Business Culture and Strategy Analysis for Alphabet Games

This report analyzes the business strategy of Alphabet Games, focusing on how different strategies influence organizational behavior. It begins by explaining four generic business strategies: cost leadership, differentiation, focus cost leadership, and focus differentiation, referencing Porter's framework and their application in a competitive environment. The report then differentiates between business strategy and strategic choice within Alphabet Games, emphasizing the importance of customer satisfaction and adapting to environmental changes. It suggests cost leadership and differentiation as suitable strategies for Alphabet Games, comparing their impact on organizational behavior. Furthermore, the report discusses forces for change, such as technological and economic factors, that Alphabet Games must consider when managing and updating its business strategy, using PESTEL analysis. Finally, it outlines four potential benefits of an effective business strategy for Alphabet Games, including market leadership, adaptability to technological changes, and financial growth. The report uses the provided assessment front sheet as a guide and includes a bibliography of sources used.

Assessment Front Sheet
Assessment Title Open book Assessment
Qualification Module Code and title
HND in Business Business Culture and Strategy
F7J7 35
Student ID Assessor Name
01000151 Ms.Ayodya Verage
Date Issued Completion Date Submitted on
02 September 2019
LO Learning Outcome Task no
03-
04
3 Explain the influence of business strategy on organisational behaviour.
4 Explain how to manage a business strategy.
1-5
Learner Declaration
I certify that the work submitted for this Assessment is my own and research sources are
fully acknowledge.
Student Signature: S.M.S.Threemavithane Date: 09.09.2019
Assignment Front Sheet Version 1.0

1. Explain four business strategies in relation to the appropriate
business environment.
The business strategies are a concept which is conduct by the business in order to achieve
their targets. The Porter come up with business strategies in order to fit the business in the
competitive environment. The Porter argues that these strategy gives strengths in a broad or a
narrow focus. He forms mainly three generic strategies such as cost leadership, differentiation
and focus. The cost leadership targets broad market with low cost of production. The business
can be use labor or automation method which gives low production cost towards business.
The procedures will be quick by cutting the manual methods and introducing the technology,
it will use the resources efficiently and also reduce the costs by reducing overhead cost per
head, avoid wastages within the company. As a large company they will benefit through
economies of scale so, they can eliminate unnecessary costs. By targeting mass market and
low cost of production will be able make the company as the leader of the market, this will be
helpful through cost leadership strategy.
The differentiation targets broad market with a unique product. The product will be unique by
adding value through product features and product quality. The business has added unique
value, those are not with the competitors’ products. This makes to compete with the
competitors through getting higher profits because customers are willing to pay premium
price due to the unique features.
Porter has expanded the focus strategy in to focus cost leadership and focus differentiation.
The focus cost leadership target narrow market with low cost of production. The efficiency in
the production let the business to lower the production costs while avoiding the wastages.
The focus differentiation target narrow market with a unique product. This strategy will lead
to add values to the product areas those can be product features and product quality. By
concentrating specific target market leads to concentrate more on the unique features of each
products. The focus strategy mainly targets towards limited territory.
Assignment Front Sheet Version 1.0

2. Explain the main differences and working relationship between
business strategy and strategic choice within Alphabet Games.
The business strategy means the decision set to achieve the business desired goals. It is
identified as long-term strategic planning. Business stratergy is a long term plans.
(Anon., n.d.)
Strategic choice means a process where the stratergic deciosns is made to choose to
implement a particular options among the other variables based on the situation. Strategic
choice is a short term plan in order to take quick decisions.(Anon., n.d.) In Alphabet Games
they are concern about the customer satisfactions which is a business stratergy in order to
achieve the desired goals. To achive these buisness stratergy, the strategic choices are arising
to take a deciosions. The Alphabet Games are tend to achieve the expectations of the
customers regarding the games and software development to reach the customer satisfaction.
The Alphabet Games should comply with consumer prefrences, to reach the customer
satisfaction. Based on the environmental change the stratergic choices are arising towards the
business strategy. The consumers are prefering more towards the life like video games, the
company is adopting to the concept through engaing with the established partners in character
and film development. The recent growth in flash games among the consumers, next
generation games consoles become established in households over the coming years. The
Alphabet Games are pursed these changes among the consumer prefrences, which are
considered as strategic choice. It will helps to reach the business strategy through those
strategic choices. The different innovations and quality complying to the consumer needs of
games and software development of the Alphabet Games helps to achieve the long term
business strategy.
Assignment Front Sheet Version 1.0

3. Suggest two different business strategies within Alphabet games and
compare their influence over organizational behavior.
Business strategy is long term plan helps to concern the decisions of the company. The
business strategies help to achieve the competitive advantage. Cost leadership and
differentiation are the two strategies the Alphabet Games can use in their business. The cost
leadership targets on mass market with a low cost. The Alphabet Games has a wide range of
corporate and individual customers. To reach the wide range of customer base, the business is
using outsourcing base. The Alphabet Games company using the outsource the work abroad
to reduce the costs. The Alphabet Games are using outsource base to develop software
packages and games targeting mass market with a low cost. This will help the Alphabet
Games to be the leader of the market. Next generation games consoles introduce by the
Alphabet Games towards wide range of households. The new consoles lead to last for six or
seven years and will drive software sales. Due to the low cost this software will lead to
increase the profits from high sales.
The Alphabet Games influence by the differentiation strategy targets on mass market along
with a unique product. Mostly the games and software development are towards mass market.
To increase the wide range of customer base unique software are introduced to enable the
company to target specific segments of customers through each unique software. The unique
products of the Alphabet Games can be due to the technological change and change in
customer preferences. The customers are preferring more towards life like video games, the
business is adopting that concept. The flash games are growing in the recent markets
specially this software target more customer base and next generation games consoles
introduce to the households gives more sales and reach higher profits. According to the above
special value-added software will increase the demands in the mass market through the
unique features in the differentiation strategy.
Assignment Front Sheet Version 1.0

4. Discuss two examples of why Alphabet Games must consider forces
for change when managing its business strategy and two examples of
forces for change when updating its business strategy.
The Alphabet Games should consider the forces for changes when managing their business
strategy and the forces for changes when updating their business strategy. The PESTEL
analysis used to identify the forces that are changes in the external environment, those will
deal with the business strategy. Firstly, technological force is considered because the next
generation games consoles has tripled the production costs in recent years. The company
have to manage the production cost which has increased due to the technological force
change and HD gaming software also risen the cost so, the Alphabet Games have to control
the production costs to attract the mass market. The Alphabet Games is already maintaining
the predominantly works within the games development sector by providing services to
clients around the world, it is increasingly offering bespoke software solutions. Through the
technology, it designs, builds and customizes software solutions to meet the market
challenges and individual needs. The Alphabet Games have to mange the above techniques to
manage the business strategy. Secondly, the economy force is considered because the
economy is affecting by some certain economic conditions such as inflationary effect.
Inflation is a continuous rise the general price level. The inflation causes to rise the
development and marketing. The Alphabet Games have to manage and concern about cost.
When updating the business strategy, firstly technological force is considered because the
flash games is growing in the market, the real life like video games are preferred by the
customers, introduce of next generation games consoles and as a promotional tool the rise of
internet viral marketing. The adaptation of the growing technology from the environment will
be able to update the business strategy through attracting mass market.
Secondly, social force is considered because the Alphabet Games has wide range of
customers around the world. They can be corporate as well individual customers. According
preferences the demand will be change. It can be independent software packages and
outsource software packages. The social force can be including the customer preferences
according to their changes the Alphabet Games also have to update and change. The
customers willing to have the real life like video games, it should be created believable
human video games. The growth in the flash games among the customers and establishments
of next generation games consoles in households. The Alphabet Games should adopt this
concept to satisfy them which gives the customer satisfaction
Assignment Front Sheet Version 1.0

5. Explain four potential benefits that Alphabet Games could enjoy as a
result of an effective business strategy.
Alphabet Games has their own effective strategies this will give the potential advantages to
them. The next generation games consoles become established in households, this will
typically last for six or seven years and will increase the software sales due to the low cost
which makes low price. This will lead to stay in the market for the longer term and reap the
potential benefits. In the gaming market the flash games have grown according to client’s
preferences. This will lead to use as marketing or educational tools and it targets specific
segments of their audience. The effective strategy by the Alphabet Games will give the better
results to the society. The effective business strategy can lead to identify the difference
between being proactive or reactive. The future circumstances should be anticipated by
Alphabet Games regarding the growth in the gaming market. The technology costs have risen
most sharply in relation to graphics as HD gaming. By expecting this in the future the
Alphabet Games requires large scale investment in staff and equipment and mange the cost
by predicting the rise in the technological costs. The effective business strategy leads the
Alphabet Games to get the new opportunities. The Alphabet Games is adopting to the life like
games which is preferred by the customers consoles. The consumers demand will overtake
that technology and the next generation of gaming will hit the marketplace by knowing the
company will establish next generation games. There is a recent growth in demand for flash
games. The Alphabet Games can adopt those new opportunities in the society among the
customers. The effective business strategy will give rapid growth of income. By adopting to
the newly changes along with the customer preferences will increase the demand of the
software among the customers of Alphabet Games. They can gain a large amount of income
which will attract the shareholders to invest.
Assignment Front Sheet Version 1.0

Bibliography
Anon., n.d. Business strategy. [Online]
Available at: http://businesscasestudies.co.uk/business-theory/strategy/business-strategy.html
[Accessed 3 August 2019].
Anon., n.d. Strategic Choice. [Online]
Available at: https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/16694-
strategic-choice.html
[Accessed 3 August 2019].
Evidence
Checklist Summary of the evidence required by students Evidence
Checked
Assignment Front Sheet Version 1.0

 Explain, with reference to the ‘forces for change’,
why the strategy of a particular organisation may
have to change over time.
 Identify and explain four different benefits that can
be gained by a particular organisation from an
effective business strategy.
 Describe two key issues that must be considered
when managing a business strategy in an
organisation.
 Assess two factors that the management of an
organisation should consider when updating their
business strategy.
Assessment checklists
Unit assessment:
Candidate ID Cohort
Outcome 3 & 4
Evidence Requirements Record of Performance
 Explain, with reference to the
‘forces for change’, why the
strategy of a particular
organisation may have to
change over time.
 Identify and explain four
different benefits that can be
gained by a particular
organisation from an effective
business strategy.
 Describe two key issues that
must be considered when
managing a business strategy in
an organisation.
 Assess two factors that the
management of an organisation
should consider when updating
their business strategy
Y/N Comments
Assignment Front Sheet Version 1.0

Overall comments:
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Assignment Front Sheet Version 1.0