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Business Strategy Assignment Sample - Tesla

   

Added on  2021-02-21

14 Pages4459 Words79 Views
Business DevelopmentFinanceLeadership ManagementData Science and Big Data
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BUSINESSSTRATEGY
Business Strategy Assignment Sample - Tesla_1

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Impact and Influence of External Environment on Tesla.....................................................1TASK 2............................................................................................................................................4P2. Internal Environment and Capabilities.................................................................................4TASK 3............................................................................................................................................7P3. Evaluation of Competitive Forces........................................................................................7TASK 4............................................................................................................................................8P4. Strategic Planning.................................................................................................................8Strategic Management Plan.........................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
Business Strategy Assignment Sample - Tesla_2

INTRODUCTIONBusiness Strategy refers to effective actions and procedures adopted by an organisation toappropriately ensure a long-term sustaining and competitive advantage within the market.Furthermore, it also allows a firm to expand their customer base and expand their presencewithin their niche as well as global market (Akter and et. al., 2016). The following report isbased on Tesla, which is an American energy and automotive organisation. It includes analysisof influence of external environment within the firm and analysis of its internal environment andcapabilities. Apart from this, the report also takes into account the application and evaluation ofcompetitive forces of Tesla's market sector along with determining its strategic direction.Alongside this, a strategic management plan has also be developed for Tesla which would helpthe firm in achieving its strategic objectives.TASK 1P1. Impact and Influence of External Environment on TeslaExternal environment of an organisation includes all those factors and elements which isessential for an organisation to effectively and essentially communicate within their workplace.In addition to this, all these external factors influence business organisations in setting up theireffective strategies which could help them in ensuring sustainability (Higgins and et. al., 2015).In context of Tesla, there are several external factors which has a wide impact on the firmand influence the organisation in taking up effective business related decisions. To furtheranalyse the same, PESTLE analysis is used which is a detailed framework used for analysing theeffect which all the external environmental factors have on the company. These factors in respectto TESLA are described below:Political Factors:These factors determine the impact of political scenario and governmental actions on anorganisation. Government is one of the most effective and essential factors which has an impacton any business and is quite a strong societal force. With respect to Tesla, there are variousopportunities available for the company within the marketplace. With various politicalintegrations happening around the world, the firm has vital opportunity to expand its businessfurther. Moreover, the government of the USA as well as many other developed and developingcountries provide incentives for electronic vehicles. This has quite a positive impact on Tesla in1
Business Strategy Assignment Sample - Tesla_3

relation to enhancing its financial performance (Tesla, Inc. PESTEL/PESTLE Analysis &Recommendations, 2019). However, there are some areas which might cause hurdles for theorganisation. For instance, Brexit, within UK, is a significant event which could cause hurdlesfor Tesla in expanding its business further due to political instability. This in turn would allowthe firm in effectively enhancing its business operations in the company. Despite this, UK andthe US have effective political ties which might reduce this issue to an extensive rate.Economic Factors:All the economic conditions prevailing within the market and overall economicperformance of a nation has a very evident and long-term impact on an organisation and itsstrategies. There are several factors which are included in this aspect such as trade, currencies,market demand and all the economic variables which could impact businesses. For Tesla, thereare again ample opportunities within the market on economic front. For instance, there is anexpectation of almost 3% growth in global economy in 2019 and 2020. Thus, it presentsappropriate business opportunities for Tesla to manufacture and sell its vehicles globally. Inaddition to this aspect, electric vehicle market is subjected to reach almost $1.5 Trillion by 2025(Tesla Pestle Analysis, 2019). Such factors positively influence the company and encourage itsoperations within different developed markets.Social Factors:This factor is one of the most effective factors which influences the company and itsdecisions. It includes beliefs, lifestyles as well as attitudes of customers within markets in whichthe firm operates. In context with Tesla, there is a drastic shift within the lifestyles of individualsand car owners. Lately, it is witnessed that individual lifestyle is more inclined towards havingvehicles and other technological possessions which generate low-carbon footprint. In addition,people are preferring using renewable energy, which is again, a crucial opportunity for Tesla.Thus, social factors are enhancing the business opportunities for the firm to keep up with itsconsistency of producing low-carbon and energy efficient vehicles.Technological Factors:All the technological advancements are involved in these factors. Currently, the globalbusiness environment has been subjected to effective and robust advancements andimprovements in existing technologies. Automation and Artificial Intelligence (AI) are beingadopted by industries and being effectively delivered to the customers as well. Tesla produces2
Business Strategy Assignment Sample - Tesla_4

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