Operations Management of an eSports Gaming Company

Managing the operations of a newly established organization is very challenging and perplexing. Executive leaders administering the proposed activities may have to face several unexpected situations. In this context, it is necessary for the whole staffs to remain committed to their duties and fulfil their responsibilities for the achievement of desired objectives. In the given report, the operations management has been divided into three different phases: Human Resource Management, Training Management, and Performance Evaluation Management.


Human Resources Management


HRM is the essential component of operations department. Recruiting a capable team of players and highly experienced coaches can provide the anticipated results and show exceptional performance in gaming competitions (Lee and Schoenstedt 2012, p.44). Similarly, the management team can efficiently handle all activities and adhere themselves to the organizational values. The most important aspect that needs to be considered in human resources management is that all the activities of this section should be strictly based on merit and free of nepotism. It is the responsibility of the higher management to keep an eye on the sectors and other staff that is directly or indirectly involved in the recruitment process. Two major categories of personnel under HRM division include athletic staff and management staff.


Management staff


Management staff is responsible for completing a number of tasks and administering the organizational activities efficiently. For this purpose, various divisions of management will be established for each type of activity. The given report requires the establishment of an eSports gaming company, which requires the recruitment of employees who have previously worked in the same capacity. Since eSports is still a new concept, it is not easy to search for the personnel who has working experience in similar environment. Therefore, the company should prefer the candidates having majors in business management, computer and software engineering, finance, operations, and information technology (Weerakoon 2016, p.112). Some of the main executive and middle-level positions required for effective management are discussed below:


1. Chief Executive Officer/Director


A CEO is the most competent and experienced person of his or her organization. He or she is responsible for monitoring all the activities, making future strategies, implementing executive orders, and accomplishing the desired objectives (Armstrong 2006, p.49). Usually, a CEO belong to several educational and professional backgrounds. However, for this particular company, the CEO must be from IT, computer science, marketing, or business-related field. Moreover, he or she must have more than 15 year’s practical experience in administration and management of reputable firms.


The nature of a CEO impact on the performance of a company (Amran et al. 2014, p.799). These characteristics include academic qualifications, personality, leadership execution ability, and many more. Other factors to consider when selecting a CEO include age, ethnicity, firm size, and firm age (Amran et al. 2014, p.799). They all influence the performance of the company. Additionally, Amran et al. (2014) recommend that a CEO should be multidisciplinary because the operations of any business are extensive (p.800). However, most companies tend to have CEOs who only have one degree or area of specialization. They control the entire business operations hence they play a significant role. All blame should be put on the CEO if a company fails. Thus, this business will be keen on the above aspects to select the most suitable CEO that can facilitate the success of this start-up.


2. Gaming manager


A gaming manager is responsible for updating the games and operating systems that are installed in the organization. He or she must develop a comprehensive framework of games so that the players can get necessary training without any difficulty. Moreover, a gaming manager must also ensure that all the games are being regularly updated and modernized according to the latest developments. This shows that a gaming manager is also pivotal to the success of this company. Their academic qualification and career paths should be sound. This business will employ one gaming manager who has at least a bachelor’s degree in Sports and related careers. Those with at least a degree in Business and related fields as well as management can also be selected. The essential prerequisite of getting this job will be a degree in Information Technology or related courses. The need to pay adequate attention to the academic qualification of the leadership and management team is indisputable based on the fact that this is important to the performance of a business (Çiftçi and Mirzeoğlu 2014, p.741). The individual must also have a clean bill of ethical conduct. Additionally, Çiftçi and Mirzeoğlu (2014) maintained that a good sports manager (inclusive of the gaming manager) should be a good decision maker as well as possess excellent interpersonal relations skills, knowledge, and personal qualities (p.744).


3. Financial manager


A financial manager will overlook all the finance-related activities in the organization. Financial administration involves estimating the organizational expenses, allocating budget for activities, managing economic plans, forecasting future strategies, and maintaining the financial assets of the company (Taylor and Armstrong 2014, p.201). Therefore, a financial manager must have a degree in finance, economics, or business administration. Those with a degree in mathematics, statistics, and management will have an added advantage. A detailed explanation of fiscal supervision will be given in the subsequent section under Financial Management heading.


4. Marketing manager


A marketing manager acts as a bridge between an organization and its clients. He or she presents the actual image of a firm before the general public. Hence, a marketing manager also will play a vital role in establishing the brand reputation of Nyxeon eSports and gaining the attention of sponsors. Moreover, he or she will communicate with the audience to ask for their maximum support in national and international gaming events. For this post, the right candidate should have his or her majors in marketing with comprehensive working experience in social media advertising. This is an essential prerequisite because social media marketing is currently trending. 2.46 billion people across the globe were active social media users in 2017 (Statista 2018). It is estimated that this figure will grow to 2.77 billion in 2019 (Statista 2018). This is a significant portion of the world population that uses social media meaning it is currently one of the best digital advertising platforms. Having a marketing manager with a deep insight into social media marketing will optimally play his or her role in facilitating the success of the company. This is a start-up that needs brand building first. The pace at which Nyxeon eSports gains entry into the market reflects the capability of the marketing manager. Being the bridge between the company and the customers, the marketing manager should also have excellent communication skills.


Nonetheless, a good marketing manager is the one that uses marketing research for decision making rather than intuitions and irrational thinking. Many marketing managers today use hunches and irrational thinking for decision-making which impacts on the organizational performance profoundly (Tarka 2018, p.67). They should instead use marketing research to inform their decisions. Evidence-based decision-making has been linked to improved organizational performance (Tarka 2018, p.69). Additionally, for him or her to understand the importance of marketing research, they should also know the weightiness of the usefulness of information or conducting marketing research. Evidence-based decision-making is pivotal to the success of this start-up. The marketing manager will be fully accountable for all decisions made under his or her supervision and in case of any fatality, investigations will involve if the decision reflects what marketing research recommends.


5. Engineering and Maintenance manager


Being an eSports organization, Nyxeon has to rely on integrated computer systems and digital frameworks. These structures are based on advanced operating systems and updated versions of gaming software. These systems should keep running without any interruption so that the players can get their necessary training. Therefore, engineering and maintenance manager will be responsible for monitoring the performance of integrated infrastructure installed within the company (Beardwell and Claydon 2007, p.188). Moreover, he or she will also supervise a team of software and computer system engineers that will protect the whole framework from the attack of outside resources such as cybercriminals and hackers. Additionally, engineering and maintenance manager should be highly experienced with qualifications in computer science, IT, software engineering, or computer system engineering.


It is noteworthy that this start-up intends to invest in technology massively. Most companies today ‘forget’ to attach a high or at least moderate priority to technological advances (Ahmad 2014, p.73). These technological advances are closely associated with improved organizational growth (Ahmad 2014, p.73). Companies that fail to embrace technological advancement in their operations are at potential risk of lagging behind productively as well as competitively. These are the reasons this start-up will actively focus on technological advancement; this means that the selection of the Engineering and Maintenance Manager should be made carefully.


Athletic staff


Athletic staff is the main frontline workforce of Nyxeon eSports. These employees should be handled with extreme care. No compromise should be made on the technical skills and competencies of athletic staff for they have to represent their organization in international competitions and compete with their rivals. Athletic staff includes the gaming players and coaches.


1. Gaming players


Gaming players are the actual team members of Nyxeon eSports. These performers will characterize all the efforts and struggle that the company will be doing for years. Mostly, individuals with ages 20-25 years mostly like playing games; this is besides being the most lucrative age for professional gamers (Valdes, 2017). Participants from this age group have mastered their gaming skills and keep significant information regarding the major troubleshooting techniques that could be applied under extreme pressure situations. While hiring the gaming players, HR department must ensure that the candidates have significant background experience in playing games and completing the desired missions. Moreover, these individuals must be tested by a number of major and minor tests before these would be included in the team. The tests should include advanced gaming expertise, basic troubleshooting skills, psychological testing, and metal approach. An eSports team can easily make a company fall or rise (Screamin' Fingers 2018). Considering these extremes, the HR department should be very careful when selecting the gaming players.


In an organizational setting, the gaming players would be the core of the labour pool. The labour pool of Nyxeon Sports, thus, is a valuable asset to the company that should be taken care of optimally. One way of doing this involves better compensation and attractive benefits. The gaming players should be motivated appropriately by the use of incentives as well as better compensation and appealing benefits. Employee motivation is directly correlated with organizational performance (Lee and Raschke 2016, p.162). ESports is a competitive business that requires a lot of effort to succeed in the current environment. Employee motivation directs them towards task fulfilment. If employees are not satisfied with their jobs, they will be demotivated to fulfil tasks, and the company cannot attain success. Top ranked gaming players have earned as much as $3.5 million in Dota 2 and League of Legends (e-Sports Earnings 2018), which reflects how motivation can facilitate the productivity of the gaming players.


2. Coaching staff


Another important part of athletic team is coaching staff that is responsible for providing necessary training to team players and teaching them the advanced gaming skills. Coaches must prepare the contestants to show exceptional performance in gaming competitions. They must try their best to build a positive image of Nyxeon eSports and accomplish the desired organizational objectives. Moreover, coaches will also provide training to the teams of other companies that will make a contract with Nyxeon eSports. In this way, the firm will be able to generate stable amount of revenues. Additionally, the company should also hire qualified psychologists who will teach the players how to release their internal stress and become relaxed while playing games for prolonged period. Coaching staff should be highly experienced and possess at least bachelor’s degree in computer science, Information technology, software engineering, or computer system engineering.


Coaching itself is a skill that has been recommended for managers and leaders. Many companies hire a coach because of the benefits related to it. It requires successful incorporation of a coaching methodology into the management style of the CEO and the managers of the various departments. This will streamline all the operations of Nyxeon eSports into the coaching methodology being employed by the coach hence optimizing returns (Forbes Coaches Council 2016). Further, it is noteworthy that this start-up is unique on its own and the gaming coach does not exactingly march with other coaches in other types of companies. However, the operational dynamics of game coaching are not different from those of other coaches. Like any other coach, the gaming coach will have to be empathic, curious, able to recognize strengths, collaborate, question or consult, and visionary and transformational (Forbes Coaches Council 2016). Hiring a coach with all these qualifications is a big challenge to the HR Department.


Training Management


The second section of operations management division is training administration. Training and coaching play a vital role in reforming the skills and competencies of players and enabling them to show exceptional performance in gaming competitions (Cuskelly et al. 2006, p.144). To increase the winning chances of its team, Nyxeon eSports must pay ultimate attention to the training of its players. For this purpose, coaching and gaming staff must work together and use advanced equipment for teaching innovative gaming skills to the players. The company should also provide all the necessary facilities that are required by the training staff. For this purpose, Nyxeon eSports must install high-performance digital computer frameworks based on the latest operating systems and integrated structures. The systems should be provided strong backups for internal and external security and improved performance. Moreover, the psychologists will conduct special sessions and therapies with the players that will be a regular part of training.


Conversely, training administration will be a department of its own in the company. The department must have sufficient leadership unreservedly. As mentioned above, this is one of the central departments in this company because it directly affects the performance of the players. Without proper training, the company will never attain success. In this regard, the HR Department should remain careful when selecting an individual to serve as the manager of this department. The people who will serve below the leadership of this manager should also be chosen carefully. Nonetheless, the CEO will imply the performance of this department. As said earlier, collaboration with the gaming coach and other staff is essential for the operations of the Training Department. Top leadership fosters collaboration among departments. Improved organizational growth has been linked to collaborative leadership (Hsieh and Liou 2016, p.100). Unless the CEO promotes the cooperation of the training department with other related departments, Nyxeon eSports will lag behind other companies competitively as well as productivity.


Performance Evaluation Management


Another important part of effective operations management is to regularly evaluate the team’s performance and align it with the organizational goals. Performance assessment is not an easy task since it requires a thorough review of the players’ background and their output in each competition. Usually, performance appraisal is made by the company’s top leadership including executive leaders, managers, and coaching staff. All these delegates are liable for monitoring the strengths and flaws of each employee and present them before the Chief Executive Officer (Lee and Schoenstedt 2012, p.42). Moreover, planning and growth department should also consider the recommendations given by departmental heads while making potential strategies for future. Main purpose of performance evaluation is to identify the critical areas that need significant improvement. Moreover, the valuation process can also be used to praise the achievements of team members in the form of medals, bonuses, and increments that will encourage the staffs to work hard and remain loyal to the firm.


The individuals in charge of performance evaluation should understand the factors that affect performance. In order to identify the critical areas that need significant improvement, they should understand the factors that impact on the performance and this could be obtained from the background information of the players. Thus, the executive and the managers should have the capacity to critically appraise these backgrounds to make precise conclusions on the factors that affect performance. In this way, it would be easy to formulate effective interventions.


Marketing and Promotion


Marketing division is considered the soul of an organisation. Without having a well-organised and systematic advertising unit, a company can never compete with its rivals and eventually gets kicked off from the market. In this context, Nyxeon eSports will give full support to its marketing division and allocate a significant amount of budget for the useful accomplishment of desired objectives. It is necessary to interpret the company through SWOT analysis and Peter’s five forces to identify the most practical marketing strategy. Moreover, marketing staff should be highly qualified having vast previous experience in large organisations. Specifically, the advertising team must be aware of modern marketing techniques such as social media and advanced technology.


SWOT Analysis


Strengths


A new and exciting idea that attracts thousands of customers around the world;


Unlimited potential;


Highest profit margin;


Availability of cross-selling and coaching options;


High success rates; and


Customer income can increase (Ultraplay 2018).


Weaknesses


Inexperienced customers with less awareness;


Requires advanced gaming skills that are difficult to acquire;


Extensive dependence on suppliers;


Less-integrated sports punters;


Expensive equipment;


Demands extra-care from external sources; and


Regulation changes (Ultraplay 2018).


Opportunities


A new concept that will grow rapidly;


Expansion opportunities to Casino bars;


Educating customers and providing advanced training to players can provide superior results;


Stable brand recognition can be built through victories and laurels;


Potential enthusiasts can be attracted towards the company’s products and services; and


The idea can be expanded at both national and international level (Ultraplay 2018)


Threats


Financially stable rivals with strong reputation in gaming industry;


Companies have to depend the owners of game titles and technology;


Unpredictable future development;


Booming ecommerce;


Possibility of attacks by cybercriminals and hackers;


Domestic and international regulatory issues;


Technological advancement providing edge to the rivals; and


Risks of match fixing (Ultraplay 2018).


After identifying the strengths and weaknesses as well as knowing the opportunities and threats of this start-up, it is easier to come up with an effective marketing strategy. There are several ways of utilising the SWOT analysis to formulate a marketing strategy. It involves using internal strengths to take advantage of opportunities. For instance, the unlimited potential of this start-up can help in fostering its growth. Another way is to utilise the strengths of the organisation to minimise threats. For example, the high success rate of an eSports business can be used to encounter the threat of unpredictable future development. However, the managers must have an understanding of how to maximise the success rate of a company to counteract the threat of unforeseen event. Other ways include taking advantage of opportunities to improve weaknesses and working towards eliminating weaknesses as a way of removing threats. Each approach is extensively researched but custom to each topic or problem under investigation. However, it is nearly unstudied when it comes to eSports. This means that the marketing manager and other relevant stakeholders must have the capacity to know how to deal with a situation like this one where the evidence-base is less rigorous and very superficial (Heaven 2014, p.17). Additionally, the company will act as an advocate of enriching the eSports evidence-base. This will be established through research developments and initiatives in the company.


Marketing Strategy


Technology plays a crucial role in the active promotion of a company’s products and services. Marketing policies differ from each other and usually depend upon the consumers’ mental approach and situation of the market. However, some general aspects that need to be considered while planning for advertising include assessing the client’s outlook, examining the rivals’ strength, interpreting the competition in the market, and identifying the need of specific products or services (Cuskelly et al. 2006, p.145). In the case of Nyxeon eSports, the company wants to introduce a creative and exciting concept of gaming in Singapore. Gaming is common on an individual scale only but implementing this idea on a commercial scale is both challenging and motivating. Since the rapid expansion of the internet and advanced technology, the number of game lovers has been significantly increased. Therefore, the marketing division will try to interact with all such customers who play games on their devices and want to use their gaming skills in the right direction.


The marketing strategy will exclusively rely on the findings of the SWOT analysis. The business will then integrate the various strategies of applying the results of SWOT analysis. That is, it will take advantage of the identified opportunities to improve weaknesses, remove threats, and enhance the company’s strengths. The mélange of the various components of the SWOT analysis will yield ‘hybrid’ results.


Marketing platforms


Establishing the most useful marketing platforms is vital for brand building and setting the foundation of the start-up. The chosen marketing platform should foster an environment that will build equity or value each year. Since this is a start-up, the marketing platforms chosen initially helps in developing a blueprint to emulate in future platforms and campaigns. Finally, the marketing platforms accepted initially when a business starts helps to create a market buzz to initiate both on and off the sports pages through grassroots and guerrilla marketing activities and extensions as well as create content and conversation that can be used in Internet marketing such as social media channels (Mullin, Hardy and Sutton 2014, p.306). Three types of marketing platforms will be used for the promotion of Nyxeon eSports.


Media advertising


Rapid advancements in modern technology have created a number of opportunities for contemporary organizations to effectively advertise their products and services. Different forms of media enable the brands to interact with a wide range of customers simultaneously and deliver the desired message through commercial, ads, and banners. In the given case, Nyxeon eSports will mainly target the young generation in its advertising strategy. For this purpose, three different types of media will be used to promote the firm’s products and services. These include social media, print media, and electronic media.


Social media is the most useful source for interacting with customers of different age groups, class, background, and gender. Millions of users log in to their social media accounts every day and communicate with their friends, family, and colleagues. The diversity of social media enables the companies to promote their products and services and gain the attention of clients (Felix, Rauschnabel and Hinsch 2017, p.119). In this context, Nyxeon eSports must establish a large social media marketing network. Social media marketing managers should be hired to create, update, and manage the company’s official accounts on YouTube, Facebook, Instagram, and Twitter. These platforms not only act as a source of advertising but also provide the consumer feedback about the firm’s services. Notably, in order to promote products and services on social media, the advertiser must pay a subscription fee. The amount of fee paid depends on the size and range of the target audience. Nyxeon eSports focus on Singapore and South-East Asia. This is a geographically diverse area that requires a lot of funds to implement marketing strategies like using social media as a platform. And, since this organisation focuses on reaching more customers and specialise in benefiting from economies of scale, it must invest enough in marketing. Thus, this massive budget should be starred as one of the significant aspects to be implemented.


Print and electronic media are also valuable sources of advertising the products and services. Despite the fact that the rapid expansion of the Internet, TV and newspaper are still a vital part of individuals’ lives. A significant number of the audience watch their programs and read their favourite articles every day. Moreover, TV provides customer-centred entertainment that focuses on targeting specific viewers in particular time periods. For instance, mature people listen to news and talk shows while women and girls mostly watch programs and movies on TV. In this context, Nyxeon eSports can target a specific audience by running creative commercials that could get the attention of young game lovers. Usually, football matches and sports events are ideal for promoting the products and services. Similarly, interesting banners and posters can be displayed on front pages of magazines and newspapers that are famous among viewers from different groups. Additionally, due to the rapid growth of social media, the use of TV, newspapers and other forms of print have been displaced vertically, and they are now referred to as traditional forms of marketing. The use of ‘traditional’ brings the image of classical or ancient times, but this is not the real case here. The prevalence of TV and print forms usage in advertising is still high today. Traditional marketing is still alive and practical (Ayofadipe 2015, p.31).


2. Live customer interaction


Another important advertising strategy is by interacting with customers and providing awareness regarding the latest offers and products. For this purpose, Nyxeon eSports should hire a team of branding and marketing specialists including both male and female members. These individuals will participate in social gathering in different public places and will educate the game lovers regarding the newly launched concept by the company. Moreover, the advertisers will also involve the clients in different recreational activities to get their attention. In this way, they will also ask the patrons to fully support Nyxeon eSports team in upcoming gaming events. Customer feedbacks and reviews regarding the social gathering will be evaluated through social media and the company’s official website.


Live customer interaction involves the support-customer interaction and customer-customer interaction. Support-customer interaction is the association or communication between a member of the support team and the customer(s). This can take place either physically or online (such as Live chatting). Customer-to-customer interaction involves when customers interact with one another either physically or online. Customer-to-customer communication is as essential as support-customer interaction because both determine the behaviour of the consumers. Customers are likely to influence one another because they highly trust one another. For instance, nowadays items and services can be reviewed publicly on an online platform. The information provided in a review by a customer influences the buying choices of the other customers. If a customer, for example, reviews an item or service negatively, he or she will adversely affect other customers’ decisions hence impacting on sales. Studying consumer behaviour from time to time will be pivotal to the growth of this start-up. Consumer behaviour helps in predicting sales and making informed marketing decisions (Hansen 2012, p.352). This means that in order to have more customers (fans) and retain them, the players must perform exceptionally and the team must win most of the times. If not so, customer retention will be very challenging. Unless the marketing manager and relevant stakeholders including the CEO have a deep insight into marketing psychology, the company will be less competitive and productive hence affecting performance.


Brand ambassadors


Advertising through celebrities is a famous way of establishing stable relationships with customers and getting their support for eSports team. Celebrities are the rare persons that are followed by millions of fans. These people can be contracted for promoting the company’s products and services as a brand ambassador. Being a gaming company, Nyxeon eSports should prefer those celebrities that have remained associated with gaming industry either directly or indirectly. Moreover, football players can also play the role of effective brand ambassadors for Nyxeon eSports. This approach can enable the firm to attract a wide range of audience towards the promotional activities. In this way, strong reputation can be developed in the gaming industry that will certainly increase the players’ morale and assist them to show exceptional performance in competitions.


Targeting Specific Sponsors


Sponsors are one of the major stakeholders for some newly established organizations (Nolte, 2015). Wealthy financiers having strong economic background can be really helpful for Nyxeon eSports. They play the role of partners in the firm’s profits and revenues and support the operations both financially and commercially. In this context, Nyxeon eSports must design its marketing strategies in such a way that it could capture the promoters’ attention and invite them towards making investments in the firm. For this purpose, a team comprising marketing specialists should be appointed that will be responsible for meeting with different businessmen and industrial group members and presenting the idea of eSports before these people. Moreover, the potential sponsors should be given a detailed briefing regarding the company’s background, performance in eSports, current and future strategy, anticipated goals, and projected growth in gaming industry. In this way, Nyxeon eSports will be able to get the maximum financial support from its investors and effectively organize its operations. The targeted potential sponsor for this

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