Business Strategy: Macro Environment, Internal Environment, SWOT Analysis, McKinsey's 7S Model

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Macro Environment...............................................................................................................3
LO 2.................................................................................................................................................5
P2 Internal Environment.............................................................................................................5
LO 3.................................................................................................................................................7
P3 Porter's Five Forces................................................................................................................7
LO 4.................................................................................................................................................9
P4 Strategic Planning..................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Strategy is when a business sets of action or move in market to attract more
customers, to achieve goals and missions of business and to compete successfully. This helps in
outlining company so that they can carry and reach their desired goals. All business have their
own strategies in market which makes each business unique and have there strengths in market.
Tesla motors has established itself in 2003 which is a public business. Products business
is dealing with are electrical vehicles. Owner of organization is Elon Musk and has its
headquarters in California, United States. Elon Musk wants that people have best of facilities in
electrical cars than using fuel cars. Innovations and creativity is one of strengths that Tesla has
over competitors in market. Study would be covering internal and external factors which are
having an influence on firm. Porters five forces will be applied in firm's context and strategic
management plan of Tesla will be prepared.
LO 1
P1 Macro Environment
PESTLE
Pestle analysis is a tool which helps firm to analysis foreign market and then take steps
accordingly for expansion.
Political Factors
 Governments of all countries are in favour of organization because Tesla is going to help
countries to keep environment of country better. Resources like fuel is limited therefore
using gas and electrical factors are very essential for government of world to promote this
so that there can be a balance in nature. There is a free trade for Tesla agreement which
has been made therefore Tesla is going to make lot of profit from this factor. Also, there
is a stability in political parties in major market therefore it will be easier for firm to have
a better market for themselves internationally. Free trade agreement of government aids
business in conducting operations in other nation easily. That is beneficial in raising
revenue of organization to great extent (Sharma, 2016).
 Political instability can affect business major therefore business should make most right
now itself. Not all countries have a free trade policy which can make Tesla gain their
market.

Economic Factors
 Battery costing has decreased which can make firm have a lot of profit because
production cost has faded. It is because of cost diminution organization can reduce prices
of vehicle to make more sells (Andersen and et.al., 2017). Cost for renewable resources
has been ablated which will promote organization to have more sales because customers
will have lesser spending on car. Sells and promotions for buying electric cars have
increased rapidly and that is a very good factor for Tesla.
 Economic conditions of establishment can be negative because foreign dealing involves
exchange of currency which can affect economy of institution and country because
revenue company will generate will be lower than expected.
Social Factors
 Carbon footprint in environment will reduce which will provide society with a healthy
lifestyle for themselves. Eco-friendly are products which customers are looking for and
Tesla is able to have an advantage over this element. Use of renewable resource is a good
part for not using restricted resources and utilizing them for future use. There are a lot of
innovations and creativity which have taken place in establishment so that they aid to
improve and meet satisfaction of customers.
 Customers are very attracted to use fuels cars still therefore getting change in customers
is a limit which establishment is having in market and revenue Tesla is making is limited
(Long and et.al., 2019). Tesla is promoting themselves and making customers shift from
fuel cars to electrical or gas cars so that customers can have a healthier life in the future.
Technological Factors
 Technological factor is making portfolio of Tesla even stronger. Tesla is increasing
popularity of online mobile system in electrical cars and gas cars so that customers can
get more satisfied with products they are consuming. Automation in organization has also
increased so that work force in firm can be managed so that working of Tesla can take
place efficiently and effectively.
 Changes in technology is very rapid therefore it is very important for Tesla to keep
getting change in technology of firm so that they establishment can maintain standards
for themselves. Technology gives Tesla a competitive advantage but Tesla is not making
enough revenue which is why loans are being taken by establishment to make