Analyzing the Influence of Macro Environment on Tesla's Business Strategies

BUSINESS
STRATEGY

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1......................................................................................................................................................3
P1 Apply different frameworks to analyse the influence of macro environment on a company and
their business strategies..........................................................................................................................3
TASK 2..........................................................................................................................................................6
P2 Evaluate the capabilities and internal environment of a company by using appropriate frameworks
.................................................................................................................................................................6
TASK 3..........................................................................................................................................................7
P3 Implement porter's five forces to evaluate competitive forces of a market sector for a firm............7
TASK 4..........................................................................................................................................................7
P4 Apply different models, theories and concepts to interpret strategic planning for a company.........7
Strategic management plan that includes strategic priorities and objective...........................................9
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Business strategy refers to the set of tactics and tools which helps an organization in carrying
out all the activities in an effective manner. This also has defined a master plan which is implemented by
a firm in order to get higher position in the marketplace. This following file is based on Tesla which is an
American automotive and Energy Company based in Palo Alto, California has formed in 2003. This report
will cover about the influence of internal and external environment of the business with the help of
PESTEL and SWOT. Along with this porter’s five forces model also will discuss in this file as it will help the
business in understanding the competitive factors within the marketplace. Also, different models,
theories and concepts will discuss in this file in order to make effective strategic planning.
TASK 1
P1 Apply different frameworks to analyse the influence of macro environment on a
company and their business strategies
Vision: The main vision of Tesla is to become the most compelling car company in this
competitive market by driving the world’s transition to electric vehicles.
Mission: Mission of Tesla is to accelerate the world’s transition to sustainable energy so that the
advantage of market opportunities can be taken (Amran and et. al).
Objective: The main objective of Tesla is to enter in a high end of market where the
people are ready to pay premium prices for new developing cars. It will help the organization in
attaining the higher profitability and recognition in the marketplace.

Strategy is depicts as the functions or activities of an organization which are carrying out by the in order
to attain their business goals and objectives in an effective manner. By making effective
strategies for their business, management of Tesla can operate all their activities in a significant
manner which is enables them to get the higher competitive advantage over their competitors.
This will help them in performing their functions in an appropriate manner which will allow the
organization in achieving higher sales and profitability as well. As it will tell that how they needs
to operate all their activities so that the success and growth of their business can be assured at the
both national and international market (Ghezzi, 2013).
Different strategic planning techniques
 Benchmarking: This is an effective tool which helps the organization in comparing
effectiveness of their strategies and methods as compare to their competitors. With the
help of this framework Tesla can ascertain their market position as it allows them to
compare their performance with market leaders. So that they can formulate best or
appropriate strategies for their business in terms to earn higher profit.
 Business analysis: By evaluating business and its activities in an effective manner Tesla
can identify their strengths and weaknesses that help them in making right decisions for
their business which results attainable of desired outcomes.
Various analytical frameworks to acknowledge macro environment
Stakeholder analysis
In order to operate all the business activities effectively consideration of stakeholder
analysis is essential as it helps the organization in recognizing those people who can impact on
the organization or can impacted by organizational activities. It provides huge benefit to the
Tesla in grouping stakeholders as per their interest, impact in project and level of participation.
In this aspect, three steps can be utilized by Tesla in terms to conduct stakeholder analysis:
Step 1: The ascertainment of different stakeholders is necessary by formulating a list of
possible individuals which can turn into potential customers for the organization. Same with
Tesla, it will help them in determining stakeholders that are investors, employees, supplier,
business suppliers, customers etc.
Step 2: After citing all curial stakeholders, manager of the organization will require to prioritize
all the stakeholders as per their several categories like level of participations, interest, influence and
many others (Hoejmose, Brammer and Millington, 2013).
 High power, high interest: All these stakeholders have more significance for Tesla as by
prioritizing them organization can carry out all business functions in a smooth way.
 High power, low interest: Stakeholders which are included in this category have huge
impact on the working of the organization but these have not much interest in activities of
project of Tesla.
 Low power, high interest: Stakeholder which are coming in this needs to be stay more
informed so that conflicts or issues cannot take place in the business.
 Low power, low interest: In this, stakeholders have not higher interest in business
activities and also have sufficient power in terms to affect the working nature.
Step 3: Herein, manager of Tesla will establish effective communication with their
stakeholders as per their priority which enables them to get the higher support of stakeholders in
accomplishing project without any issue.