Business Strategy for Tesla: PESTLE Analysis, SWOT Analysis, and Porter's Five Forces Model

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
PESTLE Model for environment analysis...................................................................................3
SWOT analysis for internal analysis...........................................................................................5
Explanation about Porter Five Forces Model..............................................................................6
TASK 2............................................................................................................................................8
Evaluation of the different types of strategic directions available to the organisation................8
Produce a strategic management plan with strategies, objectives and tactics...........................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy can be explained as the planning and plotting which is required in every
organisation for the purpose of achieving the goals and target. It gives competitive advantage in
the market due to which healthy competition can be continued between different business
organisation. In addition, it has to determine that what are the strength and weaknesses of a
company so that future improvement can be done. The choose organisation is tesla which is
manufacturing company of electric cars. it was founded in the year 2003 by the group of
engineers for the purpose of proving that electric can be much better option to travel from one
place to another.
In context of the file, number of topics will be explained which will include internal and
external factors that affect business organisation porter's five model will be explained for finding
the competitive environment. Also, strategic management plan will be discussed ritual include
strategies objective and tactics will help organisation in achieving their goals and targets.
TASK 1
PESTLE Model for environment analysis
PESTLE analysis is explained as the model which helps to determine external factors
which effect the business organisation in positive or negative manner (Ghezzi, 2013). In contacts
of Tesla, PESTLE analysis will help them to determine that what are those external factors that
can create issues for the company in future period so that better business decisions can be taken.
Below, there is the detailed explanation of PESTLE analysis on Tesla.
Political Factor: This factor of PESTLE analysis helps organisation to determine that
what are the government policies and decisions which is needed to be implement by company for
achieving their goals. In terms of Tesla, they are required to focus on governmental incentive
that are formed for electric automobiles, must try to find new global trade agreements so that
opportunities can be generated for them to perform better within the market. While talking about
the political impact on TESLE, it can be easily said that it has been responding positively as they
in showing favorable response for them.
Economical Factor: This factor includes growth percentage of market, trade level,
fluctuation in currencies which has a direct influence on taking any of the business decisions

(Hoejmose, Brammer and Millington, 2013). In context of Tesla, economic factor can increase
the expenses on manufacturing the vehicle if import charges are high. Or even opportunity can
be generated if Cost decreases related to generating renewable energy. It is important for
organisation to change their cost as per the requirement of situation if they want to sustain within
the market. Sometimes economic factor itself increases the overall cost of the vehicles which
shows the negative impact for the company.
Social Factor: It is a direct connection with believes, norms and values of people. The
demand of Tesla can be fluctuated as per the requirement of public so in order to maintain that
company is required to fulfil the demand of public by manufacturing the cars as per their
demands. TESLE can include some of the additional features in their car which doesn’t affect
their culture, safety and if these things can be done from the side of organization then they can
easily achieve the targets in best possible manner.
Technological Factor: It is one of the most crucial factors for business organisation like
Tesla because they are one of the companies who update themselves by introducing new
business ideas. If they want to sustain within the market for longer period, the they are needed to
enhance their technologies. Also, Tesla is needed to focus that what their customers want from
them in upcoming vehicles so that productivity level can be enhanced (Scholes, 2015). Here,
market wants that product should be latest by including different technologies in it and exactly
the company is doing same due to which they are able to get positive response from the market.
Legal Factor: It is one of the factors which is related with laws and regulation. It is
mandatory for any of the business organisation to comply with legal terms and condition. If
company like Tesla fails to perform the legal duties, then they might have to suffer from number
of problems in future period. It is necessary for them to determine that what are those laws and
regulations which complies on company for attaining the goals of a company. The legal in UK
do not changes a lots which makes comfortable for company to work freely by preparing long
terms policies which is one of the positive sign for them.
Environmental Factor: It is the factor which can easily affect the ecological aspects of
human being due to which demand can be increased or even decreased. Here, Tesla can easily
take the lead as they are one of the companies which manufactures those cars which doesn't
affect the environment and even their vehicles are based on climatic situation. In current