Impacts and Influence of Macro Environment on Tesla

Business Strategy

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Impacts and influence of macro environment on Tesla..............................................................3
P2 Analysation of internal environment and capabilities of Tesla using SWOT.............................6
P3 porter's five forces model for evaluating competitive forces of a given market sector..............9
TASK 2...............................................................................................................................................11
P4 Applying a models , theories and concept to understand interpretation of strategic directions
To Tesla..........................................................................................................................................11
CONCLUSION .................................................................................................................................15
REFERENCES...................................................................................................................................16

INTRODUCTION
Business strategy is the action that business uses to attract the large no of customers. it is the master
plan which management uses to secure a position in the market there are the three level of the
business strategy such as corporate, business, functional level. Under this report Tesla taken as the
company , it is an American auto mobile company which makes electric cars ,its headquarters is
based in the Palo alto, California . It was founded in july 1,2003. Martin Eberhard, Elon Musk, J.B
straubel, Ian Wright are the founders of the Tesla. This report will cover the internal environment
and capabilities of a Tesla using appropriate frameworks, porters five forces model evaluate the
competitive forces of a market sector for an organisation, range of theories , concept and models
interpret and devise strategic planning for a given organisation and the analysis the impact and
influence of the macro environment on a Tesla and its strategies.
TASK 1
P1 Impacts and influence of macro environment on Tesla.
Tesla's vision, mission, objectives and core values.
Vision
The vision of the Tesla motors is to create the most efficient car in the industry of
automobile sector as well as transforming the world towards the electric vehicles
Mission
The mission of the Tesla organization is to present itself satisfactory in terms of fulfilling
company's goals efficiently.
Objectives
The objectives of the Tesla company is to accelerate global translations, improving
communities as well as exceeding expectations towards automobile industry.
Core values.
The core values of Tesla are awareness toward environment, constant learning, respect,
taking risks as well as doing the best.
The impacts and influence of macro environment on Tesla & its strategies can be analysed
by PESTEL analysis.
Impact of political factors on Tesla
It is very essential for Tesla motors to undergo various political analysation before entering a
new market. As different countries has difference in their political system and environment, thus to
get successful in dynamic environment, Tesla undergo following assumptions of market which are
major sector in any countries' economy i.e. Labelling of products & other required things ,
regulating week work, laws related to anti-trust, interference & bureaucracy, political stability &

importance of auto manufacturers (Buckley and Ghauri, 2015). Those influence the minor sectors of
political factors in countries economy are industry safety regulation, wage legislations, flavoured
trading partners, trade regulations & tariffs, level of consumptions & risk of military invasions.
Impact of economic factors on Tesla
Average demand & average investment in a countries' economy can be determined by macro
environmental factors such as foreign exchange rates, interest rates, saving rate & inflation rate.
Thus, Tesla uses countries economic factor for forecasting the growth trajectory of the organization.
Through PESTEL analysis Tesla considers following economic factors : interest rates, inflation
rates, unemployment rates, discretionary income, economic growth rate, business cycle stage, cost
of labour & their productivity, level of education, skill level of workforce, infrastructure quality,
financial market efficiencies, exchange rates, government interventions & type of economic system
within the organization.
Impact of social factors on Tesla
Impact of culture on organization is dependent on the societies culture & the way of
practising those cultures. Social factors that Tesla must consider while conducting Pestle are: leisure
interests, attitudes, entrepreneurial spirit & broader nature of society (Razak and et.al, 2016). While,
entrepreneurial is encouraged by some societies while some societies doesn't encourage, culture
which includes social conventions, gender roles etc., level of education along with standards of
education in Tesla industry, power structure, hierarchy & class structure & skill level &
demographics of the countries' population. For understanding the customers by Tesla marketers
carried out by attitudes & shared beliefs.
Impact of technological factors on Tesla
Rate of technological diffusion, consumer goods sector impacted the value of chain
structure, in auto manufacturers the impact of cost structure, impact of technology on product
offerings, development by Tesla competitors in technical sector are all the technological factor that
Tesla has to analyse by PESTEL analysis. Technology is the fast changing sector all across the
world. The innovations in the transportation industry has given various chances to the players of the
auto manufacturing industries to cope up with the changes. Thus, for Tesla to be profitable
organization , slow speed of innovations will give more time to cope up with the technological
disruptions (Yuliansyah and et.al, 2016).
Impact of environmental factors on Tesla
Before expanding to new country, organization closely observes the various environmental
issues related to the country in which it tends to expand. These environmental factors greatly affects
the profitability of the organization. Different countries has different standards and norms of
environmental factors. Thus, for Tesla, entering the new market will undergo following assumptions