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P4 Application of models, theories and concepts

   

Added on  2021-02-19

13 Pages3912 Words30 Views
Business Strategy

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Application of framework to analyse impact and influence of macro environment.........1TASK 2............................................................................................................................................3P2 Analysis of internal environment and capabilities of the company..................................3TASK 3............................................................................................................................................6P3 Determination and application of Porter's five force model.............................................6TASK 4............................................................................................................................................7P4 Application of models, theories and concepts...................................................................7CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONBusiness strategy can be defined as the plan which is developed to obtain objectives ofcompany that relates to long term as well as short term (Moseley III, 2017). Through thesebusiness strategies business can analyse growth and development. All the companies takeappropriate decision to find out available opportunities of market and on the grab to improvebusiness. To understand the concept of the report selected organisation Tesla, which is Americanautomotive and energy company based in Palo Alto, California. The company manufacturing ofelectric car, solar city as well as solar panel. It was founded in July 2003, by engineers MartinEberhard and Marc Tarpenning under the name Tesla Motors. This report will emphasis on appropriate frameworks to analyse the impact and influenceof the macro environment on selected organisation. To understand the capabilities of companyanalysis internal environment and for competitive market apply porter five models which canhelp to analysis market sector. In addition, apply a range of theories, concepts and models tointerpret and devise strategic planning gor selected organisation. TASK 1P1 Application of framework to analyse impact and influence of macro environmentMacro Environment – A macro environment is defined as condition that exist in theeconomy as a whole, rather than in a specific sector or region. There are including external anduncontrollable factors that influence to organisation growth and development such as inflation,employment and trends in gross domestic product. In order to identify all the componentsPESTLE analysis is being conducted for Tesla. PESTLE Analysis – It is a framework or tool that use to evaluate and monitor of macroenvironment factors. These factors influence to organisation performance in positive andnegative manner. PESTLE analysis can help to new business to enter foreign market. ThroughPESTLE analysis identify appropriate factors that show impact on Tesla - Political – Political factors plays important role in any organisation and influence to longterm profitability of Tesla. The company dealing into electric cars in a certain country or market.So there is required to follow political rules and regulation according to products otherwise it canshow negative impact. 1

Advantage – Tesla has major advantage of getting government incentives as itstechnology is insignificant carbon emission from the vehicle. The market for company istargeting are very stable political markets and it will help them boost up business. Disadvantage – Changes in the political markets can affect to performance of Teslabecause it can target to stable political market (Nohria, 2017). Economic – There are consisting of inflation rate, interest rate, economic cycle andforeign exchange rate. Low battery costs can help to Tesla to grab opportunity regarding toelectric parts. As it gets popular at an exponential rate. Advantage – Tesla provides vehicles on affordable price and much more attractive styleto general public. They can keep in mind the economic environment in reference todeveloping countries as it can be unstable sometimes. Disadvantage – The main disadvantage of company that economic condition can notstable that can affect to automotive market in direct manner. Social – Society culture and conditions affects to business and including demographiccharacteristics and culture. Through analysis Tesla focus on the business aligns with the socialtrends in its target market. Advantage – The company mainly focus on low carbon lifestyle and renewable energysource is a big advantage for the company. As a result it reflect in positive manner andincrease demand of electric vehicles. Disadvantage – In present time people like to new things and wants to in electric car. It isnot easy for Tesla to apply quickly in manufacturing process.Technological – There are analysing of the innovation in technology that will affect theoperations of the industry and define about market. The company keep an eye on newertechnology that used to make new cars with specific technology. For this Tesla conduct researchand development regarding to technology awareness. Advantage – Tesla can adopt new technology and manufacture advanced basedtechnology cars as well as eco friendly. The selected company take advantage ofautomation and AI (Artificial Intelligence). These are connected with system of car thencreating and continue the demand of unique cars. 2

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