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Assignment on Business Strategy - Tesla

   

Added on  2021-02-20

13 Pages4344 Words56 Views
Business Strategy

Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1 ...........................................................................................................................................1P1 Impact and influence of macro environment ........................................................................1TASK 2 ...........................................................................................................................................3P2 Examine internal capability of an organisation ....................................................................3TASK 3 ........................................................................................................................................4P3 Implementation of Porter's Five force model ......................................................................4TASK 4 ...........................................................................................................................................7P4 Application of theories and produce a strategic management plan ......................................7CONCLUSION ...............................................................................................................................8REFERENCES..............................................................................................................................10.......................................................................................................................................................10

INTRODUCTION Business strategy is a course of action and set of direction which assist an entrepreneur toaccomplish organisational goal in an effective and efficient manner. Along with this, it isregraded as a powerful determinant as it enable the firm to identify current and emerging trend ofmarket in order to take best and productive strategic decision for attaining high level ofproductivity and profitability (Amit and Zott, 2012). Hence, it is a master plan for everyorganisation which assist them to secure competitive position within an industry and providecustomer satisfaction which add value to company's brand image. This report is based uponTesla, which is one the leading firm in automotive industry and it is founded in the year of 2003.It's headquartered in US and offers electric vehicles with a high quality of products. In thisstudy, it includes effect of external and internal environment over business function, applicationof Porters five force model to analyse competitive force and usage of several theories to enhancefirms strategic decisions. TASK 1 P1 Impact and influence of macro environment Every organisation is surrounded by internal and external environment which has directcollision over business decision making capabilities as well as on its proficiency which isreferred as business environment. It is a multifaceted, complex and dynamic in nature and has afar reaching impact on the survival and growth of business. Moreover, it is regarded as ancomponent for firm as it help them to determine opportunities and threat as well as provideproper direction to enhance their profit margin in an impressive manner (What is PESTAnalysis?.2018). In order to attain sustainable profitability, PESTLE analysis is considered as aneffective tool for company to examine external macro environment. Hence, it helps organisationto determine challenges among marketplace and based on that they take corrective course ofaction. However, Tesla applies PESTLE analysis to examine its potentiality to obtain long termgrowth which are as follows: Political:This factor determine the extent to which government may influence economyor a certain industry as it includes tax, fiscal policy, trade tariff etc. which affect company'sproductivity. However, Tesla is at the forefront of electronic vehicle as it uses electricity and gasas a fuel to run a car but it faced a pressure from government as they implement a rule regarding

tax credit policy i.e. states like Virgina and Colorado offer tax credit of around $5000 on buuyinga electric car which challenged Tesla business operation. Hence, Tesla took this challenge as anopportunity and expand its branches to various countries with a high quality of products that helpthem to gain their sales from local economy and add value among customer as well as improvedcompany's brand image. Economical:It is concerned with economy performance which directly impact firm andhave resonating long term effect. For example, inflation rate, interest and foreign exchange rate,economic growth patterns etc. that influence an organisation profitability ratio. Hence, one of themajor issue which Tesla undergoes that is economic instability of country, especially in Europeand Asia which negatively effect firm financial performance (Aithal, 2016). However, being amajor leader among electric car industry, Tesla tackle its negative impact by introducing its caron low cost which attracts more customers towards their brand and increased their purchasingpower which explore its volume of sales and enhance its profit margin. Social: It scrutinize the social environment of market and gauge determinants likecultural trends, demographics, population analytics etc. which impact enterprise strategicdecision making capability. However, Tesla proved its ability in acquiring wide range ofattraction from customer towards electric car but One of the main threat which Tesla faces insocial factor is that from its competitors like Nissan, Hyundai, BMW etc. as they also puts theirfull contribution to introduce eco friendly vehicles and at the same time human nature is notstatic as it keeps on changing according to the markets trends which negatively impact Teslaproficiency rate. However, Tesla overcome this negative issue by investing heavily on itsinfrastructure to manufacture latest model of vehicle among industry. By this, they are able tosurvive in the competitive marketplace of UK and attain high level of productivity in aninnovative and creative way. Technological:This factor pertains to innovation in technology that effect the operationof company and market favourably and unfavourably. It refers to automation, research anddevelopment, technological awareness that market possess. Moreover, Tesla is well known forits innovation and creative nature as it uses latest technologies for their vehicles but there were ahuge demand among customer regarding online trading which highly impacted Tesla overallperformance. However, company seeks its full attention over present market trends and based on

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