Business Strategy

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Application of appropriate frameworks to analyse influence of macro environment...............1
TASK 2............................................................................................................................................4
Analysis of internal environment and capabilities of Tesla..............................................4
TASK 3............................................................................................................................................7
Application of Porter’s Five Forces Model to evaluate competitive forces...........................7
TASK 4............................................................................................................................................9
Application of a range of theories, concepts and models to devise strategic plan...................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Strategy refers to all the processes, procedures, along with certain tactics which are
adopted by the organisation in context of enhancing the scope of success within the market,
along with an effective competitive edge. In addition to this, it is quite helpful for a company to
cope with dynamic market situation (Shuen, 2018). Furthermore, there are several appropriate
and essential elements associated with the strategies of the organisation, which are related to
ensuring sustainability of the company as well. The following report is based on Tesla, which is
one of the most renowned, recognised and effective organisation that appropriately deals in
electric vehicles, as well as batteries for home and business use. The report is divided into two
parts, wherein the first part covers analysis of impact and influence which macro environment
has on business strategy. Moreover, it includes assessment of internal environment of the
organisation and several capabilities. In addition to this, evaluation and application of outcomes
using Porter’s five forces has also been addressed by this part. Apart from this, the second part of
the assignment addresses application of several models to help the firm interpret the strategic
direction by the organisation
TASK 1
Application of appropriate frameworks to analyse influence of macro environment
Macro environment of an organisation is related to the external factors that influence the
working or decision making of a company. Furthermore, these elements have a viable impact on
the strategies which the firm either takes, or is willing to take. Hence, below are certain
prominent external environment factors, which are applied and analysed using PESTLE
Analysis:
 Political Factors:
These factors reflect the political environment of a country, which influences the strategies
and tactics adopted by the company. Tesla has a very prominent and strong presence within the
UK, which has an effective political environment (Taneja, 2017). Hence, this ensures the
sustainability and growth of this organisation within this market. However, the current
environment of the nation is quite unstable, due to the anticipated events of Brexit and hence,
have could be a threat for the organisation as well. Such political instability could cause a major
disadvantage for the company to develop its designs in alignment of such unstable laws and
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legislations. However, to ensure effectiveness, Tesla must continuously assess the market to
anticipate as to whether their designs could sustain the current political environment or not.
 Economical Factors:
These factors reflect the overall performance of a nation based on the economic grounds. In
broader sense, the overall growth in context of electric vehicle market is expected to reach more
than $1.5 trillion dollars (Global Personal Electric Vehicle Cars Market Report 2019, 2019). This
is a major opportunity for Tesla to invest more into development of electric vehicles and cars.
However, the firm holds a substantial share within the UK market, which might be drastically
affected due to enhanced rate of inflation. This means that the organisation could face several
challenges in context of opting raw materials and other necessary resources on desired prices.
Thus, in order to appropriately and effectively enhance the scope of sustainability, Tesla must
fetch effective ties with its suppliers in EU countries, that might help the firm in sustain in such
tough market conditions. In context to Tesla, if bank rates increase, and business has taken loan
then the profit of Tesla will decreases, which will give direct and unfavourable impact on its
business success. But if there are economic stability in the country then it has positive impact on
business.
 Social Factors:
These factors are quite effective in analysing the impact which the social aspects imply upon
an organisation. In context with Tesla, the social conditions within several markets, including
UK are quite favourable for the organisation. Reason for the same is that the lifestyle preferences
of people are sharply and drastically aligning towards low-carbon vehicles and batteries.
Furthermore, this is an opportunity for Tesla in developing new products that deduce the carbon
footprint. However, one threat within the UK which could be disadvantageous for the company
is that the millennials are preferring the public transport way more than private ones. Thus, this
change in perception is quite threatening for future expansion and overall strategy of Tesla.
Hence, to ensure effectiveness, the organisation must market its products and services in ways
which helps develop a positive perception in minds of customers.
 Technological Factors:
All the technological advancements and innovations are effectively covered within these
factors. The environment within the UK is quite effective when it comes to advancements on
technological fronts. This is because the industrial sector of the country is prominently investing
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