Compare tall, flat and matrix structures by examining communication, hierarchy, teamwork, specialist roles, decision-making and coordination in business projects.
Sources for use with Section B
Extract C
Competition in the Entertainment Industry
The games console market is dominated by three businesses; Sony, Microsoft and Nintendo. For many years Sony’s PlayStation console dominated the market. However, Nintendo regained its leadership position for the first time since 2009 with the sales of its new game console, the Switch.
In 2019, Nintendo sold 17.3 million Switch consoles, Sony sold 17.1 million PlayStation consoles, and Microsoft remained in third place, selling 10 million Xbox consoles.
Extract D
Nintendo’s Goal: Bringing Smiles to People’s Faces
Nintendo was founded in 1899 in Japan. It produced traditional Japanese playing cards. In 1970, Nintendo started the development of games consoles and video games. The entertainment market is dynamic, and Nintendo’s goal is to create fun experiences through product innovation.
Nintendo has sold more than 4.7 billion video games and more than 750 million game console units. This is because of the iconic characters it has created, including Super Mario, Donkey Kong, and Pokémon. Its most successful games consoles included Game Boy and the Wii. The Game Boy became the first handheld console to sell in large numbers but is no longer manufactured and the Wii has declining sales. In 2018, the Nintendo Switch was launched, which allows users to enjoy games anytime, anywhere, with anyone.
Extract E
Organisational changes at Nintendo
Nintendo recently made changes to its organisation that positively impacted on the business. Nintendo merged its two game development divisions, which were previously separate. One division had focused on consoles used in the home like the Wii while the other created games for handheld devices like the 3DS. Combining the two divisions aimed to speed up the development of products and allow Nintendo’s creative teams to share ideas and technology.
The use of a matrix organisation has proved to be a good move given the nature of the Switch, which is both a handheld device and a home console. This differentiates it from other games consoles in the market. The main benefit of the reorganisation is that it allows Nintendo to be more flexible with how it uses its game developers and other employees.
Assess the benefits of a matrix organisational structure for a business such as Nintendo.
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included.
Knowledge, Application, Analysis, Evaluation - indicative content
- In a matrix organisational structure, employees work within
teams or projects as well as within their own functional area
or department
- A benefit is that it encourages the sharing of ideas.
Designers and marketing staff at Nintendo are able to share
experience and good practice. This resulted in the
development of the Switch console, which has helped
Nintendo regain its market share
- The matrix organisational structure can break down
traditional department barriers and so improve
communication across the entire organisation
- It allows Nintendo to be more flexible with its developers who
can use their specific skills within a variety of development
projects
- However, members of project teams may have divided
loyalties if they report to two or more managers. This may
lead to stress and overworking of employees
- It may be difficult to coordinate if developers are required on
a number of projects, which may decrease productivity for
the business
- Overall, whilst the sharing of ideas and new technology is key
for Nintendo, it is important that the new structure is
managed well to maintain control, coordination and
employee motivation within the business.
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-2
Isolated elements of knowledge and understanding - recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2
3-4
Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3
5-7
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4
8-10
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information, and shows an awareness
of competing arguments/factors, leading to a supported judgement.
Question
Number
Indicative content