International Operations Of Nintendo

Employee Relations and Training

Are any employees of your company represented by labour unions or covered by collective bargaining agreements? Are any of these employees working outside of the United States? 

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A great range of Nintendo products including the likes of 3Ds and Amiibo toys are being manufactured in China. The products reach America through the by cargoes via the west coast. One commendably big labour union formed by the Dock workers of Nintendo is operating in this area of China. Again, Aloupis et al. (2015) opines that another popular forum linked with the Nintendo Corporation is the NeoGAF, which is a gamer’s forum who are passionate about the Nintendo games. The forum comprises of members form many progressive nations of America, Asia and Europe. They strongly resented the dropping out of Alison Rapp on the ground of Corporate Ethics. Other small employees union, both political and apolitical are present within the realm of the USA also.

Does your company employ expatriates in any overseas operations it might have? If so, what resources does the company provide to train expatriates before they go to the foreign location? Does the company also provide training or support for expatriates during the repatriation phase? 

Expatriate employment is common for Nintendo of America. They post Japanese expatriates in the game designing centres of the company operating in Japan. One loophole of Nintendo is their prohibitive cost policy for training expatriates from overseas. Resources such as communication training for the expatriates in countries like Japan and China where most of the overseas expatriates of the organisation are posted. The organisation also maintain a stable congregation of managers who have the capacity of acquainting with and working in foreign cultures. Again the organisation also recruits locals from the home country as HR recruiters in other countries. Hence, the HR department is able reflect the skills of the employees in a better way. During the repatriation phase, the employee provides technological training to the employees mainly so that they are able to update to the work standards of the company.

To what extent, or in what ways, does your company use the Internet for employee training and development? 

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The DS platform of Nintendo is being used by the company for employee training program. They belie that since most of the people are acquainted the DS facility, the training time can be halved by using this. During the seasoning period in the company the employees learn game development courses and receive induction from the R&D department that is situated in the home country, over the internet. According to Bower et al. (2014), the monitoring of the employees’ learning is also done over the internet. The employees also have a chat forum where they can discuss their issues. The recipients of this forum involves employees all over the world.
What products are sold in the company’s international markets? Do they vary by country or by region? 

The gaming consoles of Nintendo that have been made by focusing on the gaming needs of the kids aged under 12 years of age. The elders are accustomed to enjoying gaming in their PCs, tablets or mobile phones. On the other hand, the Wii U gaming facility have not been popular in China. The Super Mario gaming series have been a monster launch in the western countries. The European countries had greatly accepted the game. Recently, the company made a strategic effort to occupy the South Asian market with single product strategy. They launched Pokémon Go. The game was a huge success with the customers of all age groups in the south Asian Belt. However, it did not make a scratch in the American market. Hence, the organisation in its production history, willingly, or not have concentrated on creating products and facilities that have been accepted largely in particular zones of the world.

Products in International Markets

What types of promotion does your favourite company emphasize in its international markets? Do they differ from those used in its domestic market? 
What kinds of distribution channels are being employed in your company’s international markets? 

In populous countries like China, India and other South Asian countries, Nintendo has taken the strategy of promoting their products (mainly the gaming consoles) as an entertainment tool for the women, adults and the whole family in fact. According to the ideas of Chao, Scherer and Montgomery (2015), the advertisements of the gaming consoles of Nintendo in these markets, project these as popular home entertainment hubs. The popular gaming culture of these countries can exaggerate sales of Nintendo. In America, however, Nintendo is popular among small kids. Elder customers are likely to favour X Box from Microsoft. Dan Coyner, marketing head of the company in USA I of the opinion that the market demographics of the Company after the entry of Reggie as the COO have changed. Instead of focusing on promoting the game brands, Nintendo have started promoting the corporate image of the corporation in America. They have adopted the marketing policy of promoting Nintendo as a corporate brand with their Play Out Loud campaign, under which ad campaigns have been started featuring the Butthole Surfers. The company adopted a strategy of ironic promotion in Canada, the ad portrays that four out of 5 doctors prescribe that the N drug (stands for Nintendo) would straightway lead to “too much fun”. The doctor also advices to consult the ministry of fun which can offer a possible remedy to the problem.

Is the company practicing global procurement? If the company is procuring globally, what goods and services is it procuring and from which countries? 

Nintendo procures Switch consoles from other countries like Japan or China and imports them to America where. The franchise companies manufacture these for them. The reason for choosing these two countries us that the operational cost pertaining to labour cost and price of raw materials is less. Another procuring site for the company is Congo that supplies Gold, Tantalum, tungsten and tin for the products of the company (Nicholson et al. 2015). The company also partners with DeNA, a Japanese agency that creates artificial intelligence capable circuits for the gaming products of Nintendo. The global company also procures Chinese technological experience. They have a separate research team in China. The Lite version f their DS gaming console have been designed by the Chinese R&D division.
Is the company practicing global production? If the company is producing globally, what goods and services are produced globally and in which countries? 
Has the company outsourced goods and services? Has the company insourced goods and services? 

The Gaming consoles like Nintendo DS touch screen is designed in Japan. The game was researched for, collaboratively by the R&D team of Nintendo for America and Nintendo, Japan. Games like Super Mario Bros or the Game Boy and new version of Tetris were invented in Japan. However, China is a big technology partner for the organisation also. The 8 bit processor was invented in America. However this was not adequate to support the Silicon graphics facility. Hence latter, the company started to purchase 16 bit processor from Japan for its devices. Although major share of the revenue comes from its American markets, the company also makes games and consoles for the Asian Market also. The company has outsourced services in Europe also. Popular FMCG brand McDonalds has planned to use the DS console for training the employee (Row, 2015). This led to the outsourcing of processionals from Nintendo, who managed the training program at McDonalds.
Is the company a member of one or more supply chains? If yes, can you identify the major members of the supply chain(s)? 

The organisation has a diversified and complex supply chain. Particularly the distribution channel of the company is the Asian countries is maintained by various tertiary partners like Jesnet and Ajioka. These are among the largest distributors of hardware arrangements in South Asia with cross national links. However, besides the company has also sourced from external supply partners for supply of the Nvidia Chip that is to be used in their upcoming gaming console.
In what countries does your company export goods? Import goods? How would changes in the values of these countries’ currencies relative to the U.S. affect transactions and translation risks? Economic risk?

The company exports its products to a lot countries of South America, Europe, Asia, and America. Among the Asian countries the two largest customer bases are China and Japan. Other than that other potential Asian markets are India, Malaysia, Taiwan, and Thailand and so on. These are low end economy countries. However, as per Tarakci et al. (2016), the customer base in these countries is broad. The culture of video gaming is also strong. Hence they prove to be potential market for the company. Besides, they have strategic alliance with China and Japan for technical support. Chinese native companies manufacture a range of gaming consoles for the company. Another important market is Europe. After operating within the European Union, the economic imbalance has not been a troublemaking issue for the country. Besides, the Super Mario series of games have been very popular in Europe. Hence, they collected a large part of revenue from the developed European nations.

Reference List

Aloupis, G., Demaine, E. D., Guo, A., & Viglietta, G. (2015). Classic Nintendo games are (computationally) hard. Theoretical Computer Science, 586, 135-160.

Bower, K. J., Clark, R. A., McGinley, J. L., Martin, C. L., & Miller, K. J. (2014). Clinical feasibility of the Nintendo Wii™ for balance training post-stroke: a phase II randomized controlled trial in an inpatient setting. Clinical rehabilitation, 28(9), 912-923.

Chao, Y. Y., Scherer, Y. K., & Montgomery, C. A. (2015). Effects of using Nintendo Wii™ exergames in older adults: a review of the literature. Journal of aging and health, 27(3), 379-402.

Nicholson, V. P., McKean, M., Lowe, J., Fawcett, C., & Burkett, B. (2015). Six weeks of unsupervised Nintendo Wii Fit gaming is effective at improving balance in independent older adults. Journal of aging and physical activity, 23(1), 153-158.

Row, H. (2015). Codename revolution: the Nintendo Wii platform.

Tarakci, D., Ersoz Huseyinsinoglu, B., Tarakci, E., & Razak Ozdincler, A. (2016). Effects of Nintendo Wii?Fit® video games on balance in children with mild cerebral palsy. Pediatrics international, 58(10), 1042-1050.