Evaluate Zynga's leadership, human resource issues, and organizational structure and the factors that lead to its current state using the information in the pictures attached. After reading the background story, come up with two recommendations for leadership or structure changes to resolve problems or leverage strengths in these areas. Also, include a timetable and resource needs for each recommendation.

Base your two recommendations off a combination of the key points below.

1. Three key interdependent activities in which all successful leaders must be continually engaged.

-Setting a direction

-Designing the organization

-Nurturing a culture dedicated to excellence and ethical behavior

2. Two elements of effective leadership: overcoming barriers to change and using power effectively.

3. The crucial role of emotional intelligence in successful leadership, as well as its potential drawbacks.

-5 components are Self-awareness, Self-regulation, Empathy, Social skill, and Motivation

4. The importance of creating a learning organization.

-5 key elements are inspiring and motivating people with a mission or purpose, Empowering employees at all levels, Accumulating and sharing internal knowledge, Gathering and integrating external information, and challenging the status quo and enabling creativity.

5. The leader's role in establishing an ethical organization.

6. The difference between integrity-based and compliance-based approaches to organizational ethics.

7. Several key elements that organizations must have to become ethical organizations.

Arthvision has invested in careful strategic partnerships based push technology service. Individual, Inc. acquired to cubance global growth. In 2019. Blizzard Entertainment the company only seven months later for $38 million and NetEase extended their China partnership until 2023. Pincus later founded his third start-up. Tribe net, one of the The partnership will enable Activision franchises to be firm social networks. Tribe.net focused on partnerships available to Chinese users for the coming years. While Chinese revenues constitute only $.2 percent of ATVI's top with major, yet local, newspapers and was supported by The ling, the market growth potential in China is astounding Washington Fear Knight Ridder Digital, and Mayfield with Niko Partners projecting one billion Chinese gamer Feed. " Unfortunately for him, Pincus's resume did not im- by 2019. press his competitors, irritated by what they viewed as his NetEase, headquartered In Guangzhou, China, was questionable business tactics, nor did it dissuade them from founded in 1001 by Ding Lei. Some of NeEase's games in making their feelings known vis a lengthening laundry Int of threats and lawsuits. clude Knives Out, Identity V. Onmyo ! Rules of Survival, and Fantasy Westward Journey. In 1014. the company ex- panded into the well launching their U.S. headquarters Intellectual Property and Ethical Issues NotBase's revenue was $9. 768 billion in 2048.' NetEase in- Nissan tom claimed that its trademarks were used without vested $ 100 million in the American video game developer consent in Zynga's game Street Racing. Zynga consequently Bungle for a minority stake in the company and a seat on changed the thumbnail images and renamed all the car the company's board of directors, Exploiting the demand that were branded Nissan and Infulti to "Sindats" and for shooting games such as PUBG and Fortnite, NetBase "Fulls." Zynga was criticized on Hacker News as well is announced the launch of its now shooter game Bhiorder. other social media sites for filing a patent application in- The company maintained its game Knives Out's position volving the ability to obtain virtual currency for cash on as China's top grossing mobile game in overseas markets gambling and other gaming websites. Many said that the for five consecutive months since August 2018. Although concept was not now and that, In fact. significant prior art NewBase is performing well with games, firm management for the concept already existed. The umeiling of the game is looking beyond video games for NetEase's future sac- Mafia Wars generated a lawsuit from the creators of Mob Ccic CFO William Ding Lid it wil focus on the promis War, An attorney of the parcel company of Mob Wan said ing e-commerce, music, and online education segments, the that by making Mafia Wars. Zynga "copied virtually every company lateinch to make substantial investments in those Important aspect of the game. "The lawsuit was later areas as part of its broader business strategy for 2019," settled out of court for an amount between $7 million and Eple Games is the creator of Fortnite, Unreal. Gran of $9 million." War, Shadow Complex, and the Infinity Blade series of games California-based web developer SocialApps brought Epke's Unreal Engine technology brings high-fidelity, inter Zynga to court working damages for alleged 'copyright in active experiences to PC. console. mobile, AR. VR, and the fringenicer, violation of bride secrets, breach of written Web. According to the Bloomberg Billionaires Indes, contract, breach of implied-in fact contract and breach of Fortnight alone is on track to generate $2 billion this year, confidence." SocialAppi claimed to have entered into an making Epic Games worth $5 billion to $8 billion." Eple agreement with Zynga, allowing Zynga access to the source Games announced that it will launch its own digital store- code for SocialApps' Facebook game MyFarm in exchange front with "hand-curated" act of games, with the firm ware for an undisclosed compensation. According to the salt. rolling out on Mac and Windows before broadening to Zmien was given the code, but failed to pay SocialApps. Andcold and other platforms later in 2019." SocialAppa claimed that MyFarm's source code was the With an estimated reveres of $1 billion in the previous foundation of Farmville, as well an many of Zynga's similar year, Epic acquired 3Lateral in January 2019." Known for games " Following Zynga's release of the game Hidden Its "digital human" creations, 3Lateral uses a combination Chronicles, Forbes"Paul Task wrote that Zynga "reflexes to of digital technology. motion capture, and other tools to innovate in any way, and is merely a follower when it comes create photo realistic human subjects in real time. to ideas and game design *1 Ethical issues. though lew tangible and definable than intellectual property. were equally troubling in assewements Background of the Founder of Zynga's operations A former employee of the company Mark Jonathan Pincus was the entrepreneur behind Zynga. revealed firsthand quotes from past CEO Mark Pincus. He was also the founder of Freeloader, Inc., Tribe Net- such as: "You're not smarter than your competitor. Just works, and Support com." In price years, Mark was named copy what they do and do it until you get their number." CEO of the Year in the Cranchica awards." Prior to his One contractor said he was presented with freelance work entrepreneurial endeavors, Pincus worked in venture capital from Zmes related to imitating a competitor's application and financial services for several jean. After graduating and was given precise instructions to "copy that game "H from Wharton, be went on to obtain his master's degree Other pant employees, even those at the senior level spoke from Harvard Business School. Soon after graduating out about the contupt ways that Pincus had apparently de- Pincus Launched his first start-up, Freeloader, Inc., a web- clded to operate the business. CAN CASE : TINGA IS THE GAME OVERTCASES CASE 4 ZYNGA: IS THE GAME OVER?* In 2019. Zynga was optimistic. In an interview, CEO Frank Zynga's Background Gibeau, said, "We're set up for a really strong 2019. We have a good lineup of games to create the base for us, and At the time it incorporated in October 2007, Zynga had be- then we have more than nine games being built right now come a dominant player in the online gaming field, almost that will come out over the next couple of years, with a entirely through the use of social media platforms. Located bunch coming in soft launch." in San Francisco. the company was named by CEO Mark While battling some rough tides, the company had gar. Pincus to pay tribute to his deceased beloved pet bulldog nered its reputation as one with inconsistent leadership. In Zynga. Although this might have seemed whimsical, Zynga 2013, founder Mark Pincus stepped down and handed the was actually a quite powerful company. Exemplifying charge to Don Mattrick, a 15-year employee of Electronic Zynga's prominence. Facebook was reported to have Arts expecting to turn the company around. In April 2015. carned roughly 12 percent of its revenue from the opera- Don Mattrick left the position, and Pincus returned as tions of Zynga's virtual merchandise sales.' CEO for the second time, Just a year later in March 2016. Zyman's collection of games continued to expand, with Zynga announced the replacement of Pincus by the new more and more success stories emerging. A relative new CEO Frank Gibeau, another 20-year employee of Elec- comer to the markel, it's quick success was astonishing tronic Arts, again expecting to turn around the company. However. Zynga's impressive financials were possibly at risk Zynga's lack of consistent leadership had been critical to because of what some considered questionable decision not formulating an effective turnaround strategy that might making. Many of Zynga's competitors, and even some part- have led to progress. Throughout the revolving door of pers, were displeased with the company's actions and began CEO replacements. Zynga had not developed a substan to show it in the form of litigation. Agincourt, a plaintiff in cially successfal new game. Consequently, it's revenues have a lawsuit brought against Zyriga, stated, "Zynga's remark- been falling over the past years accompanied by consistent able growth has not been driven by its own ingenuity. net losses. Rather it has been widely reported that Zynga's business The company eventually made a comeback under model is to copy creative ideas and game designs from Ci beau's leadership with strong acquisitions. In less than other game developers and then use its market power to two years. Zynga acquired Peak Games casual card game bulldoze the games" originators." If lawsuits and ethical la studio, Gram Games and 50 percent of Small Giant Games. sues continued to arise for Zynga, its powerful bulldog maker of Empires and Puzzles. for $560 million, Though could start looking more like a poodle, In January 2019, Zynga's revenue rose by 5 percent to $670 million by the Zynga received $12 million related to the scitlement of the end of 2018, it still posted a net loss of $15 million for the derivative litigation case for insider trading against the di- year (see Exhibits I and 2). In 2018. their top three online rectors of the online gaming company. game revenue-generating games were Zynga Poker. CSR The Products Racing 2. and Hit It Rich! Slots. In another attempt at innovation. Zynga launched With an abundance of software developers, the ability to Wonka's World of Candy in 2018, After years off struggling create and distribute online games increases by the day, and to introduce new hit games and falling to combat the decline the demand to play them is equally high. However, while of formerly blockbuster properties I've Farmville, the com many people find these online garnes fun and, better yet. pany has been focusing on getting the most out of evergreen therapeutic. others cannot understand the hype. The best franchises like Zynga Poker. Words with Friends, and CSR way to understand the sudden infatuation is to view online Racing 1 by keeping them alive with updates : The fight to gaming as simply a means of relaxation. build new games that catch the audiences' attention might In the movies, at least, large carcutive offices are often be hard. but Zynga's announcement of a multi-year agree. shown with putting greens, dartboards, or even a bar full of ment with Disney to develop a new Free-To-Play mobile Star alcoholic beverages There amenities are all meant to serve WarsThe same brings an existing fandom as their audience, the same purpose: to relieve stress during a hard day's work. We have all been there and looked for a way to cope. Hows ever, few of us have the opportunity to use such things as pulling greens to unwind at the workplace, And even if we Forori Soile Unharry. Material ban bern drawn from published waron did, how long could we afford to engage in such an activity before being pulled back to our desks? C14 CASE 4 : TINGA: IS THE GAMI OVERTEXHIBIT 1 Zynga Consolidated Income Statements Is thousands. except par-there duty Year Ended December 31 2018 2017 2016 Online game 670877 665 593 543,201 Advertising and other 236.131 193.797 194.129 907.208 741,430 Cost and expenses Cost of Fortfun 304,654 350.971 Research and development 270,323 756,012 370,300 224.524 212 030 183.637 1081.653 Impairment oil Inassgible morts Total costs and expernics 900.4AS 835 656 855 659 Income gown from operations 6.762 25.724 11 4349 6.549 5 305 3.057 Other Income leappeal oct 13.157 Income flowy) brian Income Loom 36463 37503 Frovision for point fromj Income tools 11,006 10.944 1442 Hod Income Poss) 13.457 705 639 108,173 Not income flossy per share attributable to common Hockholders 0 12 0 13 Weighted awage common shares used to compute net Income (ask per share attributable iscommon shockholders 278 827 Clubed 885.584 591 168 878,827 Streak reduction at work is one of the mary purposes that Market Size virtual games fulfill-no need to leave our desks; no need to Compared to other game developer with games present on make other around us aware of our relaxation periods; and, the Facebook platform, Zynga had once been a dominant better yet, no need to separate the tank of relaxation from Nit- Force, but by 2019, It ranked third after Miniclip's 3 Ball pool ting at our computers while we work. The ability to play these and King's Candy Crush Saga (see Exhibits J and 4). Mink pames on office computers and relax now and then during the chip, with its wildly popular & Ball Pool game, appeared to rule, day makes online gaming enticing. This of course, is just one making a reported $400 million with just in-app puchases." of marry uses for the garrick. Some people play them after work Zynga's virtual games provided the opportunity for or at the end of a long day. With the one of smartphones, constant buildup and improvements, offering users vir- people of all apes play these games on the go throughout the tel goods and services to increase their gaming experi- day sitting on the bus, in the waiting room of a doctor's office, ence. These items could be purchased using a credit card or at the Department of Motor Vehicles Diverting game play and were often needed to accomplish fust progressions in is readily available with the click of a button the games. These goods were advertised throughout the CASE 4 - EYNGA IS THE GAME OVENT CISEXHIBIT 2 Type Balance Sheets December 31, December 31. is thousands, cop! 2018 2017 par valuel Current assets: Cash and oath equivalents 544,920 372,870 306.506 Account prochabit 91,630 103 617 Income tax necehabit 35,006 12.807 Restricted cash 26,914 34.253 Other coment appris 12:505 Total current mouth 747,277 830.653 Goodall 934,187 730.444 Other inting ble bisets net 118,500 64 358 Property and equipment. net 256 557 766 580 Restricted cush 20 040 Prepild puppies 30.774 23.821 Other long-term aisets 49.308 43.251 2.146.703 1.979.133 Llablitles and stockholders' equity Current Sabilities: Accounts payable 26,811 Iscome Lic pryble 4,295 Other current lab tes 156.629 123,089 Debt 1001000 Defend Revenue 191,219 134007 Total current liabilities 479.814 282,711 Differed movenee 1.586 Deferred tax Lab Boxes 5 502 57 585 48 912 Total Labintics 560,093 318.093 Stockholders equcy Common flicks 3.504.713 3.426,509 4080030635 par white, and keadonot pold in capital . to theraid shared MSL CLASIC. 205 17) we December 14. 2016 and 903617 Cas A. Accumulated other comprehensive Income foul (1 18,439) (23.4977) Accum Lated deficit (1 761.65-4) [1,691.763) Total Mockholders' q-Ry 1.595,610 1/641.240 Total Babilities and stockholders' equity 2.146,703 1,979.393 CIA CASE 4= EYNGA:IN THE GAME OVERTEXHIBIT 3 Most Popular Facebook Games as of April 2019, Based on Number of Daily Active Users In milan) Facebook Game Number of Dally Active Users B Full Pool 10 Candy Crush Saga 10 Texas Holdem Poker Form Heroes Saga Subway Surfers Church of Clara Dragon City Hay Day Woned with Friends EXHIBIT 4 Top 5 Virtual Gaming Developer of 2018 2018 Revenue Rank Company (5 millions) Key Games Epic Games Filimabed $1.000 Fortnite Tencent (mobile Fillmated $11.960 Area of Wilor 00 Speed Mobile, Clath Rayate Gaming division $1,793 Knives Out Identity V. Onepol. Rules of Survival. Fantasy Westward Journey $1.020 Candy Crush Saga, Candy Crush Soda Saga, Bubble witch 3 Saga. Royal Charm Slots, Legend of Solgard 51,780 Linkage 2: Revolution, Marvel Continu of Champions. Marvel Future Fight games and the user was enticed by price cuts for larger Background of Competitors purchases. Zynga's virtual games could be played beth remotely Activision Blizzard is an interactive entertainment com- and through social media platforms, most commonly Face- pany that is based in Santa Monica, California. After ac- book. Five of Zynga's games-FarmVille, Cityville, Empire quiring King Digital for $5.9 Billion in 2016, Activision and Allies, CastleVille, and Texas HoldEm Poker-were Blizzard had five business units including Activision among the most popular games on Facebook " Publishing. Blizzard Entertainment, Major League Game Of course, Zynga was not the only virtual-gaming com ing. Activision Blizzard Studios, and King. It is credited pany striving for this degree of success. In the past 10 years, for some of the top games in history including Candy Crush Saga, Would of Warcraft, and Call of Duty. In many other gaming companies have grabbed the spotlight. 2018, the company made a revenue of $7.5 billion, rank- The capability to create online games is widespread, Cre- ing fourth in video games after Sony, Microsoft, and ativity and innovation are accepted to be the grounds on Nintendo. In June 2017, alongside Electronic Arts and which competing companies challenge each other. With all Atari, Activision Blizzard earned a spot on the Fortune competitors after the same audience, the industry is prone 500 list.] to a significant amount of head butting rivalry. CASE : EYNGA: IS THE GAMI OVERT CUZA former high-level Zynga employee provided an insight 5. King Peter. 2016. Tech review, There apps feature some low common into the company's culture, as regarding any emphasis on creativity and originality. According to the employee, a group of designers brought a new and innovative idea to the 6. AppDain 201L CityWilly Application Metrics. March 18, happywww. table, only to have it turned down by Pincus because of his 7. Lev Rum, Michal 1017, Activision Blizzard aims for the big kaguns. wariness toward a new idea that didn't fit the "tried-and- true" mold of other successes Wirrardi. Zynga was accused of taking advantage of its end cus- 8. Seeking Alpha. 2019. Activblon Blasand poised for woods following tomers, pertaining to a lack of security and safekeeping of 2019 transition. April 3. http/spikingalpha. com/article/4251595- consumer information. The Norwegian Consumer Council arthvision blizzard poked-weors followfor 1019transition-4:fansbah 9. NetBase. Fourth Quarter Roulis JOIE. filed a complaint against Zynga to the Data Inspectorate 10 Caplinger, Din. 1010. Net Law fights thing competition Feb 11. concerning breaches of the Data Protection Act. According to the Consumer Council, Zynga's terms of use "do not of ter a clear description of what is being collected in terms of I1. Pple Games, About hipWwww.epicgames.com/bite/en-US/about. information or what this information is being used for, Nor It. Pendleton Dewn, Parreri, Christopher. 3018. Fornite marla fork do they state how long the information is stored for or how Epke growth to Is 5 billion. Moonbery July 24. happiwww. it is protected against unauthorized access." cpo game developerinto-bibbonair. 13. Prank. Allegn 3018. Eple Games is Launching its cran more, and Zynga Going Forward taking a smalker cul then Steam, Polygon Docenter 4. hopejews, Although Zyriga game users tend to be pleased with Zynga's gantes, many note there seem to be recurring obstacles that 14. Takesan, Dean 2019. Epke Game acquires digital human lateral. limit that pleasure. Many Zynga users complain of lag time cuts and deal with Appodoll Venturebeat January 1.. hupelt while playing the games. Even more complain that when problems arise. Zynga support staff are nowhere to be miley-Hateral-cuti-ed-deal with appodealy. found. The company has no customer service initiative and 15. Ha. Anthony: 2010 Congratulations to Facebook, Blan, and the other forces users to resort to sending their claims through e-mail. french he winners fiveboot bing. which many believed is ignored or never read. Further. 16 Rao. Leena 2010. Congratulations Crunchies sinmen Twice when many believe that the company makes it too difficult for users to make real strides in the games without spending congratulations-crunchlewis ridiculous sums of money. Based on their experiences, 17. Merino, Patch BAL Zyner's IPO: made possible by the Zynga Dream many users believe that Zynga is all about revenue genera- tion and that everything else comes second, 18. Stone, Bod. 300% Social networking's new phone. March } wow As Zynga looks to its optimistic future, where might its next big hit come from? With all the criticism aimed at Zynga's past behavior. will the company continue on the 14. Malls Win Will Game Information. Mip /mafiawan.witin.com/ path it has become notorious for and will the " more than 20. Hope, Patrick. 1009, Game makers fight over proliferating lookalikes nine games" that Zynga has lined up for the next few years get into trouble? With all eyes on the company as it recgys ers. it certainly will not be easy for Zynga to get away from 21. Arrington. Michel. 1909, Zynga willes Mob Wen Itigiocean it's carlier reputation. Rules in to Playdom war. hip /echoroach.com/2009 of, INgar ENDNOTES 12. Jopaly: 3011. Liveuit Bled spiced Ayres over Farmylle were code I Takahashi Desa 2019. Zynga's tumamaand How enc-be kragenred source Code game company plans for 1019 growth. February 9. Venture Bast impress. Jan o. Forbes, wa's forbescon they inunison bijouroy turnaround-and plans for be growth in 1019/. 1. Jordan, Jon. 2016. Top 30 mobile game developer of 2016. 34. Blog Game 2010 7mp CLOmoreplot: I don't Play want innovation. September &. harpo/blog games. com/2010/09/05/mm A. Zynga Inc, 1014. Earnings call transcript. 25, Jamison, Peter. 2010. FarmVillum. September , SF Hirly. Mipair 4. Grigoriada, Vanessa. 2011. Mark Pincus Farmmile. June. AND harper archives ofweekly.com/sanfrenchgo far