Business Strategy Assignment PDF | Tesla
Added on 2021-02-20
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Business Strategy
Table of ContentsINTRODUCTION................................................................................................................................3P1 Impacts and influence of macro environment on Tesla..............................................................3P2 Analysation of internal environment and capabilities of Tesla using SWOT.............................5P3 porter's five forces model for evaluating competitive forces of a given market sector..............6P4 applying a models , theories and concept to understand interpretation of strategic directions To Tesla............................................................................................................................................7M1 Critically analyse the macro environment to determine and inform strategic management decisions...........................................................................................................................................9M2 Critically evaluate the internal environment to assess strengths and weaknesses of an organisation’s internal capabilities, structure and skill set.............................................................10M3 Devise appropriate strategies to improve competitive edge and market position based on the outcomes. ......................................................................................................................................10M4 Produce a strategic management plan that has tangible and tactical strategic priorities and objectives.......................................................................................................................................10CONCLUSION .................................................................................................................................10REFERENCES...................................................................................................................................10
INTRODUCTIONBusiness strategy is the action that business uses to attract the large no of customers. it is the masterplan which management uses to secure a position in the market there are the three level of thebusiness strategy such as corporate, business, functional level. Under this report Tesla taken as thecompany , it is an American auto mobile company which makes electric cars ,its headquarters isbased in the Palo alto, California . It was founded in july 1,2003. Martin Eberhard, Elon Musk, J.Bstraubel, Ian Wright are the founders of the Tesla. This report will cover the internal environmentand capabilities of a Tesla using appropriate frameworks, porters five forces model evaluate thecompetitive forces of a market sector for an organisation, range of theories , concept and modelsinterpret and devise strategic planning for a given organisation and the analysis the impact andinfluence of the macro environment on a Tesla and its strategies.P1 Impacts and influence of macro environment on TeslaThe impacts and influence of macro environment on Tesla & its strategies can be analysed byPESTEL analysis.Impact of political factors on TeslaIt is very essential for Tesla motors to undergo various political analysation before entering a newmarket. As different countries has difference in their political system and environment, thus to getsuccessful in dynamic environment, Tesla undergo following assumptions of market which aremajor sector in any countries' economy i.e. Labelling of products & other required things ,regulating week work, laws related to anti-trust, interference & bureaucracy, political stability &importance of auto manufacturers (Buckley and Ghauri, 2015). Those influence the minor sectors ofpolitical factors in countries economy are industry safety regulation, wage legislations, flavouredtrading partners, trade regulations & tariffs, level of consumptions & risk of military invasions.Impact of economic factors on TeslaAverage demand & average investment in a countries' economy can be determined by macroenvironmental factors such as foreign exchange rates, interest rates, saving rate & inflation rate.Thus, Tesla uses countries economic factor for forecasting the growth trajectory of the organization.Through PESTEL analysis Tesla considers following economic factors : interest rates, inflationrates, unemployment rates, discretionary income, economic growth rate, business cycle stage, costof labour & their productivity, level of education, skill level of workforce, infrastructure quality,financial market efficiencies, exchange rates, government interventions & type of economic systemwithin the organization.Impact of social factors on Tesla
Impact of culture on organization is dependent on the societies culture & the way of practising thosecultures. Social factors that Tesla must consider while conducting Pestle are: leisure interests,attitudes, entrepreneurial spirit & broader nature of society (Razak and et.al, 2016). While,entrepreneurial is encouraged by some societies while some societies doesn't encourage, culturewhich includes social conventions, gender roles etc., level of education along with standards ofeducation in Tesla industry, power structure, hierarchy & class structure & skill level &demographics of the countries' population. For understanding the customers by Tesla marketerscarried out by attitudes & shared beliefs.Impact of technological factors on TeslaRate of technological diffusion, consumer goods sector impacted the value of chain structure, inauto manufacturers the impact of cost structure, impact of technology on product offerings,development by Tesla competitors in technical sector are all the technological factor that Tesla hasto analyse by PESTEL analysis. Technology is the fast changing sector all across the world. Theinnovations in the transportation industry has given various chances to the players of the automanufacturing industries to cope up with the changes. Thus, for Tesla to be profitable organization ,slow speed of innovations will give more time to cope up with the technological disruptions(Yuliansyah and et.al, 2016).Impact of environmental factors on TeslaBefore expanding to new country, organization closely observes the various environmental issuesrelated to the country in which it tends to expand. These environmental factors greatly affects theprofitability of the organization. Different countries has different standards and norms ofenvironmental factors. Thus, for Tesla, entering the new market will undergo following assumptionsi.e. support of renewable energy, endangered species, attitude towards ecological product, wastemanagement, recycling, pollution regulation towards air & water, environment pollution laws,climate & weather changes. Perhaps for Tesla to be a profitable industry of auto manufacturing willconsider all these environmental factors before entering the new market.Impact of legal factors on TeslaThe firm entering to new market must carefully observes the all the legal factors associated with thenew market. In most of the countries, laws are not strong enough to protect the overseas company.Tesla considers following factors that can that could have legal impact on the smooth running of theorganization are: data protections, laws related to health & safety, employment laws, e-commerce &consumer protection, copyrights, intellectual / patents property laws, discrimination laws & anti-trust laws in the auto manufacturing. Thus, for the protection intellectual property rights of anorganization, the company must properly observe the legal frameworks of the new markets.
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