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Business Strategy Assignment sample : Tesla

   

Added on  2021-02-20

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BUSINESS STRATEGY

Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3LO 1.................................................................................................................................................3P 1 Impact and influence of Macro Environment-.................................................................3LO 2................................................................................................................................................5P 2 SWOT analysis and VRIO model of Tesla- ....................................................................5SWOT analysis of Tesla-.................................................................................................................6LO 3 ................................................................................................................................................8P 3 Porter's Five Forces Model- ............................................................................................8LO 4 ..............................................................................................................................................10P 4 Range of theories, concepts and models to devise strategic planning-..........................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONBusiness strategy is defined as group of competitive moves along with actions for aparticular business for the purpose of attaining customers, successfully compete in the market,strengthen its performance along with achievement of organization goals in effective mannerwhere ultimate goal is to operate business activities in such a manner to attain desired outcomesas final results. The report will address impact and influence of macro environment on differentorganization situations along with its strategies. Further organization's internal environmentstrengths and weakness along with internal capabilities, skills and structure will be assessed. Thereport will also display competitive forces of market sector of the organization using Porter'sFive Force Model to improve competitive edge and market positions. Finally, the study with theapplicability of models, concept, theories and interpret will device business strategic plan for theorganization.MAIN BODYLO 1P 1 Impact and influence of Macro Environment-Pestle analysis will help to analyze the external factors which affect the performance of Tesla. Asfor pestle analysis it is a strategical tool that will help to counter the forces of externalenvironment for Tesla and how it will compete in the market of automobile industry and howthey can increase their customers who are loyal to them and making cars which are moreaffordable and advanced for the market (Akter and et.al., 2016). How does Political Factors affect Tesla Inc.-Tesla is focusing on making their financial performance and stability strong and they arethinking of it through incentives offered by the government. Currently if consumers buy electriccars they can avail the benefits of tax credit and offers tax credit up to $7500. Tesla usesintensive growth strategy which is an competitive strategy and which helps in maintainingpolitical stability which makes the environment favorable for many industries who are dealing inautomobile sector. Government has taken many initiatives to show their support for thedevelopment and rapid growth of hybrid and electric vehicles which basically is the future if wewant to survive (Akter and et.al., 2016). How does Economic Factors affect Tesla Inc.-

As demand and popularity for electric cars is increasing rapidly which is connected with theeconomy at a global level. The economic growth globally is expected to be same in 2019 and2020 which is around 3 per cent. After analysis and evaluation of the potential in this market,from the report it was obtained that in 2018 this market had a value of $39.8 billion and has apotential to reach $1.5 trillion by 2025 and as Tesla serves in electric car market it is a greatopportunity for them to obtain gain more and more share. Another factor which is affecting to economic growth is the decreasing cost of battery. It is oneof the most important factors in the total cost when it comes to electric cars. Tesla has innovatedpower ball batteries that has created a new opportunity for the company and they aremanufacturing it in the affordable range which will make the the electric vehicles moreaffordable. The cost of raw materials are also decreasing in the market which brings all in allgood news for Tesla and lower the cost of materials lower and effective the cost will be of theelectric vehicle for the market (Bentley-Goode, Newton and Thompson, 2017). How Social Factors affect Tesla Inc.-Having the idea of owning an electric vehicle is fascinating in itself for most people andespecially for those people who believe in eco-friendly products and electric vehicles are eco-friendly as they don't run on fuel. Electric vehicles are tend to be less expensive than normalutility vehicles in terms of cost of maintenance and running cost. Tesla provides products whichare sustainable environmentally. This pestle analysis of Tesla Inc. states that social status is theSocial Factor. The car you drive says a lot about you and people are judged on the basis of whatcar they drive. Owning an electric car will help them change their status socially (Burlton, 2015).How Technological Factors affect Tesla Inc- This factors helps in knowing which affect the company in technological aspects. Tesla has beenhit positively as well as negatively by the rapid change of technology. Technology is the keyfactor in generating opportunities and eliminating threats for Tesla as it has already managed tomaintain Tesla to maintain a competitive edge over their competitors. They use advancetechnology which helps them enhance their product profile. Elon Musk the CEO of the companyhas also announced that their focus is on a car which will be equipped with fully driver lesstechnology and if possible it will gain advantage of competitive edge for Tesla in the market.The negative factors which affect the company is time after time technology becomes obsolete

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