Please

analyse the case on the following pages using the following questions. Make sure that you
are clearly answering the question asked. Each answer should include a clear statement and
supporting evidence from the case. Where possible you should reference the material covered in
class to support your points.
1. Define the problem(s) (20%): First describe what has gone wrong in the case. These are
probably symptoms of underlying problems. Second, identify the problems that are
causing the symptoms. Try to apply the theories discussed in class to understand the
symptoms and the underlying problems that are causing them.
1. Analyse the people involved in the case (15%): Assess the major players in the case. What
values, personality traits, and abilities (or lack thereof) etc. are influencing how each
person behaves? What evidence have you accumulated that supports this interpretation?
1. Analyse the social context of the case (15%): What are the key interpersonal interactions,
team dynamics and cultural and conflict issues that are influencing how each person
behaves? What evidence have you accumulated that supports this interpretation?
1. Analyse how the decisions were made and information was used in the case (15%): What
information were people using, and how were they using it correctly or incorrectly when
making decisions? What emotions were people experiencing and how was that impacting
what happened? What evidence have you accumulated that supports this interpretation?
1. Describe your preferred action plan (35%): Based on your analyses above, how would you
address the key problems in the case? List and prioritise possible managerial
recommendations or actions that come out of each of your analyses. Write a clear
statement of what you would recommend including short, medium and long-term steps to
be carried out.

Background
Nintendo Co., Ltd (Nintendo) is a Japanese multinational consumer electronics and software
company headquartered in Kyoto, Japan. Originally a producer of cards and toys, Nintendos focus
shifted in the late 1970s to video game consoles and games, with over 670 million hardware sales
and 4.23 billion software sales worldwide. The company, who has created some of the most iconic
video game franchises of all time, including Mario, Pokmon, Donkey Kong and The Legend of
Zelda, is now at a crossroads in 2016 as the industry readies itself to enter the Ninth Generation of
video game consoles.
Characters
Nintendo Australia
Tom Enoki, male, 45 years old, Managing Director of Nintendo Australia. Born in Osaka,
Japan.
Liam Meyer, male, 35 years old, Head of Marketing. Born in Newcastle, Australia.
Molly Noor, female, 28 years old, Head of Sales. Born in Kuala Lumpur, Malaysia.
Frank McCoy, male, 55 years old, Head of Finance. Born in Sydney, Australia.
Nancy Carlson, female, 42 years old, Head of Human Resource Management. Born in
Auckland, New Zealand.
Nintendo of America
Reggie Fils-Aime, male, 55 years old, President and Chief Operating Officer of Nintendo of
America. Born in New York, United States.
Nintendo of Japan
Tatsumi Kimishima, male, 66 years old, President of Nintendo of Japan. Born in Tokyo,
Japan.
Day: Tuesday, 10:00am
Location: Boardroom, Nintendo Australia headquarters in Scoresby, Victoria.
Situation: Tom, Liam, Molly, Frank, and Nancy sit around the boardroom table participating in a
videoconference with Reggie and Tatsumi about the upcoming launch of the new Nintendo
console, the Nintendo NX.
Reggie Fils-Aime: "One of the things that we have to do better when we launch the NXwe have
to do a better job communicating the positioning for the product. We have to do a better
job helping people to understand its uniqueness and what that means for the game playing
experience. And we have to do a better job from a software planning standpoint to have
that continuous beat of great new games that are motivating more and more people to pick
up the hardware and more and more people to pick up the software. So is that clear
everyone? We have to make this work."
Tom Enoki: "Basically what you're saying is 'good games sell hardware'."
Reggie: "Exactly. And we have to make sure that we communicate this to the Australian
consumers. This. Must. Happen."
Reggie pounds the desk in his office in Redmond, Washington as he delivers his speech. He is red
faced and out of breath as he delivers his speech.
Reggie: Do you agree, Kimishima-san?"

Tatsumi Kimishima pauses before smiling and nodding. He had been very quiet for most of the
videoconference, letting Reggie do much of the talking to the group at Nintendo Australia.

Liam Meyer: "Just to check, is the NX replacing the Wii U?"

Tatsumi Kimishima: "The NX is neither the successor to the Wii U nor to the 3DS. It's a new way of
playing games, which I think will have a larger impact than the Wii U, but I don't feel it's a
pure replacement for the Wii U."

Everyone in the room nods at the President's carefully chosen words.

Little is known about the NX console except that it will feature industry-leading hardware and will
not be a new version of the Wii or the Wii U. Official patents filed by Nintendo in 2015 with the
US Patent & Trademark Office suggest that the device, will not feature a disk drive, which suggests
that the console will focus on online gaming or use cartridges similar to the Nintendo 3DS
handheld console. Nintendos strategic focus with the NX console may in fact attract third-party
publishers and in turn attract a wider segment of gamers. Whatever the NX is, one thing is known
for sure: If Nintendo rushes the NX to market without fully understanding the changing needs of
the industry, it will suffer the same fate as its once-rival Sega and be pushed out of the home
console market.

Reggie: "Okay guys I think we should leave it there. Kimishima-san thank you very much for taking
the time to talk to the Australian team."

Tatsumi smiles and nods as Reggie terminates the videoconference. Tatsumi then does the same.

Tom: "So we've just heard from the presidents of Nintendo Japan and America. They seem to
think that the NX is going to make Nintendo the superstar company it was before it
launched the Wii U."

Molly Noor: "Ugh. The Wii U... Why did Nintendo have to release that after the Wii?"

Nintendo released the Wii home video game console in 2006. Choosing not to compete with
Microsofts Xbox 360 and Sonys PlayStation 3 (PS3) on hardware and graphics, Nintendo went in a
different direction with the Wii, focusing on motion-sensor technology with the Wii Remote and
Sensor Bar. The Wii was phenomenally successful and sold 101.63 million units and 913.13 million
games worldwide, with Mario Kart Wii being the best non-pack-in game (35.70 million units).
Released in 2012, the Wii U, the successor to the very popular Wii, is the first Nintendo console to
support high-definition graphics and utilises the touchscreen GamePad as part of play. The Wii U
has been met with very slow adaptation, with many consumers thinking that the console is simply
an add-on for the Wii. Apart from the Virtual Boy, the Wii U has been by far Nintendos lowest
selling video game console, with 12.60 million units and 79.30 million games being sold. The
current top selling game is Mario Kart 8 (7.24 million units).

Frank McCoy: "Oh the Wii U is great! I love playing it!"

Liam and Molly both sigh as they look at Frank.

Molly: "Frank, you didn't have to try and sell the Wii U to retailers! No one wanted it to buy it!"

Frank: "Really?"

Molly: "Yes. And they still don't! Maybe if Liam had done a better job marketing the Wii U then
consumers and retailers would know what the hell it is!"

Liam looks angrily at Molly.

Liam: "What? Are you serious? You're blaming me for this?"

Molly: "You're damn right I am! You're hopeless at your job!"

Liam threw up his hands and steps back from the table.

Liam: "I can't believe we're still having this same conversation! You know that my hands are tied
by Nintendo of Japan and America. I don't have the authority to just do what I want. I do
what I'm told from the higher ups."

Nancy looks alarmed at the argument between Molly and Liam. She then calmly addresses them
both.

Nancy Carlson: "Guys. You both need to need to take a deep breath and think about what you're
saying. We are a team. We work together. We share our successes. We also share our
failures. This helps us grow and learn and get better."

Molly rolls her eyes and turns away. Liam sits back down at the table.

Tom: "Team we need to get ourselves ready for the launch of the NX. Nintendo of Japan and
America are not giving too much away about the console. But whatever it ends up being we
have to be ready. We have to have clear long-term strategies for Nintendo Australia. The NX
cannot be another Wii U. Otherwise we will end up with the same fate as Sega -- developing
games for our competitor's consoles. I do not want to see Mario or Zelda on a PlayStation or
Xbox!"

Everyone in the room nods in agreement.

Frank: "So what do you want us to do?"

Tom: "I want you all to form a committee to workshop how the employees at Nintendo Australia
are going to communicate the NX to the Australian public. This is our top priority."

Frank: "We hear you loud and clear Tom."

Day: Tuesday, 1:30pm
Location: Cafe, Nintendo Australia headquarters in Scoresby, Victoria.
Situation: Nancy and Molly are eating lunch together and talking about the meeting

Molly: I cant stand Liam. He is so lazy!

Nancy says nothing. She just watches Molly stabbing her fork into the salad on her plate.

Molly: I have to do most of the work for him. He doesnt show any initiative. He doesnt take any
risks. He just produces that same thing over and over again. I end up having to show him
what to do. I am in Sales. He is in Marketing. Why am I doing his job? What he produced for
the Wii U launch was terrible! Retailers had no clue what the Wii U was or how or if it was

any different from the Wii. Consumers didnt know what the Wii U was. Subsequently the
PlayStation 4 and the XBox One have absolutely slaughtered us in sales.

Nancy looks uncomfortable and stares down at the table.

Molly: I just feel that I am going to have to take on more of Liams responsibilities to get the
marketing of the NX right. Its just so unfair.

Nancy: Maybe you should try talking to him? Express how you feel?

Molly laughs sarcastically.

Molly: Pfft. Yeah right. Will that magically fix the problem?

Nancy stiffens and looks away.

Molly: Sorry Nancy. I am just stressed at the moment. I want to please Tom, Reggie, and
Kimishima-san and I am taking my frustrations with Liam out on you.

Nancy: Its okay. Hopefully you two can work things out.

Molly: Me too. But its he who needs to change.

Day: Tuesday, 3:00pm
Location: Meeting room, Nintendo Australia headquarters in Scoresby, Victoria.
Situation: Frank and Liam discuss the earlier meeting

Frank: So what the hell happened in the meeting earlier? Why is Molly so angry with you?

Liam takes a sip of his coffee and shrugs.

Liam: I have no idea.

Frank: Really? She seemed really upset.

Liam rolls his eyes.

Liam: Shes always like that.

Frank: No shes not. Molly is usually very composed.

Liam: Ugh shes such a perfectionist! Every single thing has to be done her way. Look, I do a
pretty good job at the marketing stuff.

Frank: You do what Nintendo of Japan and America tell you to do.

Liam gives a knowing smirk.

Liam: Hey, what they do seems to work.

Frank shakes his head.

Liam: Why would I take a risk if there isnt a reward? Tom likes certainty. Anyway, Im not
wasting my time trying to market the Wii U. The system has been long dead.

Frank: Is that really how you feel about the console? Nintendo has some great games on the Wii
U.

Liam: Come on Frank. Nintendo of Japan and America really screwed up with the Wii U. And
weve paid the penalty. Low sales means low profits. Low profits mean no bonuses or pay
rises at the end of the year. Why should I work harder when Im not going to be rewarded
for it?

Frank nods in agreement.

Frank: Yeah I know what you mean. And just between you and me, if the NX isnt a success and
we dont start making some serious increases in sales, we are going to have to lay off some
of the staff members here at Nintendo HQ. We simply wont have the funds to keep them
around if people arent buying the NX.

Liams eyes widen in shock.

Liam: Are you serious?

Frank: Very.

Liam: This sucks. I cant believe its that serious. Thanks for the heads up Frank.

Frank: Youre welcome. Just make sure you work hard and get the word out about the NX.
Whatever it ends up being!

Day: Wednesday, 9:00am
Location: Boardroom, Nintendo Australia headquarters in Scoresby, Victoria.
Situation: Liam, Molly, Frank, and Nancy sit around the boardroom table talking about the NX.

Frank: Okay everyone. Shall I get the ball rolling?

Liam and Molly look down at the table avoiding Franks gaze. Nancy looks around at the rest of
the team.

Nancy: Sure Frank. Good idea.

Frank: Before we get started on Toms request, I think its important to break the ice and chat
about some of the issues that came up from yesterdays meeting.

Liam and Molly continue to look at the table.

Nancy: Come on guys. This has to stop.

Molly whips her head up and looks at Nancy.

Molly: I thought that you were on my side!

Nancy: Im not choosing sides, Molly.


Molly rolls her eyes and mutters under her breath.

Molly: Im sick of this crap!

Liam: What is your problem, Molly? I swear that its always something with you.

Frank: Liam. I think you should calm down and think about what you are saying.

Liam: Shut up Frank. You know its true. You all know its true. Im the only one who has the guts
to say anything about her.

Molly: Oh you really are a piece of work Liam. You are so useless and lazy. And you think I am the
problem?

Someone clearing their throat startles the team and they turn their heads to see Tom at the door.

Tom: I knew we had some problems with the team, but I didnt realise it was this bad.

Frank starts to interject but Tom cuts him off.

Tom: Save it Frank. Get this situation sorted out yourselves or I will step in and do it for you.

Tom turns around and leaves the boardroom.

Molly: So that wasnt good.

Liam: Youve got that right.

Molly: So what should we do to fix it?

END OF EXAMINATION