Hasbro Interactive 5u1g6o

4 May 2014

Management Control Systems Submitted to Dr. Zamzulaila Zakaria By group : Sirin Alsarmini G1224192 Sarah Abdulelah G1319472 Mohamed Imran G1311139

Table of Contents Executive Summary................................................................................................................................. 2 1) Describe Hasbro Interactive evolution. What is the strategy of Hasbro Interactive? How does it differ from the strategy of the traditional toys/games businesses of Hasbro? ..................................... 3 2) Are the organization and control of Hasbro Interactive consistent with the strategy? How does the planning and budgeting system or hinder the growth of Hasbro Interactive? .................. 6 Conclusion and Recommendation .......................................................................................................... 7

Executive Summary http://www.allgame.com/company.php?id=594

1) Describe Hasbro Interactive evolution. What is the strategy of Hasbro Interactive? How does it differ from the strategy of the traditional toys/games businesses of Hasbro?

We can see that Hasbro interactive division has evolved through different phases.

 initiate the division Realizing the potential of the great future for interactive games Responsibility .Hasbro interactive stats as a profit center as it was responding to the anticipated future growth of the interactive games. Managers in this kind of centers are Responsible for both managing cost and revenue for their division. The structure of new division was totally decentralized at the beginning to encourage the innovation sprit for this division as a key success factor in very dynamic and innovative market. in order to guarantee the best start for the new division Hasbro management chose manger with good exraince in games manufacturing , and has at the same time visionary leadership skill to understand the potential growth foot the interactive gams  the rosy growth of the interactive division Advantage of decentralization

 restriction Stage and conflict of different insights in this stage the senior management of Hasbro step in to help interactive division to overcome its weaknesses which were basically in three aspects : strategic planning ;operational mangment; and budgeting .  The demise of interactive division Unfortunately the impact of this interfere was the main reason of the demision of Hasbro interactive division. As the new control system was working to deliver the senior management strategy which was not in congruous with the division visionary strategy. As a natural result of this Hasbro interactive division reported Once again disappointing revenues. Furthermore, the division continued to miss product Development deadlines. Further, it became clear that certain properties, particularly a

Flight simulator game, cost far more to maintain than was anticipated

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from profit center to revenue

The strategy of Hasbro interactive division Expanding and rapid growth (emotional goal, lack of proper strategic planning) They follow deferent strategy to achieve this goal 1- Acquisition 2- Agreement with outsider 3- Creating their own product from the scratch 4- Internal and external licensing deals The strategy of Hasbro for interactive games Before Hasbro interactive division Lower-risk investment by working with outside software developers to create video Games for existing hardware platforms. After developing Hasbro interactive games Profit Targets strategy After selling Hasbro interactive Licensing

2) Are the organization and control of Hasbro Interactive consistent with the strategy? How does the planning and budgeting system or hinder the growth of Hasbro Interactive?

Conclusion and Recommendation