Analyzing Macro and Internal Environment of Tesla

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Apply appropriate frameworks to analyse the macro environment for a given organisation 1
TASK 2............................................................................................................................................3
P2 Using appropriate frameworks analyse the internal environment and capabilities of a given
organisation.................................................................................................................................3
TASK 3............................................................................................................................................7
P3 Apply Porter’s five forces model and to evaluate the competitive forces of a given market
sector for an organization............................................................................................................7
TASK 4............................................................................................................................................8
P4 Apply a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation....................................................................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Strategy is considered as the competitive actions and tactics that organisation
utilises for attracting its consumers, enhancing performance, competing effectively as well as
attaining organisational objectives (Akter and et. al., 2016). Moreover, this is also known as the
master plan that firm' management execute in order to secure competitive position at market
area, performing operations, satisfying clients as well as attainment of desirable goals. This is
very much crucial for firm to perform its operations and practices effectively and efficiently. As
per the scenario the chosen company for this report is Tesla, which is an leading automotive firm
that specialises in producing electric cars. It operates in several countries such as Europe, UK,
china and many more. This report covers the application of effective framework to examine the
macro environment, utilisation of appropriate models to analyse internal environment and
capabilities. Moreover, application of Porter's five forces model are also mentioned. Apart from
this, strategic plan is also formulated in this report.
TASK 1
P1 Apply appropriate frameworks to analyse the macro environment for a given organisation
The macro environment of of firm is associated to external factors which influence the
decision making as well as performance of organisation. Moreover, these components has a
viable effects upon strategies that company willing to perform (Bentley, Omer and Sharp, 2013).
Moreover, this is also helpful in understanding several external factors for making appropriate
business strategies for firm. So, for the macro environment, the line manager of TESLA applied
the PESTLE analysis for developing tactics for its business which are discussed below:
PESTLE analysis
It is defined as the framework that is applied for observing as well as researching various
environmental elements which effect the business performance. Also, it is utilised whenever firm
desired to initiate a new enterprises or enter into internal market. So, the line manager of TESLA
performed the PESTLE analysis that are explained below: Political factors: This is the factors that highlights the countries political environment
which effects the tactics as well as strategies adapted through organisation. It is the factor
that consists instability, labour law, international trade policy and many more. As the UK
is governed through the parliament system. This is fair, stable as well as render
1

opportunity to enterprise in order to expand their business into another country. In
relation to TESLA, they are performing within UK that is a opportunity to extent their
business into another area due to proactive government, political stability and others. As
this operates into auto mobile manufacturing industry that has stability into political
situation for more production. There are few negative impact due to Brexit as it may
reduces their sales. Economic factors: It is the economic performance that consists exchange rates, economic
growth and others. The UK economic position is stronger in comparison to others. In
context of TESLA, they have more chances for growing its business into another part of
respective country. The many opportunities which is available for them are maximisation
in foreign direct investment, fifth highest GDP and so on. The negative impact of
exploring its business is for spending large amount of wealth upon free open work as well
as money aids into slow recovery from recession. Social factors: This aspects consists values, customs, demographic characteristics and so
on (Bharadwaj and et. al., 2013). As United Kingdom have higher social standards that
leads for effective situation to TESLA in order to operates its business effectively and
efficiently. It consists of 64.1 million densely populated places that have higher standard
as well as cheap personnel which aids chosen firm to increase its profitability and
business as well. With raise into education cost, less individuals purchase TESLA
products as they give more preferences to study other than anything else. Therefore, this
is crucial for firm to undertake respective elements for more profitability. Technological factors: In this whole technological innovation as well as advancements
are included. United kingdom is known as the more economically developed country
(MEDC) that has huge entry for applying new innovation. This have optimistic effects
upon TESLA due to experiences into informations technology, creativity skills and many
more. This factors effects respective organisation in respect of slow technological
development in comparison to U.S. So, TESLA have opportunity to expand its
enterprises into particular market for accomplishing customers requirements effectively
and efficaciously. Environment factors: This factors is essential due to enhancing shortage of raw
materials, pollution targets etc (Bharadwaj and et. al., 2013). UK have developed
2