hasbro presentation final vers

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



Analysis of Hasbro Interactive’s MCS


Recommendations


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





Recommendations


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


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


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


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





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




Recommendations



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





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!

hasbro presentation final vers

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