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Sustainability in the global economy

Strategy and Sustainability in the Global Economy

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Sustainability in the global economy
Abstract
In this report, we will discuss and examine how the business operations of Splash Damage
company located in the UK has been affected the micro and macro factors and the strategies that
the company management has to undertake to curb threats and weakness that the company is
currently facing in the video game developing the industry
...


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Sustainability in the global economy
Table of Contents
Strategy and Sustainability in the Global Economy

1

Abstract

2

Introduction

4

Micro and macro environmental analysis to identify threats and opportunities facing Splash
Damage, UK

4

Using VRIO to analyse the organisation’s threshold and distinctive resources

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Recommendations on future international expansion

12

Conclusion

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References

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Sustainability in the global economy
Introduction
The advancement of modern technology has revolutionised how business operates in this era
...
This is because the technology has opened many online platforms as
to where the companies can market its products and services to a large audience of potential
customers
...
On the other hand,
the millennial generations who make up the majority of the world population potential customers
have a high tendency of associating with companies that are tech oriented
...
Splash damage is a company
that operates in the video industry, it has adopted the modern technology to offer gaming and
other computer-related services that offer their customers entertainment and IT services
...


Micro and macro environmental analysis to identify threats and opportunities facing
Splash Damage, UK
The Micro factors are internal factors that affect how a company is being managed but the
management has control over the factors (Hoffman et al
...
As a result, the management has
the capacity and capability of how the business will run to curb the challenges that affect the
company
...
The management has an option
of developing and implementing strategic policies that can limit the impact of the external factors
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Sustainability in the global economy
(Hislop, 2007)
...
We will use the PESTLE
analysis, SWOT analysis and Porter’s Five Forces to analyse the internal and external factors
affecting the Splash Damage Company
...
To curb the threats of substitutes, the company management should allocate
sufficient resources that will help the company to consistently develop unique and very
competitive AAA multiplayer experiences to meet the customer needs and preferences which are
dynamic as the technology continues to advance over the years
...
Moreover, the management has to improve its online services to customise its online
propriety services that meet the requirement of the online business needs and demands
...
This is because the bargaining powers of buyers
can influence the market either positively or negatively and hence, every company should take
care of the affairs of the customers for it to survival in the global market
...
As a result, the company will attract and retain potential customers to increase the
company customer base and gain a competitive advantage over its competitors
...
Therefore, the
suppliers have the capacity to dictate how company can relate with them
...

Because, the video production industry in the UK has many suppliers, the Splash Damage
Company has a wide variety of suppliers to choose from, hence the company can select a
supplier with unique and differentiated products and services that will offer the company they
service and products that they need to accomplish their set goals and objectives
...
Thus, the Splash Damage organisation needs to develop effective and
efficient business strategies that will keep them ahead of new company entrants for the company
to counter competition
...

Rivalry
Industry or market rivalry exists when there are many companies that sell similar products and
services (Keith, 2012)
...

Because of this market rivalry, the Splash Damage Company should develop high quality,
differentiated and competitive gaming services that will satisfy customer needs and preferences
for the company to gain a competitive edge against its markets rivals
...
The Splash Damage Company has been affected by the impact of Brexit
...
Secondly, the
company has faced a challenged of attracting investors into their business by limiting the
company growth
...
, 2013)
...
This is because BREXIT has increased the price of
imports and the taxation rates are abnormally high
...
Secondly, the company revenue generation is challenging as
the company customers have a low consumption power as a result of inflation
...
Therefore, the
management of Splash Damage has a responsibility of making sure that the company conducts
the customer survey to understand the needs of its customers
...

Technological Factors
The technological advancements in the UK have given many companies an opportunity to
improve their business operations to be efficient and effective in the delivery of services within a
short time around time (Porter, 2011)
...


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Sustainability in the global economy
Legal Factors
For any company to avoid legal interference from the government or legal society, the company
has to comply with all business policies and legislation (Powell and Dent-Micalef, 2007)
...

Environmental Factors
A comply that violates the environmental policies such as pollution control and provision of
environmentally friendly products tends to have a bad reputation in the market and as a result,
the company is forced to close down (Priem and Butler, 2011)
...

SWOT Analysis
The researcher will use the SWOT analysis tool to analyse the strength, weaknesses,
opportunities and threats of Splash Damage Company
...
Moreover, the
company has been listed as the best Independent Developer in the Tech Media Invest 100
...
This public recognition has

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Sustainability in the global economy
increased the company visibility in the markets and it shows the company has enough capacity
and capability to outdo its competitors
...

Weaknesses of Splash Damage Company
The Splash Damage company weakness is that it exploits its employees by offering them low
salaries and wages and poor working conditions
...
This
developer’s exploitation has forced many employees to quit the company in the search of greener
pastures
...

Figure 3: SWOT Analysis

Opportunities of Splash Damage Company

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Sustainability in the global economy
The Splash Company has an opportunity of recruited top employees and who are well talented to
give credible ideas that when well executed, the company will develop a trending video game
...
Through this, the company will get positive reviews and as a result, the company
reputation will be improved
...
This is because the
studio employees have little or no training and therefore creativity is limited in coding
...
Therefore, the company management
should focus the company resources on the Business methodology, financial and managerial
training for the company to make milestones in its operations
...
The VRIO stands for value, rareness, imitability and organisation
...
Although, the video games development and production require a lot
of experimentation and creativity, the company has been able to deliver competitive and
entertaining gaming services to its customers (Santhanam and Hartono, 2013)
...
This is
because the company has a vast multiplayer expertise that will develop gaming products that will
forge cooperation and new friendships between players
...

Organisation; The Splash Damage Company is a private limited company started in 2001 in
London, UK that operates in the video game industry
...

The company is headed by Paul Wedgwood who gives the company directions on how the
business should operate
...
The company’s values that have boosted the company
performance over the years are: trusting and friendly working environment, employee
self-reliance to work, team spirit and team work, staff loyalty to the company cultures and
standards, a can-do work attitude and pursuant to work mastery
...
The company achieved this by paying their employees
overtime pay whenever there is crunching time to beat deadlines so that the company can reduce
the company staff turnover rate and as well boost employee morale
...

Secondly, as the company considers its expansion plans, the company management needs to
develop strategic planning policies that will promote professionalism and teamwork
...
Therefore,

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Sustainability in the global economy
through professionalism company will be able to balance employee maturity and childish
behaviour to increase the customer base and improve company sales
...
The company has to improve on their
creativity in the video games developments to stay ahead of its competitors and as well attract
and retain loyal customers increasing the company market share and customer base in the global
market
...
The reduction of staff turns over rate will save the company cost and
time of training new hires
...


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Sustainability in the global economy

References
Daragh O and Finola K (2013) "A view to a brand: introducing the film brandscape", European
Journal of Marketing, Vol
...
769-789,
Hislop, D
...
, (2008), Small firms, R&D, technology and innovation in the UK: A literature
review, Technovation, 18(1), 39-55
Jeryl M
...
21 Issue: 9, pp
...
and Joonas, R
...
49 Issue: 9/10, pp
...
C (2012) "The influence of print advertisement organization on odd‐ending price image
effects", Journal of Product & Brand Management, 11(5): 319-334
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Sustainability in the global economy
Keith S
...
, (2012), "“Like it or not”: Consumer responses to word‐of‐mouth
communication in on‐line social networks", Management Research Review, 35(9): 878-

899

Luo et al
...
(2011) "The Application of Product Life Cycle Theory to Popular
Record Marketing", European Journal of Marketing, Vol
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1-50
Porter, M
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(2011), “Strategy and the Internet”, Harvard Business Review, Vol
...
3, pp
...
C
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(2007), “Information Technology as Competitive
Advantage: The Role of Human Business, and Technology Resources”, Strategic Management
Journal, Vol
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5, pp
...
L
...
E
...
26 No
...


22-40

Rafiq, M
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(2015), “Loyalty Transfer from Offline to Online Stores in the UK
Grocery Industry”, International Journal of Retail and Distribution Management, Vol
...
6, pp
...
(2012) “What Attracts Customers to On-line Stores, and What Keeps Them
Coming Back?”, Journal of the Academy of Marketing Science, Vo
...
4, pp
...
and Hartono, E
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27 No
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125-153
Santos, J
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13 No
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233-246
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