Business Strategy Assignment | Tesla
Added on 2021-02-19
12 Pages3679 Words101 Views
Business DevelopmentLeadership Management
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Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................1P1 Impact and influence of the macro environment on given organisation................................1P2 Internal environment and capabilities of an organisation .................................................3P3 Porter's five forces model to evaluate auto-mobile industry..................................................5P4 Strategic management plan for the organisation....................................................................6CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness strategy can be defined as the instruction or specific set of decisions which aredeveloped by entrepreneurs for accomplishing the particular goals of an organisation. It is a setof competitive motion and action which helps an organisation in order to attract more customersthrough increasing their performance. The main intention to formulate a business strategy is toensure the top position in competitive market by carrying out its business operations with moreproductivity. The current organisation chosen for this assignment is Tesla which is operatingtheir business in the automotive industry. Company is professional in manufacturing electric carsand solar panel that helps to reduce negative impact on organisation. This assignment coversPestle and Swot which helps to predict the macro environment of Tesla. Along with these Portersfive forces model is and different theories will be covered in these report. TASK 1P1 Impact and influence of the macro environment on given organisationTo analysing the impact and influence of macro environment, PESTLE is the bestframework that helps an organisation to predict the specific environment of organisation. Thistask covers PESTLE analysis of Tesla which helps management in order to develop effectivestrategy for the organisation (Almuzel and et. al., 2018).Political factor- Political factors determines the degree of government policy that isformulate by ruling government of country. In context of TESLA it is essential for them that tooperate their business which has stable government which signify that they helps multi-nationalorganisation to expand their business in their country. Like policies on trade with foreigncountries limits the market area of TESLA to influence their customers. For this management ofTESLA influences government by bring awareness about safety of environment and naturalresources. As for operating business operation in other country acquisition strategy is best toollike Tesla merge and acquire with local organisation of country. So government not createbarrier to operate their activity in organisation. Economical factors- The factors such as interest rate, tax rate, foreign exchange etc. areincluded in economic factors which governs that it directly impacts on the financial condition ofcountry. TESLA manufactures auto mobiles that are operated through electricity so the growthrate of solar energy market in a country influences TESLA to operate their business in their1
country. For this low cost of renewable energy works as an opportunity for them such as lowbattery cost, large field area that help to establish their factory quickly. Tesla execute primeskimming strategy for its products which determines organisation earns more revenues as theyinnovative products (Asif and et. al., 2017).Social factor- It is an essential factor of an organisation which focuses on the socialenvironment which helps to identify emerging and potential trend of a specific country. Itincludes several factors such as education level, culture, attitude etc. of society which governsand identify customers wants and needs. In context of Tesla it positively impact on them asenvironment safety is a major concern among overall world. So it elementary for Tesla that theiras their innovative product match with the needs of safety. Growth strategy match with allaspects of social factors by helping an organisation in order to explore new areas for theirbusiness.Technological factor- Technology is consider about the rate of innovation and dynamicchanges that impacts on auto-mobile industry. These changes are formulated by the research anddevelopment of an organisation. In context of Tesla it is an opportunity because the whole auto-mobile industry is moving towards automation. Along with these organisation has advancementas they have energy solutions that provide opportunity to them as compare to competitors.Within these changes management implement corporate level strategy which helps them toinfluence employees to accomplish long term goals by improving their skills.Environmental factors- The environmental factors inlcudes recycling procedure, climate,and wastage that impacts on the surroundings of country. In present business scenario consumersare more concern about the safety of environment. So they prefer those products which arefriendlily and does not negatively impact on environment this results that TESLA hasopportunity to increasing their goodwill (Balogun and et. al., 2014). For this management ofTesla implement functional level strategy in which they organise different CSR activities inorder to strength their brand.Legal factors- Under these an organisation must understand about the policy that allowsthem to operate their business with in legal territory which are operated by them. Incircumstances of Tesla, human resource management are responsible to identify changes thatimpacts on legal policy of industry which determines that laws are crucial part of an organisation2
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