Business Strategy Assignment PDF : Tesla

Business Strategy

Table of Contents
INTRODUCTION................................................................................................................................3
P1 Impacts and influence of macro environment on Tesla.........................................................3
P2 Analysation of internal environment and capabilities of Tesla using SWOT........................5
P3 porter's five forces model for evaluating competitive forces of a given market sector.........7
P4 applying a models , theories and concept to understand interpretation of strategic directions
To Tesla.......................................................................................................................................9
M1 Critically analyse the macro environment to determine and inform strategic management
decisions....................................................................................................................................10
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set........................................................11
M3 Devise appropriate strategies to improve competitive edge and market position based on the
outcomes. ..................................................................................................................................11
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................11
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................12

INTRODUCTION
Business strategy is the action that business uses to attract the large no of customers. it is the master
plan which management uses to secure a position in the market there are the three level of the
business strategy such as corporate, business, functional level. Under this report Tesla taken as the
company , it is an American auto mobile company which makes electric cars ,its headquarters is
based in the Palo alto, California . It was founded in july 1,2003. Martin Eberhard, Elon Musk, J.B
straubel, Ian Wright are the founders of the Tesla. This report will cover the internal environment
and capabilities of a Tesla using appropriate frameworks, porters five forces model evaluate the
competitive forces of a market sector for an organisation, range of theories , concept and models
interpret and devise strategic planning for a given organisation and the analysis the impact and
influence of the macro environment on a Tesla and its strategies (Scholes, 2015).
P1 Impacts and influence of macro environment on Tesla
The impacts and influence of macro environment on Tesla & its strategies can be analysed by
PESTEL analysis.
Impact of political factors on Tesla
 political stability in the majority of the market
 new global trading aggrements
 governmental incentives for electrical automobiles
It is very essential for Tesla motors to undergo various political analysation before entering a new
market. As different countries has difference in their political system and environment, thus to get
successful in dynamic environment, Tesla undergo following assumptions of market which are
major sector in any countries' economy i.e. Labelling of products & other required things ,
regulating week work, laws related to anti-trust, interference & bureaucracy, political stability &
importance of auto manufacturers. Those influence the minor sectors of political factors in countries
economy are industry safety regulation, wage legislations, flavoured trading partners, trade
regulations & tariffs, level of consumptions & risk of military invasions (Johnson, 2016).
Impact of economic factors on Tesla
 economical stability issue
 decrease in renewable energy costs
 decrease in battery cost
Average demand & average investment in a countries' economy can be determined by macro
environmental factors such as foreign exchange rates, interest rates, saving rate & inflation rate.
Thus, Tesla uses countries economic factor for forecasting the growth trajectory of the organization.

Through PESTEL analysis Tesla considers following economic factors : interest rates, inflation
rates, unemployment rates, discretionary income, economic growth rate, business cycle stage, cost
of labour & their productivity, level of education, skill level of workforce, infrastructure quality,
financial market efficiencies, exchange rates, government interventions & type of economic system
within the organization (Sia, Soh and Weill, 2016).
Impact of social factors on Tesla
 improving wealth distributed in developing market
 increasing preferences for renewable energy
 increasing popularity of low carbon lifestyle
Impact of culture on organization is dependent on the societies culture & the way of practising those
cultures. Social factors that Tesla must consider while conducting Pestle are: leisure interests,
attitudes, entrepreneurial spirit & broader nature of society . While, entrepreneurial is encouraged
by some societies while some societies doesn't encourage, culture which includes social
conventions, gender roles etc., level of education along with standards of education in Tesla
industry, power structure, hierarchy & class structure & skill level & demographics of the countries'
population. For understanding the customers by Tesla marketers carried out by attitudes & shared
beliefs.
Impact of technological factors on Tesla
 increasing popularity of online mobile systems
 increasing automations in business
 high rates of technological changes
Rate of technological diffusion, consumer goods sector impacted the value of chain structure, in
auto manufacturers the impact of cost structure, impact of technology on product offerings,
development by Tesla competitors in technical sector are all the technological factor that Tesla has
to analyse by PESTEL analysis. Technology is the fast changing sector all across the world. The
innovations in the transportation industry has given various chances to the players of the auto
manufacturing industries to cope up with the changes. Thus, for Tesla to be profitable organization ,
slow speed of innovations will give more time to cope up with the technological disruptions
(Thompson, Strickland and Gamble, 2015).
Impact of environmental factors on Tesla
 waste disposal rising standards
 expanding environmental programs
 changes in climate
Before expanding to new country, organization closely observes the various environmental issues
related to the country in which it tends to expand. These environmental factors greatly affects the