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P1. Analysis of impact and influence of macro environment on organisation

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Added on  2021-02-20

P1. Analysis of impact and influence of macro environment on organisation

   Added on 2021-02-20

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P1. Analysis of impact and influence of macro environment on organisation_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Analysis of impact and influence of macro environment on organisation and its strategies......................................................................................................................................................1TASK 2............................................................................................................................................3P2. Analysis of internal environment and capabilities of organisation. .....................................3TASK 3............................................................................................................................................5P3. Evaluation of Porter's five forces model of organisation.....................................................5TASK 4............................................................................................................................................7P4. Evaluation of models to interpret and devise strategies planning for organisation.............7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
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INTRODUCTIONBusiness strategy can be referred as a decision or actions of organisation for attractingcustomers as well as achieving objective of business (Bharadwaj and et. al., 2013). Thesestrategies are master plan of secure competitive position of organisation in market area over rivalcompanies. Business strategies will help in carry business operations and fulfil wants and desiresof end customers of company. For this report chosen company is Tesla Inc. which is also knownas Tesla Motors. This organisation was found in July, 2003 by group of engineers. Tesla deal inan automotive industry and provide it services worldwide. Founders of this company is RobynDenholm, Elon Musk and headquarters are located in California, U.S. Purpose of this report isanalyse of internal and external environment which help in developing strategies for businessand Porters's five force model in order to gain competition advantages. Evaluation of differenttheories to interpret and devise strategic planning. TASK 1P1. Analysis of impact and influence of macro environment on organisation and its strategies.External Environment for Tesla includes Pestle Analysis which is a structure thatbasically describes the macro-environmental factors for an organisation. It a strategic tool usedfor understanding market growth or decline rate of a business. Pestle Analysis for Tesla includesthe following factors:Political Factors: These factors basically relate to how government intervenes in economy.Political Factors includes tax policy, trade restrictions etc. (Bharadwaj and et. al., 2013). UnderUK economy government is providing subsidy for low emission vehicle. Moreover Teslareceives governmental support to a certain extent.Positive Impact: Expanding free trade agreements has helped Tesla to reach differentzones of the world this because UK government supports eco friendly cars that aregenerated by Tesla.Negative Impact: High taxes and tariffs incurred by UK government have affected Teslaoverall sales and this negatively impacted the company. Economical Factors: Economic factors greatly affect business operations. These factors includeeconomic growth, inflation rate, interest rate etc. Under UK market economic crisis usuallydeclines the sales of vehicle. 1
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Positive Impact: Tesla business is rising fast this is due recession that has increasedeconomic activities globally. Moreover with rising economic activity level ofemployment has increased globally and has led to higher spending on goods.Negative Impact: Growing inequality in society under UK has negatively impactedconsumer sentiments which is due downward pressure on consumer spending for Teslaproducts.Socio-Cultural Factors: These factors basically comprises of cultural aspects, populationgrowth etc. High trends in social factors affects Tesla's overall demand under UK economy(Blackburn, Hart and Wainwright, 2013). Positive Impact: Tesla cars has growth opportunity due to rising popularity of lowcarbon lifestyle and increasing preference for renewable energy. This is broadlyappreciated by UK government. Negative Impact: Broader attitude towards migration has negative impact in Car Teslamarket this is due inability to bring out international talent to mange operations underUK. Technological Factors: It includes technological aspects like automation, research anddevelopment, technological incentives and many others (Chang, 2016). These factors determinebarriers to entry for company's under UK market. Tesla has adopted advance technological tocarry out its business activities under UK market. Positive Impact: Tesla produces eco friendly cars with highly advance technology underUK market which because on technical grounds the country is very strong. Negative Impact: High rate of technological change adopted by Tesla negativelyimpacts UK market, which is basically due to rapid obsolescence of technologies used inproducts. Legal Factors: Legal factors basically includes consumer law, employment law, discriminationlaw etc. These factors includes government intervention. Legal factors for Tesla under UKmarket affects working condition positively and negatively. Positive Impact: Government of UK has launched international patent protection policydue to which Tesla can easily expand its business operations overseas. Negative Impact: Increased regulations under auto-mobile industry by UK governmenthas affected the functioning for Tesla. 2
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