A Case Analysis of Corning Incorporation

Submitted By:

 Ahmed Ullah Rasel (#1610197)

 Tauhidur Rahman Ononno (#1711037)
 Nahin Ibn Zaman (#1731384)
 Md. Redwon Islam (#1820189)
 Ashique Bin Musa (#1821741) 1|Page

Submitted To: Mr. Iftekhar Mahfuz

 Letter of Transmittal

20th September 2020

Mr. Iftekhar Mahfuz

Lecturer,

School of Business (SB)

Independent University Bangladesh (IUB)

Subject: Submission of the report regarding the Case Analysis Framework of Zynga Inc.

Dear Sir,

It is with immense pleasure and satisfaction that we can submit the report assigned to us
under your guidance and instruction on the topic of Submission of the report regarding the
Case Analysis Framework of Zynga Inc. The report is an essential part of this course and we
have tried to deliver our utmost diligence and satisfactory provision of information in the
completion of it.

We would like to convey our deepest gratitude and thank you for such a knowledge enhancing
opportunity. We have given our sincerest time and effort to make this report as precise and
informative as possible. We hope for your kind consideration in the assessment of it.

Sincerely,

Tauhidur Rahman Ononno,

Nahin Ibn Zaman

Md. Redwon Islam

Ashique Bin Musa

Ahmed Ullah Rasel

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 Acknowledgement

In performing our report, we had to take the help and guideline of our respected faculty, who
deserve our greatest gratitude. The completion of this report gives us much pleasure. We
would like to show our gratitude to Md Iftekhar Mahfuz, Lecturer, Independent University,
Bangladesh, for giving us a good guideline for the report throughout consultations. We would
also like to expand our deepest gratitude to all those who have directly and indirectly guided
us in writing this report.

Many people have made valuable comment suggestions on this proposal which inspired us to
improve our assignment. We thank all the people for their help directly and indirectly to
complete our assignment.

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 Table of Contents
Letter of Transmittal.......................................................................................................................................................................................... 2
Acknowledgement............................................................................................................................................................................................... 3
Introduction........................................................................................................................................................................................................... 5
A Case Analysis Framework............................................................................................................................................................................ 6
Analyzing the Current Scenario of Zynga Inc............................................................................................................................................ 7

Environment..................................................................................................................................................................................................... 7
Industry.............................................................................................................................................................................................................. 7
Firm...................................................................................................................................................................................................................... 7
Management Program.................................................................................................................................................................................. 8

SWOT Analysis of Zynga Inc............................................................................................................................................................................ 9

Strengths of Zynga Inc. - Internal Strategic Factors.......................................................................................................................... 9

The weakness of Zynga Inc. - Internal Strategic Factors................................................................................................................. 9
Opportunities for Zynga Inc. - External Strategic Factors............................................................................................................ 10
Threats Zynga Inc. Facing - External Strategic Factors................................................................................................................. 10

PESTEL Analysis of Zynga Inc...................................................................................................................................................................... 11

Political Factors that Impact Zynga Inc............................................................................................................................................... 11

Economic Factors that Impact Zynga Inc............................................................................................................................................ 11
Social Factors that Impact Zynga Inc.................................................................................................................................................... 12
Technological Factors that Impact Zynga Inc................................................................................................................................... 12
Environmental Factors that Impact Zynga Inc................................................................................................................................. 12
Legal Factors that Impact Zynga Inc..................................................................................................................................................... 13

Guidelines for an Operational Approach to Case and Problem Analysis.....................................................................................13

Alternative Decision and Implementation.............................................................................................................................................. 14

Pricing Policies.............................................................................................................................................................................................. 14
Promotion....................................................................................................................................................................................................... 15
Product Lines................................................................................................................................................................................................. 15
Channels of distribution............................................................................................................................................................................ 15
Geographic concentration........................................................................................................................................................................ 15

Appendix............................................................................................................................................................................................................... 16
Conclusion............................................................................................................................................................................................................ 16
References............................................................................................................................................................................................................ 17

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Introduction

Zynga Inc. is the world’s largest social game developer with more than 290 million monthly active
uses playing their games. Zynga, founded in 2007 and a privately held company until its 2011 IPO,
develops social games (casual games) played on various social networks including Facebook,
MySpace, Yahoo as well as on mobile devices including the Android-based ones, iPhone and iPad.
Games include a social element, giving users a new way to interact with friends online. It has
become well known for titles such as Farmville, CityVille or CastleVille. Zynga was growing at
record speed. But Zynga was heavily dependent on Facebook and its users. To best serve their
dedicated gaming audience, Zynga needed to connect with their users in a meaningful, non-
interruptive way to gather feedback on how to further improve Zynga games. No easy task,
considering that many Zynga users only have a few minutes per day to spare on games. Although
Zynga makes a point of using usage data in their design and decision making, they needed to build
on their rich usage data to understand how their players think and feel. Reportedly valued at ca. $20
billion by mid of 2011 Zynga was preparing to file paperwork for an initial public offering (IPO)
with the US SEC (Securities and Exchange Commission) to raise $1 billion. “Any deterioration in
our relationship with Facebook would harm our business," as well as stockholders, Zynga said in its
IPO filing. Zynga as the face of an overhyped Web initial public offering showed immediately after
its IPO a marked drop in stock price. There is no single factor explaining the price drop. However,
there was a theory making the rounds shedding some light on mechanisms to influence which means
increase the stock value of tech firms for their IPOs. Zynga was built entirely around the concept of
social gaming. It could then be inferred that social gaming took playing video games to a new level.
When playing games on platforms such as computers, cell phones, tablets, or other devices, gamers
were no longer required to play alone or with a friend physically present. Social gamers were able to
play with others, over the internet, at each other’s pace. This was exactly how Zynga’s game was
played.

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A Case Analysis Framework

Pincus wanted to create the right culture for the company. Growth of Zynga over the first three years
of its existence in terms of revenue and number of employees occurred so fast, that the startup had to
turn to professional management like a large firm. Any company, especially in Silicon Valley, that is
growing quickly can outgrow the capabilities of senior leaders. "Pincus began by phasing out the
company's early sweatshop vibe.” ‘We were so desperate for people just to be writing code,’ he
admits. ‘We had grabbed any kind of contractor, spiffing people for working weekends. We were at
risk of being a mercenary culture versus a missionary one,’ echoing a presentation shared with him
by VC John Doerr.” “Mercenary culture,” providing services or works merely for monetary gain, is
seen as a typical trait of US culture seen primarily by Europeans this way. The company had
autonomous teams for each game. And Pincus constantly searched for new ways to give employees a
sense of “creative ownership” in line with his view of it. This can be especially challenging for
employees working on older games with flagging numbers. When the newcomer Bethke delivered a
tough critique of a sputtering game. The brainstorm that followed revived both the game and the
team's spirits. "One of our core values is that everyone is the CEO of the thing that they do, Rusli
characterized Zynga to have a “tough culture.” Related issues surfaced with Zynga in the period
before IPO and continued after the IPO with a dramatic decline in its stock value. “In dozens of e-
mails to a companywide list, frustrated workers complained about the long hours and stressful
deadline periods.” “Employees log long hours, managers relentlessly track progress, and the weak
links are demoted or let go. Instead, it’s going to be a Harvard Business School case study on
founder overreach this will be a cautionary tale. As the discord increased this jeopardized the
company’s ability to retain top talent at a time when Silicon Valley start-ups are fiercely jockeying
for the best executives and engineers. It could also hamper deal-making, a critical growth engine for
Zynga, which has spent about $119 million on acquisitions in 2009 and 2010. In 2011 founders of a
firm Zynga wanted to acquire worried about the company’s reputation after hearing rumors of the
company’s internal state, said two people with first-hand knowledge of the situation. Instead, the
firm agreed to a rival offer from Electronic Arts. Also, several startups have rebuffed Zynga.

Zynga did not only encountered losses of employees but had also a remarkable attrition rate of
executives leaving following the firm's IPO and struggled with a flagging stock value in 2012. They
called this an oppressive corporate culture, which means tyrannical, repressive, or unfair.

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Analyzing the Current Scenario of Zynga Inc

Zynga’s mission (vision) including fun seems to express a player-centric approach. Connecting the
world through games. If we can make games simple, accessible, and social the world will start
playing. “Games have grown to become the second most popular online activity in the United States
by time spent, even surpassing email. Play, invest, and express are player actions that we believe are
central to our social games. Zynga’s offerings follow a “Freemium model”. Its type of Free-to-Play
games covers social network-based games casual games. Compared to pay-to-play business models,
the free-to-play approach tends to attract a wider audience of players, thereby increasing the number
of players who have the potential to become paying users. By attracting a larger audience, the model
enables also a higher degree of in-game social interaction, which enhances the game experience for
all players. The economic uptick and increase in customer spending, after years of recession and
slow growth rate in the industry, is an opportunity for Zynga Inc. to capture new customers and
increase its market share.

Environment
If the game is free of change, selected add-ons for gaming may require fees, from a few cents to
several dollars/euros for users with premium or super-premium access.

 This leads to two types of playing. Generally, non-advertisement revenues result from
subscription, premium accounts
 “virtual goods” for social networks the business model works by offering a product or service
free of charge while charging a premium for advanced features
 Further add-ons are called a “Freemium model”

Industry
It was essentially funded by Mark Pincus. They were the first to finger out how to connect online
gamers with their offline friends. As a serial entrepreneur Mark Pincus had learned much of the
management skills on the job. For founding his previous firms, he was opportunistic about starting
companies.

 They solved this problem through social networks.

 Pincus had tried intentionally to create an “Internet Treasure”. That means knowing one’s
goals and being able to quantify success and let the business go if it is not successful.
 New technologies developed by the competitor or market disruptor could be a serious threat
to the Zynga in medium to long term future

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Firm
Pincus wanted to create the right culture for the company. Any company, especially in Silicon
Valley, that is growing quickly can outgrow the capabilities of senior leaders

 Growth of Zynga over the first three years of its existence in terms of revenue and number of
employees occurred so fast,
 Zynga’s startup hat to turn to professional management like a large firm.
 Financial planning is not done properly and efficiently.
 The current asset ratio and liquid asset ratios suggest that the company can use the cash more
efficiently than what it is doing at present.
 Organizational structure is only compatible with the present business model thus limiting
expansion in adjacent product segments.

Management Program
Zynga started to move employees to new headquarters, located in San Francisco's South of Market
district. At its San Francisco headquarters, Zynga Founder Pincus's goal was to create a playful
gaming environment that evokes a fantasy land. The company works hard to be a flat organization.
Pincus stated that Zynga is searching for leaders and they encourage employees to “break the rules”.
The company expects workers to fix what they are unhappy with, thus making the workplace better
for everyone. According to Stephanie Hess, VP of Communications at Zynga, who also leads
Women at Zynga, the group strives to attract, hire, and retain top female talent.

 Zynga's headquarters, nicknamed "The Dog House",

 They feature a coffee shop, gaming arcade, gym, basketball court, and wellness center.
 Zynga employees also referred to as “Zyngites”, enjoy perks such as free gourmet meals,
access to an in-house nutritionist, and personal training.
 Women at Zynga is an employee-led resource group that focuses on empowering women to
succeed and become leaders in their careers and communities, especially within the tech
space.
 Women at Zynga also organizes events of special interest to women.

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SWOT Analysis of Zynga Inc

SWOT analysis is a strategic planning tool that can be used by Zynga Inc. managers to do a current
analysis of the organization. Zynga Inc. is one of the leading companies in its industry. Zynga Inc.
maintains its dominant position in the market by critically analyzing and reviewing the SWOT
analysis. SWOT analysis an immensely interactive process and requires effective coordination
among various departments within the company such as – marketing, finance, operations,
management information systems, and strategic planning.

Strengths of Zynga Inc. - Internal Strategic Factors

As one of the leading firms in its industry, Zynga Inc. has numerous strengths that help it to thrive in
the market place. These strengths not only help it to protect the market share in existing markets but
also help in penetrating new markets. Based on Fern Fort University extensive research, some of the
strengths of Zynga Inc. are –

 Automation of activities brought consistency of quality to Zynga Inc. products and has
enabled the company to scale up and scale down based on the demand conditions in the
market.
 Good Returns on Capital Expenditure Zynga Inc. is relatively successful at the execution
of new projects and generated good returns on capital expenditure by building new
revenue streams.
 Strong Brand Portfolio over the years Zynga Inc. has invested in building a strong brand
portfolio. The SWOT analysis of Zynga Inc. just underlines this fact. This brand portfolio
can be extremely useful if the organization wants to expand into new product categories.
 Reliable suppliers, it has a strong base of reliable supplier of raw material thus enabling
the company to overcome any supply chain bottlenecks.
 Highly skilled workforce through successful training and learning programs. Zynga Inc.
is investing huge resources in the training and development of its employees resulting in a
workforce that is not only highly skilled but also motivated to achieve more.

The weakness of Zynga Inc. - Internal Strategic Factors

Weakness is the areas where Zynga Inc. can improve upon. The strategy is about making choices and
weaknesses are the areas where a firm can improve using SWOT analysis and build on its
competitive advantage and strategic positioning. Some of the weakness of Zynga Inc. are –

 The high attrition rate in work force compare to other organizations in the industry Zynga
Inc. has a higher attrition rate and have to spend a lot more compare to its competitors on
the training and development of its employees.
 Limited success outside core business Even though Zynga Inc. is one of the leading
organizations in its industry it has faced challenges in moving to other product segments
with its present culture.
 Need more investment in new technologies. Given the scale of expansion and different
geographies the company is planning to expand into, Zynga Inc. needs to put more money

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 in technology to integrate the processes across the board. Right now, the investment in
technologies is not at par with the vision of the company.
 The marketing of the products left a lot to be desired. Even though the product is a
success in terms of sale but its positioning and unique selling proposition are not clearly
defined which can lead to the attacks in this segment from the competitors.
 Investment in Research and Development is below the fastest growing players in the
industry. Even though Zynga Inc. is spending above the industry average on Research and
Development, it has not been able to compete with the leading players in the industry in
terms of innovation. It has come across as a mature firm looking forward to bring out
products based on tested features in the market.

Opportunities for Zynga Inc. - External Strategic Factors

 Decreasing the cost of transportation because of lower shipping prices can also bring
down the cost of Zynga Inc.’s products thus providing an opportunity to the company -
either to boost its profitability or pass on the benefits to the customers to gain market
share.
 New trends in consumer behavior can open up a new market for Zynga Inc. It provides a
great opportunity for the organization to build new revenue streams and diversify into
new product categories too.
 Stable free cash flow provides opportunities to invest in adjacent product segments. With
more cash in the banks, the company can invest in new technologies as well as in new
product segments. This should open a window of opportunity for Zynga Inc. in other
product categories.
 The government green drive also opens an opportunity for the procurement of Zynga Inc.
products by the state as well as federal government contractors.
 An organization’s core competencies can be a success in similar to another product field.
A comparative example could be - GE healthcare research helped it in developing better
Oil drilling machines.

Threats Zynga Inc. Facing - External Strategic Factors

 No regular supply of innovative products – Over the years the company has developed
numerous products but those are often responses to the development by other players.
Secondly, the supply of new products is not regular thus leading to high and low swings
in the sales number over time.
 The shortage of skilled workforce in certain global markets represents a threat to the
steady growth of profits for Zynga Inc. in those markets.
 The company can face lawsuits in various markets given - different laws and continuous
fluctuations regarding product standards in those markets.
 Rising pay level especially movements such as $15 an hour and increasing prices in
China can lead to serious pressure on the profitability of Zynga Inc.
 The demand for highly profitable products is seasonal in nature and any unlikely event
during the peak season may impact the profitability of the company in the short to
medium term.

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PESTEL Analysis of Zynga Inc
PESTEL analysis provides great detail about operating challenges Zynga Inc. will face in a prevalent
macro environment other than competitive forces. For example, an Industry may be highly profitable
with a strong growth trajectory but it won't be any good for Zynga Inc. if it is situated in an unstable
political environment.

Political Factors that Impact Zynga Inc.

Political factors play a significant role in determining the factors that can impact Zynga Inc.'s long
term profitability in a certain country or market. Zynga Inc. is operating in Multimedia & Graphics
Software in more than a dozen countries and exposes itself to different types of political environment
and political system risks. The achieve success in such a dynamic Multimedia & Graphics Software
industry across various countries is to diversify the systematic risks of the political environment.
Zynga Inc. can closely analyze the following factors before entering or investing in a certain market-

 Political stability and importance of the Multimedia & Graphics Software sector in the
country's economy.
 Risk of military invasion
 Level of corruption - especially levels of regulation in the Technology sector.
 Bureaucracy and interference in the Multimedia & Graphics Software industry by
government.
 Legal framework for contract enforcement
 Intellectual property protection
 Trade regulations & tariffs related to Technology

Economic Factors that Impact Zynga Inc.

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign exchange
rate, and economic cycle determine the aggregate demand and aggregate investment in an economy.
While micro environment factors such as competition norms impact the competitive advantage of the
firm.

 Type of economic system in countries of operation – what type of economic system there
is and how stable it is.
 Government intervention in the free market and related Technology
 Exchange rates & stability of host country currency.
 Infrastructure quality in the Multimedia & Graphics Software industry
 Comparative advantages of the host country and Technology sector in a particular
country.
 Skill level of workforce in the Multimedia & Graphics Software industry.
 Education level in the economy
 Labor costs and productivity in the economy
 Economic growth rate
 Discretionary income
 Unemployment rate
 Inflation rate
 Interest rates

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Social Factors that Impact Zynga Inc.
Society’s culture and way of doing things impact the culture of an organization in an environment.
Shared beliefs and attitudes of the population play a great role in how marketers at Zynga Inc. will
understand the customers of a given market and how they design the marketing message for
Multimedia & Graphics Software industry consumers. Social factors that the leadership of Zynga
Inc. should analyze for PESTEL analysis are -

 Demographics and skill level of the population

 Class structure, hierarchy, and power structure in society.
 Education level as well as education standard in Zynga Inc.’s industry
 Culture (gender roles, social conventions, etc.)
 Entrepreneurial spirit and the broader nature of society. Some societies encourage
entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests

Technological Factors that Impact Zynga Inc.

Technology is fast disrupting various industries across the board. The transportation industry is a
good case to illustrate this point. Over the last 5 years, the industry has been transforming fast, not
even giving chance to the established players to cope with the changes. A firm should not only do
technological analysis of the industry but also the speed at which technology disrupts that industry.
Slow speed will give more time while the fast speed of technological disruption may give a firm little
time to cope and be profitable. Technology analysis involves understanding the following impacts –

 Recent technological developments by Zynga Inc. competitors

 Technology's impact on product offering
 Impact on cost structure in the Multimedia & Graphics Software industry
 Impact on value chain structure in the Technology sector
 Rate of technological diffusion

Environmental Factors that Impact Zynga Inc.

Different markets have different norms or environmental standards that can impact the profitability
of an organization in those markets. Even within a country often states can have different
environmental laws and liability laws. Before entering new markets or starting a new business in an
existing market the firm should carefully evaluate the environmental standards that are required to
operate in those markets. Some of the environmental factors that a firm should consider beforehand
are –

 Weather
 Climate change
 Laws regulating environment pollution
 Air and water pollution regulations in the Multimedia & Graphics Software industry
 Recycling
 Waste management in the Technology sector
 Attitudes toward “green” or ecological products
 Attitudes toward and support for renewable energy

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Legal Factors that Impact Zynga Inc.
In several countries, the legal framework and institutions are not robust enough to protect the
intellectual property rights of an organization. A firm should carefully evaluate before entering such
markets as it can lead to theft of the organization’s secret sauce thus the overall competitive edge.
Some of the legal factors that Zynga Inc. leadership should consider while entering a new market
are:

 Anti-trust law in the Multimedia & Graphics Software industry and overall, in the
country.
 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law
 Data Protection

Guidelines for an Operational Approach to Case and Problem Analysis

During the very early phase, Zynga “collected” games. Zynga bought YoVille, a browser-based
virtual world game and a large virtual world social network game. YoVille was the first of the
successful -Ville series of social/casual games by Zynga. It had 60 million unique daily active users
in December 2009.

In addition to making their games, Zynga has created a network that allows third-party developers to
become part of the Zynga network. Zynga claimed to be the largest social game network on the Web.
Notably, Zynga.org raised more than $10 million for several international non-profits by
occasionally selling “virtual goods” for charitable causes.

Such growth of business and operations requires continuously spending significant resources. This
means, enhancing information and communication systems must ensure that employees and offices
around the world are well-coordinated and can effectively communicate with each other and
enhancing the internal controls to ensure timely and accurate tracking and reporting of all of the
operations.

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Alternative Decision and Implementation

A successful decision implementation plan creates a positive action crucial for living up to promises
and for building the credibility necessary for successfully implementing additional business
decisions. On the other hand, failing to act on a decision erodes trust and can make implementing
future business decisions more difficult. Although the steps for the decision implementation plan
follow a similar course for many businesses, the size of a business, its organizational structure, and
communication patterns all factor into the process.

 While strategic planning is the responsibility of top management, strategy implementation is

the responsibility of the whole company.
 A new strategy should be cascaded to all functional departments to be aligned with new
objectives and strategies.
 The top management & legal department is responsible to make the new partnership with
Renren.
 The marketing department is responsible for promoting the new localized version of
Zynga.cn and to attract local developers to distribute their games on the Zynga platform.
 HR department to arrange new technologies & platforms training for developers and attract
new talents.
 There is no significant organizational structure that should be incorporated as the company
already used to make acquisitions and partnerships with the current structure.
Zynga relies on mobile devices for generating most of its revenue. More than half of revenue comes
from Apple and its iOS mobile operating system and about a third comes from Google and its
Android mobile operating system. Facebook, formerly Zynga’s top revenue generator, now supplies
about an eighth of sales. The company cross-promotes new games to its existing audience and
through paid advertising.

From budget approval and contract signing to going live, implementation required just over a month.
Between Thanksgiving and Christmas, Zynga’s IP database was rebuilt in IPfolio, workflows, and
Single Sign-On access were configured, and an engineer-friendly invention disclosure portal was
built. When everyone returned from the end-of-year vacation, Zynga was ready for a new chapter in
its innovation history. Receiving the first unsolicited invention disclosure in January was, according
to Joe, “fairly eye-opening. However, Zynga can improve in these sectors by developing their
strategies:

Pricing Policies
If Zynga Inc. decides to choose the price penetration strategy, it will have to set a lower price than
competitors. The company will be able to win market share based on discounted pricing. However,
management should be aware of the potential retaliation from competitors in the form of an
undesired price war. The choice of skimming strategy will require clear communication of
differentiation basis and how such differentiation justifies the extra price.

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Promotion
Start with clearly defining your unique selling propositions and understand why customers need the
product and how it is different from available alternatives. The promotional strategies like direct
selling or high-profile advertising will suit if the company wants to push the product.

However, the pull strategy will require the development of a prestigious brand image that could
attract the customers towards the offered product. Lastly, consider the budget constraints and allocate
budget to chosen promotional strategies according to their nature, importance, and frequency.

Product Lines
This Strategy element reflects the solution to the customers’ needs. Zynga Inc should develop unique
product design, name, and features to stand out in the competitive market. The following factors
should be considered to develop the product strategy- quality, variety, features, packaging, brand
name, and augmented services.

Channels of distribution
Whether the company wants to make the product available to targeted customer segments through its
channels, or it needs a distribution partner to serve the customers' needs. Whether the distribution
will be direct (involving no middlemen), or indirect. If an indirect distribution strategy is adopted,
the number of middlemen must be selected (wholesalers, retailers, etc.) traditional brick and mortar
distribution networks, online distribution, or a combination of both. Certain online retailers like
Amazon are available if an online distribution strategy is chosen. The company can also develop its
online website to sell the product.

Geographic concentration
Collect the following target market information- who will buy the product? (Age, gender, income,
and social status) The popularity of social media marketing has raised significantly during the last
few years. The use of this promotional strategy will enable Zynga Inc to reach the mass market
economically. It will also offer an opportunity to actively interact with customers, develop a
personalized relationship, and manage e-WOM to get better results. However, the risk of
uncontrollable negative e-WOM remains there.

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Appendix

The Company is, at various times, also party to various other legal proceedings and claims not
previously discussed which arise in the ordinary course of business. Also, the Company may receive
notifications alleging infringement of a patent or other intellectual property rights. Adverse results in
any such litigation, legal proceedings, or claims may include awards of substantial monetary
damages, expensive legal fees, costly royalty or licensing agreements, or orders preventing us from
offering certain games, features, or services, and may also result in changes in the Company’s
business practices, which could result in additional costs or a loss of revenue and could otherwise
harm the Company’s business. Although the results of such litigation cannot be predicted with
certainty, the Company believes that the amount or range of reasonably possible losses related to
such pending or threatened litigation will not have a material adverse effect on its business, operating
results, cash flows, or financial condition should such litigation be resolved unfavorably.

Conclusion

People suspected Zynga’s stock has been propped up over the past month by the underwriters, who
agreed to buy shares if the stock started to perform poorly. The stock purchases would have created a
steady demand for the stock and kept the price relatively stable. Furthermore, the theory goes, the
underwriters have since met their obligations for buying the stock, and therefore are no longer
buying as many shares. Incidentally, Morgan Stanley, one of Zynga’s underwriters disclosed that it
had purchased nearly 16 million shares in December. But while the disclosure, filed with the
Securities & Exchange Commission, adds fuel to the theory, it is unclear if those shares were
purchased as part of the IPO, or if they were spread out throughout the month.

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References

https://www.coursehero.com/file/27057454/Zynga-INC-case-studydocx/
http://fernfortuniversity.com/term-papers/swot/nyse/4074-zynga-inc-.php
http://fernfortuniversity.com/term-papers/pestel/nyse4/4074-zynga-inc-.php
http://fernfortuniversity.com/term-papers/porter5/analysis/4074-zynga-inc-.php
https://finance.yahoo.com/quote/ZNGA/profile/
https://investor.zynga.com/node/9116/html
https://csimarket.com/stocks/fundamentals_glance.php?code=ZNGA
https://www.readyratios.com/sec/ZNGA_zynga-inc
https://www.wsj.com/market-data/quotes/ZNGA/financials
https://www.zacks.com/stock/research/ZNGA/industry-comparison
https://www.gamesindustry.biz/articles/2020-02-05-zynga-posts-record-full-year-revenues

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