Business Strategy on Tesla
Added on 2021-02-20
15 Pages4532 Words31 Views
Business Strategy
Table of ContentsINTRODUCTION .........................................................................................................................3TASK 1 ...........................................................................................................................................3P1 Impact and influence of the macro environment on a given organisation and its strategies.3TASK 2............................................................................................................................................5P2 Analyse the internal environment and capabilities of a given organisation usingappropriate frameworks..............................................................................................................5TASK 3............................................................................................................................................7P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given marketsector for an organisation............................................................................................................7TASK 4............................................................................................................................................9P4 Strategic planning for a given organisation...........................................................................9CONCLUSION .............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTION Strategy of the business can be determined as the specific sets of actions and directionswhich helps managers of the organisation to function business activities in a proper manner. Itassist the organisation in to have advantage in this competitive world. and helps in achieving thedesired objectives of the business. This report is based on TESLA, which is an Americanautomotive company, founded in July 1 2003 based in Palo Alto, California (Amit and Zott,2012). It has major specialises in car manufacturingand deals with all the assembly plants ofcars.. Tesla mission n is to accelerate the world transition to sustainable energy and objective isto to become the worlds largest branded company and focus towards worlds transition to electricvehicles, thereby capturing larger market share. This report will cover the impact and theinfluence of macro environment on the organisation and also assess company's internal
environment and capabilities. It also determines and evaluates Porters five forces model to agiven market and applies theories and concepts to devise strategic planning for a givenorganisation.TASK 1 P1Macro environmental influence on the organisationBusiness environment consist of both internal and external business environment that hasimpact and influence of the performance of the organisation. External business environmentconsist of forces such as competitors. Suppliers, customers, market conditions which affects theperformance of strategies within Tesla. Therefore it is necessary for managers to analyse themacro environment factors and take effective decisions regarding the formation of strategiestowards the success and growth of company (What is PEST Analysis?, 2018). Political Factors- Political factors includes the governmental policy, rules and regulationand various taxes imposed by the government which has a effect on the performance of thebusiness and leads problem in the formation of strategies (Aithal, 2016). As Tesla specialises inelectric car manufacturing has a political stability in U. S as lot of initiatives have been taken upby the government regrading production of electric auto mobile, such as governmental incentivesare provided to the company which strengthens their financial performance and leads to increaseproductivity, but as the company operates in various countries is affected by the different rulesand regulations of the government and one of them is the stringent environmental protection lawsdemanding to reduce foot prints is on of the factor leading the manager of TESLA to formeffective strategies, this problem can be overcome by thereby manufacturing electric cars byusing the resources optimally as well as using the fossil fuels in a appropriate way as a way thatreduce carbon foot prints. Economic Factors- This factor consist of the market growth, inflation and the exchangerate which influences the performance of the business. As with the increase in the fuel pricescreates issues for the auto mobile industry at the same time it provides an opportunity for TESLAto manufacture more electronic cars and captures the larger market share as customer willdemand e- cars rather then purchasing fuel based cars. Another economic factor is Decreasingbattery cost which helps company to manufacture cost effective vehicles and attains high marketshare. Apart from this, inflation rate in US and in most of the developed countries will influence
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