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4. (a) Outline one method Mind Candy could use to extend the product life cycle of one of its games - Edexcel - GCSE Business - Question 4 - 2019 - Paper 1
Question 4
4. (a) Outline one method Mind Candy could use to extend the product life cycle of one of its games. (b) Analyse the impact on Mind Candy of reducing the size of i... show full transcript
Worked Solution & Example Answer:4. (a) Outline one method Mind Candy could use to extend the product life cycle of one of its games - Edexcel - GCSE Business - Question 4 - 2019 - Paper 1
Step 1
Outline one method Mind Candy could use to extend the product life cycle of one of its games.
Answer
One effective method Mind Candy could use to extend the product life cycle of one of its games is to introduce educational or seasonal updates. By adding new content that aligns with current trends or activities, such as educational features for schools or themed content for holidays, Mind Candy can engage existing players and attract new users. This strategy not only enhances player engagement but also encourages further purchases or in-game spending.
Step 2
Analyse the impact on Mind Candy of reducing the size of its workforce.
Answer
Reducing the size of its workforce can have several impacts on Mind Candy.
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Cost Savings: The immediate effect of reducing the workforce is a decrease in operational costs, which can enhance the company's financial standing. This can allow for reallocation of resources towards game development or marketing.
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Employee Morale: However, such a move could also lead to diminished morale among remaining employees. Job insecurity may rise, potentially affecting productivity and creativity, which are crucial in the gaming industry.
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Workload Increase: The remaining staff may face a heavier workload, which might lead to burnout. This increased pressure could impair the quality of work, hindering projects and development timelines.
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Loss of Talent: Reducing the workforce could result in the loss of valuable skills and expertise, particularly if key players are let go. This could diminish Mind Candy's innovation capacity and ability to stay competitive in a rapidly evolving market.
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Market Perception: Furthermore, market perception could be negatively impacted. Stakeholders may view downsizing as a sign of underlying issues within the company, potentially affecting investor confidence and sales.
In summary, while cost savings can be beneficial, the potential adverse effects on morale, productivity, and market perception should be carefully considered.