Date of Submission:
- The Purpose Of The Business
Atari is a global, interactive, multi-platform company that owns and manages a large portfolio of two hundred franchises and video games. The company is also a developer and distributor of interactive entertainment that is used in video games created by other companies such as Nintendo and Microsoft. Atari is also a licensing company and has extended its franchises and brand into other merchandising, publishing and media categories.
- The Company Operating Basis
It is a private company that operates on a profit basis. It is listed on the New York Stock Exchange Euronet and Paris Stock Exchange. The profits are either reinvested into the company or provided as dividends to the shareholders. This is in contrast to non-profit organizations that operate on a basis of surplus revenues and not profits.
- Mode Of Operation
The company manufactures video games some of which can be played online. It is therefore a manufacturing company as well as internet based.
The headquarters are located in New York in the United States of America. It also has a branch in Paris, France.
(b) The History Of The Business
The company that bears the name Atari Inc. was created in the year 1993 and was initially called ‘GT Interactive’. In the year 1999, a company called (IESA) Infogrames Entertainment, SA acquired 62 percent controlling interest of GT interactive after which they renamed it to Infogrames Inc. after IESA acquired Hasbro interactive as well as its Atari properties in the year 2001, Infogrames Inc. intermittently carried on to publish Atari branded labels for Infogrames Interactive. In the year 2003, Infogrames Inc. took a license for the Atari logo and name from Atari interactive and eventually changed the name of the company to Atari Inc. in the month of October the year 2008, Infogrames completed acquiring Atari Inc. hence making it a fully owned subsidiary.
(c) The Capitalism’s Four Basic Rights In The Business.
Rights to private property
Atari Inc. owns as well as franchises numerous video games and brands. Any company that may use Atari’s products or brands they have to get authorization from Atari. This demonstrates that it exercises its right to ownership of private property.
Right to keep all profits after taxes
The company retains all profits made after it has paid its taxes. These profits are used by the company as the management deems fit. No outside forces interfere with the choice of how profits will be allocated after taxes are paid.
Right of choice
The company makes independent decisions of whom to do business with and which products to provide to the market. It exercises the right of choice by freely choosing how, when and where to carry out its operations. Atari, even though it is a subsidiary, makes autonomous choices regarding its operations. It hires and fires freely, choose which companies sell their franchises to and also choose the kinds of video games they produce.
Right to compete with other businesses
Atari Inc. has a fair opportunity to compete with other video game companies in the industry. It faces no restrictions that may undermine its ability to compete favorably with other companies in the same industry.
- form of economic environment company operate
It operates in an oligopoly since the industry has been dominated by a few sellers and this reduced competition has resulted in higher costs of the products.
(d) The Government Role In The Operations Of The Business
The government offers licenses for the company to stay in operation. It monitors all trading activities carried out by the company to make sure that no laws are broken and that no illegal transactions take place. It also monitors the products it releases to ensure that no intellectual property has been stolen from a rival company. The government is also involved in taxing the company’s revenue.
(e) The Legal Form Of The Business
This company is a limited liability company. It is advantageous to the shareholders since they are not personally accountable to pay the creditors of the company and the company also has perpetual succession. It is however disadvantageous as well since it requires huge capital investment and this can be difficult for the company to rise. This may even plunge the company into bankruptcy if it cannot meet the variable costs incurred in its operations.
(f) How does this business exhibit corporate citizenship and responsibility of business in society?
The company has not shown any record of any corporate social responsibility activities.
- Describe any ‘green’ concepts the business might be using or plan on using in the future.
The company has not undertaken any ‘green’ concept project and has not indicated any plans of doing so in the foreseeable future.