This strategic management plan discusses the framework analysis, internal analysis, Porter's five forces model, and range of theories to devise strategic planning. It covers topics such as PESTLE analysis, stakeholder analysis, SWOT analysis, value chain analysis, and Porter's five forces model.
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Strategic management plan
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Table of Contents Introduction.....................................................................................................................................3 LO1..................................................................................................................................................4 P1 Framework analysis that impact or influence macro environment.......................................4 LO2..................................................................................................................................................6 P2 Internal analysis and capabilities...........................................................................................6 LO3..................................................................................................................................................8 P3 Porter's five forces model......................................................................................................8 LO4................................................................................................................................................10 P4 Range of theories to devise strategic planning...................................................................10 Conclusion....................................................................................................................................12 References.....................................................................................................................................13
Introduction Strategic management plan helps organization to achieve their objectives and goals and require for development of business at a large scale. Plan helps to communicate within an organization about their goals and objectives. Strategic planning provides the vision, mission and objectives for organization. Planning requires for improving the performance of an organization. Needs to analyse the resources are used effectively in development and achievement of organization goals. Helps organization to know that employees are working effectively and requirement of stakeholders for completion of the task. Report shows Tesla needs to develop their business and for that they prepare a strategic plan to analyse the macro as well internal environment and their effects on working of an organization. Apply porters five forces for development of organization. Needs to apply models, theories and concepts for development of business. LO1 P1 Framework analysis that impact or influence macro environment. TESLA is one of the leading automotive and energy company mainly focuses on manufacturing electric cars. Organizations needs to develop at large scale for that company needs to understand market that have a ability to influence their overall working and have an impact on the effective utilization of resources(Rothaermel, 2017.). Business needs to develop at a large scale for that they needs to use different framework for their company. PESTLE analysis PESTLE in done to analyse the external environment for an organization. For smooth working of business company needs to analyse the impact of macro environment on working of an organization. Political Whenever Tesla going to develop their business in a new territory they needs to know the impact of government on smooth working of an organization. For developing their business at a large scale they need to know the political stability in territory, government rules and regulation that effects their products and services and tax rates by government on the auto mobile companies. Restrictions by government on trading some material or products for development of
their business. The political factors needs to analyse the overall government intervention in smooth working of an organization. Economic factors Company needs to analyse interest rates prevailing in the market where they are going to market their product(Eskerod and Jepsen, 2016. ). Business needs to analyse the income level and occupation of their consumers to know that they are able to buy their products and services. Analysing income helps them to set prices of their products and know the ability of people to spend on their products. Exchange rates needs to be analysed to know the effectiveness of company on those territories. Social factors Tesla needs to understand the culture, beliefs and values of their customers to use their resources effectively and helps organization to achieve their goals and objectives. Culture of people needs to be analysed before marketing products and need to analyse both positive and negative impact of culture. Company have an ability to understand their customers like personality, attitudes, age of consumers and their preference towards the product. Technological factors Tesla needs to analyse the technology available in a market where they are going to establish their product. Tesla is one of the leading auto mobile company which means they need an effective technology in a territory for development of their product. Company need to know the ways they are using to produce goods. Tesla needs to analyse the availability of suppliers in those territory to distribute their products. Technology needs to be effective so that company is able to establish effective communication with their consumers. Environmental factors Tesla needs to analyse the environmental factors to develop their sustainability in a market. Environmental factors means climate change and their ability to impact consumer preference. Large number of issues marketers are facing to develop their business in a new territory. Company needs to know the availability of raw material and their impact on overall working of an organization. The pollution and wastage from their products and services need to be analysed. Tesla is an auto mobile company and for that they need to know the impact of their products on pollution of that territory. Legal factors
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Company needs to know the legal rules and regulations prevailing in the market of territory(Cook, 2015. ). Tesla needs to know the effectiveness of their products to provide safety to their consumers. Company needs to know the laws related to consumers. Rights and laws of labours in that territory. Stakeholders analysis When Tesla going to market their product in a new territory they need to communicate it with the stakeholders of the business to know their participation and interest towards the working of organization. Stakeholder analysis is required to get help from important people in an organization. Analysis helps Tesla to minimize issues and conflicts in their organization. Determine your stakeholders Tesla needs to prepare a list of their stakeholders to know the key people required for their project. Stakeholders may be sales department, marketing, production, finance, operations, executive staff. All of them required is analyse to know their effectiveness for completion of task that helps organization to achieve their objectives and goals. Group and prioritize stakeholders After analysing the stakeholders Tesla needs to group them on their efficiency to participate and their influence on overall working of an organization. Grouping of the stakeholders help Tesla to know the impact of power of their stakeholders on the success of organization. Figure out to communicate with them After grouping key people Tesla needs to know the ways in which their company is able to communicate those stakeholders. Needs to know the ways in which they are able to motivate their stakeholders, ensure about the priorities of stakeholders, and their views on the project in they have negative review then try to know the reason for the review. LO2 P2 Internal analysis and capabilities Internal analysis helps organizations to know the overall working of their organization and their impact on smooth working of an organization. Internal analysis helps organizations to prepare plans for development of organization. SWOT analysis
Strength Tesla is one of the leading company in auto mobile sectors have a large number of customers who are ready to buy their products and services(Steiss, 2019. ). Employees are one of the most important factors for development of business at a large scale and Tesla is a company who gives priorities to their employees take proper care of them try to solve their problems effectively. Tesla provides opportunities to their employees to bring innovation and creativity for development of a new product. Tesla have ability to engage young employees in overall working of their organization. Tesla is one of the leading company and and have an ability to develop brand awareness. They provide effective products like electric cars that have an ability to influence customers to buy their products. Tesla is always trying to bring innovation in their products and services. Innovation helps them to develop their business at a large scale. Weakness Damage or decrease in overall performance of organization due to internal factors are weaknesses for an organization. If company brings innovation in overall development of products and services for the organization and due to that if any complication or damage may arises. If products are not able to satisfy the wants of customers. Shortage in raw materials like batteries effects overall success of an organization because they are not able to increase their production and meet wants of their consumers. If employees are not able to work effectively towards the achievement of the goals of an organization then it reduces overall profitability of Tesla. Opportunities Opportunities are like future growth for development of business. Opportunities help company to achieve their objectives and improve performance of the organization. Tesla needs to develop their products in the new market where to increase their global presence and develop their business at a large scale. Company needs to provide their products and services at less prices so that they are able to convince their customers to buy their products and services. Due to shortage of batteries the business of electric cars are affected Tesla needs to develop an in house battery production for their organization it helps them to save money as well increase their profitability. Threats
Threats are those which stops Tesla to achieve their objectives and develop their business at a large scale(Morden, 2016.). Due to some reasons if a company is not able to use the advantage of all the working in their organization then it effects their success at a large scale. Due to increase in competition in auto mobile sector overall working of development of business is effected. Many big brands like BMW, Audi, Toyota effects overall development of Tesla. They provide electric cars and chances of problems and defects in their products is normal and it effects overall success of a business. Customers adaptation means company is providing products like electric cars in which customers willingness is important to buy products. Value chain analysis Tesla use value chain analysis which helps them to know the activities that helps to provide value to their products and services. Chain is used to internal activities of business. Company is trying to complete its internal activities with minimum cost. Primary activities Inbound logistics Tesla needs to maintain an effective relations with their suppliers as they are the main source for development of their business at a large scale. To maintain the raw materials for development of products for business. Company needs to maintain raw materials for development of electric cars. Building strong relations with suppliers is important for development of Tesla. Operations Tesla needs to maintain their operations for development of their business and products. Company needs to prepare design and develop products to increase sales for their products. Tesla is a company who also generates energy company needs to generate as well as prepare proper storage for their energy. Outbound logistics Preparing delivery of their products to the customers is outbound logistics. Tesla needs to deliver their products and services directly to their customers if they use dealers for delivery of their products then it will increase the prices of their products and services. Marketing and sales Marketing is one of the essential function that helps organization to engage large number of customers with their products and services. Tesla is big name so it becomes easy for them to
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attract media and improve their brand awareness(Ginter, Duncan and Swayne, 2018.). Effective marketing of product helps them to increase sales of their product. Services Company needs to provide regular services to their customers so that they are able to buy products and services. After services like if customer faces any problems like default in their products or they have to wait for repairing of their products. Company needs to provide proper services to their customers so that they are able to convince them towards working of an organization. LO3 P3 Porter's five forces model Five forces model helps to analyse the competition in the market for Tesla and their ability to overcome those challenges. If provides all over profitability of an organization. Factor shows the level of competition in company. If company is able to manage their business without any barriers then it effects overall success of an business in that territory. If company has low competition and have to face many barriers in entering a new market than the looks attractive to the customers. Threat of new entrants Tesla is a leading company in auto mobile sector. If a new company enters in their market then they need to develop brand awareness, needs costs for their business. Entering in the Tesla market is not easy for new entrants because it needs cost for development of their business. And affecting a brand image of Tesla is not easy. Bargaining power of suppliers Suppliers is one of the main factors that helps development of business at a large scale and effects overall development of organization. If there are few suppliers of products then they an strong bargaining power. If witching from suppliers also increases the cost of raw materials. Tesla needs to develop their business and for that have to provide opportunities to large number of suppliers(Stark, 2015. ). Increase in number of suppliers decreases their bargaining powers. If large number of suppliers are available then it become easy for Tesla to switch. Bargaining power of buyers
Buyers are the main reason for development of business. Buyers always want lower prices for their products and they always try to bargain at low prices that effects overall growth of a business. Tesla needs to reduce their competition in a market if no substitution for their products are available in a market then bargaining power of buyers also reduces. Threat of substitutes If there are any substitute for products are available in the market then it becomes tough for a company to develop their products. It becomes easy for customers to switch from one product to another. Tesla is a leading company in providing electric car and substitution threat is also low for the company. Because preparing product like them require high cost and technology and it is not easy to start a company. Substitutes needs to bring innovation and creativity in their products. Rivalry among existing competitors Competitors are those who effects the profitability of an organization and in auto mobile sector the competition is very high and it becomes tough for them to establish their business. Where Tesla is preparing a products like electric cars which reduces their competition in a market. But if large number of competitors are available for their products then it effects customer loyalty. Growth of the industry also decreases at a large scale. LO4 P4 Range of theories to devise strategic planning Porters Generic strategies Tesla needs to use this strategies that helps them to develop their business and gain competitive advantage over their competitors. Company needs to prepare strategies that helps them to develop their business at a large scale(Desmidt and Meyfroodt, 2018. ). Competitive advantage helps Tesla to increase their profitability and develop value for their organization in a large scale. Cost leadership Tesla needs to use this theory to become one of the leading auto mobile company in the market that helps organization to achieve their objectives at a large scale. Tesla needs to reduce the prices of their products and services to become cost leader in a market for that company needs to increase their level of production, use effective technology that helps them to achieve
their objectives on time. Tesla needs to negotiate with their suppliers on the prices of raw materials they use to decrease the price of their product. Company needs to minimize the wastage for development of their business at a large scale. Cost focus Company needs to focus on the price of their products that helps them to compete with their competitors. If a competitor selling same product at higher price then it helps company to engage large number of customers. Differentiation focus Company needs to provide products that are different from their competitors and have the ability to satisfy the wants of their customers. Differentiation helps business to attract large number of customers(Burtonshaw-Gunn, 2017. ). Differentiation comes with innovation in products and services. Tesla is already providing electric cars which have no close substitutes and ability to influence their customers. Differentiation helps Tesla to achieve their target market that helps them to achieve their objectives. Differentiation leadership Strategy is prepared by Tesla to analyse the consumers in a market. Company needs to provide products with low prices and have an ability to influence their customers and helps in increasing overall productivity of an organization. Company needs to provide quality products. Needs to develop a brand image, proper marketing and advertising is required to influence customers. VisionTesla have a vision to become one of the leadingcompanytoautomobilesectorby satisfyingthewantsanddesiresoftheir customers. Company wants provide products with effective technology to their customers. MissionCompany mission is to gain an competitive advantageovertheircompetitorsandto develop their business at a large scale. Wants tobringinnovationintheirproductsand
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services. ObjectivesCompaniesobjectiveistoestablishtheir business at all over the globe. Objective is to increase the profitability for their business by satisfying the wants of their customers. StrategiesCompany needs to prepare strategies for their products to make them effective and develop their business at a large scale. Company needs to use market analyze that helps them to know the needs of their customers. Strategies helps to achieve competitive advantage in a market. TacticsCompany needs to prepare effective prices, and needs to use promotion of their products that helps them to develop a brand image, needs to decidetheplacewheretherearegoingto market theirproduct. Needs to analyzethe people for whom they are preparing products. ImplementationCompany needs to use resources effectively to minimizewastageandincreasetheir profitability. Company needs to manage their employees to get effective work done from them which helps organization in their overall success. EvaluationAlltheimportantstrategiesandvision, mission, objectives are required to develop a business at a large scale and helps organization toachievetheirobjectives(Kerzner,2019.). Strategies are required to develop business at a large scale and helps organization to achieve
their objectives. Conclusion Report shows Tesla needs to use pestle analysis to know the effectiveness of external environment to influence overall working of an organization. External environment needs to be analysed effectively because it effects the profitability of organization, stack holders analysis also required to know their views on the planning of projects. Swot analysis is required to know the internal working of business and value chain helps to increase effectiveness of an organization. Porters five forces model helps business to develop at large scale and helps Tesla to gain competitive advantage over their competitors.
References Books and Journal Rothaermel, F.T., 2017.Strategic management. New York, NY: McGraw-Hill Education. Eskerod, P. and Jepsen, A.L., 2016.Project stakeholder management. Routledge. Cook, N.D., 2015.Crisis management strategy: Competition and change in modern enterprises. Routledge. Steiss, A.W., 2019.Strategic management for public and nonprofit organizations. Routledge. Morden, T., 2016.Principles of strategic management. Routledge. Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018.The strategic management of health care organizations. John Wiley & Sons. Stark, J., 2015. Product lifecycle management. InProduct lifecycle management (Volume 1)(pp. 1-29). Springer, Cham. Desmidt, S. and Meyfroodt, K., 2018. Debate: Unravelling strategic planning effectiveness— what about strategic consensus?.Public Money & Management.38(4). pp.255-256. Burtonshaw-Gunn, S.A., 2017.Risk and financial management in construction. Routledge. Kerzner, H., 2019.Using the project management maturity model: strategic planning for project management. Wiley. Chernev, A., 2018.Strategic marketing management. Cerebellum Press. Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate sustainability into strategic management: a literature review.Journal of cleaner production,112, pp.2833-2850. Johnston, M.E., Dawson, J. and Maher, P.T., 2017. Strategic development challenges in marine tourism in Nunavut.Resources.6(3). p.25. Stolzer, A.J., 2017.Safety management systems in aviation. Routledge.
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