Analyzing the Impact of Macro Environment and Internal Capabilities on Tesla's Business Strategy

Business Strategy
STUDENT NAME:

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................2
P2. Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks..........................................................................................................6
P3. Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.......................................................................................................8
P4. Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation........................................................................................................10
CONCLUSIONS............................................................................................................................15
REFERANCES..............................................................................................................................16

INTRODUCTION
Business strategy is considered as the combination of whole decision taking as well as
actions performed through through business for accomplishing the organisational objectives as
well as safeguard the competitive position within marketplace. Strategy can define as a action
plan that is developed in order to achieving goals and objective of organisation (Akter, and et.al.,
2016). It is very important for business develop effective and efficient strategies so that desired
targets can be accomplished timely. Strategies are very significant for foresee of future as well as
identifying and analysing various factors which can affect business as well as its operations.
Company chosen for this report is Tesla. This organisation was established in 2003 and this
company was foundered by Martin Eberhard, Marc Tarpenning, Elon Musk, J.B Straubel. Tesla
is dealing in automotive and energy storage sector and it is providing its products or services to
all round the world. Headquarter of Tesla is located in Pola Alto, California, US. This company
is developing Electric vehicles and Tesla Energy. This report is going to include the impact of
macro environment as well as internal capabilities on the organisation. It consists of Porter's five
force model and different theories and models is also included in order to develop an effective
strategy. TESLA is considered as an American automotive as well as energy based company. It
manufacture the electric car with the help of solar city subsidiary, solar panel production. Its
products aimed at consumers into high end market sphere. Moreover, its international total
revenue that is 21 billion. The major competitors of respective organisation is Nissan, general
motors, Ford and others.
 Mission: The mission statement of Tesla is “to accelerate the world's transition to
sustainable energy”.
 Vision: The vision statement of Tesla is “ to develop the most compelling cars firms of
21 st century through driving the world's transition to electric vehicles.
 Core values: The core value of Tesla comprise “ performing the best, taking risk,
respect, constant learning as well as environmental consciousness”.
 Objectives: The objectives of Tesla is to produce demands as well as drives sales for
TESLA motor's electric cars, build longer brand awareness as well as manage corporate
reputation.
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P1. Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies.
Micro environment refers to all those factors which can have major impact on business
and these factors cannot be control by organisation. Tesla company have to deal with various
factors of macro environment and these factors have huge influence on its business operations.
All strategies and important decision of Tesla company should be taken after evaluating business
environment and identifying its effect on company. This company is providing its products to
different parts of the world and evaluating all micro factors are very important as it effect
decision making as well as helps in developing effective strategies. In order to analyse and
evaluate all factors of microenvironment Tesla company needs to conduct PESTEL analysis as it
will provide a proper framework for manager to monitor different elements of micro
environment (Amran and et.al., 2016). It includes political, economic, social, technological,
environment and legal factors. All these factors with their impact on Tesla organisation in
mention below.
Political factor: Political factor includes different types of rules and regulation that is
formed in political and government party. This factor is helpful in identifying the impact of
government on business and its operations. Political factor includes government policies,
stability of political party, foreign trade policy, taxation policy, restriction on trade and many
more. This factor will have both positive and negative influence on strategy making as well as
decision taking for business. Stability in UK political party can be consider as a positive impact
on political factor on Tesla business as it will lead to smooth functioning of business operations
(Bharadwaj and et.al., 2013).
Economical factor: Economical factor play a crucial role in developing effective
strategies for achieving goals and objectives of receptive organisation. This factor includes
interest rate, exchange rate, economic growth, inflation, income of consumers as well as business
etc. Economical factor is majorly related to financial condition of a country which affect
business operations. UK has one of the most growing economic condition which lead to increase
customer base of Tesla as they have potential to buy premium products. Due to growth in global
economy it is exacted that electric vehicle marketed cab reach up to 2025. This is a great
opportunities for respective to expand it business and achieve desired goals (Tesla Pestle
Analysis, 2019). Economic factor will have positive impact over respective company as it will
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