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Business Strategy - Tesla Assignment

   

Added on  2021-02-21

12 Pages4035 Words32 Views
Business Strategy

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1PESTLE Analysis for evaluating the external factors............................................................1SWOT Analysis......................................................................................................................3Porters five forces model on TESLA.....................................................................................4TASK 2............................................................................................................................................5VRIO framework on TESLA.................................................................................................5Justification and recommendation of the most appropriate growth platform and strategies..6Produce a strategic management plan with strategies, objectives and tactics........................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10

INTRODUCTIONBusiness strategy is defined as the long term business planning that helps to achievedesire goals within the specific time period. It mainly tells that how organisation is required to doplanning for achieving the goals. It is important because it provide the guidelines to businessorganisation that how they are performing in current situation and how they are required toperform in future. The report will be based on TESLA which deals in the sector of automotive. Itwas founded by Elon Musk who have changed the concept of vehicle in this modern era. Therewill be the discussion internal and external factors in Task 1 that might have a impact on day today activity of company. When it comes to Task 2, various strategic plans will be created thatwill be based on environmental analysis and findings.TASK 1PESTLE Analysis for evaluating the external factors.PESTLE is defined as the analytic model that helps to identify all those external factorthrough which day to day activity of an organisation can be affected. In context of TESLA, theyare one of the fastest growing company in automotive sector and to maintain the sustainabilitywithin the market place, PESTLE will help them to know the positive and negative impact of themarket for future growth. Political Factor:This part of the analytical tool tells that impact on business can be seenbecause of government policies and agreement. In context of TESLA, it can be amongthose factor that have the possibility to reduce profit of organisation because changes intaxation and policies might create issues for the company. If government reduces the taxrate then company can earn more profit too. For example: if government reduces the taxrate in electric manufacturing company then TESLA will have the option to earn additionprofit in future (Barberá and et. al., 2012).Economical Factors: This is among one of those factor which has the direct impact oncustomer and organisation both as it emphasises on exchange rates, interest rate andmany more. While talking about TESLA, it will directly effect on the revenue ofcompany because of inflation rate interest rate. Also, it will have the impact on thepurchasing power of customer because increase in rate will not allow company to sell1

more number of cars within the market. For example: if changes will be seen in variousrates such as exchange rates, interest rate then overall profit will automatically decrease.Social Factor: Whenever any of the company deals within the market place they arerequired to know about the market trends so that plans and policies can be easilyformulated (Bharadwaj and et. al, 2013). In context of TESLA, this is one of those factorwhich gives additional advantage to the company. They always try to find in thebeginning that what is the actual demand of the market and what is the are main featuresthat are trending in current situation. Because of all this company is able to earn moreamount of profit. For example: they should only try to focus on specific market wherecustomer attraction is on electric vehicles and also they can spend more money for theirproduct.Technological Factor: Every organisation is required to understand that technologies arebeing changed on regular basis. This factors tells that any of the organisation should trysomething new if they want to sustain within the marketplace. In context of TESLA, theyare the leading brand within the world whenever it comes to enhancing the technology.As they know that market of Great Britain likes more features and uniqueness in any ofthe product and even company is doing exactly the same to by introducing the latesttechnologies. For example: TESLE add on new features within their electric car whichhelps to influence the customer directly.Legal Factors: In this factor, it has been found that problems are being created in everyshort interval of time. It deals with the rules and regulation which is required to beconsidered by any of the organisation. If company is unaware about laws and policies,then there are high chances that penalty can be imposed on association (Blackburn, Hartand Wainwright, 2013). TESLE will required to implement plan and policies which areenforced by the government of UK. It do have the negative impact on there workingpolicies because they are required to change them as per the demand of situation. Forexample: top level management is required to know about some of the act likeCompanies Act, Equality Act, Employment law and many.Environmental factors: It is one of those factor that is related to ecological andenvironmental aspects and that has the potential to affect the demand of company'sproduct.This factor is also being important in current scenario and because of that it is2

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