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Business Strategy Introduction

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Added on  2021-02-20

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Business Strategy INTRODUCTION Business strategies refers to those actions and activities that can be used by a company for the effective running of the firm. Impact and influence of the macro environment on the organisation and its strategies Micro environment refers to the outside components that create effect on the business activities and actions of the firm. This analysis consists various factors which are as following: Political factor- This factor consists of beneficial fiscal policy, tax policies, trade tariffs and other political factors that affect the business and business strategies of

Business Strategy Introduction

   Added on 2021-02-20

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INTRODUCTIONBusiness strategies refers to those actions and activities that can be used by a companyfor the effective running of the firm. It can be those plans that can be designed and developed bythe management of the company so that the firm can achieve its set goals and objectives (Akterand et. al. 2016). These strategies are essential to monitor the future direction of the business andestablish a strategic position in the market. This report is related to Tesla Inc. which is anAmerican automotive and energy company. This company was founded in 2003 andheadquartered in Palo Alto, California, US. This company manufacture electric vehicles andTesla energy, it also produces scalable clean energy generation and storage products. This reportwill be discussed about the impact of macro environment, organisation's internal environmentand capabilities. Further, it will define about the competitive analysis by using porter's five forcemodel. A strategic management plan is also developed by using various theories, models andconcepts. TASK 1P1. Impact and influence of the macro environment on the organisation and its strategiesMicro environment refers to the outside components that create effect on the businessactivities and actions of the firm. In context of Tesla, there are various external factors thatimpact the strategies and activities of this organization in different manners. To monitor theimpact of these factors that management of this company can use PESTEL analysis. PESTEL AnalysisIt is a tool that can be used by the administration division of an organization to determinethe impact of external factor which have an impact on an organisation. In Tesla theadministration of the firm can use it in the environmental scanning component of strategicmanagement. This analysis consists various factors which are as following: Political factor- This factor consists fiscal policy, tax policies, trade tariffs and otherpolitical factors that affect the business and business strategies of a company etc. in context ofTesla, there are many initiatives taken by the government for providing support to makeinnovation in the development of the hybrid engines and electric driven power train (Amran andet. al. 2016). In US, the Department of Atomic Energy has provided $465 million subsidised1
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loan. Tax credit of $7500 for purchasing electric vehicles is providing by the federal authorities.It positively affects the business of the organization and assist in the development of the firm.Economical factor- It include Inflation rates, interest rates, foreign exchange rate,economic development patterns and others. In current era, electric cars are getting popularity andthis positively affect the economy of the company as well as country (Burlton, 2015). In Tesla,the attraction towards electric vehicles assist in exploding the income of the firms which assist inaccelerative the gainfulness of the company and affect the economic condition of the firm infavourable manner. Another factor for the development of the organisation's economy isdecreasing battery costs which is an essential cost factor in the total cost of any electric vehicleand help in economic growth.Social factor- This factor involves taste and preference, cultural trends, demographics,population and others. At present, the taste and preferences of the peoples are changed and theylove the idea of electric car because these cars are eco friendly and affect environment inunfavourable manner. Electric cars are less expensive in terms of maintenance and running costbut modification in clients’ demands and needs positivelyimpact its sales. Now these days,peoples are following trends and maintaining a standard in the society so they are givingpreference to electric vehicles. This positively affect the business of the company in term ofincreasing customer base and sales. Technological factor- This factor highly affects the business strategies and business ofthe firm. In Tesla, fast technological changes affect this company favourable and unfavourablemanner. This company manufacture its product by using advance technologies like electric carsand others which positively affect it in terms of managing competitive edge at the marketplace.In its products this company implement artificial intelligence and automation which is beneficialfor its growth because no other firm use it at high level.Environmental factor- This factor consists all the elements which effect and monitoredby the surrounding environment. The management of Tesla produce eco friendly vehicle likeelectric car which eliminates the use of fuel that is better for the environment. The companymanufacture electric vehicles which are energy saving and help this organisation in build astrong brand image so that known as a leader among industry (Burlton, 2015). The companyfollow all the environmental laws like pollution act, carbon emission act and others. 2
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