Business Strategy: Analysis and Opportunities for Tesla

Business Strategy

Table of Contents
INTRODUCTION....................................................................................................................3
TASK 1......................................................................................................................................3
PASTEL.................................................................................................................................3
TASK 2......................................................................................................................................5
SWOT & VRIO....................................................................................................................5
TASK 3......................................................................................................................................8
Porters five force model........................................................................................................8
TASK 4....................................................................................................................................10
Strategic analysis with Ansoff's Matrix...............................................................................10
M4........................................................................................................................................11
CONCLUSION........................................................................................................................12

INTRODUCTION
Strategies are those action plans which are meant and follow for achievement of
target. Business strategy are the framework which is consist of different number of activity
and will help an origination to identify a work plan for achievement of its objectives for long
survival of firm. It also help in identifying the right way in which origination can work for
achieving profitability. Strategies are basic for survival of business firm in dynamic
environment as it facilitate firm in planning function by analysis origination resources and
capacity of origination(Barberá. and et. al., 2012). In the context of this report tesla will be
the base company. Tesla is a car manufacture which is famous for its innovative product as
well as for manufacturing designer electric car. In this report study is conducted how macro
and micro environment have their impact on business strategic decision and how firm can get
benefit in competitive business environment. Strategic plan will also formed here which will
guide firm how it can get benefit of that pan and can gain competitive advantage in market.
TASK 1
PASTEL
Business is surrounded by different factors which have their dynamic effect on business
there are number of factors which have their effect on business but some have their great
consequence on firm . These environment must be analysed by business firm for planning for
uncertainty. The method use for this is called as PESTEL analysis. In this method six factors
are studied which are political, economic, social, technological, environmental and legal
factors. These all factors are study and their impact will be identify in context of Tesla which
is stated below:
 POLITICAL FACTORS: These are those factors which are relate to involvement of
government in business activity of firm. This is interruption of government for
controlling activates of business in economic benefits. UK government is promoting
electric cars in there economy and providing exited rebate on these cars. This can
work as an opportunity for Tesla that it can get benefit of promotion of its product
because firm have main business of electric cars which is promoted by government of
nation, in global context other nation government is also promoting electric vehicles
in there nations. All this will impact positively on Tesla as political factors are in there
favour. (Buckley, Burton, and Mirza, 2016)

 ECONOMIC FACTORS: These are those factors which are related to economic
conditions of nation where origination is working. It includes exchange rates, inflation
rates, employment rate, interest rate, GDP growth of the nation and many more
thinks. This have also different impact on Tesla as promotion of recyclable and
renewal energy products help in increasing market of tesla cars, rebates in impart of
products and solid GDP growth of UK also aid Tesla in gaining advantage in selling
their product to open market without any hustle bur there are some negative impact of
this like high interest rates are leading in increase cost of firm production and
ultimately lead in increase price of firm product.
 SOCIAL FACTORS: Factors like culture, population composition, trends, social
thinking are include in social factor. The positive impact of this factor on tesla is that,
there is tend in society of UK to shift towards electric cars and this will benefit to
company ad it will lead in increased sale of company vehicle which also leads in
increase market share of company with rise in number of profit. there is also negative
impact of this factor on Tesco as electric vehicles are costlier and there is fixed mind
set of middle class that they can’t afford this as it is out of there budget.
 TECHNOLOGICAL FACTORS: These are those factors which are related to
change in technology and use of new and more innovative ideas in firm. In vehicle
manufacturing industry there is rapid change in technology and innovation. Tesco is
that firm which is famous for its innovation and rapid change in technology which
help firm in gaining advantage in market as it can attract customers more essay than
its competitor and can sell its product on its decided prices which will growth its
profit margin(Chen and et. al., 2018). There is also a negative impact of this as cost of
innovation is high which Tesla have to pay to and it will lead in increase price of
product as well as decrease in sale because of huge cost.
 ENVIRONMENTAL FACTORS: It include factors like weather. Geographic
location, climate of the area where origination is working .it can also be said as
surrounding of business which include nature. Environmental factors like pollution
have work positively for Tesla this is because. Cars is the main cause for pollution in
environment but Tesco manufacture electric cars which have zero transfer to
environment and help in saving nature this has provided opportunity to firm to sell
their product more and more . Tesla also deals in solar panels and environment