Determine affect of macro environment factors on business operation and strategies to overcome it

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Determine affect of macro environment factors on business operation and strategies to
overcome it.............................................................................................................................4
Critically study about factors of macro environment in order to make effective strategic
management decisions............................................................................................................7
TASK 2............................................................................................................................................8
Determine internal factors and capabilities with help of proper framework..........................8
Critically measure internal business environment for analysing strengths and weaknesses of
enterprise to determine their internal capabilities, structure and skill set of organisation...12
TASK 3..........................................................................................................................................12
Analyse Porter’s Five Forces model in order to determine competitive advantages of provide
industry.................................................................................................................................12
Determine proper plans and strategies in order to make improvement to gain competitive edge
and market position based on the outcomes.........................................................................14
TASK 4..........................................................................................................................................15
Various models, theories and concepts for making strategic planning................................15
Make strategic management plan which contain both tangible and tactical strategic priorities
and objectives.......................................................................................................................16
Review and explain information and data by applying environmental and competitive
investigation for producing a set of valid strategic directions, objectives and tactical actions17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business strategy is defined as competitory actions as well as moves which firms
uses in order to attract their customers, strengthening performance, competing
successfully and achieve goal and objectives of organisation (Business Strategy:
Definition, Levels, Components & Examples, 2019). This is regarded as master plan
which management of organisation implement for securing competitive position at
marketplace, carry operations, satisfying customers and achievement of desired ends of
business. Business strategy is very important for organisation to carry their activities and
operations in an effective and efficient manner. The different types of business strategy
are cost leadership, differentiation and focus. The enterprise given for project work is
Tesla that was founded in 2003. This is American automotive organisation specialising in
electric car manufacturing. Being the Junior Strategy Manager of Tesla, line manager has
asked for preparation of various report. The micro and macro investigation and strategical
growing direction thought along with analytic tools has been discussed. This report
highlights Porter's five force model for given firm.
TASK 1
Determine affect of macro environment factors on business operation and
strategies to overcome it
It is very essential for organisation to evaluate and analyse macro environmental
factors for making proper plan and decision (Azma and Mostafapour, 2012). This helps
in knowing about various external factors in order to make proper business strategies for
organisation. For macro environment, PESTLE analysis has performed by manager of
Tesla to make business strategy. They are described below:
PESTLE Analysis
This is referred as techniques or framework which is utilized for investigation and
monitor of different element of environment that consequence carrying out activities of
enterprise (Baden-Fuller and Mangematin, 2013). This is applied whenever organisation

wants to start new business or enter foreign market. In context of Tesla, they are
described below:
Political Factors- This is defined as intervenes of government in an economy
which includes foreign trade policy, labour law, environmental law, instability and so on.
The United Kingdom runs under system of parliament. It is stable, fair and provide
opportunity to business for expanding it in other country. In context of Tesla, it is running
business in United Kingdom which has opportunity to expand it in other place easily
because of political stability, proactive government and large influence on inner working.
As it deals in manufacturing of auto mobiles for users which has stability in political
condition for maximum production. There are some negative aspects because of
corruption and Brexit of EU. This can impact Tesla strategy as it can market development
for expanding business in other market.
Economic Factors- This is defined as performance of economy which consider
inflation rates, economic growth, interest rates, exchange rates and many more (Bentley-
Goode, Newton and Thompson, 2017). The economic position of UK is considered as
strong as compared to others. Under the view of respective organisation, it has better
possibility to grow business in other parts of UK. The different opportunities available to
respective organisation are in terms of free market, increase in foreign direct investment,
5th highest GDP and varied economic system in both open and private body. Negative
aspect of expanding business is that huge amount of wealth is spent on free open work
and money assist in slow recovery from recession which occurred in 2008/09. Tesla can
consider such factors for expanding business in other market as there is stability in
economic condition of UK government.
Social Factors- This elements of social factors includes demographic features,
values, population, customs, that business is operating their functions. It consists of
safety, income distribution, health, growth rate and so on. UK carry high social standards
which leads for better all-round circumstance to Tesla for running their business in an
effective and efficient manner. UK consists of 64.1 million densely populated area having
high standard and cheap workforce that assist respective organisation to enhance their