logo

Business Strategies of Tesla Assignment

   

Added on  2021-02-20

15 Pages3625 Words27 Views
Business strategies

INTRODUCTIONBusiness strategy is the decisions of company that aid the firm in accomplishing its goalsignificantly. Strategic planning is helpful in securing competitive position of the firm.duration(Abu Farha, 2016). Current assignment will be based on Tesla; it is the leading American firmthat offers electric cars to wide range of consumers across the world. In the year 2018, entity hasgenerated 21.46 Billion revenues. Current assignment will conduct environment analyses ofTesla through Pestle, Swot analyses. It will apply porter’s five force model in order to analysescompetitive environment of Tesla. In addition, report will evaluate different strategic directionavailable to organisation. Furthermore, it will produce plan that will include strategies, tactics oforganisation. TASK 1PESTLE, SWOT and organisational capabilitiesPestle analysis of tesla Pestle analyses is the environmental analyses tool that helps in evaluating externalenvironment of business unit. Political factors There are so many politicalfactors which are affecting the auto-mobile industrialist.Specifically, it includes corruption and bureaucracy in market, freedom for press trade unionsactivities (Wirtz and et.al., 2016). Trade policies of UK are free hence Tesla has opportunity toenter into new market and expand its business across the world. Government of UK is supportingelectric cars. This helps Tesla in running business successfully. Political instability createsthreats for business because changing government policies impacts negative on Tesla as it has tomake modifications in its practices and process as per the new regulations. Economic factorsThe economic factors can diversely affect the Tesla. Changes in economic policy of UKdirectly affects the Tesla. When there are changes in foreign currency exchange rate then it canaffect the Tesla (Nakatani, 2018). Due to change in FER in year of 2017 there is$26.2 millionmore profit gain by the company in respect of year 2016 where the annual profits for both theyear was $52.3 and $26.1 respectively. Volatile exchange rates impact on the investmentstrategies of Tesla and long term performance of business get affected. In the condition of3

inflation Tesla face the issue because it affects purchasing power of consumers. By this way firmfails to generate profit in the market. Social factor Changes in preferences of buyer’s impact on the demand of products of Tesla., as now aday’s people are demanding sporty cars and entity is offering them such kind of products. Itraises trust and loyalty of consumers and sales of business unit get increased significantly.Electrical car idea of Tesla is loved by people this has created positive brand image in the mindof consumers. This has affected production strategy of business and has helped in increasingrevenue of business unit. Preference of renewable energy cars are increasing, this impactspositively on sales of business and help in gaining competitive advantage to the organisation. Technological factorsTechnology isexpanding and growing with the exponential rates. This is why Teslaaccept to upgrade its technology and adopt new changes which are required to sustain in marketand compete with competitors (Rosemann and vom Brocke, 2015). Tesla implements artificialintelligence system and automotion techniques which make it unique from its competitors. Thisadvancement impacts positively on tesla and help in minimising wastage and manufacturing costas well (Wirtz and et.al., 2016).Legal factors This factors include rule and regulation part which are governed by government. UKgovernment has made laws in favour of environment, these legal regulations impacts positive onTesla as by this way company can promote its electrical cars easily. Dealership sales regulationsrestrict the firm hence it impacts on sales strategy of Tesla and impact on its profitability as well(Smith and Wong, 2016).EnvironmentfactorsTesla have to take care about the environment. They have to ensure that proper dispose ofwaste generated by production. Now a day everyone is going for low carbon and eco-friendlyenvironment. Dependence on old sources of energy is less because they are scare and notrenewable, so uses of new sources of energy are in bulk and renewable. So, that the Tesla's ideaof electric car is loved by the peoples and because these cars are fuel efficient and maintenance ischeaper than traditional vehicles (Das and Rangarajan, 2017).SWOT analyses4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Strategies for Tesla: PESTLE, SWOT, and Strategic Directions
|15
|4113
|85

Business Strategy: Impact of Macro Environment on Firm and Strategies
|17
|4543
|22

Porter's Five Forces Model: Assignment
|16
|4532
|45

Business Strategy of Tesla Assignment
|14
|4263
|100

Business Strategy - Tesla Assignment
|11
|3519
|51

Business Strategy Assignment | Tesla company
|14
|3866
|182