Business Strategy Assignment : Tesla
Added on 2021-02-19
16 Pages5080 Words527 Views
Business Strategy
INTRODUCTIONAll the business organizations need to develop some plans and make some decisions thathelp the specific organization in managing their daily transactions & activities and provideguidelines, structures and procedures which have to be followed in order to achieve theorganizational objectives and attain the goals. A set or combination of all those plans anddecisions that have been made by the management is known as business strategy. An effectivebusiness strategy can be considered as a backbone for an establishment as it provide a path to theadministration which headed them towards the desired goals and helps in securing a competitiveposition within the market. A strong business plan and strategy is important for an enterprise as ithelps in converting the organizational weaknesses into the strengths, increasing the efficiencyand effectiveness of entire company, taking the advantages of competitive market and having acontrol over the business activities.The company have been chosen for preparing this report is Tesla, Inc. which is anAmerican automotive company situated in Palo Alto, California. This report will present ananalysis of external environment and its impact over the chosen organization. This report willinclude SWOT analysis and for assessing the internal environment of the company and Porter'sFive Forces Model to evaluate the competitive positioning of the company into the market. Atthe end of the report, it will give an effective strategic plan for the establishment.TASK 1P1 Analysis of the Macro Environment:Organizational Overview: Tesla, Inc. which was formerly known as Tesla Motors, Inc.was established in 2003 by Marc Tarpenning and Martin Eberhard in California, U.S. It is anautomotive and energy company which specialized in manufacturing of electric cars. The currentCEO and owner of the establishment, Elon Musk joined the organization in February, 2004. Themission, vision and objectives of the organization is given below:Mission: The mission statement of the Tesla was 'To accelerate the world's transition tosustainable transport' which was replaced by Elon Musk in 2016 by ' To accelerate the world'stransition to sustainable energy'. The statement is enough to reflect the intentions of the companyto provide affordable energy resources and transport medium to the world by using advancetechnology.1
Vision: The vision statement of the selected establishment is 'To create the mostcompelling car company of the 21st century by driving the world's transition to electric vehicles'.This vision statement is showing the clear vision of the organization to provide renewable energyresources to the world by providing electric vehicles into the markets.Objectives: The primary objectives of Tesla, Inc. is to create demand and increase thesales of electric cars in the marketplace, manage the reputation in the industry and build brandimage, and create loyalty in customers and increase customer base.PESTLE Analysis: This is an assessment tool or method that help the researchers inidentifying and analysing some external environmental elements that may have huge influenceover the functions, activities, performance and profitability of an organization. Tesla, Inc. alsoneeds to conduct a PESTLE analysis so that it can understand the condition of the industry andevaluate the impact of remote factors that determine the success of the business. A detailedanalysis of the company is presented below:Political Factors: Political factors are the factors that are related to the governmentalentities and their impacts over the business. In relation to the Tesla, Inc. the political authoritiesand conditions are in favour of the company such as stability in the political parties in the majoreconomies, the governments are providing incentives for electric automotive and new globaltrade treaties are grate opportunities for the organization. The political stability is a good sign forthe intensive growth and competitive strategies of the company.Economical Factors: These are the factors which are related to the financial andeconomic condition and status of the market such as economic growth rate, inflation rate,exchange rates, employment rate, etc. The global economy have faced a recession just a fewyears back and currently it is trying to overcome hence the economic instability of theinternational market is not good for the business of selected company but a slight decrease inelectric battery cost and renewable energy costs are providing growth opportunities to thecompany.Social Factors: Social factors are the current market trends and social conditions of theeconomy that affect the performance of the business. For instance, population growth, agedistribution, personal beliefs and values, gender distribution, tradition, attitude and educationlevel of the population, etc. In context with the business of electric cars, social factors are2
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