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In: Business and Management

Submitted By asrohanage
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The four forces that can affect Alphabet Games is the analytical framework PEST this takes in any political, economy, social and technological factors.
• Political
The political factors that will affect Alphabet Games are the legislation and guidelines that have been set out by the government that must be followed in order to avoid any legal action taking place. They also need to consider globalization and the differentials of each market they trade in as they currently sell games and software worldwide. They must also abide by any European Union rules and legislation when trading worldwide it has a higher level of control over the United Kingdom.
The taxation policy is also important to Alphabet Games due to the changing tax rates which may affect the company’s sales revenue and any profits or loss which they may make.
VAT can also have an effect on the cost of the products they are development as it can increase/decrease the cost of raw materials and also the selling price of the complete product which will also affect any profit margins. The VAT rate has changed three times since 2008 which will have had knock on effects on a business such as Alphabet Games due to them altering selling prices to including the lower or increased VAT rate set by the government.
Alphabet Games are also affected by the labour laws as they must meet all legislation set out by the government with regards to policies such as Minimum wage, health and safety and contract of employment as failure to comply with such legislation could have severe consequences for Alphabet Games.
• Economy
The economic conditions can have major effects on a business such as Alphabet Games as to how successful or profitable they can be. When all or part of the economy is growing there may be increased demand for the games or software which may not be there if the economy was depressed. If demand for games or...

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