Analyzing the Impact of Macro Environment on Tesla's Business Strategies

This report analyzes the impact and influence of the macro environment on Tesla's business strategies, including the PESTLE analysis and stakeholder analysis. It also examines Tesla's internal environment and capabilities using appropriate frameworks.

BUSINESS
STRATEGIES
1

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK 1............................................................................................................................................3
P1. Applying appropriate framework analyse the impact and influence of macro environment
on given organisation and its strategies..................................................................................3
TASK 2............................................................................................................................................9
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................9
TASK 3.........................................................................................................................................12
P3 Implement porter's five forces to evaluate competitive forces of a market sector for a firm.
..............................................................................................................................................12
TASK 4.........................................................................................................................................14
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation........................................................................................................14
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21
INTRODUCTION
Business strategy is a concept which is a bundle of various schemes and selections for
action performed that helps business firm in achieving organizational objectives and targets. It is
a plan which allows firm to have competitive advantage over rivalries in industry. Business
strategy comprises of several components such as factors of external and internal environment,
various theories and models for strategic planning, etc. which presents a picture of company's
potential and brand image in market (Anderson, 2019). The present report discusses elements of
business strategy such comprising of PESTLE analysis (Political, Economical, Social,
Technological, Legal and Environmental factors), Stakeholders analysis (investors, management
board, suppliers, wholesalers, customers, etc.) and Ansoff matrix under the category of external
environment, resources based view strategy, McKinsey's 7s model and VRIO framework in
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internal environment. Further in the report Porter's five force model and Porter's generic strategy
is being applied with Bowman's strategic clock. Tesla Inc. is a global electric vehicle
manufacturing company which is being taken into analysis for understanding its business
strategies and performance in market.
TASK 1
P1. Applying appropriate framework analyse the impact and influence of macro environment on
given organisation and its strategies.
Company's Overview:
Tesla is a multinational electric vehicle manufacturing and clean energy organisation
based on Palp Alto, California having its headquarter there. The famous global company was
established in year 2003 and being owned by Elon Musk who is its CEO. Tesla deals in
manufacturing and selling of electric vehicles which are pollution free and is made with latest
techniques emerging in market. It operates across the globe comprising regions of United States
of America, China, Germany, United Kingdom, and recently entered into Indian market. At
present company is having more than 438 stores under his own name and also more than 100
service centres across globe. The company has a wide range of products in various different
product line such as electric vehicles, storage products, clean energy generation items, etc.
producing with less or no carbon emission technology.
Mission:
Tesla Motors has a mission of accelerating the advancement of sustainable transportation
by launching compelling mass market through its electric cars as soon as possible into trade.
Vision:
Tesla Motors posses a vision of creating the lion's share compelling electric car
manufacturing company of current time that if in 21st century by bringing global transitions into
their electric cars.
Strategic Planning Techniques:
Strategic Planning refers to designing a framework which company makes with a aim to
attain its objectives and goals in set time (Arbatani and et.al.., 2019). This is done because to
have huge profit and big brand image of firm in industry as well as in market.
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The various techniques for strategic planning that are applied in every organisation to
have better performance is discussed below:
 Business Analysis: It refers to an analysis of a business firm about its activities and
performance. This assists businesses in having better strategics and finest decisions for
company's growth (Bayo-Moriones, Galdon-Sanchez and Martinez-de-Morentin, 2020).
This helps Tesla Motors to know and analyse their strengths and weaknesses in order to
have adequate decisions in organisation for its development and growth. Business
Analsyis also assists Tesla Motors to communicate the necessary requirement in bringing
changes in respect of company's work culture and structure. Tesla Motors is able to find
various solutions in order to maximising their values added in its cars which is being
delivered to potential buyers.
 Benchmarking: It refers to making a comparison of a firm with similar in industry or
with rival firm to know its standing (Chen and Keung, 2019). Tesla Motors by using this
will gets to know their position in market with the help of comparison between its
organisation and other big giants of market. This takes Tesla Motors to have better
strategies in its firm so that can enjoy high power in the market. Through benchmarking
Tesla Motors finds a way to discover better performance with greater efficiency in their
products.
Macro Environment:
Macro environment refers to a domain which prevails outside the business organisation
but creates an hindrance on the internal performance of businesses. Such factors are not in hands
of management who can control their forces, in fact management has to modify their plans and
directions according to the effect of such environment (Chereau and Meschi, 2018). It is also
called as external environment which not only but also effects industry as a whole. The factors
sometimes supports positively or sometimes creates a negative impact on businesses. These
includes PESTLE and Stakeholders analysis, in its shed.
PESTLE Analysis:
PESTLE is an acronym stands for Political, Economical, Social, Technological, Legal
and Environmental factors which creates a large impact on business firms and also disturbs
internal management of organisation. The analysis in respect of Tesla Motors is done below:
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 Political Factor: This factor relates to various issues related to government of a nation
which comprises of taxation policy, various regulations, trade and commerce restrictions,
etc. frequent changing government impacts negatively on business as mostly when
government changes policies or guidelines also gets change which forces companies to
modify their policies according to them (Desai, 2019).
Tesla Motors being a multinational electric vehicle manufacturing brand posses an
opportunity to boost up its performance via availing governmental incentives. Zero carbon
emission cars by Tesla assists company in enjoying free trade agreements while going globally.
Other than this, stability of political party in major countries proves favourable for Tesla motors
in order to experience smooth operations and growth. This political factor opens lots of doors for
Tesla knocking opportunities in auto mobile business.
 Economical factor: This factor of external environment relates with country's condition.
This talks about capital availability, rate of inflation, purchasing power of consumers,
demand and supply, balance of payment, etc.
Tesla Motors has received a positive revert from the forces of economic factor. Company
enjoys benefit by manufacturing low battery cost cars. Less renewable energy cost vehicles
attracts external factors to favour Tesla Motors. There is a presence of economic instability threat
for Tesla but then also this factor brings scope of great opportunities for company. Countries
experiencing less development opens a door for Tesla to start its operation in their nation. The
manufacturing of electric vehicles are affordable and meets high sales in global economy which
acts as a favourable force to company.
PESTLE Analysis
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 Social Factor: The factor discuses forces related to society in which both consumers and
organisation survives. This includes various demographics of customers, their preference
and acceptance, ethics and morals, sentiments, etc.
Tesla Motors received a positive force from society as it offers its cars by indulging zero
carbon emission technique in it which is more preferable by people in society along with having
preference in renewable energy. Under this factor society creates high demand for company's
electric cars and other associated products which increases supply ultimately leads to high profits
for the company. Company has an option for experiencing growth according to its socio-cultural
freedom. Tesla has gained competitive advantage over other auto-mobile firms in market by
offering renewable energy products and electric cars which has won hearts of society people.
 Technological factor: This factor of external environment relates to technological
changes in environment such as improvement in existing technology or emergence of
new innovation in market (Dina and Cahyandito, 2018).
Tesla Motors enjoys technological enhancement as well as faces threat for the same inn
his business operations. This is an favourable condition as adoption of updated technology
allows Tesla to manufacture better car with latest technology which is preferred by customers.
On the other hand it is a threat in a sense that frequent technological change takes old technology
into its obsolescence which has involved huge cost at the time of installing it. Obsolete
technology are not accepted by buyers hence wastes company's money and resource after some
time which is very short term. Another adoption of technology by Tesla in respect of reducing
carbon impression into its cars proves favourable for the company and acts as an opportunity for
it.
 Legal factor: The force of macro environment which deals with legally comprises of
rules and regulations prescribed by court of law. Such rules and regulations are forced
mandatory to apply in business and to comply with (Ibrahim and Harrison, 2020). It
includes laws such as minimum wage law,employee protection, safety and security, etc.
Tesla Motors has an option to diversify its operations by following adequate legal rules
by keeping global patent regulation in concern. Many countries has modified certain regulations
in relation to auto-mobile standards which is mandatory required by Tesla to follow.
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 Environmental Factor: The last factor in PESTLE analysis concentrates on weather,
climate, pollution, carbon emission, and other issues related to external environment.
Tesla Motors pays its concentration towards environmental safety as it manufactures
electric cars which are zero carbon emission. This environmental concern proves favourable for
Tesla in order to strong in market.
Stake holder's Analysis:
Companies stakeholders are those who are related in some manner with the course of
business whether at a large level or at low. Business gets very much affect from the behaviour of
its stake holders because they are the one who contributes to company success and creates an
impact on its performance in market as well as in industry (Irawanto, 2017). Companies
stakeholders includes its promoters, management board, customers, government, suppliers,
employee, and all those who are directly or indirectly related with business.
There are few stages which presents a guideline in performing stakeholders analysis for a
company. These stages are listed below:
Step 1: This step involves determination of various stakeholders of company by making
a index of all persons who can be firms stakeholders.
For Tesla Motors its stakeholders includes banks, government, management board,
managers, shareholders, company's employees, suppliers, investors, customers, inventors, etc.
Step 2: At this stage manager makes a priority list as which stakeholders are at priority of
company based upon various elements such as their participation level, influences, interest, etc.
The step categorises its stakeholders by below mentioned forms:
 High Interest, high power: Stakeholders who contributes much to the organisation or
has a high interest in business will posses high power or will be categorised as priority for
Tesla Motors.
 Low Interest, high power: Such stakeholders has a great influence on business but does
not take much interest in companies activities of Tesla Motors.
 High Interest, low power: Stakeholders under this category are highly interested in
knowing business activities and do not concentrates on power. Tesla Motors informs its
stakeholders who are interested so company do not get any interruptions form them.
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 Low interest, low power: These stakeholders do not takes much interest in business as
well as do not caries much power in company.
Step 3: This step involves communication of stakeholders list according to their priority
in order to have their support in achieving set project timely and flawlessly. Tesla Motors
communicates with its stakeholders in this step.
Ansoff Matrix:
Ansoff is a matrix which analysis companies growth strategy and its market performance.
It is a strategic tool used for planning policies and directions so that growth can be achieved in
proper manner. The matrix comprises of four different components that is Product Development,
market development, Market penetration and Diversification (Jasni and et.al., 2019). Each
component is discussed below:
 Product Development: This component suggests to have new product in existing market
where business is already operating and selling its product or services. This helps
businesses to launch their new product which will be loved by existing customers in
market (Köseoglu and et.al, 2019).
Applying this component by Tesla Motors introduces enhanced technology into its cars
manufacturing process and features that impacts less harmful for environment. Company serves
solar panels and Tesla Roadster in a form of its first electronic sports car at international level.
 Market Development: In this strategy companies offers its existing products in new
markets or to new customers (Lavery, 2019).
Tesla Motors adopts market development strategy with a aim of spreading its operations in the
market of China, Germany and recently in India. Tesla also aims at expanding its business
throughout globe by its electronic vehicles and environmental concerned products.
 Market Penetration: This involves increasing companies market share from existing
product and current operating market.
Tesla Motors includes aggressive marketing in his business which posses a mission of selling
more and more electric cars in US market which allows company to increase its revenue from
current operating markets.
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 Diversification: This strategy of growth says presenting a new product into new
marketplace (Leischnig and et.al., 2017).
Tesla Motors has launched its battery products in a form of diversification in line of non auto-
mobile segment. The reason behind this diversification is to enhance its Research &
Developmental investments in order to analyse new opportunities for business growth.
TASK 2
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.
Strategic Capability and its components:
Strategic capability is a process of shaping and putting of various strategies into real
action by a firm to have competitive advantage in market. It includes goals, purpose, analysis
tools, planned actions, vision and values (Martí, 2017). These six components helps firm to have
proper strategy and action.
Resource Based View Strategy:
The strategy is a managerial framework used by various businesses in order to know its
strategic resources that can be utilised by firm to have competitive edge and sustainability
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Ansoff Matrix

(Nayak, Bhattacharyya and Krishnamoorthy, 2019). It includes two types of resources that is
tangible or physical and intangible also knows as untouchable. Tangible comprises of building,
plant and machinery, equipments, land and capital, etc. and intangible comprises of trademarks,
intellectual property, brand image, etc.
VRIO framework:
VRIO stands for Valuable, Rare, Inimitable and organisation which is used for internal
analysis of its resources. The VRIO framework for Tesla Motors is done below:
Resource Value Rare Inimitable Organisation Advantage
Innovation √ √ √ √ Competitive
Brand
Recognition
√ √ √ √ Competitive
Market share √ √ √ √ Competitive
Human
resource
√ x x √ Competitive
Range of
Products
√ x √ √ Temporary
 Valuable: This means how much companies resources are valuable in order to provide
some value in their products which are being offered to customers.
For Tesla Motors all its resources such as innovation, brand, market position, human resource
and product range are valuable which provides an competitive advantage to firm.
 Rare: This means how much company's resources are rare or how easily they are
available for other firms in industry.
For Tesla Motors its innovation, brand, market share are rare which cannot be found in other
company easily, whereas company's human resource and product range is not rare.
 Inimitable: This aspect of framework talks about cost involvement in copying resources
of one firm by another in market. The concept says that how easy it is for rival firms to
copy your resources.
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Tesla Motors posses inimitable feature in its resources such as innovation, brand, market share
and product range. On the other hand company's human resource is imitable in nature.
 Organisation: The last aspect in VRIO framework discusses about proper arrangement
of all resources in well organized manner within company which bring more efficiency in
outcomes or results.
Tesla Motors organises all its resources in well manner that creates an advantage for firm
through its innovation, brand name, market share, human resource and via range of its products.
McKinsey's 7's model:
McKinsey's 7's model refers to an company's internal analysis which businesses does in
order to have better efficiency in their performance (Novikov, 2018). It involves seven
components which are entirely internal to business which are mentioned below:
 Strategy: It refers to formulation of company's working strategy so that it can
have competitive advantage over its rivals.
Tesla Motors makes its strategy in well planned manner which helps company to give their best
in its products and to achieve competitive advantage in market.
 Structure: It comprises of company's organisational structure as how the
departments are divided and how each activity is done.
Tesla Motors has a clear structure of its organisation which defines department in each of its
activities clearly, so that every employee of company gets a fair understanding of their individual
task that needs to be achieved to attian organisational goal.
 Systems: It includes a proper system for performing activities and having
decision making of a business firm.
Tesla Motors manages its system very effectively which helps company to have competitive
advantage over rivals.
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McKinsey's 7's framework
 Skills: This comprises of employees and management skills which the uses in
bring their product very efficient and best in comparison with competitors
product.
Tesla Motors being a multinational electronic car manufacturer has a skilled labour who brings a
differentiated products and services for their customer with a great touch of innovation in cars.
 Style: This includes some leadership style which companies leaders uses in order
to bring more productivity in their employees so that to have better efficiency in
products and services.
Tesla Motors uses transformational style of leadership in their company. Which encourages
company's employees to bring new ideas or innovation into products.
 Shared Value: This involves company's values and standards which they follows
in their operations.
Tesla Motors shares its values with its employees and all stakeholders so that there is a presence
of healthy and positive relations in organisation.
TASK 3
P3 Implement porter's five forces to evaluate competitive forces of a market sector for a firm.
Porter's Five Force is a framework which is used by companies for making some strategic
decisions by having certain future assumptions of industry performance. It refers to an industry
analysis as how an industry and market will behave in near future and what impact it will create
on business (Wang, 2019).
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The framework comprises of five different aspects which presents a clear picture of
whole industry. These are discussed below:
 Threat of New Entry: It refers to a threat emerged for a company who is already in
market but fears from new entry as it will create problem in less sales of their product and
services in market.
Tesla Motors has a threat from new entry because entering into such market where demand is
huge is not a big deal for other firms. In this case Tesla is required to manage its challenges and
develop such strategy which safeguards company's interest.
 Bargaining Powers of Suppliers: It involves powers which the suppliers of raw material
posses in their hands. Large number of companies in market gives high power to
suppliers in bargaining for their materials whereas less number of companies does not
provides much power to suppliers.
Tesla Motors has a bargaining power of suppliers from whom it gets raw material or other
necessary equipments that lowers down company's profit margin.
 Bargaining Power of Consumers: This involves powers in the hands of consumers or
customers in order to do bargaining for lowering down products price. Large number of
buyers in market has high power to force companies to lower down prices of their
products and services.
Tesla Motors experiences buyers bargaining power as they always prefers best product with
latest innovation having less price. Higher bargaining power of Tesla's customers lowers down
its profit ratio.
 Threat of Substitution: This means fear to companies in respect of availability of close
substitution of their product or services in market.
Tesla Motors bears this threat because of presence of cheaper mode of transportation in market
such as buses or any other public transport. Factor of substitution is present for Tesla Motors.
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Porter's Five Force Analysis
 Rivalry among competitors: It includes competition among similar firms in industry in
many terms.
Tesla Motors does not have risk from competitors as there are very less number of companies
operating in auto-mobile sector especially in electric vehicles. So market is having less
competition.
TASK 4
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation.
Porter's Generic Strategies:
Porter's generic strategies helps companies to identify areas by which it can gain
competitive advantage over rival firms in market and in industry. It comprises of three different
strategies that is Cost leadership, focus and differentiation (Xie and Cooke, 2019). Porter's
Generic Strategies in respect of Tesla Motors is considered below:
 Cost Leadership: This involves leading market by providing cheaper products and
services to customers in market. It is also known as price sensitive concept in which
company can cater more and more customers due to its low prices and can enjoy high
market share.
Tesla Motors can offers its products at low prices compared to rival firms prices in order
to enjoy more market share and earn high revenue by catering more customers. This practice by
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Tesla Motors will increase the availability of their products in market which will bring high
profits for the company.
 Focus: This comprises of focus into two different aspects that is cost focus and
differentiation focus. Cost focus refers to company's more concentration on cost part
instead of product other features. Differentiation focus refers to concentrating on product
to make it something different from existing or from rival firms instead of focusing on
cost cutting or cost increasing.
Tesla Motors should need to focus on cost reduction of its products in order to have
competitive advantage and also focus upon bringing new product for their customers so that they
can buy more and more new cars and engage customers in waiting for launching of company's
new products.
Porter's Generic Strategy
 Differentiation: Under this category company needs to launch new products with some
unique contribution which is different form rival firms offerings in market. The concept
says to give a new touch which can be in any form but should not be much identical with
existing one in market.
Tesla Motors follows differentiation in its products. Company offers differentiated
product in its electric cars by providing various brands as a luxury into cars. Tesla Motors offers
several models such as Model S, Model X, etc. Model S is an sedan electronic car whereas
Model X is an electronic sports car. The features of both models are very different and is unique
in tersm of quality, functionality, safety, convenience, etc.
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Bowman's Strategic Clock:
A model known as Bowman's Strategic Clock is used by organizations for the purpose of
expanding its position in strategic context. This helps companies to gain competitive edge over
its competitors. By applying this into consideration Tesla Motors can place their brand in a
competitive market. The model comprises of several aspects that is Low Price and Low value,
Low price, hybrid, Differentiation, Focused Differentiation, Risky High margins, monopoly
pricing and loss of market share (Yuan and et.al., 2020) . Each aspects of clock are discussed
below in detail:
 Low Price and Low Value: This aspect of Bowman's strategic clock talks about
retaining low prices of products and services which are need to be offered in market for
potential buyers. The value added in such products and services is use to be very low
from customers perspective and didn't find much better then competitors product.
Tesla Motors proves this as a less or not competitive position for company because under
this products are not enough differentiated by which customers can generate value.
 Low Price: This talks about keeping company's product price as low as can be possible
so that firm can have more sales in market which helps them to attain competitive
advantage. The low price products attracts customers to buy more in bulk or caters new
customers in market which brings high revenue for firms.
Tesla Motors can keep low price for its products to have more customers who will buy
more cars and helps company to increase its sales along with high profits.
 Hybrid: This aspect is a combination of low price and differentiation features. The
concept says offering company's product which is effective enough and perceives added
value. This aspect brings high value for products in market as well a as in the eyes of
buyers.
Hybrid concept in Bowman's strategic clock proves effective for Tesla Motors in order to
serve valuable products to its potential buyers world wide who loves electronic cars with latest
updated technology.
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Bowman's strategic Clock
 Differentiation: This aspect of clock discusses about differentiation in product and
services which should have high quality but of average price with highly added value
product.
Tesla Motors in this category brings differentiated products in its electronic cars by
launching Model S and Model X into market.
 Focused Differentiation: It is for those companies who offers luxurious and special
products in market for niche customers segment which are of high product and quality.
Tesla Motors being a multinational electronic car manufacturer can provide luxurious
cars for its customers who can buy them at high prices.
 Risky High Margins: This aspect of Bowman's strategic clock guides customers to offer
products at high prices with mediocre value which is to be perceived by buyers of such
products and services.
Tesla Motors in this aspect can offer high prices for cars which can be resulted into less
sales into new or international market.
 Monopoly Pricing: This aspect says that companies should set itself in such a way which
can act as monopoly in market with their product and services that cannot be offered by
other firms in industry. This will help companies to stay out from competition and be its
own.
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Adoption of this aspect will take Tesla Motors to enjoy monopoly status and can charge
any price for their cars which customers will buy at offered price even. This will help company
to set its brand image more high and enjoy highest profits with largest sale in market.
 Loss of Market Share: This last aspect in clock says that company fails in offering
valuable products and services to their customers which leads to loss in their market share
(Zhu and Chertow, 2017).
Tesla Motors if not offers latest technological electric cars into global market then will
loose its market share and brand image form industry or in international market.
Strategic Management Plan:
Strategic planning assists companies to analyse their activities, focus, priorities,
operations and many more tasks. This is done in order to ensure employees are working in
achievement of organisational goal.
Vision
Tesla Motors posses a vision of creating the lion's share compelling electric car
manufacturing company of current time that if in 21st century by bringing global transitions into
their electric cars.
Mission
Tesla Motors has a mission of accelerating the advancement of sustainable transportation
by launching compelling mass market through its electric cars as soon as possible into trade.
Strategy
Tesla Motors can follow market development strategy in its business to offer more
environment friendly cars to their customers as company posses enough competent personal and
highest level capabilities. This will also assist Tesla Motors in getting enough support from
government to sustain in market fro long term.
Objectives:
The main objective of Tesla Motors is to hike its target customer segments by at-least 15
percent in new markets at international level.
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Tactics
The Tactic which is applied by Tesla Motors is direct selling of cars to potential buyers
rather then going via dealers or franchisee. Tesla Motors can also consider marketing mix in
order to develop its market share. The 4P's that can be analysed by company are mentioned
below:
Price Tesla Motors charges premium rates for its cars as they are
manufactured with latest technology which involves huge cost and
also its uniqueness present in cars.
Product Tesla Motors deals in electronic car manufacturing, products of
renewable energy and other environment friendly items. Company is
best known for its electronic cars which has a strong brand image in
domestic as well as in international market.
Place Company owns its own physical stores as well as online website
through which it makes sales of its electronic cars and other
products in market. Tesla Motors will have more physical stores
while expanding into international market.
Promotion Tesla Motors adopts direct marketing or viral marketing as its
promotion mix to advertise and promote its cars into market.
Company needs to promote its products via television ads, magazine
ads, or posts on social media in order to have more sales.
Implementation
For Tesla Motors it is very necessary to implement or execute a plan developed before in
regards to which allocation or required resources are needs to be done within the organisation.
Marketing Budget can assist Tesla Motors in generating more funds that are to be utilised in
installing new technologies in company. It can adopt various controlling measures for regulating
performances of employees as well as departments. For instance Tesla Motors can have control
over its internal audit of financial data which presents a comparative data for actual and
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estimated performances set by task in-charge. A measure in a form of Key performance Indicator
(KPI) can be applied in Tesla for evaluating and enhancing company's performance.
PARTICULARS 1st YEAR 2nd year 3rd YEAR 4th YEAR 5th YEAR
Opening Capital 23453000 50588000 18910700 15881700
Start up capital 6000000
Investments 19000000 28000000 19000000 16000000 8000000
TOTAL 25000000 51453000 19000000 16000000 8000000
Marketing Outlay:
Publicity 697000 710000 52800 95100 114800
Marketing 850000 155000 36500 23200 82800
TOTAL 1547000 865000 89300 118300 197600
Closing Capital 23453000 50588000 18910700 15881700 7802400
Evaluation
The term evaluation focuses on gathering certain information about set plan and having a
continuous follow-up about its workings. It also includes finding and analysing various issues or
hurdles affecting plans execution.
Tesla motors will evaluate and measure actual performance with set standards from
company's marketing team.
CONCLUSION
From the present report it can be summarised that business strategy plays a very
important role in business growth and success. Business strategy is one which presents a outline
of business activities and its performance. Company can do PESTLE and stakeholders analysis
while identifying forces from external environment and can apply VRIO framework, McKinsey's
7's model and resource based view strategies to have internal environment analysis. Both internal
and external environment creates an impact on business profitability. It can also be concluded
that applying Porter's five force, Porter's generic and Bowman's Strategic clock can prove very
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helpful in identifying industry trends in which business is operating. Organisation can plan its
strategies in better way by taking these concepts into consideration which helps firms to know
their as well as competitors potential in market.
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