Business Strategy

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Impact and influence of Macro environment on organisation and its strategy.................1
M1 Analyse of external or macro environment......................................................................5
TASK 2............................................................................................................................................5
TASK 2............................................................................................................................................5
P2 Analysis of internal environment and capabilities through utilising appropriate framework
................................................................................................................................................5
M2 Evaluation of internal environment for assessing organisation skill and structure.........9
TASK 3............................................................................................................................................9
P3 Implement of Porter's five force to evaluate competitive force in organisation...............9
M3 Appropriate strategies to improve competitive edge and market position based on the
outcomes:..............................................................................................................................11
TASK 4..........................................................................................................................................11
P4 Different theories, concepts and models to devise strategic planning............................11
M4 Produce a strategic management plan that has tangible and tactical strategies priorities and
objectives..............................................................................................................................12
D1 Apply of right information to understand environmental and competitive analysis to
develop right strategic direction and action..........................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business strategy works as a plan through which effective decisions are taken by
organisation for attracting large number of customers. The main motive to develop an effective
business strategy is to gain competitive edge in market by accomplishing organisation goals and
objectives in minimum time period. For this purpose, it is essential to focus on company’s
mission and vision objectives, including current trend of marketplace that might influence
business operations and affect growth. This report is written from the perspective of Tesla which
is operating its business in auto-mobile and energy industry. This American company is
headquartered in California, United States and offer products at worldwide level (Ansoff, 2018).
To analyse the way operations and other functions of Tesla is effective by macro environment,
PESTLE framework is utilised in this report. While to highlight the internal capabilities, VRIO
model and SWOT analysis are taken. Along with this Porter's five forces and different theories
are implemented in organisation for developing effective strategic plans for chosen organisation.
TASK 1
P1 Impact and influence of Macro environment on organisation and its strategy
Macro environment includes all those forces which are beyond the control of an
organisation such as political changes, economical policies and many more, that highly affects
operational activities. To respond towards such changes in macro environment, a company needs
to develop effective business strategy, that helps in running operations successfully. Business
strategy can be defined as the summary of plans that helps company to meet with buyers
expectation to gain competitive edge in market. Tesla has been established in the year 2003 and
deals in an Automotive and energy based industry. This firm mainly specialises in manufacturing
the electronic cars and operates business in all countries. In order to develop strategy according
to external environment for reducing the impact and influences of uncontrollable aspects on
organisation decisions, it is essential for management of Tesla to conduct proper market research
(Bell, 2017). For this purpose, PESTLE analysis can be utilised in following way – TESLA.

PESTLE analysis Political factors- Political factor impact on functions of TESLA such as if government
prohibited use of natural resources such as Petroleum and oil then TESLA will get benefit
in their operations as company is offering electronic vehicles that reduce consumption of
natural resource. Trade restrictions, tax rates etc. are some example of political factors
that highly influence business operations and policies of a company as it impact on
business operations and functions of TESLA. This refers it is mandatory to follow local
rules of country. In the context of UK, it is a political stable country so it influence
positive aspect on organisation as government is open to adopt new business methods and
technology for providing better products and services to its resident individuals. Economic Factors- UK is an economic developed country where government mainly
concern on developing better fiscal and monetary policy, so that all local and
international companies can operate their business in its territorial boundary, profitably.
In the present scenario, Brexit impact on GDP and inflation rate of the country due to
which employment rates of organisation is impacted as companies are not able to manage