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Strategic Management

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Running head: STRATEGY MANAGEMENT 1
University Name
Students Name
Strategy Management
Module SLP Assignment
Course Number: Course Name
Professor’s Name
Date

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STRATEGY MANAGEMENT 2
Internal Memorandum
To: The Board of Directors
FROM: Mr. X, CEO
DATE: July 2, 2017
SUBJECT: Video Game Console prices
The following data has been collected so as to determine the price of the game console,
subsidized games titles change and royalties paid. In the case that royalty alone is altered to 19%,
game console price remains at $240 per unit and annual game titles subsidized also remain at 3,
then the following results are obtained.
Percentage Market share
Annual Revenue ($)
Annual Net income ($)
63%
760.2M
147.4M
If royalty increases to 19%, annual game titles subsidized reduced to 1, and the per unit
price of game console remains at $240, then
Percentage Market share
Annual Revenue ($)
Annual Net income ($)
69%
532.2M
89.2M
On the other hand, if royalty is at 19%, annual subsidized game titles at 3 and game
console price per unit is increased to $360, then
Percentage Market share
Annual Revenue ($)
Annual Net income ($)
52%
542.5M
156.3M

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Running head: STRATEGY MANAGEMENT 1 University Name Student’s Name Strategy Management Module SLP Assignment Course Number: Course Name Professor’s Name Date STRATEGY MANAGEMENT 2 Internal Memorandum To: The Board of Directors FROM: Mr. X, CEO DATE: July 2, 2017 SUBJECT: Video Game Console prices The following data has been collected so as to determine the price of the game console, subsidized games titles change and royalties paid. In the case that royalty alone is altered to 19%, game console price remains at $240 per unit and annual game titles subsidized also remain at 3, then the following results are obtained. Percentage Market share Annual Revenue ($) Annual Net income ($) 63% 760.2M 147.4M If royalty increases to 19%, annual game titles subsidized reduced to 1, and the per unit price of game console remains at $240, then Percentage Market share Annual Revenue ($) Annual Net income ($) 69% 532.2M 89.2M On the other hand, if royalty is at 19%, annual subsidized game titles at 3 and game console price per unit is increased to $360, then Percentage Market share Annual Revenue ($) Annual Net income ($) 52% 542.5M 156.3M STRATEGY MANAGEMENT 3 Based ...
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