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Strategic Positioning: Hector Gaming Company- Case Analysis

The Major Problem

The major problem in HGC is that no standards or goals are predetermined which could enable the management to have a clear vision of where the company is going. This vague vision of aims and objectives leads them to choosing projects based on their self-interest rather than according to the company’s goals. Moreover, the project deadlines are not being met, the financial resources are not being allocated properly and the projects are not handled on a priority basis. These problems can result in a loss of HGC’s market share in the company. 

Symptoms of the Problem

Some symptoms of the problem are as follows;

• Communication gap and lack of team work. This symptom causes the inability to meet deadlines.
• Conflicts among the management regarding allocation of budget.
• Lack of guidelines on selection and priority of projects. This causes confusion among the managers and everyone thinks their project is more important than others. An example is that of an international business game for high school students which was highly unrelated to the company’s strategy.
• Peters has not established long term goals for the company therefore there is a lack of leadership and corporate structure. She has also been unable to establish rules for implementing strategies.
• Vague idea of the target market
• Lack of knowledge about how to accomplish the long term strategy
• Potential of losing company’s employees as evident by the efforts of another gaming company to hire a product development employee that worked in HGC.

Major Cause of the Problem

Statistics show that Hector Gaming Company has been growing at a rate of 80% for the past two years but this growth rate is expected to fall down if the prevailing conditions continue. One of the major causes of the problem at hand is the conflicts caused by factors such as organization politics and resource allocation. Lack of leadership has led to lack of direction for employees due to which everyone performs tasks at their own will. Also, it is evident that Sally wasn’t involved in the internal matters of the company as she was shocked when she found out about the underlying problems. Moreover, the organization does not use any proper tools or metrics to determine the relative importance of projects and their urgency due to which they are unable to undergo the projects that are in alignment with the company’s competitive strategy. 

Action Plan

In order to cater the problem of prioritizing projects and meeting the deadlines, the Time Management Matrix for prioritizing tasks can be used. This matrix was proposed by Stephen Covey and is a simple approach to prioritize projects on the basis of their urgency and relative importance. By using this matrix, Sally can approve the most relevant projects accordingly and thus have an output in alignment with the company’s core strategy. Moreover, a resource allocation matrix can also be used to allocate and reallocate resources to the initiatives on the basis of their criticality and productivity. This would resolve the budget allocation problem and would enable the management to use their resources effectively.

The case study shows that there is a lack of corporate structure in the company. Thus a proper structure must be introduced with Sally having the major role in approving and directing all the projects in the company. Also, Sally needs to actively participate in the projects that are close to the deadline in order to facilitate satisfactory performance and to make the team realize that leadership support is with them. Moreover, it is evident that there is absence of a proper HR department due to which there is a problem of managing people and handling financial and human resources. Thus Sally should develop an HR department or hire an HR director which could allocate resources for all the projects. 

Moving on, the employees exhibit lack of team work. Building up on their team working skills is crucial for the successful running of the company. For this purpose, the company should put their efforts towards providing some employee engagement platforms in which they could enhance personal relationships and understand each other in a better way which would facilitate them to enhance productivity while working on the assigned projects. 

Lastly, there is a need to communicate the organizational goals and objectives clearly to everyone in the company in order to ensure that everyone has the same target in mind. For this purpose, a matrix called Hoshin Kanri matrix can be used which gives a visual representation of the long term and short term goals and the action plan needed to achieve these goals. 

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Hector Gaming Company Case Analysis

Essay by powerlifter88   •  September 22, 2015  •  Case Study  •  656 Words (3 Pages)  •  13,673 Views

Essay Preview: Hector Gaming Company Case Analysis

Case: Hector Gaming Company

The Hector Gaming Company (HCG) is a project driven company but it shows that most of the managers are taking any requested projects, not meeting deadlines/budget and taking projects that are out of company’s scope and vision. These problems escalated when the HGC started growing two years, now there are well known for their educational games in which it’s quite unique in the market. Due to lack of teamwork and communication, the president and the top ten managers are struggling to keep up with their projects. The other problem with the organization is that all the managers are accepting requested projects of their own personal interest. Lastly, the top ten managers used the same strategic plan and process suggested by McKinley Consulting. The solution for these problems is to make everybody in the organization be brought back of what the company goals, mission and objectives are. For project selection, it can be solved by taking all those projects and put them through a decision criterion among the managers. This can be accomplished by settings goals and objectives together as an organization by creating teams.  This will help by sorting out which projects they can handle, meet the budget/schedule and fits the company’s vision. As any other company, managers should never take strategic planning lightly since the company is growing in a fast pace, managers cannot assume the outcome would be same as before. Strategic planning should always be consulted and discussed within the organization in order to run the organization effectively and avoid implementation gap, organization politics and conflicts/multitasking.

What is our major problem?

The major problem in the HCG is that there are no standards or presets of long term goals and objectives. Due to this problem, managers do not know the company’s vision and goals in which leads to them to accept projects of their own personal interest. Also, most of the projects are not meeting the deadlines and budget; this could be caused due to poor scheduling and resource allocation since most of the projects are not even being completed on time, most of the times are exceeding the allocated budget and not being able to prioritize projects.

Identify some symptoms of the problem.

We can see several symptoms of the problem are the following:  

• Lack of teamwork and communication between the managers, due to this symptom many projects are unable to meet the deadline, each project manager believes that their project is more important than the other managers and the company is not meeting the budget requirements for each project.
• No guidelines on project selection and priority, because of this symptom it is creating confusion between the managers on which project to select and which project is considered as highly important.
• Lack of leadership, Peters the president of HCG is not able to establish a common goal within the organization. She needs to be established long term goals and objectives within the organization. Also incorporating a corporate structure for her company.
• Potential of losing key employees, due to the uncommon goal of the company, another gaming company tried to hire a key product development employee away from HCG in which it could create potential threats in the future and HCG would be a in a competitive disadvantage.

What is the major cause of the problem?

HCG is growing in a fast pace at a rate of 80% in the past two years but due to internal conflicts such as organization politics in HCG, the company growth rate and market share would drop. The major problem with this company is that they have no common goals/ objectives, poor leadership and poor organizational structure . Peters would have to establish a company’s mission for their employees to follow, implement an organizational structure of what projects to select/prioritize and Peters would have to be closely involved in projects that needs attention or is reaching closer to its deadline.

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Hector Gaming Company:Case Study Hector Gaming Company Hector...

Hector Gaming Company:Case Study Hector Gaming Company Hector Gaming Company Hector Gaming Company ( HGC) is an educational gaming company specializing in young children's educational games. HGC has just completed their fourth year of operation. This year was a banner year for HGC. The company received a large influx of capital for growth by issuing stock privately through an investment banking firm. It appears the return on investment for this past year will be just over 25 percent with zero debt! The growth rate for the last two years has been approximately 80 percent each year. Parents and grandparents of young children have been buying HGC's products almost as fast as they are developed. Every member of the 56- person firm is enthusiastic and looking forward to helping the firm grow to be the largest and best educational gaming company in the world. The founder of the firm, Sally Peters, has been written up in Young Entrepreneurs as " the young entrepreneur to watch." She has been able to develop an organization culture in which all stakeholders are committed to innovation, continuous improvement, and organization learning. Last year, 10 top managers of HGC worked with McKinley Consulting to develop the organization's strategic plan. This year the same 10 managers had a retreat in Aruba to formulate next year's strategic plan using the same process suggested by McKinley Consulting. Most executives seem to have a consensus of where the firm should go in the intermediate and long term. But there is little consensus on how this should be accomplished. Peters, now president of HGC, feels she may be losing control. The frequency of conflicts seems to be increasing. Some individuals are al-ways requested for any new project created. When resource conflicts occur among projects, each project manager believes his or her project is most important. More projects are not meeting deadlines and are coming in over budget. Yesterday's management meeting revealed some top HGC talent have been working on an international business game for college students. This project does not fit the organization vision or market niche. At times it seems everyone is marching to his or her own drummer. Somehow more focus is needed to ensure everyone agrees on how strategy should be implemented, given the resources available to the organization. Yesterday's meeting alarmed Peters. These emerging problems are coming at a bad time. Next week HGC is ramping up the size of the organization, number of new products per year, and marketing efforts. Fifteen new people will join HGC next month. Peters is concerned that policies be in place that will ensure the new people are used most productively. An additional potential problem looms on the horizon. Other gaming companies have noticed the success HGC is having in their niche market; one company tried to hire a key product development employee away from HGC. Peters wants HGC to be ready to meet any potential competition head on and to discourage any new entries into their market. Peters knows HGC is project driven; however, she is not as confident that she has a good handle on how such an organization should be managed— especially with such a fast growth rate and potential com-petition closer to becoming a reality. The magnitude of emerging problems demands quick attention and resolution. Peters has hired you as a consultant. She has suggested the following format for your consulting contract. You are free to use another format if it will improve the effectiveness of the consulting engagement. Peters has hired you as a consultant. She has suggested the following format for your consulting contract. You are free to use another format if it will improve the effectiveness of the consulting engagement.

Q1) what is our major problem?

Q2) Identify some symptoms of the problem?

Q3) what is the major cause of the problem?

Q4) Provide a detailed action plan that attacks the problem. Be specific and provide examples that relate to HGC

Your response for all four questions combined should be between 500-600 word, 11-font point, single-spaced. Grading rubric - 2a = 10 Points Relevance of Content - 5 points Word count - 3 points Grammar, formatting - 2 points

Answer & Explanation

Q1) What is our major problem?

The major problem at Hector Gaming Company (HGC) is a lack of alignment and coordination in the organization's strategic execution. Despite remarkable growth and success, HGC is currently facing a multitude of issues that are impeding its ability to sustain and build upon its achievements. The root problem lies in the growing disconnection among team members, conflicting priorities, and an absence of clear strategies for resource allocation. This has resulted in missed deadlines, budget overruns, and a loss of focus on the organization's core vision and market niche. Additionally, HGC must prepare itself for potential competition in its niche market and ensure that its new hires are integrated effectively into the organization to maintain its growth trajectory. The critical challenge is to bring cohesion and strategic clarity back to HGC's operations while addressing these emerging issues.

Q2) Identify some symptoms of the problem.

Several symptoms are evident at HGC, indicating the underlying issue of misalignment and coordination:

• Conflict and Lack of Direction : Conflict among team members is increasing, stemming from resource allocation disputes, project priorities, and differing visions of the company's future. There is a lack of clear direction on how to implement the organization's strategy.
• Missed Deadlines and Budget Overruns : Projects are consistently missing deadlines and exceeding budgets due to resource conflicts and a lack of coordination. This inefficiency jeopardizes HGC's reputation for timely delivery and financial stability.
• Divergent Initiatives : Some employees are working on projects that do not align with HGC's core vision or market niche. For instance, the development of an international business game for college students is a significant departure from the company's educational gaming focus.
• Resource Allocation Challenges : Project managers frequently vie for resources, believing their projects are the most critical. This competition for resources further exacerbates the conflicts and hinders progress.
• Rapid Expansion : With 15 new hires expected to join HGC soon, there is a concern about integrating them effectively into the organization and ensuring they contribute to the company's growth rather than adding to the existing problems.
• Potential Competition : Other gaming companies have noticed HGC's success and are attempting to hire key talent away from the company. This highlights the need for HGC to strengthen its position in the market and discourage new entrants.

Q3) What is the major cause of the problem?

         The major cause of HGC's problems can be attributed to a lack of strategic alignment, inadequate communication, and a failure to manage the organization's growth effectively. While there is consensus on the organization's long-term vision, there is a significant gap in translating this vision into actionable strategies. This lack of clarity leads to conflicting priorities and resource allocation issues. Ineffective Communication: Communication breakdowns have resulted in project managers and employees pursuing their initiatives without a shared understanding of how they contribute to the overall strategy. This disconnect leads to resource conflicts and divergent projects. Rapid Growth: HGC's rapid growth has strained the organization's capacity to manage projects, resources, and new hires efficiently. The absence of clear policies and processes for integrating new employees exacerbates the problem. Market Perception: The success of HGC has attracted the attention of potential competitors, who are attempting to hire away key employees. This reflects a vulnerability in HGC's ability to retain talent and protect its market niche.

Q4) Provide a detailed action plan that attacks the problem. Be specific and provide examples that relate to HGC.

To address the issues at HGC and restore its cohesion and strategic focus, a comprehensive action plan is required:

1. Strategic Clarity and Communication:

• Conduct a series of strategy workshops involving all key stakeholders, including employees and managers, to articulate a clear and shared vision for HGC's future.
• Develop a strategic plan that outlines specific objectives, priorities, and resource allocation guidelines.
• Implement regular communication channels such as town hall meetings, departmental updates, and cross-functional team discussions to ensure everyone understands and is aligned with the strategy.

2. Resource Allocation Framework:

• Establish a resource allocation committee comprising senior leaders to objectively evaluate and prioritize projects based on their alignment with the strategic plan.
• Implement a transparent resource request and approval process that considers project urgency, impact on the core vision, and available resources.
• Encourage project managers to collaborate and negotiate resource allocation rather than competing for resources.

3. Talent Retention and Integration:

• Develop an onboarding program for the incoming 15 employees that emphasizes HGC's culture, values, and strategic objectives.
• Institute mentorship and cross-functional training programs to facilitate integration and knowledge sharing among existing and new employees.
• Implement talent retention strategies, such as competitive compensation packages and professional development opportunities, to deter employees from leaving for competitors.

4. Market Defense Strategy:

• Strengthen intellectual property protections for HGC's unique educational gaming concepts and products.
• Proactively monitor the market for potential competitors and respond swiftly to protect market share and talent.

5. Project Portfolio Management:

• Conduct a thorough review of all ongoing projects to ensure alignment with the organization's vision and strategic plan.
• Consider phasing out or repurposing projects that do not contribute to HGC's core educational gaming focus.
• Enhance project management capabilities with training and tools to improve adherence to deadlines and budgets.

6. Leadership Development:

• Invest in leadership development programs for managers to equip them with the skills needed to lead and align teams effectively.
• Foster a culture of collaboration and shared ownership of the organization's success.

7. Continuous Monitoring and Adjustment:

• Establish key performance indicators (KPIs) to measure progress in alignment, resource management, and talent retention.
• Regularly review and adjust the action plan based on feedback, changing market conditions, and evolving organizational needs.

Please refer to the above answer (word count: 888)

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