Despite increase in the global cost of living and economic uncertainty, I strongly believe human beings still consider entertainment as an integral part of their lives. It is within this noble reasoning that I intend to initiate HM (High Max) company because of I believe this will form an organization that can generate profit, employment and opportunity while at the same time understand that I do not have adequate resources for a big venture. HM will deal in developing, marketing, publishing and distribution of video games.

Intending to compete in a $35 billion global market, HM aims at becoming one of the leading companies in the video game industry. Focusing on delivering games in all four of the leading consoles, (PS3, Xbox, PC, and Wii), HM will achieve to simultaneously launch titles in each of the platform in order to provide a game quality gaming experience to every possible gamer out there. Despite a number of challenges that HM faces such as rising costs brought by the high demand of quality graphics and game play, a numerous game selection, rapid evolution of game consoles, and a highly contested but promising E-market segment brought by the online gaming trend, the E-gaming market is expected to rise and offer opportunities for growth.

One of the strategies that I will enable is the Supportive system of leadership.  The base of this model is management with an executive direction of support. The workforce on the other hand is directed towards working and participation in decision making (Hellriegel & Slocum, 1973). This will not only tap knowledge and skill from the workers, but also make them feel recognized and in that capacity, motivate them. HM will seek non-monetary methods of motivations to enable me reduce of operating costs and maximize out-put (UNDP, 2006).

The driving forces behind this initiative are the evolution in social and technological aspects of global human existence. On social, the rising trend in online gaming brings new business opportunities. Large groups of gamers are within this segment, making it an important target for video game companies. With the age of the average video game player on the rise the gaming industry has created new niches that desire a more demanding adult gaming experience. Viewed from technological perspective, great leaps in the quality and game play brought by the new platforms demand more complex gaming by the consumers resulting in increases in R&D costs. The new trend of online gaming has given birth to digital distribution and Massive multi-player online games (MMOG). Furthermore, the release of high capacity mobile phones has expanded mobile gaming to cell-phone users.

With the process of staff recruitment and selection continuously posing critical challenges to managers, there is an urgent call and demand for a new and swift paradigm shift, which embraces newer technologies and modern management strategies, this is as mentioned by Michael (2009). The biggest staffing challenge for HM is the intricacy of matching the right candidate to the right job given the fact that the organization will demand a technologically perceptive workforce.

Despite the opportunity for growth, there are internal and external threats to the initiative. The Intensity of Competition is at its record time high with three major competitors (Sony, Microsoft, and Nintendo), 20 other independent developers, diversified media companies (Disney, Viacom, Fox), and over four Internet engines, the video game industry is highly saturated. This niche is not an attractive industry for new entrants. However, within this cacophony, the Bargaining Power (Buyers) is high due to the extensive variety in possible substitutes. With 100s of titles been added to each platform every year the consumer has many options. On the other hand, the Bargaining Power (Suppliers) is high due to Sony, and Nintendo being the exclusive producers of DVDs and cartridges for their respective platforms. Microsoft also required preapproved manufacturers to be used for the Xbox titles.

The understanding is that resources are very constrained and as such, the available – slightly less than $500,000 will go to the most important requirements. These will include office space, licensing and regulatory requirements, procurement of critical infrastructure, and recruitment of personnel and marketing of HM’s services. Marketing of the services is expected to constitute the highest percentage of this amount because it is the single most important determinant of HM’s success.

Organizational outline

Initially, the organization will employ the informal communication system. This is because unlike the formal system, this system allows for easy sharing of information and in that capacity enabling a formation of common psychological models. This system is flexible, easy to manage in small firms, applied in team-based structures and include integrator roles (Woodward, 1965).

Despite having the informal communication system, I will also choose to enact a hierarchal style of organization since it will confine the usual organization charts appropriately. This will be until the organizations gets larger to a level of having more different kind of links between parties. At this level, HM might take in the matrix style organization where individuals are structured by job function and location at the same time (Helmy, 2006). This will be expected to yield accountability from the workers.

Organizational decision making

Decision making is a challenging field and will need more than one institution in the organization to make clear outlines on scope of operation or deal with arising issues and challenges. This will begin with objective setting in the organization, probing for options, analyzing the given options and choosing criteria. Generally, this process will be as suggested by Hicks & Gullet (1975); Anderson (1988). For a small firm like HM, integration of all personnel can be very beneficial in decision making.

Division of Labor

To ascertain that workers in the organization perform appropriately and increase their productivity with time, work will be subdivided into different categories and assigned to different persons. This strategy will increase work efficiency due to specialization and is very important more so when the company grows and increases in complexity (Helmy, 2006).

This will also make it easier for the overall manager in the organization to evaluate workers abilities in different levels and assign them work depending on their strengths.


This will entail thorough market research to ascertain the exact platforms to put emphasis on. Due to the significance that marketing has to the organization, I will initiate scientific methodologies of market research. For the success of the business, this practice of research will be done from time to time so as to address arising challenges and to enable us change with trends that therein exists in the market. All areas of marketing decisions and related issues should be supported with a great evidence of research (Paul, 2002). In this same capacity, risk analysis will be done and this will enable a clear understanding of the risks at hand and their intensity. The organization will therefore be prepared for any shortcomings that may hinder its success in the future.

Advertisements on different websites will be done to ensure thorough publicity of our unique products. This will mostly major with social and business related sites and it will begin by using my friends to market the organization (Taylor & Francis, 2009).

Risks expected and how to overcome them.

The major risk expected by the organization is stiff competition from the other existing and established organization in the online entertainment industry. These organizations are expected to be financially well off than HM, and therefore other strategies that do not solely rely on money will be put in place. One of then will be to have lower charges for similar produce, after sale service for our clients and having systems that work efficiently round the clock.

The other challenge expected is insufficiency of staff, in number and potential. This is because getting experienced personnel to undertake operations in HM will be exorbitant, and getting enough skilled labor might also be a challenge. To deal with this, HM might need a few volunteers at the initial stages until financial stability is gained. This will calls for a lot of motivation and sacrifice from the pioneers and stakeholders of the organization (Wayne & Berrett, 2009)


High Max Company is intended to create employment opportunities and generate revenue amidst challenges that will tend to draw it away from these objectives. These challenges are majorly insufficient funds and a saturated market to venture into amidst established companies. This calls for HM to have strategies that will enable suppression of the challenges and ensure sustainable penetration into the online entertainment industry while having in mind the financial inhibition experienced it has.

The primary solution is to have operation models that are cost effective and sustainable for a small firm in the launch stage. Managerial strategies need to be stringent enough to ensure that optimum performance is obtained from the work force in the organization at the lowest cost possible. This will be enabled by appropriate non-monetary motivational incentives. These will include; suitable working conditions, occupational heath, recreational facilities, recognition, sense of duty and further training. A motivational tool for our clients will at the initial stages be contribution to a charity institution. Later on we might venture into larger projects to help the public while also marketing our organization.

The leadership system will be a decentralized one and a rather informal mode of operation will be enacted to ensure thorough participation of all the work force in decision making. Never the less, a scientific approach will be used in solving technicalities of operations. This will be majorly in market research and in other areas of the organization as deemed necessary from time to time.