Business Strategy Assignment PDF - Tesla
Added on 2021-02-20
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Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Impact and influence of the macro environment and its strategies........................................3TASK 2............................................................................................................................................5P2 Internal environment and capabilities....................................................................................5TASK 3............................................................................................................................................8P3 Porter’s Five Forces model....................................................................................................8TASK 4............................................................................................................................................9P4 Theories, concepts and models, interpret and devise strategic planning...............................9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONBusiness strategy is defined as set of priorities for organisation and management teamwhich helps in attracting and retaining talented workforce that is required in firm (Bentley, Omerand Twedt, 2014). This is collection of actions and moves of competition that helps in attractingconsumers, competing successfully, strengthening performance and achieving goal andobjectives of organisation. It helps in outlining about how business should carries activities inorder to reach desired ends. The respective report is based upon Tesla which was founded in2003 that deals in manufacturing of electric vehicles, car and auto-mobile. It is American basedorganisation that focus on automotive and energy. The report covers micro and macroenvironmental factors such as SWOT and PESTLE that assist in running business successfully. Itis essential to analyse capabilities of business in effectual manner with use of VRIO model.Porter's five force model and strategic direction are available for respective organisation. TASK 1P1 Impact and influence of the macro environment and its strategiesIt is the responsibility of each and every organisation to analyse market in which they aregoing to operate their business for accomplishment of set goal and objectives. Here, Tesla hasexamine macro environmental factors and their impact on business for making decisions. It aidin knowing about various components of external market for making business strategies.PESTLE analysis has performed which is described in context of Tesla. They are mentionedbelow:PESTLE AnalysisIt is the tool which is used for identification of macro environment which is faced byorganisation (Cavusgil and et. al., 2014). This is also called situational analysis which assist inidentifying changes taken place at macro environment for strategic management. PESTLEanalysis of Tesla are described below:Political Factors- It is the defined as political condition of any country which directlyand indirectly impact functioning of business. This includes interest rate, political instability andso on. Tesla is regarded as forefront of electric vehicles that uses both gas and electricity as fuel.The drivers of Tesla are using electronic stations in order to refill cars rather than gas stations. Inorder to purchase such vehicles, tax credit is provided by Colorado, Virginia which is $5000.
These factors has direct impact on economic level of nations, rise in employment and so on. Ifthere is political stability then it leads to economic stability and provide higher prosperity andeconomic activity. Similarly, on hand other, if there is political instability, then it createsdisruption and instability. Economic Factors- With rise in income level of people leads to emergence in sales forelectric cars. According to data of 2017, the world economy has grown by 3.5 percent (PESTLEAnalysis of Tesla Inc.: The growth of the eco-friendly electric car, 2019). There is electricdevelopment in Asia, United States and Europe. From 2016 to 2017, there was jumped of electriccars which is 30 percent. Tesla is getting benefits as there is declination in price of materials.This can positively impact in rise of sales in effective and efficient manner. The respectiveorganisation manufacture luxury vehicles with latest gadgets as large number of consumer areinvesting in BMWs and SUVs. Therefore, there is increased in economy which leads to morepurchase of Tesla products by consumers. Social Factors- There is change in current trends that leads to alter need and demand ofcustomers (Veit, and et. al., 2014). The social factors includes demographic such as age, incomeof people, employment, distribution level and so on. Nowadays, people loves more electric carswho have friendliness in mind. There is elimination of fuel in electric cars which is better forcustomers and environment. Tesla is regarded as environment sustainable which hasmanufactured luxury and power boosting vehicles. It has performed amazing job in order tomaintain places in minds of people by manufacturing electric cars. It is focusing on brandtransition that provide greener, fuel efficient, better and sustainable future. It has assist world insaving billions which have spent on fossil fuels. Technology Factors- This includes research and development, innovations and so on(Gupta, 2012). Tesla has enter into artificial intelligence and automation technology in order tomanufacture new and innovative products for their customers. This has helped to maintaincompetitive advantage at market place by producing fuel efficient in order to make futureusability and sustainability. All the vehicles and auto-mobile has manufactured through using ofinnovative technology. As Tesla depends upon technology for manufacturing vehicles which ispositive aspect for business to earn maximum profits and gains. With the adoption of technology,there is rise in sales from 2015 to 2016. Therefore, technology is the important determinant forrise in profits and sales of businesses.
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