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Porter's Five Forces Model: Assignment

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Added on  2021-02-20

Porter's Five Forces Model: Assignment

   Added on 2021-02-20

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Business Strategy
Porter's Five Forces Model: Assignment_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Pestle and Swot analysis of Tesla and analysis of its internal environment and capabilities.....1With porter's five force model, analyses of competitive environment of Tesla.........................6TASK 2............................................................................................................................................9Evaluation of different strategic directions that are available to Tesla.......................................9Recommendation of most appropriate platform for growth and strategies...............................10Strategic management plan with strategies, objectives and tactics...........................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13
Porter's Five Forces Model: Assignment_2
INTRODUCTIONBusiness is taking different actions in order to attract the potential customers and tocompete in market(Soltanizadeh and et.al., 2016). These actions help the organisation tostrengthen its performance and achieve the respective business goals. Present study is based onthe company Tesla that is American automotive organisation founded in the year 2003. Companyis having its specialisation in electric car manufacturing. Report will analyse the impact andinfluence of macro environment on Tesla and its strategies. Further report will analyse theinternal environment and capabilities of Tesla with the help of SWOT analysis. Report will alsoapply porter's five forces model in order to evaluate the competitive forces with respect to Tesla.At the end report will apply different theories and models in order to interpret strategic planningfor Tesla(Sia, Soh and Weill, 2016). TASK 1Pestle and Swot analysis of Tesla and analysis of its internal environment and capabilitiesPESTLE analyses:- It is a framework that is used to analyse the macro environmental factors that areimpacting Tesla in positive and negative ways. Figure:- 1Political:- 1Illustration 1: Pestle analysis
Porter's Five Forces Model: Assignment_3
There are different political factors that affects the business and basically include thefactors that government uses in order to influence the business. These factors include differentpolicies set by the government, foreign trade policies, labour law, environmental laws etc. Thereare various incentives that the government is offering that is strengthening the financialperformance of the organisation. They are getting these incentives as the company is havingtechnology that is insignificant carbon emissions with respect to the vehicle. Tesla is also able toexpand its free trade agreements that helps the organisation to reach at different part of the globe.The different markets in which Tesla is targeting is having political stability and this is helping inthe business growth. Political stability is also brining favourable environment for theorganisation's competitive strategy that results in intensive growth of Tesla. However, Tesla isusing cobalt as a raw material and 58% of cobalt comes from Democratic republic of Congo.Recently rush for cobalt have increased due to which many conflicts raised for the organisation.This political instability may affect the supply chain of Tesla(Ayala, 2016).Economic:- There are many economic factors that affects the business performance and strategies.These factors are economic growth, exchange rates, inflation rates etc. As electric cars aregetting popularity in international market it directly links to global economy and this economicfactor brings opportunity for the organisation. Battery cost is having decrement and as battery isthe cost factor in the preparation of electric vehicle, company is having great opportunity toincrease its production with affordable EV. There is decline in material cost also, that helps Teslato come up with cost effective vehicles and to make its goals achievable. However, the change inforeign currency exchange rates is the most important factor that affects Tesla. There is anestimation that 10% change in interest rate would result to Tesla's interest expense(Wen, 2016). Social:-There are different social factors like norms, customs, population growth rate, lifestyle,cultural barriers etc. that affects the business strategies of an organisation. As lifestyle andbelieves of people are changing over the years and customers are becoming more eco-friendly, itis brining opportunity for Tesla with respect to its idea of production of electric cars. It isenvironment friendly and is also less expensive than traditional cars with respect to its runningcost and maintenance. These cars are sustainable for the environment and attracts the potentialcustomers that helps the business to earn their long term financial growth. However, it is tough2
Porter's Five Forces Model: Assignment_4

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