CASE ynga Inc 2011 Whose Turn Is It schary Burkhalter Daniel
Solution
AS PER RULES 4 FOUR PARTS HAVE BEEN ANSWERED.
PESTAL basically has a full form representing various environmental factors that directly or indirectly impact a business.
starting with P means political as depicted in the case the company is investing heavily for lobbying for its game poker and shall spent quite a lot for this purpose and its has seemed to pay of as the US justice department has initiated efforts for the same, thus political environment seems positive.
E is for economic factor the grand opening of the IPO and the increasing penetration of internet to remote corners of the world shows immense potential in future to come, this factor also seems to be on positive side of the company.
S is for social factor the figures shown in the case are self-explanatory that the manifold increase in the number of gamers each day who are active certainly are also a positive and welcome sign for the company.
T stands for the technological factor which clears is highly dynamic and ever evolving and is a matter of concern and investment for the company to keep in pace with the ever-demanding environment.
L means legal environment for any multinational organization it becomes difficult to operate globally specially in Arab or certain Asian countries due to different laws and regulations even at the home front like piracy issues, intellectually properties matters and even duplication and frauds, above all the lawsuits regarding the insider trading are a matter of grave concern for the company and this factor seems to have a negative impact all together.
The five forces model or Porters model includes:
SWOT analysis the key factors are listed as under:
Strength of the company lies on its market leader position, good financial backing, and superior technology.
Weakness is the dependence on partnerships, legal issues and direct dependence on gamers to increase its revenue.
Opportunity: dynamic changes in environment calls for newer alliances in other related fields like social networking platform.
Threat: the situation has brought the company head on with its patterner Facebook and might spoil the prospects thus it is an opportunity and threat both at the same time.
The key critical and strategic issues here are survival and how? the model has worked wonders in past, but issue not brings old partner Facebook at logger heads with the company is matter of concern as and calls for strategic choice of overhaul of technology and come to mobile gaming platform from desktop which shall be a matter of concentric diverfication and the brand name here can play a very important role.


