Business Strategy Assignment | Tesla company

Added on - 21 Feb 2021

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BUSINESSSTRATEGY
INTRODUCTIONBusiness strategy can be defined as set of decisions which helps in assisting individualsfor achieving specific business objectives. It assists organisation to secure a competitive positionin the market and helps in achieving targeted goals(Hamilton and Webster, 2018). Under thisreport Tesla, and American auto mobile company has been taken. The company deals inmanufacturing electric car, solar roof tiles and solar panel. Tesla is ranked as world’s bestsellingplug-in passenger car with a market share of 12% of sales in this segment. The report willdescribe business strategy and itsimpacton the growth of anenterpriseby covering the impactof macro environment on business. In order to gain an insight of operational capability SWOTanalysis and VRIO framework has been done. Apart from this Porters Five force model has alsobeen discussed for analysing the competitiveness of industries. The study has also coveredvarious concepts, theoriesand models used by the organisation.TASK 1P1In organization there are variouselementswhichhave an impact on success oforganization(Quinlan and et. al., 2019).Externalenvironment factors considered asthe factorsthat remain uncontrollable for a company andwhich influence decision making, performanceand strategies ofenterprise. This macroelementcan be understanding by PESTLE model whichis explained as follows.PESTLE Analysis:This model isemployed to identify and examine external elementswhich affect anorganization's performance. PESTLE model include political, social, technology, legal andenvironmental factors.Political factors:These factors are considered as the factors in which there is high involvement ofgovernment on businesses and economy. This political factors includepolitical stability,government policy, tax policy, foreign trade policy,etc. Tesla company uses the both type ofvehicle that is of gas and electricity. Most of the Tesla drivers use electronic station to refill theircars rather than using typical gas station. In company like Tesla political factors works positively1
for them. In this context, government provides incentives for electric auto-mobiles which workas the opportunity for Tesla and this create strong financial performance also. Governmentprovides opportunity of opening new global trade agreement which is effective for Tesla toexpanding its operation at international level.Political Stability is counted one among the greatest strength of the country and it allowsthe organisation to make suitable policies for the betterment of the organisation in order toensure long term growth and survival of the organisation in the marketplace.Economic factors:This economic factorsinvolves exchange rates, economic growth inflation rates,unemployment rates etc. These economic factors give long term impact on the company and thisfactorshave an impact onpurchasing power of customers, product and services. All economicfactors liketrade levels, market growth, currenciesand other variable influence the businesses ofautomotive(Brown, 2018). In this context, decreasing in renewable energy costs makes the Teslaproduct more attractive. In Tesla company sales of electric cars are going high which is effectivein increasing global economy.With the changes in the interest rates of banks, there could be situations for the companywhich will be favourable for them or not. In case there are favourable changes in the interestrates of banks, it will be possible that this will create positive impact on the working of theorganisation.Social factors:This social factors include demographic characteristics, norms, custom etc. social factorsalso include population trends such as age, distribution, income, safety health etc. In this context,manager of Tesla requires toensure effective implementation of strategy in order to achieve setobjective and to increase the number of profits. Customers are attracting more towards the ideaof an electric cars and especial the consumers who areeco-friendlinessby mind. More use ofelectric vehicle eliminates the use of fuel as a traditional vehicle and this is beneficiary forenvironment. Tesla company improving the wealth distribution in developing market whichwork as opportunity for organization.In case the tastes and preferences of people changes in the favour of the products andservices offer by Tesla this will impact positively on the working of the organisation and in theother case, it will be vice versa.2
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