The GAMETRONICS case focuses on the efforts of a new CEO, Tom Katz, as he tries to pull together a strategic plan for the company. After several years of steady growth and healthy profits, GAMETRONICS, a manufacturer of video game software, has more recently seen its growth flatten out. Tom's boss (and controlling shareholder of the company), Martin Fueller, has just received a phone call from a friend on Wall Street reporting the rumor that Sony Corp. is contemplating a takeover offer. Fueller is insisting that Katz put together an action plan and report back within the week.
This case should be used early in a general management course. It is designed to highlight the relationship between goals and strategy. Given GAMETRONICS position in the rapidly changing video game industry, the company must constantly refine its strategy. As CEO, Tom Katz cannot effectively do this without a complete understanding of the interests of the company's shareholders. By taking the position of Tom Katz, students are forced to differentiate between the interests of the CEO and those of key stakeholders. In this case, what is good for Tom Katz-and other senior managers--may not necessarily be good for the shareholders.