Business strategy of Tesla : Assignment

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analyse the impact of the macro environment on a Tesla..........................................................1
Analyse the internal environment and capabilities of a TESLA..................................................3
Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
......................................................................................................................................................5
TASK 2............................................................................................................................................6
Strategic directions available to the organisation........................................................................6
Recommendation ........................................................................................................................7
strategic management plan with strategies, objectives and tactics..............................................8
Tactics..........................................................................................................................................8
Conclusions......................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategy is refers to management of business activities. It includes different
types of strategies which implement and formulate in the business for achieve goals and
objectives of the firm . It can be describes as combination of different strategy. Therefore, this
strategy helps to accomplish the overall goal of the firm (Hsieh, C.C. Ma and Novoselov, 2019).
Thus, this report will discuss the business strategy of Tesla. It is the car manufacturing
and American automotive and energy company based in Palo Alto California. The company
making hybrids cars such as electric car through its scarcity subsidiary, solar panel
manufacturing etc.
The report will explain the impact of macro environment in the context of Tesla by using
the pestle analysis. Moreover, report will analyse the impact of internal environment capabilities
of a Tesla by using swot analysis. Furthermore, report will describe the porter five forces model
to improve the competitive advantage of the firm. Furthermore, report will describe the Bowman
strategic clock model and recommendation. Furthermore, report will describe the strategic plan
of the Tesla.
TASK 1
Analyse the impact of the macro environment on a Tesla.
Macro environment is the environment which affects the firm performance with different
factors. These factor is influence the decision making power of the firm. There are diffident
factor such as political, economical, social, technological, legal, environmental. These factor also
known as pestle analysis (Pucheta‐Martínez and Bel‐Oms, 2019).
Pestle analysis - It is the tool used by different firms to analyse the external factor and their
implication. Firm monitor the macro-environmental factors that have an influence on an
company .
Political factor- This factor is describe that how government is interfere in the economy and
this rules and regulations is how to impact in the performance of the firm. It contains different
lows. Labour law, employment low, tax policy, contract low etc. the political factor is affects
the performance of Tesla. Therefore, the taxes is increase in car manufacturing industry this is
creates the negative impact because the cost of production is increase due to increase the taxes.
In other side, due to financial instability in the world, government encourage the firm to increase
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the employment in domestic area so people are happy for the job and they increase their
performance to produce high quality product. So, that is create the positive impact on the
performance of the Tesla (Deneffe and Vantrappen, 2019).
Economical factor - This factor is describe the economy effects in the firm. Factor contains
economy growth, interest rates, currency exchange rates , inflation rates etc. The economy of US
is good because the GDP of the US is growing in nature. Therefore, its support the Tesla
because people are generally buy this types of innovative cars. So it helps to generate the
profitability of the firm it creates the positive impact on the future growth of the firm. In other
side, nations other than US . do not support dealers of the firm. Many nations have own laws
that bans the dealers from selling the cars directly to the consumers (Gorondutse and Hilman,
2019). Therefore, this situation is crates the losses for the firm because the it reduce the
customer it creates the negative impact on the firm.
Social factors - Under this factor it describe that there are many different needs, wants and
attributes of the consumer which affect the decision of the firm. It includes values, attributes,
norms, income distribution, lifestyle, safety force etc. Therefore, due to changes in future trends
is affect the production of the firm. Therefore, Tesla has make innovative model in cars and they
enhance the number of hybrid cars offered for sales (Hsueh and Gomez-Solorzano, 2019). So,
The demand of electric car is increased because it generate high sales and it creates the positive
impact on the firm. In other side, consumers prefer the affordable prices on the product with
high quality of product. therefore, but the prices of Tesla cars is high because the raw material is
expensive it will increase the prices of the cares. So, low income group of people, have not much
interested to purchase the electric cars and it creates the negative impact on the firm.
Technological factor – This factor is describe that innovation in technology it impact on the
operation of the firm. It includes the research and development, product innovation, etc.
Therefore, Tesla used the different technology to enhance the performance of the firm. Tesla
manufacture the eco friendly cars with advantage of low flue efficient. Therefore, they use solar
panel for manufacture the care it is good and best innovative ideas which leads the sales of the
product so it creates the positive impact on the sale of the Tesla. In other side, there has also
negative impact Tesla has use artificial intelligence to make best cares but the competitors is
arise because many firm used the different types of technology to manufacture the cars so it
creates the negative impact because Tesla faced competition.
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