Impact of Macro Environment on Tesla's Business Strategy

Business Strategies

Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1. Applying appropriate framework analyse the impact and influence of macro environment
on given organisation and its strategies......................................................................................1
M1. Critically analyse the macro environment to determine and inform strategies management
decision.......................................................................................................................................5
TASK 2............................................................................................................................................5
P2) Analysis of internal environment and capabilities of Tesla ................................................5
M2) Critically evaluate internal environment to asses the strength and weaknesses of Tesla
with internal capabilities ............................................................................................................8
TASK 3............................................................................................................................................8
P3) Applying porter's five forces model to evaluate competitive forces for Tesla in its market
sector...........................................................................................................................................8
M3) formulation of appropriate strategies to improve competitive edge and market position.10
Task 4.............................................................................................................................................10
P4. Illustrate a range of theories, concept and models interpret within devise strategies
planning for given organisation. ..............................................................................................10
.......................................................................................................................................................10
M4. Produce a strategies management plan that has tangible and tactical strategies pirorties
and objectives. ..........................................................................................................................13
D1. Critique and interpret information and data applying environment and competitive
analysis......................................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business is referred to an organisation, firm or entity that is engaged in the commercial,
professional and industrial activities. This is also defined as the organized efforts of an individual
or a group of people to produce and sell the goods and services in order to generate the
maximum profit. In addition to this business strategy is the means by which an organisation set
out the competitive moves and actions which is used by the company to attract customers,
effectively compete and enhancing the performance (Yuan, and. et. al., 2020). It is a course of
actions and set of critical decisions which assist management to achieve the specified objectives
as this outlines how business should carried out to reach at the desired goals. Business strategy
depicts the top management along with an integrated framework as to discover, evaluate and
assort beneficial opportunities which will provides support in the longer sustainability and
success of the company. This report is based on Tesla which is an American based company with
the headquarter in Palo alto, California. The organization specializes in selling electric vehicle
and clean energy and also includes energy storage, solar panels and solar roof tiles. In 2009,
Tesla was ranked as world’s bestselling plug-in and electric passenger car. This report is
consisting of analysis of impact and influence that macro environment has on an organisation
and its business strategy. Evaluation of the internal environment and capabilities, furthermore it
includes analysis of market with the use of models and theories and understanding and
interpretation of strategic directions.
MAIN BODY
Task 1.
P1. Applying appropriate framework analyse the impact and influence of macro environment on
given organisation and its strategies.
Overview of Company:
Tesla is an American based electric vehicle which is situated in Palo, Alto, California.
Tesla's is currently involving products related within electronic cars, battery energy storage from
home to grid scale, solar panel as well as other related products and services. In following there
is elaborated mission, vision and objectives highlight.
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 Mission: “To better accelerate the advent of proper sustainable transport for upbringing
through collaborate mass market of electronic cars that enhance in market as soon as
possible”. Vision: Their vision statement is to form excellent car compelling company in 21st
century by driving in world transition to better electronic vehicle. For this concept, Tesla
is fully focused on utilisation of renewable energy (Cosenz and Noto., 2018).
Specifically, the corporation concentrating on providing better global renewable energy
market.
 Objectives: Tesla's purpose is to “Change the World and Humanity”. It is narrated by
Elon Musk who is owner of Tesla. Furthermore, the motive behind is to highly facilitate
Artificial Intelligence base product and service. According to this segmentation for
implementing segmentation of electronic vehicles that helps to reduce pollution.
Macro Environment: It is framework that emphasis about condition that exists in economy
background which impact on decision making of company (Cullen, 2019). By adding external
factor is having important role as well as strategies that depends on particular firm to undertakes
it or not. Thus, in following there are some external environment factors implies analysed used
Pestle Assessment.
 Political Factor: In this factors, it describes about political related environment rules,
regulation or norms which influence strategies that opted by company. As Tesla venture
is based on United States America but their global presence in which UK is one region
that ensures better growth of this organisation within competitive market. Hence, the
current scenario of UK political condition is stable as their policies are changes in a
particular time period. Policies such as related to land, labour, liberal democrats and
foreign exchange policies. But there is uncertainty implies about Brexit Market that can
causes some barriers to Tesla for not to trade in European Union which creates unstable
laws and regulation. Fo
 Economical factors: As per this factor reflects towards overall performance of particular
nation's economy background. As per the perspective of UK, it is a fifth largest economy
in overall world by calculation of its nominal Gross domestic product. But there is some
uncertain factor where Tesla can face big trouble in terms of recession, inflation and
market product supply and demand slows down (Hacklin, Björkdahl and Wallin., 2018).
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