Business Strategy: Impact of Macro Environment on Tesla

BUSINESS
STRATEGY
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................4
M1 Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................4
TASK 2............................................................................................................................................4
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................4
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set..........................................................4
TASK 3............................................................................................................................................4
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation............................................................................................................4
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes................................................................................................................................4
TASK 4............................................................................................................................................4
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation...............................................................................................................4
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.....................................................................................................................................4
D1 Critique and interpret information and data applying environmental and competitive
analysis to produce a set of valid strategic directions, objectives and tactical actions...............4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
Business strategy is basically the planning which the organisation does to achieve its
targets. It helps the organisation in enhancing their performance by effective decision making. In
order to achieve success in the market proper planning of strategies is very important because if
the organisation will not plan their strategies accordingly then it can affect the functioning of the
business (Yuan, 2020). As competition is increasing in the market its getting very tough for the
business to survive in the market so to avoid the loss in the organisation strategies are planned
which also helps the business in effective utilisation of resources. Business strategies helps in
unique positing of brand so that its demand in the market can be increased and more revenue can
be generated TESLA is one of the top automotive and energy generation company in the world
which provides the wide range of electrical vehicle and battery energy products it was developed
2003 and based in California. Tesla doesn't pay for any advertisement they mainly focuses on
guiding the customers through their workplace due to which it is considered as the best selling
electrical car manufacturer in the world. In this report it will observe that how business strategies
helps TESLA to achieve its goals in the market.
TASK 1
P1 Using appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies.
Macro environment plays an important role in the growth of the organisation. It impact
can be negative or positive because macro environment has various factors which can effect the
profit of the business. To analyse the macro environment effectively PESTLE analyses and
Stakeholder analyses has been used.
PESTLE ANALYSIS ON TESLA
Pestle Analysis includes various environmental factors like Political, social, economical,
legal, technological, environmental. It helps TESLA in implementing their strategies according
to the requirement of the people so that its demand in the market can be increased. Pestle
analysis helps in judging the environment in an appropriate so that it business can plan their
strategies accordingly
 Political factor: Political environment includes unemployment rate, economic condition,
tax rate. High tax in the economy can change the revenue generating structure of the
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business. In order to survive in the economy and achieve profit organisation has to pay
taxes for various organisational activities like export and import of goods and services.
Implementation of trade policies by the government can affect the performance and
revenue of the organisation. Expansion of free trade agreements provides opportunities to
Tesla in expanding their operations globally (Park and Mithas, 2020).
 Economic factor: This factor of pestle analysis includes trade levels, market growth,
currencies etc. which influence the auto-mobile business. For example the growth rate of
solar energy market's helps in determining the opportunities of solar businesses. There
are various economic factors which can influence the the revenue of TESLA Like
reduction in the battery cost, decrease in the cost of renewable energy, stability of
economy. If the battery cost will reduce in the market then it will help TESLA in
increasing its profit in the market by manufacture more variety of products.
 Social factor: To achieve success in the market organisation has to develop its goods and
services according to the needs and requirement of the customers because in today's
scenario every individual wants the new variety of goods and services so that their needs
and requirement can be satisfied properly. Developing the product and services of the
company helps TESLA in increasing its profit in the market. By increase the distribution
of wealth in the markets business can easily the increase its financial performance. This
factor helps in improving its services of TESLA because if it will follow the old tools and
techniques in their products then their demand in the market can be decreased.
 Technological factor: In TESLA technology plays an important role because it deals in
electrical products which cannot function without technologies. With the help of
technology company can achieve its target in a short time period. To increase the profit in
the market advance technology is used by TESLA. For example Tesla is using a self
drive feature in its products so that it can attract the attention of the customer. In the auto-
mobile industry technology is very important to provide the comfort to the customers.
 Legal factors: For the smooth functioning of the business there are some laws which the
organisation has to follow for example labour law, safety standard, consumer law etc.
These laws helps in proper management in the business. Organisation should provide the
job security to their staff so that there performance in the organisation can be increased. If
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