Business Environment Management - Assignment

Running Head: MANAGEMENT 0
BUSINESS ENVIRONMENT

MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................2
Strategic Analysis.......................................................................................................................3
Macro environment analysis..................................................................................................3
PESTLE..............................................................................................................................3
Micro environment analysis...................................................................................................5
SWOT................................................................................................................................5
Porter Five Forces Model...........................................................................................................7
Recommendations......................................................................................................................9
Ansoff Matrix.........................................................................................................................9
Conclusion................................................................................................................................11
List of references......................................................................................................................12
Figure 1: Tesla Logo..................................................................................................................2
Figure 2 Pestle Framework........................................................................................................3
Figure 3 - SWOT Framework....................................................................................................5
Figure 4- Porter Five Forces Framework...................................................................................7
Figure 5- Ansoff Matrix.............................................................................................................9

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Introduction
The external environment for all enterprises is quickly changing driven by technological
advancement, increasing information processing power and change in consumer behaviour.
To be successful in dynamic business environment, organisation must work toward building
relevance and scan its business environment holistically to leverage various significant
opportunities and innovate (Geissdoerfer, Vladimirova and Evans, 2018). This report outlines
macro and micro level environment analysis of Tesla in correspondence to various
management framework and context. Lastly, necessary recommendations are also being
presented to help the company having a clear roadmap and vision.
Figure 1: Tesla Logo
Tesla is a leading automotive company incorporated in 2003, known for manufacturing and
developing advanced electric cars for the entry level luxury consumers. Some of its famous
vehicles include Model X, Model 3, Model S and Model Y manufactured and made at its
factory in Fremont, California, where the huge majority of the vehicle components are also
completed. Tesla market valuation outdone 100 billion U.S. dollars in 2020 (Feuer, 2020) and
the company is also a market leader in battery-electric car sales for the US. Globally, the
company has supplied nearly 367,000 vehicles in 2019 and by 2025, the world-wide market

MANAGEMENT 3
for the EV (electric vehicle) is expected to rise to over 567 billion U.S. dollars (statista.com,
2018). Some of the key competitors of the company include Ford Motors, General Motors,
Volkswagen and Toyota. In the next section of the report, strategic analysis of Tesla
Incorporation is being made starting from the macro level assessment signifying those factors
that are external to the organisation and directly influence the competitive position of the
company.
Strategic Analysis
Baumgartner and Rauter (2017) defined strategic analysis as the process of undertaking
research on a company and its operating environment to develop a viable strategy. The two
key frameworks that have been selected for the analysis of external and international
environment includes PESTLE and SWOT tools respectively. PESTLE framework help in
discovering macro environmental variable that has direct or indirect influence on the
company business functions and generally, organisation use this framework for the long term
strategic planning. On the other hand, SWOT tool is used for micro-level analysis of Tesla so
as to identify its key strengths, weakness, opportunities and threats. It will help Tesla to look
for its internal competiveness to gain various significant opportunities in the market.
Macro environment analysis
PESTLE
Figure 2 Pestle Framework
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