fair gaming.
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TASK 2
Organisational structure and its functionality
Organisation structure of Rovio is hierarchical yet horizontal where management aims at
promoting inter departmental communication in order to reduce the errors in regular functioning
(Roehrich, Grosvold and Hoejmose, 2014). The motive of an enterprise is to divide work
according to job function in order to reduce waste and errors.
The functionality of organisation is based on interlinks of divisions like marketing
department is responsible for promotional activities where the focus of firm is to coordinate with
management and developers. However, in accordance with illustration, it can be said that the all
the departmental functions in hierarchical direction are only connected with superior authorities
that is CEO and CFO.
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Illustration 1: Organisational chart
(Source: Rovio, 2018)

Further, Rovio has segregated divisions who coordinate with top management whose
motive is to align efforts for all departments in one direction. Further, the division structure of
firm is reflected in chart where HR, brand licensing team, legal, administration, Rovio animation
and marketing are in N1 section. However, development, investors and secondary Rovio
animation team functions in N2 section of company.
TASK 3
Modern management approach to improve functionality
Management approaches are crucial part of business organisation which helps enterprise
in considering all the aspects of business environment. It is necessary for the firm to derive use
of the best application of managing with regard to specific situation of company (Rovio-
Johansson and Liff, 2012). There are various management approaches which are suitable for
enterprise like system, contingent, situational, chaos, etc.
System approach is an effective management theory which comprises of interactive
elements where the firm can arrange the business process and functions in a unified pattern. It is
an approach to management as with the help of this, organisation is liable to divide
organisational functions in sub system which reduce the risk of elimination of essential inputs.
Further, it is beneficial for gaming industry as it supports gathering for information and resources
before undoing process of transformation (Rovio Entertainment Corp.: Changes in management,
2018). Apparently, it is effective because it promotes dynamic and responsible business
functions with regard to changing customer preferences.
In accordance with Rovio Entertainment Corporation, it can be said that system approach
is the best suitable because it stresses on interdependence and interactive nature of macro and
micro factors of an entity. Implementation of this theory assists Rovio in evaluating the market
elements which can be beneficial or prove to be a limitation for profitability of business.
SYSTEM APPROACH
Advantages Disadvantages
 It promotes interaction of external and
internal environment of an enterprise.
 The approach helps in integrating
 It is time consuming as the process of
management becomes over conceptual.
 It cannot be directly implied and it is
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efforts of all departments which
minimizes errors.
 The theory assists in developing
meaning of management and
integration of business functions and
goals (Hong and et.al., 2014).
difficult to be followed.
 The functioning and management with
the help of system approach is complex
and lacks universality.
TASK 4
Charles Handy's cultural framework to derive organisational culture and ongoing success
Organisational culture is an integration of different values and behaviours which help in
managing success of an organisation in psychological and social environment. The stability of
culture is derived by underlying assumptions, beliefs and attitude of employees. Handy's
typology of organisational culture is an effective approach as it integrates four key business
features that is power, people, role and task. Analysis of model with regard to Rovio is illustrated
as below:
 Power culture: It derives distribution of power and responsibility among workers which
is directly related to authorities. However, management of ROVIO is based on equal
distribution of power in accordance with the skills and capabilities of employees. It is the
strategy which aids firm in reducing employee’s conflicts.
 Task culture: It is based on team working and building strategy of ROVIO where the
enterprise is focused on grouping of 6 or 7 workers in one team. The foremost motive of
forming team is management innovation in gaming services.
 Personal culture: It is necessary for an organisation to enable growth opportunities to
maintain ongoing success of business and to boost worker’s morale towards job
responsibilities (Shepherd and Rudd, 2014).
 Role culture: This staage of typology culture focuses on working of staff members and
success of business. In this, the focus of an enterprise is on managing effective
distribution of responsibilities in order to maintain cooperation's and coordination among
different business departments.
Thus, in accordance with discussion, it can be said that Handy's typology of
organisational culture is suitable for managing ongoing success of firm. It is an approach which
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helps company in managing employee’s satisfaction with regard to business goals and
objectives. Hence, it can be said that aligning efforts of staff members in one direction helps in
promoting a stable organisational culture.
CHARLES HANDY'S CULTURAL FRAMEWORK
Advantages Disadvantages
 It helps the firm in deriving multiple
orientation.
 It promotes a clear distribution of
power and enables highly defined
structure.
 It offers rigid organisational structure
and functioning.
 Multiple orientation enables the
bureaucratic environment.
TASK 5
Two innovative strategic management objective of Rovio Entertainment Corporation
Implementing use of innovative management objective helps the organisation in
developing a clear strategy which promotes formulation and implementation of initiatives to
attain business goals and objectives. However, implementing use of strategic tools assist the
management in coordinating and cooperation functions as per dynamic business environment.
It is the foremost responsibility of manager of enterprise to analyse use of the best
strategic tools for developing strategic objective of an entity. Manager is the person who
understands the nature of organisation and its functions. Therefore, the person is responsible for
deriving strategic initiatives. Apparently, management of Rovio Entertainment implements the
use of two tools, that is, Swot analysis and Ansoff matrix which help individuals in integrating
influence of both; internal and external factors (Yim, Kim and Kwahk, 2014). The aim of
manager is on analysing internal abilities of firm with regard to its products and services in order
to attain business goals.
Two strategic objectives of Rovio are to increase revenue by remarking performance
where the aim of managmenet will be on targeting potential demands to users. On the other
hand, entertainment group is aiming at increasing investment with motive of increasing
profitability.
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With implementation of strategic framework of Swot analysis, firm will be able to
determine internal capabilities with regard to determined goals. Like, the strength of business is
denoted by high awareness and customer base with the help of which Rovio will be focusing
over weaknesses where the firm is facing difficulty in maintaining fresh start on games.
However, strategic alliance of management will be focused on innovating new game in order to
keep consumers connected which will automatically assist the firm in increasing revenue and
boosting their performance.
CONCLUSION
The report concises about management and organisation of Rovio which is one of the
leading Entertainment Corporations in video gaming industry. With the introduction of company,
it has been analysed that firm has remarked its success with launch of Angry bird franchise.
Further, it outlined the effectiveness of system approach for Rovio which helps the firm in
managing business functions in accordance with macro and micro factors. Thus, the study
concluded by identifying organisational culture of enterprise with the help of Charles Handy's
cultural framework. Hence, it summarized by outlining Ansoff matrix and Swot analysis of
objective for firm to manage the overall organisational performance.
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REFERENCES
Books and Journals
Hong, Y.Y. and et.al., 2014. Implicit theories, attributions, and coping: A meaning system
approach. Journal of Personality and Social psychology. 77(3). p.588.
Roehrich, J., Grosvold, J. and U. Hoejmose, S., 2014. Reputational risks and sustainable supply
chain management: Decision making under bounded rationality. International Journal of
Operations & Production Management. 34(5). pp.695-719.
Rovio-Johansson, A. and Liff, R., 2012. Members' sensemaking in a multi-professional team.
Journal of health organization and management. 26(5). pp.605-620.
Shepherd, N.G. and Rudd, J.M., 2014. The influence of context on the strategic decision‐making
process: A review of the literature. International Journal of Management Reviews. 16(3).
pp.340-364.
Yim, N.H., Kim, S.H. and Kwahk, K.Y., 2014. Knowledge based decision making on higher
level strategic concerns: system dynamics approach. Expert Systems with Applications.
27(1). pp.143-158.
Online
Rovio. 2018. [Online]. Available through: <https://www.theofficialboard.com/org-chart/rovio>.
Rovio Entertainment Corp.: Changes in management. 2018. [Online]. Available through:
<https://globenewswire.com/news-release/2018/03/02/1413908/0/en/Rovio-
Entertainment-Corp-Changes-in-management.html>.
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