Business Strategy Analysis and Case Studies

This assignment provides a comprehensive overview of business strategy analysis, covering various topics such as corporate social responsibility, environmental leadership, and sustainable business practices. It includes a list of research papers and books related to business strategy, as well as online resources and case studies. The assignment is likely used in a university or college course on business strategy or management.

Business Strategy

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Influence of Macro environment.................................................................................................3
TASK 2............................................................................................................................................6
Organisation’s internal environment and capabilities:................................................................6
TASK 3............................................................................................................................................9
Outcomes of an analysis using Porter’s Five Forces model........................................................9
TASK 4..........................................................................................................................................11
Apply models, theories and concepts........................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is an statical and competitive moves and actions which is used by an
organisation to gain competitive advantage, strengthening performance and gain organisational
goals and objectives. It majorly outlines the way business carried out various works and
activities to attain desired goals by put best efforts. With the increase in competition
organisations gives more importance to business-strategy to become apparent and huge
enhancement in their proficiency. This report is based on Tesla which is an American automotive
and energy based organisation in California. It specifically work in electric car manufacturing
business and one of the market leader in the whole world. This report is based on the importance
of business strategy by using appropriate framework which influence on macro business
environment. It also includes the model to evaluate the internal business environment in context
of give organisation by using the Porter five force model assess the competitiveness of market.
By applying kinds of models and theories devise strategic planning to gain optimum outcomes.

TASK 1
Influence of Macro environment
Macro environment:
Macro environment is an condition which existed as an whole as economy rather than for
a particular region (Malerba and et.al ., 2015) . It is very much important for an organisation to
evaluate the macro environment factors to build strategies and tactics to remain always
competitive in marketplace. With the help of PESTEL environment organisation can determine
factors which affect on their business that are as follows:
Mission and vision:
Tesla mission statement is “to accelerate the transition with the help of sustainable
transport in the whole world”. The vision is to address all opportunities related to the renewable
energy to remain competitive in the marketplace for long time.
Objective:
The primary objective of Tesla is to generate and drive sales with the help of electric cars
and build long term awareness by coordinating loyalty.
PESTEL analysis:
Respective model of external environment is very much important for an organisation as
it helps to taken important decisions that are as follows:
Political factors:
Political factors refers to the policies of foreign trade, labour laws and environment
regulations and many more which directly affect organisational works and activities (Marx,
2015) . . There are various kinds of changes occurs after the implementation of Brexit in market
of UK which directly influence profitability of Tesla. With the advent of Brexit some kind of
changes occurs in the business such as disruptive business and occurs financial discrepancies and
many more factors. They have to encounter kinds of issues such as depression in auto
manufacturing industry, various kinds of new regulations and concerns related to new labour
laws and various kinds of safety regulations that directly affect on their business operations.
Economic factors :
In economic factors of a business consist of interest rates, credit terms and conditions,
taxation and many other factors which directly influence organisational profitability and
sustainability into marketplace. There are the close relationship in between the economy of a

nation and an business activities (Scholes, 2015 ).. With the rise in business opportunities it
helps to enhance the employment possibilities into market place that are very much important for
a business. Middle class people in the economy plays very major role with the rise income of
respective class of people they tend towards purchasing of cars that are one of best opportunity in
context of Tesla to gain large market share by focusing on needs of middle group of consumers.
If changes occurs in economy such as depression which lower down the value of money
simultaneously decrease the capacity of buyers which directly affect on tesla’s profitability.
Social factors:
In social factors consist of change and preferences of consumers that are changing rapidly
in recent time as consumers become more demanding (Teh and Corbitt, 2015). There are
various factors which influence on their choice and preferences such as their culture, values and
beliefs and change in respective factors directly influence on their buying decisions. The major
focus of Tesla in building brand value in marketplace by conducting the research and
development in order to acknowledge consumers taste and preferences to build product
accordingly.
Technological factors:
Technological factors is one of the most important factor for an organisation in order to
remain always competitive in the market place. It is one of the crucial factor for improving
business activities one of most effective and efficient to build one of most valuable products and
services for consumers. In context of Tesla they always focus on technological advancement of
products and services to enhance their sales and profitability.
Environmental factors:
Respective factor of external environment of a business is very much important for an
organisation to build consumer loyalty in order to sustain for long time in market place
(Thompson, Strickland and Gamble, 2015) .. It is very much effective to produce products that
are not proved harmful for environment as well as for human being. With the changes in climate
affect the whole business activities of Tesla from manufacturing till to supplying to their ultimate
consumers. Further to build customer loyalty they invest in CSR activities to improve living
standard of people.
Legal factors:

In legal factors of an organisation consist of the various laws, regulations such as
employment conditions, labour laws, environment protection act and many more which impact
on the business activities in both direct and indirect manner. As Tesla deals in electric cars so
they have to cope up with kinds of legal laws and regulations to coordinate each and every
activity with regulations of UK government.
So from the above discussion it has been evaluated that PESTEL analysis is one of most
important tool to evaluate the external environment of a business to build strategies and tactics to
remain competitive in business environment.
Critically evaluation of Marco environment to communicate strategic management
decisions:
In business environment there are various kinds of factors or components exists such as
political, social, legal, environmental and many more which directly influence on business work
and activities (Yuliansyah, Rammal and Rose, 2016.). Respective components have both
negative and positive affect on business functions such as In context of Tesla which adopts one
of best technology and tools to remain competitive in the business as it build products and
services that are highly advance. If organisation not opt advance tools then it hinders their self
interest in gaining higher profitability as it charges high operating cost.
TASK 2
Organisation’s internal environment and capabilities:
for an organisation it is very much necessary to evolve their internal environment to
analyse the gaps in performing well to gain competitive advantage. There are various kinds of
tools to evaluate the performance of own that are as follows:
SWOT analysis:
SWOT stands for Strength, weaknesses, opportunities and threats in the market place,
with the help of it organisation can be able to evaluate business conditions. Here are the model to
evaluate the internal environment of business that are as follows:
Strength:
Most innovative company:
Tesla is one of the most innovative company as it invites their employees to share their
views and opinions so that they can be able to greet innovative ideas to remain always

competitive in business environment. They conduct systematic research and development on
specified time interval to adopt necessary changes in marketplace.
Highly talented workforce:
The another important area of strength of Tesla that they select and retain one of most
competitive workforce that are able to give one of their best efforts as per the demand of market.
In any condition employees lack behind in some areas then organisation aimed to provide
training and development to their employees for gaining profitability as well as career
advancement of employees (Amran, A. and et.al ., 2016)..
Weaknesses:
There are some areas of their weaknesses that affect on their business activities that are as
follows:
Manufacturing complications: Tesla always known for the innovation and advance tools and
technology but due to the technical and mechanical complications they not be able to gain
profitability. They continuous faces delays in manufacturing and production while launching
new vehicles in the marketplace (Akter and et.al ., 2016) . So they are facing the no. of
challenges while they aimed to launch Model X which lead towards continuous delays in
distribution.
Lack of high volume production:
The another area of their deficiency that they are leader in energy savings cars but
sometime failed to produce cars in large quantity. Now a days they fail to manufacture models at
high volume that create issues of production cost and management of resources in positive
manner.
Opportunities:
The major opportunities that they have to reap are as follows:
Expansion of sales in untapped market:
The major opportunity in front of marketers is to get establish into the market of Asia tht
are still unsaturated in nature of automotive and renewable resources. So it is the opportunity in
front of them to expand and enlarge business opportunities by establishing in respective market.
Less expensive:

Tesla operate in the expensive range of cars that only affordable for the limited no. of
buyers so the major opportunity in front of them to rely on innovation that enhance their
financial stability to enlarge business opportunities.
Threats:
The major threats in front of Tesla from which they have to overcome that are as follows:
Product liability claim:
Tesla are pioneer in field of renewable energy and electric cars by ensuring high quality
and assurance, respective industry facing the significant product liability claims that are one of
fierce threat for them in context of financial blows.
Extensive competitors:
Tesla faces the fierce competition in the marketplace in both alternative fuel and self
driving technology (Boyd and et.al ., 2017). Large no. of automotive brand in marketplace gives
open challenges to respective organisation that hinders their self interest in giving one of their
best products and services in the market at low cost.
VRIO analysis:
The resource based view is one of the important another tools used to determine or
evaluate competencies to gain competitive advantage. The most competitive factors in context of
Tesla includes the innovative CEO Elon musk and their futuristic visions that are not replicate in
nature. Their temporary kind of competency is their headquarter is in Silicon valley and their
supermarket chain or network that other companies can easily develop or copy overtime
(Buckley, Burton and Mirza, 2016.) . The another important factor are highly efficient Vehicles
and their batteries since that other companies can replicate over time by both hybrid and gasoline
automotive.
Competency
level
Valuable Rare Imitable Organise Conclusion
CEO Elon
musk
Yes Yes Yes Yes Helps to gain
competitive
advantage
Headquarter in
silicon valley
Yes No Yes No Not
competitive

advantage
Unique design
of products
Yes Yes Yes Yes Long term
competitive
advantage
Batteries and
network
Yes Yes Yes No Not
competitive
advantage
Valuable:
Value refers to the products and services of an organisation that helps to solve major
problems of humanity such as reducing reliance on fossil fuels. As company focus on clean
energy products and organisation's CEO Elon Musk who always focus on producing products
that are rare and innovative enough. So their CEO who are one of most valuable resource for the
organisation that helps to gain competitive advantage.
Rare:
The another factors that are very much important for the organisation the patented
technology and their headquarter in silicon valley that helps to improve product quality such as
cars and their batteries are little bit replicable and give temporary competitive advantage.
Imitable:
It is very much difficult to imitate, the design of Tesla's car is very much attractive that
not only increase their proficiency but also sustainability. With the help of research and
development organisation can put one of their best efforts in manufacturing of qualitative
products.
Organise:
The strong leadership quality, cultural aspects and practices are very much important
factors for them and large network from the other organisation proved very much effective for
them to gain sustainability in market (Chang, 2016) .
So from the above discussion it has been summarised that SWOT and VRIO model of
self evaluation is very much effective for an organisation in order to achieve organisational goals
and objectives in proper manner.
Critical evaluation of internal environment:

In organisational internal environment consist of the determining strength, weaknesses
and opportunities with threats. The major capabilities of Tesla that they have CEO with futuristic
vision and mission who always pay attention on organisation growth and advancement. On other
hand there some deficiency also such as easily replicable their design of products that hinders
their self interest in giving one of their best efforts. In order to cope up with changes and
deficiency in organisation needed to formulate strategies and tactics to gain potential outcomes.
TASK 3
Outcomes of an analysis using Porter’s Five Forces model.
Porter's five force model:
For an organisation it is very much essential to always evaluate the competitors power
and strategies in order to bring essential changes in their strategies to remain always competitive
in the marketplace. In context of Tesla by using the porter's five force model they find out
competitors strategies and tactics to gain important outcomes that are as follows:
in order to evaluate the competitors there are five factors that are
Competitive rivalry (Strong force):
Respective organisation operates in fierce competitive world and Tesla is one of the most
well known brand name in field of electric vehicles and all major rivals announce their plans to
enhance their focus towards this segment. For an example GM, BMW, Volkswagen and Nissan
all are committed to development of electric cars into the marketplace which directly influence
on the profitability of organisation. So it can be said that all factors directly influence on business
tactics to gain optimum outcomes.
Bargaining power of buyers or customers (Moderate Force):
Bargaining power of buyers is very much significant in respective sector, as no cost
occurs in context of consumers to switch the Tesla's model of electric cars such as Jaguar's I pace
and many more. So switching cost which is absent in context of consumer directly influence
bargaining power of consumers.
Bargaining power of suppliers (Moderate Force):
Power of suppliers largely rely on the suppliers which directly depends on the availability of
products and raw material. The intensities of external factors directly influence on their business

activities in direct manner (Eaton and Kilby, 2015) . There suppliers have low level of forward
integration and their control on the distribution and sales of products.
Threat of substitutes or substitution (Moderate Force):
Tesla significantly faces the effect of substitution on the automotive and energy solutions
on the industrial environment. Consumers due to the low switching cost easily can opt other
products and various substitutes products and services available into marketplace that hinder
their self interest in giving one of their best efforts.
Threat of new entrants or new entry (Weak Force):
New entrants are the new firms which directly influence on the business environment and
industries that determines the performance of organisation. While entering into respective sector
other organisation have to face high cost of brand development as it is very much difficult task
for them to remain competitive in the marketplace. Also business could be face the high cost of
doing business and economies of scale to operate in business environment. So respective factor
is very much low in context of Tesla.
Strategies to gain positive outcomes:
for an organisation it is very much effective to build strategies and tactics to remain
always competitive in business environment (Grayson and Hodges, 2017) .. In that regards
organisation by taking proper feedback from consumers and other major stakeholders can amend
in their performance and enlarge business opportunities in other market too that proved effective
to sustain in marketplace.
TASK 4
Apply models, theories and concepts.
For an organisation it is very much important to apply various theories and concepts in
order to remain always competitive in the marketplace. There are various kinds of theories that
helps to evolve various aspects and helps in decision making that are as follows:
Ansoff matrix:
Market penetration: respective strategy helps to an organisation to enhance their sales
revenue in current market place (Higgins, Omer and Phillips, 2015) . By using the aggressive
marketing strategy organisation can set goals and objectives to sell more electric cars in

marketplace. In context of Tesla they by creating distinctive effects in their products aimed to
establish in market for long time.
Product development:
In respective strategy organisation focus on building new products and services that helps
to organisation in gaining competitive advantage. In context of Tesla as government provides the
solar panels and helps to develop the roadster which is the first fully electric car of it. Respective
initiatives helps to organisation to create differentiation effects in their products.
Market development:
Tesla avails the market development strategy for the intensive growth and development
that helps to organisation to enter into the new market place to generate sales and achieve growth
(Johnson, 2016) . In context of Tesla which gradually expand into various nations by
establishing their office to enlarge business opportunities in positive manner. By building vision
and mission statement they aimed to enter into new market to gain competitive advantage.
Diversification:
Respective strategy helps to organisation to achieve intensive growth, such as in context
of Tesla they by creating batteries that are proved beneficial in context of non automotive
applications that directly influence on organisational proficiency and sustainability.
Porter's generic model:
There are various strategies and tactics that helps to an organisation to focus on major
areas of strength and weaknesses that are as follows:
Differentiation:
This is part of organisations generic strategy that helps to gain competitive advantage by
rely on products that differ from the competitors products .(Lawton, 2017) . . In context of Tesla
that their cars and engines are highly advance and eco friendly in nature and highly advance in
technology. With the help of respective strategy of Tesla helps to gain competitive advantage in
positive manner.
Cost leadership:
Cost leadership strategy focus on the adaptation of cost effective ways to produce
products and services. In context of Tesla which provides products that are high in range so they
have to reduce in their operating efficiency to reduce cost in positive manner.

Focus:
In respective strategy organisation focus on a specific niche market by understand the
dynamic of market and demands of consumers. In context of Tesla their target market are people
who prefers to purchase products that are unique in nature but not cost effective.
Strategic management plan:
In order to remain always competitive in marketplace organisation have to build
strategies and tactics that are as follows:
Strategies:
In order to expand into marketplace they use market development strategy that helps to
grow market share and profitability also.
Objectives:
To gain profitability by 20% in upcoming a year by expanding in market of Tanzania.
Tactics:
In order to accomplish objectives organisation put tactics that are as follows:
Cash flow management:
While aimed to expand in new marketplace organisation have to evaluate the flow of cash
by accumulating necessary knowledge and information to remain competitive in marketplace.
Talented personnel:
to expand in marketplace organisation have to hire or recruit one of most talented
personnel to gain optimum outcomes by selecting people who know local language of Tanzania.
Critical evaluation of environment and competitive analysis:
for an organisation at the time of expansion in different nation have to properly evaluate
the market environment and competitors strategies in order to bring radical changes that are
proved very much beneficial for organisation to gain optimum outcomes (Leonidou And et.al .,
2015.) If organisation not properly acknowledge potential knowledge that directly impacts on
their profitability and market share.
CONCLUSION
From the above report it has been concluded that business-strategy is very much
important for an organisation by formulate plans and policies for accomplishing organisational
goals and objectives in positive manner. To build effective plan organisation have to conduct
market research and development in order to analyse the consumers taste and preferences to plan

accordingly. With the help of PESTEL analysis organisation evaluate the external business
environment that are not under control of business. With the help of SWOT and VRIO analysis
organisation gain important insights about their major areas to improve for gaining competitive
advantages. To gain important knowledge about competitive strategies and their future plan to
attain market share with help of Ansoff matrix and Porter generic model helps to give proper
knowledge and information so that organisation can build strategies accordingly. So it has been
concluded that by using various tools and techniques organisation can evaluate their external,
internal and competitive factors in respect to build plans and policies.

REFERENCES
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