Question

For a Video Game Development Firm:

1.If your chosen business is either currently involved in or considering getting involved in international business, name and describe 2 relevant international trade barriers.

2. Locate and provide the mission or mission statement for your chosen business. If unable to locate, please provide a definition for “mission”.

3.Using the SWOT Framework, identify 1 of each for your chosen business.

4.Why is organizational culture so critical in any business?

Answer 1

1. Video game development companies are general not subjected to too much of trade barriers but there are few to mention

1. Requirement of local representation: Country might ask for local representation. This results in unnecessary trade barrier for company as it cannot set up office in very country.
2. Additional taxes: Countries might impose additional taxes on foreign video game developers to ensure local developers.

1. Mission statement definition: A mission statement is a short description for companies existence. It identifies the goal of its operations, what kind of product or service it provides, its primary customers or market, and its geographical region of operation.
2. SWOT analysis: (Assume Nintendo)

1. Strength: Company has experience of developing video game for past 128 years. It is well established in market with large number of experts in the field.
2. Weakness: Company is facing developmental problems. Most of its games are not well accepted in public. Recently it launched video game called Pokemon which was initially successful but faced lot of criticism later. Many countries banned the game fearing safety of peoples.
3. Opportunity: Video games are increasingly popular among younger generation, with increase in birth rate demand for video game increases. Currently, video game industry valuation is pegged at 25 billion dollars and is increasing at growth rate of 8% per annum. This offers great opportunity to gaming industries with demand coming from developing countries.
4. Treat: There is large increase in number of companies involved in development of video game. This represent treat as company should share market with others. Many countries are turning older i.e. its population is becoming older, hence demand for video game is decreasing in these countries (like Japan).

1. Organizational culture is critical aspect of any business because it represent collective values, belief and principle of organization. Any organization with bad value, belief and principle faces existence crisis. A good organizational culture promotes high employee morale, competitive edge among employees. This results in company competing effectively among its competitors.