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Outcome 1 Business Culture

In: Business and Management

Submitted By gremlin
Words 1811
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Assessment Task 1
Outcome 1
Alphabet Games small company based in Scotland which develops software and games. The business was formed in 2001 by three companions with a passion to develop games and software which has resulted in it becoming a multi-million pound business. The aim of this case study is to identify four forces which may affect Alphabet Games using a recognised analytical framework. A SWOT analysis is to be carried out in order to analyse and illustrate the relationship Alphabet Games has with the external environment. A set of guidelines for carrying out a SWOT analysis is to be prepared to enable the senior managers at Alphabet games to carry out an effective SWOT analysis.

Task A
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 globalisation 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...

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