Organizational and Management Aspects of King
In the business organizations, the presence of many aspects or factors can be seen that can be held responsible for the organizational success. One of such major factors is the strategic management. The presence of effective strategic management helps the companies in development effective business strategies for the achievement of the overall goals and objectives of the businesses. At the time of the development of the effective strategic, two major factors are required to be taken into consideration; they are organizational structure and the capability of the management as strategies are needed to be made on these two major aspects (Hill, Jones and Schilling 2014).
This report aims to analyze both the management and organizational aspects of King Digital Entertainment Ltd (King). King is considered as a leading interactive entertainment as well as gaming company for the mobile users. The company was founded in the year of 2003 and has their presence all over the world. It needs to be mentioned that King operates in the video game industry. It needs to be mentioned that the gaming industry of United Kingdom (UK) contributes largely for the development of the country’s economy (discover.king.com 2018). The presence of 2261 active game companies can be seen in UK as of June 2018 and their business operation can be seen in all sizes and scales. In this gaming industry of UK, King is considered as one of the largest companies (ukie.org.uk 2018). The current market value of the company is £65.155 billion. The company is headquartered at London, UK and the total employee base of the company is 2000. Effective strategic development is considered as a major aspect for the success of King.
It needs to be mentioned that King follows certain organizational structure in order to maintain good functionality within the organization. King follows the organizational hierarchical structure for well functionality and the presence of the Chief Executive Officer (CEO) can be seen at the top of the structure. However, the organizational structure of King is slightly different from other companies. In order to facilitate effective functionality, King has included some major chief officers in their organizational structure; they are Chief Creative Officer, Chief Operating Officer, Chief Technology Officer, Chief Strategy Officer, Chief Legal Officer and Chief People Officer. The inclusion of the Vice President can also be seen (Tran and Tian 2013). All these people in the organizational structure are responsible for maintaining the functionality of different operational aspect of the company like strategy, people management, technology, legal aspects and others. The presence of different types of managers can be seen in the organizational structure of King like the human resource manager, marketing manager, finance manager and others. Thus, the above discussion shows that the organizational structure of King has great influence on effective functionality of the company as these people help in maintaining the functionality aspect in every aspect of the business operation of King (Tran and Tian 2013).
Scientific Management Approach for Improvement of Functionality
In the era of modern business, the presence of various approaches or theories of management can be seen that the help the companies in improving their business functionality. One of such approaches is the Scientific Management Approach or Theory. Fredrick Winslow Taylor is the inventor of this scientific management approach and for this reason; this approach is also called as Taylorism. The main focus of this modern management approach is to improve the efficiency as well as functionality of the companies. Thus, the major emphasis of this approach is to improve the functionality of the companies with the help of technology and human beings. In this context, it needs to be mentioned that some major principles of this management approach are there that can be applied in King in order to increase the overall functionality of the organization (Goetsch and Davis 2014).
As per this approach, King needs to make it sure that there is separation between planning and doing. It implies that the company is needed to leave the job of planning on the supervisors. This aspect will lead to the effective planning and supervising of organizational jobs. After that, the adoption of this approach will make the company to use time, motion and fatigue study for the determination of the fair amount of work done by the employees (Huczynski, Buchanan and Huczynski 2013). At the same time, the adoption of this approach will contribute towards the improvement of working condition and bring improvement in the functionality of the management of the company. Moreover, this approach will help King in the correct selection as well as training of the employee as well as senior management of the organization. Most importantly, this approach will make King in providing financial incentive to the employees as well as senior management that will lead to the increase in productivity as well as motivation of the organizational people (Goetsch and Davis 2014).
In the year of 1932, Charles Handy invented a specific model or framework for the analysis of the organizational culture on the success of the businesses. This model is known as the Charles Handy’s Cultural Framework. The presence of four types of cultures can be seen in the companies as per this framework and they are shows in the following diagram:
Figure 1: Charles Handy’s Four Classes of Culture
(Source: Russo et al. 2013)
Power: In most of the organization, power remains the hands of only few people. They delegate the responsibilities among the others like subordinates and the subordinates as well as employees do not have option to express their view but to follow the orders. However, in King, the subordinates as well as the employees get the chance to express their views or ideas for the development of various aspects of the business of King that leads to the organizational success (Cacciattolo 2014).
Charles Handy’s Cultural Framework for Analysis of Organizational Culture
Task Culture: In King, the presence of many teams can be seen where employees of common interests as well as specialization work together to achieve the organizational goals and objectives. In these teams, all the members of the teams contribute equally for the overall success of the company and it is a positive aspect for King (Russo et al. 2013).
Person Culture: In the organizational structure of King, the presence of Chief People Officer can be seen and the person is responsible for taking care all the positive as well as negative aspects of the employees and other staffs. In this way, the employees feel themselves as vital parts in the organization that contributes to ongoing business success.
Role Culture: The higher management of King delegates specific roles and responsibilities to every employees of the company based on their specialization, expertise and interests. For this reason, the employees get the necessary enthusiasm to perform the organizational tasks and it is a major reason for the organization’s ongoing success (Cacciattolo 2014).
In order to be successful and sustainable in the future, the companies are required to have specific strategic management objectives that will guide the company to the desired position and there is not any exception of this fact for King. The following discussion shows the use of Ansoff Matrix and Porter’s Generic Strategy Matrix for deriving two major strategic objective of King:
Figure 2: Ansoff Matrix
(Source: Hussain et al. 2013)
In the above figure, the presence of four aspects can be seen. Market development and product development is the introduction of new product and entering into new markets respectively. Diversity refers to the diversification of the business. Market penetration leads to the development of new strategies for encouraging more people to choose the product (Hussain et al. 2013).
As per the above figure, the first strategic objective of King will be market development that is to enter into new market along with focusing the new areas of the existing market. Thus, the company is required to target new geographical markets and needs to use different other sales channels for increasing sales (Basu 2014).
Figure 3: Porter’s Generic Strategy Matrix
(Source: Khalili Shavarini et al. 2013)
The presence of four specific aspects can be seen in the above figure. Cost leadership leads to the increase in profit by reducing costs. Cost focus is to emphasize on a specific niche segment. Differentiation focus is the development of new innovative as well as attractive product (Alstete 2014).
As per the above figure, the next innovative strategic management objective of the company will be the adoption of differentiation strategy. In this strategy, the strategic target of King will be to make their products and services different as well as attractive from their competitors (Khalili Shavarini et al. 2013).
Conclusion
From the above discussion, it can be observed that the organizational structure of King has great influence on the development of effective functionality and there is scope for improving this functionality in the organization. For this reason, the above discussion shows the use scientific management approach as a modern management approach for improving the functionality in King. After that, the analysis of the cultural framework of Charles Handy shows that the cultural aspects of King has major positive influence on the on-going success of the company. Lastly, based on two strategic management framework, King is provided with the suggestion to adopt both market development and differentiation strategy as innovative strategic management objectives.
References
Alstete, J.W., 2014. Strategy choices of potential entrepreneurs. Journal of Education for Business, 89(2), pp.77-83.
Basu, S., 2014. Product market strategies and innovation types: finding the fit!. Strategic Direction, 30(3), pp.28-31.
Cacciattolo, K., 2014. Understanding organisational cultures. European Scientific Journal, ESJ, 10(10).
Discover King. (2018). About – Discover King. [online] Available at: https://discover.king.com/about/ [Accessed 1 Jul. 2018].
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Huczynski, A., Buchanan, D.A. and Huczynski, A.A., 2013. Organizational behaviour (p. 82). London: Pearson.
Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., 2013. ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), pp.196-206.
Khalili Shavarini, S., Salimian, H., Nazemi, J. and Alborzi, M., 2013. Operations strategy and business strategy alignment model (case of Iranian industries). International Journal of Operations & Production Management, 33(9), pp.1108-1130.
Russo, G.M., Tomei, P.A., Linhares, A.B.J. and Santos, A.M., 2013. Correlation between organizational culture and compensation strategies using Charles Handy’s typology. Performance Improvement, 52(7), pp.13-21.
Tran, Q. and Tian, Y., 2013. Organizational structure: Influencing factors and impact on a firm. American Journal of Industrial and Business Management, 3(2), p.229.
Ukie.org.uk. (2018). The games industry in numbers | Ukie. [online] Available at: https://ukie.org.uk/research [Accessed 1 Jul. 2018].
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