CASE ASSIGNMENT QUESTIONS:
- Describe in detail how Electronic Arts (EA) could strengthen its feedforward controls in order to improve performance at the leading edge of this industry.
- Describe in detail how EA can use concurrent controls to improve the process of game development and sales.
- Develop some feedback controls that will give EA immediate information on how the company is performing relative to its competitors.
- Consider the steps in the control process on pp. 165-168. State one performance objective and standard (i.e. step 1), how you would measure EA’s performance in achieving the objective, state how you would compare the results to the standard, and what action you would take if the performance objective is not attained.
Electronic Arts – Inside Fantasy Sports
Introduction
The gaming industry has changed with time. People are not playing games like they played a few years back. It is due to drastic changes in the industry, which changed the perception of people and gamers. Android devices and online game stores have helped people leave the traditional structure of games. However, Electronic Art (EA) is still a leader in the game industry. Some key strategic considerations are required to regain success and growth.
Strengthening Feed-Forward Controls to Improve Performance
EA can strengthen its feed-forward controls to improve performance at the leading edge of this industry. Trends of playing games are changed now. EA must integrate with new gaming trends in the competitive industry. Identifying these trends is a key feedforward control. It has been observed that the firm only focused on sports games and invested in acquiring licenses. Competitors are making military-based shooter games for big screens and mobile devices. EA desperately needed a shift in game development, as making different game segments of customers could enable fast-forward controls. Also, the firm could make mobile games for users. EA customers have been shifted to mobile phone devices, and EA did not realize it early. In the competitive industry, the firm could improve performance through advertising. Unfortunately, EA depended on word of mouth to promote games. However, industry became competitive due to new arrivals and transformation of existing game makers. Overall, these could be two main strategies to improve the performance and get an edge over other rivals.
Concurrent Controls to Improve the Process of Game Development and Sales
EA wanted to be a sports company that makes games. However, several challenges occurred and created hurdles in the game development sales process of the firm. First, the company must have to set its directions. Based on current problems such as sales decline and poor game development, strategic options are available for the firm to improve the whole process. The stock of the firm has fallen over 23% (Chew, 2018). For Instance, sales are declining. The firm has to create some measures to evaluate different factors creating the impact. If the gamer or customer is not satisfied with game graphics, the firm must reshape its game development process. The concurrent control of the firm is to improve the development section and monitor the trend integration. An element of realism has been used effectively by the company. However, EA must look to depict an advanced level to increase the attraction and positive buying decisions. Complete control of the advertising process, especially on digital media channels, can increase sales. Word of mouth is not effective in this contemporary business era. The firm has to take control of marketing and justify the differentiated features of games. Concurrent control regarding problems and alternatives is the best approach to sustain an edge over other competitors. Improving the performance does not refer to just improving game graphics, quality, and realism. The market performance of the company must be improved by executing these concurrent controls.
Feedback Controls to Analyze Competitive Position
Activating feedback controls are a good strategy to analyze the competitive position. The simple way is to enhance the customer interactions on different tough points and derive some insights regarding, quality of games, behavior, and preferences. Gamers can also talk about the strengths and weaknesses of games. It seems an important source for the firm to evaluate the competitor’s games. If a sale of the company is declined, the firm may directly interact with customers to know root causes. The management can know what the competitor has done to convert gamers. Accordingly, appropriate action plans can be implemented. The second feedback control exists in the internal business environment. The management can collaborate with different teams in the game development department to evaluate or monitor the process. The administration has to observe how teams meet work goals and produce outputs according to expectations. Employees or team members can come up with some suggestions to improve the work process and make competitive outputs to beat competitors in the market. Thus, customers and employees are the main stakeholders in these feedback controls. The purpose is to make better games than competitors in the competitive market (Help.Ea.Com, 2018).
State One Performance Objective and Standard
Establishing performance objectives and standards, measuring actual performance, comparing actual performance with objectives and standards, and take necessary actions are four different steps in the process control. EA should apply these four steps to improve the performance and standardize the whole process.
For Instance, the performance objective of EA is to improve the quality of game development and sell over 1 million copies each quarter. This performance objective is linked to different quality control measures and standards. By implementing these quality controls, EA can manage the quality and differentiated outputs to beat competitors in the competitive market. The company wants to increase the attraction and sales as compared to other game makers.
The next step is to measure the actual performance. A prominent measure exists in the performance objective. The company decided to increase sales quarterly. If the firm sells over 1 million copies each quarter, the performance is improved. If sales are still declining, the firm has to find different alternatives to meet goals and objectives. The increase in sales is an effective measure because it is simple and easy to observe. EA, instead of navigating yearly, sales process must evaluate it quarterly.
Comparing the actual performance with objectives and standards is a big challenge. However, if the performance objective is clear or precise, it looks simply. The actual performance of the firm is not good regarding sales and game development. Depending on the traditional design, the firm is still developing games, which are not to be accepted by gamers. Many EA sports games are failing in the market due to impaired quality and standards. Rivals are producing games like “call of duty,” and comparatively, a new performance objective is needed. Battlefield 4 and SimCity failed on the PC, and it disappointed seasoned gamers (Alwani, 2016). Now, after designing and executing the new perforce objective, EA must improve. New graphics standards and gaming trends can be used in the game development process. Comparatively, the different outcome will be produced to improve sales.
Finally, in the fourth step, EA has to implement the strategy to meet this performance objective. The necessary step is to communicate the vision and create urgency in the workplace. Improving quality is a change initiative, which needs a proper vision. EA has to strengthen the internal force and streamline the objective to produce the expected output.
Conclusion
In the end, it is to conclude that EA must develop feedforward, concurrent and feedback controls to analyze the issue. Based on these controls, EA can come up with a different performance objective and meet goals and objectives. The gaming industry is quite competitive, and firms are battling regarding segment, realism, versions, graphics, and continuity. New quality standards are to be injected into the development to meet the needs of gamers. EA is still a leader in the game market, but some strategic considerations are required to be a relevant and top-ranked firm in the future. Instead of focusing on current needs, EA should aim for bright prospects.
References
Alwani, R. (2016, February 5). EA Wants to Win PC Gamers Back, but Its Actions Say Otherwise. https://gadgets.ndtv.com/games/opinion/ea-wants-to-win-pc-gamers-back-but-its-actions-say-otherwise-798781
Chew, C. (2018, September 9). Is It Game Over For Electronic Arts? https://seekingalpha.com/article/4205152-game-electronic-arts
Help.Ea.Com. (2018, June 19). Let Us Know About Problems With A Game Or Your Ea Account. https://help.ea.com/en-us/help/faq/what-do-i-do-if-i-have-a-complaint/
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