Impacts and Influence of Macro Environment on Tesla

Business Strategy

Table of Contents
INTRODUCTION................................................................................................................................3
LO 1............................................................................................................................................3
P1 Impacts and influence of macro environment on Tesla.........................................................3
M1 Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................6
LO 2............................................................................................................................................6
P2 Analysation of internal environment and capabilities of Tesla using SWOT........................6
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set..........................................................8
LO 3............................................................................................................................................9
P3 porter's five forces model for evaluating competitive forces of a given market sector.........9
M3 Devise appropriate strategies to improve competitive edge and market position based on the
outcomes. .................................................................................................................................10
LO 4..........................................................................................................................................10
P4 applying a models , theories and concept to understand interpretation of strategic directions
To Tesla.....................................................................................................................................10
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................15

INTRODUCTION
Business strategy help organization to develop and innovate their services. To grab new
opportunities in market and to maintain effectiveness of their business. Strategy help to compete
with their competitors and maintain their business growth in a long run. Tesla is one of the leading
company in auto mobile sector and due to their new products like electric vehicles help them to
expand. In this report we will prepare macro environment and its influence on Tesla. Also analyse
internal environment and its effect on growth of Tesla. Porters five forces also need to be study to
know competitive advantage. Different theories and models are used in strategic planning for
business.
LO 1
P1 Impacts and influence of macro environment on Tesla
Macro environment effect overall working and development of Tesla. PESTLE is one of the
best tool to analyse effectiveness of external market.
Political factors
Government interference effect overall business of Tesla. Political stability in an economy
help Tesla to grow their business. Tax rates in an economy effect overall profitability of their
business (Phadermrod, Crowder and Wills, 2019). Trade policy in an economy make them
ineffective to expand their business. Education system and development of infrastructure help them
to establish their business. Government of some economies and countries provide incentives on
electronic cars and develop opportunity for Tesla to grow in major markets. Foreign trade policy
and labour law influence them to develop and innovate their services. Government support help
them to improve their financial situation.
Economic factors
Economic growth of a nation is important for development of business. Consumers income
is increase then drive to purchase quality product and services also increases which help Tesla to
increase their sales. Company develop their business in an new economy then they need to analyse
unemployment rate in an economy to know that people are able to purchase their products or not.
Due to decrease in prices of battery in some territories help Tesla to develop (Safari, Farhang and
Rajabzadehyazdi, 2016). Need to analyse purchasing power of their customers to know demand of
their products.
Social factors
Culture and values of people in an economy effect overall sales of business of Tesla.
Attitude of an individual help organization to develop and innovate their services (Schawel, and

Billing, 2018). Cultural barriers in a territory influence customers to purchase product of Tesla. Due
to increase in environment consciousness in an individual help Tesla to expand. Social influence
help to increase demand of their electric vehicles. Tesla can grow its business internationally at an
developing level. Company need to improve their wealth in developing markets.
Technology factors
Availability of technology in an economy help business to develop and innovate their
services to engage large number of customers towards their products and services (Fozer and et.al.,
2017). Tesla need to research market where they are going to develop their business. They need to
know innovation and awareness of market towards technology development. Due to increase in
popularity of online mobile system help Tesla to develop.
Environmental factors
Increasing rules for welfare of society and to reduce pollution have a huge impact on growth
of business. Climate change effect business and develop opportunity for their business to grow at a
large scale. Due to their electronic cars which help to reduce pollution in environment improve
effectiveness of their business and attract large number of customers towards their products and
services. Environment have a huge impact on availability of raw materials.
Legal factors
Organization need to know consumer laws and employment laws in an economy where they
are going to expand their company (Wee, 2017). Tesla need to know basic pay or salary provided to
employees in an new economy. Health and safety laws in a new economy. Tesla safety features help
them to attract customers and initiates success for their company.
Stakeholder analysation of Tesla
Various stakeholders internal as well as external are interested in Tesla motors company.
These stakeholders tend to affect directly or indirectly the business environment and running of the
company. The internal stakeholder of the company are its employee and management teams. Thus,
for ensuring success of the organization the company has to take care of its employees salaries as
well as their career opportunities. More over, since the investees and stakeholders has invested in
the company by the interest of the success of the company. Thus, these both stakeholders influences
the strategies of the company and their implementation of strategies ensures the company
profitability & growth.