Business Strategy: Impact of Macro and Micro Environment on Tesla

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK1.............................................................................................................................................2
P1 Apply appropriate framework which have impact of macro environment of organisation
and its strategies. ........................................................................................................................2
TASK2.............................................................................................................................................4
P2 Examine micro environment and capabilities of organisation by use of appropriate
frameworks..................................................................................................................................4
TASK3.............................................................................................................................................7
P3 Use Porter's Five Forces model for evaluate competitive forces of market segment............7
TASK4.............................................................................................................................................9
P4 Apply various theories, models and concepts and interpret and devise strategic planning
for company. ..............................................................................................................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy defined as, the mixture of all decision taken and actions performed
through the business to carry through the enterprise aims and objectives and to secure a
competitive position in the market. It is the spinal cord of the business, it is the road map which
directs to the desired goals. A business strategy through which an organisation sets out to achieve
its desired subjective (Yuan and et. al., 2020). It can be simply elaborate as a long term tactics
for enterprise planning. Typically a business strategy will cover a period around 3 to 5 years. In
the field of administration, business plan of action includes the preparation and execution of any
major goals and initiative taken through an organisation's higher authority on the behalf of
founders, which is depend upon consideration of an resources and an assessment of the internal
and external atmosphere in which the company operates. Business Plan of action gives the
overall direction to an enterprise and include the specifying the organisation's objectives. Which
looking forward building the policies and plans, terms and condition and acquired those
characteristics and then allocating the resources to execute on plans. Business strategy
management is not unchanging in nature.
This reports take the Tesla organisation which is American electric vehicle, which deals
in electric cars, battery energy storage from home to grid scale, solar panels, roof top tiles along
with other related product and the services. It was founded in 1 July 2003 and founder of the
company is Elon musk, ian wright.
This report include the framework analysis impact and the influence of the macro
environment also involve the internal environment and qualities of a given company using actual
frameworks, apply the porter five forces model which evaluate the competitive forces. In last
applying the range of theories, concepts and model, interpret and devise strategic planning.
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MAIN BODY
TASK1
P1 Apply appropriate framework which have impact of macro environment of organisation and
its strategies.
A macro environment is the condition that exists in the economy as a whole, rather than
in a particular sector or region. In general, the macro environment includes trends in the gross
domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy.
Macro environment of company is basically related to external factors which influences
decision-making or working of organisation. These are elements which have impact on strategies
which a organisation is willing to take. There are many external factors which are analyse and
applied with use of PESTEL analysis: Political Factors: These are factors which basically reflects political environment of
country, which generally influence tactics and strategies which are adopted by
organisation. In terms of Tesla, there is strong presence in UK, which is considered as
effective political environment. This make sure about growth and sustainability of
company in market segment. The current environment of country is stable which is due to
pandemic situation such as Brexit, so this is considered as threat for a company. Due to
this political stability this leads to major disadvantage for organisation for developing
their designs which is in alignment like due to unstable legislations and laws (Suoniemi
and et. al., 2020). For effectiveness, respective organisation have continuously examine
the market segment for anticipating as the design which is sustaining or not in current
political environment. Economical factors: According to this factor this majorly reflects overall performance
and productivity of country on basis of economic grounds. In wide sense, overall growth
which is in terms of electric vehicle market segment which is expected for reach at high
profitability factor. This leads to wide opportunity for Tesla for investing more in
developing electric cars and vehicles. The firm have to hold a quite sustainable share in
market of UK which leads to drastically affect just because of increase in rate of inflation.
This leads drawback for organisation as it face various challenges ion terms of opting raw
materials and other resources which is based on desired prices. So in order to effectively
and appropriately increase scope of sustainability. So by this Tesla fetches effective tie up
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