Presented by:
Emmanuel Ofobeze
Supervisor:
Prof. Dr. Claire PurvisControllership and Decision-making Systems
University of Applied Sciences Fulda
Hasbro Interactive
24th May 2011
AGENDA
Company’s History & Profile
The Strategies of Hasbro Interactive
Analysis of Hasbro’s MCS
Recommendations
Hasbro Interactive’s Problems
AGENDA
Company’s History & Profile
The Strategies of Hasbro Interactive
Analysis of Hasbro Interactive’s MCS
Hasbro Interactive’s Problems
Recommendations
Company’s History & Profile
Hasbro: American producer of toys in
Rhode Island since 1923
Hasbro Interactive as wholly-owned
subsidiary (1995)
supplied video games
short product life cycles → strict dead lines
to develop new products
AGENDA
Company’s History & Profile
The Strategies of Hasbro Interactive
Analysis of Hasbro Interactive’s MCS
Hasbro Interactive’s Problems
Recommendations
The Strategies of Hasbro Interactive
1) Product Safety
Concerns to toys of parent company Hasbro
“Nothing is more important than the safety
and well-being of the children who enjoy our
products.” CEO Brian Goldner, company homepage
Tests and investigations to protect children
The Strategies of Hasbro Interactive
2) Marketing Strategies
Strict regulations concerning permitted time
of advertising in children's TV
Cartoon series produced to merchandise toys
and games
long-term business strategy: constant
reinventing and reviving of the brand
portfolio
The Strategies of Hasbro Interactive
3) Acquisition/Investing Strategies
Takeover of competitors and licences
Examples: Milton Bradley (1984), Tiger
Electronics (1998), Atari's licences (1998)
Result: expansion and enlarging of market
shares in toys as well as video game sector
The Strategies of Hasbro Interactive
4) Social Engagement
“responsibility to the people that develop,
manufacture and sell our products, the
children and families that use our
products, and the communities and
environment”
CEO Brian Goldner, company homepage
Example: name for the Hasbro Children's
Hospital in Providence
AGENDA
Company’s History & Profile
The Strategies of Hasbro Interactive
Analysis of Hasbro Interactive’s MCS
Hasbro Interactive’s Problems
Recommendations
Analysis of Hasbro Interactive’s
Management Control Systems
1
2
� Action Accountability: Mr. Baum held meetings
on monthly basis with the head of business units to
define and communicate to them which actions
are acceptable or unacceptable
�Preaction Preview: all business units were made
to report standard metrics known as “value drives”
Hasbro Interactives‘s MCS
3
Result Control: performance target of reaching a
total revenue of $ 200 million by the end of 1998
and $ 1 billion in the next 3 years + Bonuses
Result Control Action Control
Action Control
Tight Action Control
Tight Action Control: tighter supervision of
Hasbro Interactive by Mr. Baum by hiring Charlie
McCarty, a past colleague, to serve as Mr.
Dusenberry’s COO & Jackie Daya to monitor the
financial systems
AGENDA
Company’s History & Profile
The Strategies of Hasbro Interactive
Analysis of Hasbro Interactive’s MCS
Recommendations
Hasbro Interactive’s Problems
Hasbro Interactive’s Problems
1
Problems of Hasbro Interactive
3
2
4
Pressures from Wall street & corporate offices of Hasbro Inc.
Which risks are acceptable in reaching the $1 billion target
Operating with ambition, but without a multiyear plan
Inefficient tight action control
AGENDA
Company’s History & Profile
The Strategies of Hasbro Interactive
Analysis of Hasbro Interactive’s MCS
Hasbro Interactive’s Problems
Recommendations
1
Recommendations
3
Recommendations
2
Careful Selection of Managers: efficient and careful selection of management of
Hasbro Interactive. Mr Dussenberry & another manager with expeience in finance &
strategic planing.
Autonomy in Decision making: have autonomy in setting of the standards & the result
control because they understand the growth pace and the dynamics of the interactive
industry better than its corporate executives.
Budget Slack: there was clear information asymmetry between the Hasbro Interactive
and its management on which revenue target was plausible.
Conclusions
As conclusion: the benefit of having an independent
management outweigh its cost.
Corporations should grant the managers of its subsidiaries
great autonomy in discharging its managerial duties in
order to promote flexibility & creativity
Thank you for your attention!
I welcome your questions, suggestions, &
comments!
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