Business Strategy

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Applying appropriate framework analysis and evaluate impacts of macro environment......3
M1 Critically analyse the macro environment to analyse the strategic management decisions. 5
TASK 2............................................................................................................................................5
P2 Analyse the internal environment and capabilities of an organisation..................................5
M2 Critically examine the impact of internal environment on organisational capabilities,
structure and skill set...................................................................................................................7
TASK 3............................................................................................................................................8
P3 Applying porter's five force model and evaluate competitive forces....................................8
M3 Determine appropriate strategies to improve competitive edge and market position..........9
TASK 4............................................................................................................................................9
P4 Applying a range of model, concept and theories to interpret strategic planning.................9
M4 Produce a strategic management plan that has tactical priorities and objectives...............10
D1 Critically analyse the data applying environmental and competitive analysis to produce a
set of strategic direction, objectives and tactical action............................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy refers to the sets of several assumptions and actions that are used by an
organization to attract the large number of customers and achieve organizational objectives in a
competitive manner. This helps in facilitating appropriate direction in which a firm proceed in a
better manner. In this report Tesla is chosen to study the internal and external environment of
businesses. It is an American automotive company and largest manufacturer of electric cars. It
was formed in 2003 which headquarters in California, US and the company deals in the electric
vehicles and Tesla energy. Under this report discuss about the macro environmental factors and
its impacts on Tesla strategies and competencies. External environment is determined by
PESTLE analysis whereas, internal surroundings are analysed by using SWOT and VRIO model.
Also, examine competitive forces by using Porter's five force model and prepare a strategic
management plan.
TASK 1
P1 Applying appropriate framework analysis and evaluate impacts of macro environment.
Macro environmental factors has effects internal business strategies and capabilities.
Tesla known as a most leading American auto-mobile company which adopts and design
business plans and practices to achieve competitive edge in the marketplace (Ahmadi, Dileepan
and Wheatley, 2016). Several factors of macro external environment that influence the whole
operational activities and functions of business organizations that can be described by using
PESTLE analysis.
PESTLE analysis: This defines as a business tool which are used by an organization to
analyse and control the external environmental factors that are directly influence the overall
performance as well as productivity of businesses. This tool can used by Tesla to understand the
impacts of macro factors which includes political, economic, social, technological, legal as well
as environmental determinants upon organizational internal operations and strategies. Political factor: These factor includes taxation policy, trade practices, political stability
etc. which directly or indirectly effects the business operations and its functioning. Tesla
has several opportunities to strengthen their financial positions by using government
schemes benefits. UK have stability in their political environment that are in favour of the
3

company to expands and grow globally. This will assist in increasing market penetration
and overall development of an organizations (Hamid, Said and Meiria, 2019). Economic factor: This includes several economic rates which are fluctuate due to
inflation and deflation in country's that impacts upon the business strategies and
expansion strategies. Economic factors involves interest rate, foreign exchange rate,
savings, inflation ratio and so on. Increase in international economy influence the selling
of electric vehicles positively which raise the sales at a great extent. Economic rises in
Asia, Europe and US leads towards the development of electric vehicles that are increases
the productivity as well as profitability of Tesla. Demand of the company's product has
risen but to develop at a fast rate it requires to discover price state of affairs that is
conformity it from targeting the middle class customers as now they generally reach high
class of people. Social factor: These forces includes culture, traditions, beliefs, backgrounds etc. that
influence business functioning and policies as the companies needs to satisfy their
customers or society (Jones and Livingstone, 2015). Rapidly changes in consumer
preferences increase the demand of electric car because they unlike traditional cars.
People are satisfied from these because they want to develop their lifestyles and living
standards so a company can fulfil society acknowledged in environment. Due to the
increment in wealth dispersion in developing countries like Asia, Europe and USA has
improved company's financial execution. Technological factor: It involves the advancement in the technologies as well as
automation and up-gradation in techniques that needs to practical in competitive
marketplace to fulfil the emerging need of people (Eglese, 2014). Due to the
technological advancement in automotive energy storage industry Tesla get benefits at a
wide range as this will helps in taking competitive advantages in the competitive
marketplace environment. This permits Tesla to be fuel efficient as well as make more
adoptable to innovations rather than traditional cars in automotive industry. Legal factor: Some of the examples are copyright, consumer, intellectual property right,
health and safety as well as anti-discrimination laws and legislations that are obligated by
an organisation in a lawful manner on the basis of its size and nature. In UK, every
vehicles must be EC approved that consider as a national approval of specific country
4