Alphabet Swoth and Pestel free essay sample

There are several PESTEL forces which could affect our company. Socio-cultural pestel includes distribution of population according different age group, sex, religion, income etc. All these features can have an impact on our company, as distribution of computer games in an area, where people are not interested in computer games is not target area, as sales would not be high enough to create siginficant profit, or profit at all. For example; an area with a  high average age is not a  great place, as older people and mainly retired people are not able to operate computers or games consoles. hey have different interests and priorities. Even an area with a  low wage income,as prices of computer games keep rising, people would not be able to afford buying them. The desired area which our company should focuse is area with average age between 10 and 20, as this age group is highly intersted in playing computer games and are able to operate computers and game consoles. We will write a custom essay sample on Alphabet Swoth and Pestel or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The best way how to pick the best market is to do research of the area for future business. Population Census is the ideal dokument , which provides our company with all needed information for sucesfull business and healthy profit. Economical PESTEL incudes factors as inflation, prices of competition, taxation and addtitionla charges for importing patrs from foreign countries, and overall economical situation in the country. This type of PESTEL is highly important for Alphabet Games, as it affects prices of its products, which go higher, if competition has much higher prices, higher taxes or rising inflation. Vice versa, prices have to be lowered, if people can not afford compny’s product due to recession and economical crisis. The best way how to adjust prices for customer making our products desirable is to carry out research on montlhly bases to make sure that prices are correct, reasonable, but still making profit. Technological factor is another type of PESTEL which Alphabet Games should be aware of, as technology keeps changing, new game consoles, computers and game softwares are being intoroduced on daily bases. Products of our company has to be up-to-date with the correct software which could be played on any type of new game device. It would be useless to produce games with an old graphic, or old flash software as customers would not be interested in buying them, as competition produces games with the newest technology and graphics. The best way how to deal with this factor, is to observe market with a  new technology and make reasonable and realistic decisions about using it. Legal factor is another type of PESTEL. This factor includes laws, policies, age restrictions or any neccessary lables on packaging of product. This factor is important for our company as well, as all laws needs to be watched and followed. If the company produces games with a  forbidden elements,for example violence, sexual scenes etc. , local authorities or even government could take them down from market. This will affect profit and could cause serious financial damage. Also all packaging has to be labeled with correct marks and sighns as age restriction label, epilepsy warning labels etc. B. SWOT Analysis Swot analysis is a  process during which all strenght, weaknesses , opportunities and threats are examined considering external and internal factors of company. SWOT S- Strenghts W-Weaknesses O-Oportunities T-Threats 1. Strenghts Team Force Strenghts of our company are that our team is ambitios, act in a  professional manner, there is a  good communication and atmosphere within the company. All these factors are considered as a  strenght as it makes company stronger and united. Everybody knows what to do, staff is motivated and willing to work. Quality All these factors are reflected on quality of our products and services. Competitvness, Reputation Alphabet Games can easy compete with other compnies , which regard us as an equal competitor. Flexibility Company is flexible and very well reacts to changes on market. All these factors help to company’s reputation, what attracts customers. 2. Weaknesses Alphabet Games has also its weaknesses. Recruting When new staff is recruited, skills and quality of work is not the priority for getting the job, but motivation and passion. This could afect the quality of products, harm copmany’s reputation and loosing of customer and financial looses. This issues has to be solved as soon as possible, as the production and results are the most importatn factors for our company. Organisational structure Company has no organisation divison. There is 25 members of staff and 3 leaders, but no Office manager or at least supervisor. It would be highly usefull if authority would be present in the Office all the time, to supervise team making sure everything i sup-to-date, paperwork is filled out properly, procedures followed and that no employee is behind with the work. Also HR department could be created , which would support staff providing training or doing recruitment etc. 3. Opportunities New Market Alphabet games could expand, by expanding online shop, in order to target oversees markets and new customers. New Tehnnology New Technologies could be used for developing new types of games to attract customers and to be more competitive with other companies. Co-operation As Alphabet Games company already co-operates with film makers, this could really help promotion and advertising. Advertisment of our new games could be played before any film in cinema, so people would be aware of products. Dissapearing companies Because of a  bad economical situation, small companies are dissapearing, so their customers can start using our pservices. Merging Because some big compnies merges with other companies, our company, even i tis sucesfull and produces considerable profit, merging with the same size company would not be bad idea. This would bring new ideas, new people, customers and suppliers from both companies together. All these opportunities would rise profit and would guarantee an expansion to our company. 4. Threats Competition External threats for our company are expanding big companies, as they could expand so much that they would overtake whole market and demand for our producst would not be enough to support Alphabet Games company. New technology Prices of new Technology is nother threat, as they can start at a  high prices and our company would not be able to afford it. Consequently, competitors would prodduce games in demand, meanwhile our company would be producing old fashion games, which is nobody interested in. Piracy Piracy is nother problem which our company has to face, as more and more games including our games are available online to dawnload for free. The best way how to sort this problem out is to employ one person to visit the most frequent visited piracy pages to delete them from the list. Economic Situation If economic situation gets worse, for example recession, people would not be able to afford our products and profit of Alphabet Games would lower. This threat could be resolved by monitoring the economic siatuation; and altering prices according results. This plies not only on recession, but inflation, taxation as well. Strenghts| Weaknesses| Ambitious Comparable with competition Great reputation for excellence Quality, innovation Flexibility Professionalism Innovative Good Communication| Recruitment priorities-quality at the bottom, Passion is the most important Too much staff-no organizational division| Opportunities| Threats| New market-new customers Small competitors are disappearing Merging with the same size company,Developing technology Co-operation with film makers etc†¦better Advertisement| Growing competitors Rising taxation Inflation Higher prices=new technology Economic situation Piracy| C. SWOT Analysis Guidelines Swot analysis is a  tool which helps to understand and make decisions for a  different kind of situation in business. It is used for business planning, strategic planning, evaluation of competitors, marketing and company’s development. Strenghts are attributes of company which creates a  considerable advantage upon which company can bult and develop. These are internal factors. Weaknesses are deficiencies in present resources of the organisation, as they limit its effectivness, prgress, developement and expansion. All issues has to be resolved as soon as possible, actions have to be taken to minimise any possoble harm cause by them. This includes only internal factors. Opportunities are external elements which create an advantage for the company. The organisation must be extremly sensitive to changes on market to be able to use all these changes in its profit. This includes external factors. Threats are external elemnts which create a  disadvantage for the company. These are also called infavourbale situations. They can endanger operation of the company, its effectivness and cause financial looses. This includes external factors. Rules of good SWOT analysis: * Analysis should be realistic and honest * It should be spot on It should be clear where your company stands in the present and in the future * Points hsould be simple without any irrelevant details * Analysis should be applied on competition as well * Be as objective as possible * Objectives has to be defined * SWOT is not a  strategy, it is only a  way how to create a  strategy * Opportunities are ususally mistaken for strenghts . Boundaries should be set. What to do next: * Company should built on its strenghts * Weaknesses should be resolved * Opportunities should be used * Threats should be avoided, or at least limited References: http://www.businessballs.com/swotanalysisfreetemplate.htm http://www.utalkmarketing.com/Pages/News.aspx