Professional Documents
Culture Documents
GROUP 8:
Amellia Samantha / 008201500036
Christiana Tjitradinata / 008201500108
Stephanie Angelica / 008201500095
Auditing - 2015
SUMMARY
Hasbro created Hasbro Interactive, a new business unit chartered to develop video games for PCs and
other gaming systems based on Hasbro's many toy and game brands.
How does the strategy of Hasbro Interactive differ from the strategy of the
traditional toys/games businesses of Hasbro?
• Hasbro Interactive strategy differ from the strategy of the traditional toys/games
businesses of Hasbro by the structure of the division that was totally decentralized
at the beginning to encourage the innovation sprit for this division as a key success
factor in very dynamic and innovative market.
They follow deferent strategy to achieve this goal:
• Acquisition with other interactive companies
• Agreement with outsider and promising vendors
• Creating their own product from the scratch/restructuring
• Internal and external licensing deals
QUESTION 2
Are the organization and control of Hasbro Interactive consistent with the
strategy? How does the planning and budgeting system support or hinder
the growth of Hasbro Interactive?
Hasbro did many acquisitions through Hasbro Interactive once it saw the opportunities.
However, the acts weren’t followed by a well preparation.
The multi-business unit structure placed new and unfamiliar demands on senior leaders, who
generally agreed that strategic planning, budgeting, and business performance reviews were
not Hasbro’s strengths.
QUESTION 2
• As Mr. Verrechia said : “I think the way we went about it was emotional rather than
strategic. I do not think we really sat down and tried to put together a plan. Tom
(Dusenberry) promoted it, and he got the support that he needed.”
• Hasbro Interactive was created as a separate and independent division.
• Hasbro Interactive followed Hasbro’s annual planning and review cycle without significant
interaction with other divisions
• Through 1998, to spur organic growth, the company became more aggressive in setting
revenue targets for each division.
QUESTION 2
In conclusion, the strategic planning and the budgeting weren’t well prepared.
Hasbro should’ve followed the following strategic planning process:
1. Reviewing and updating the strategic plan from last year
2. Deciding on assumptions and guidelines (Management meetings)
3. First iteration of the new strategic plan
4. Analysis
5. Second iteration of the new strategic plan
6. Final review and approval
There must be a good control and contribution of all parties to implement the strategic
planned to support the Hasbro Interactive growth.
THANKYOU