Business Strategy: Analyzing Macro and Internal Environment of Tesla
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This report analyzes the macro and internal environment of Tesla, including the impact of external factors and the company's strengths, weaknesses, opportunities, and threats. It also includes a value chain analysis of Tesla's primary activities.
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 P1: Apply framework that is used to influence the macro environment......................................3 M1: Critically analyse macro environment to determine strategic management decisions.........6 D1: Interpretation of information and data applying environmental and competitive analysis. .6 TASK 2............................................................................................................................................6 P2: Analyse the internal environment of Tesla company............................................................6 M2: Critically evaluate the internal strength and weakness.......................................................8 TASK 3............................................................................................................................................9 P3: Application of five force Porter's model to evaluate competitive force................................9 M3: Strategies to improve competitive edge and market position............................................10 TASK 4..........................................................................................................................................10 P4 & M4: Implement different range of theories to conduct the strategic planning.................10 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................13
INTRODUCTION Business strategy include the management practices that include the strategy which are further executed by the company in order to gain the potential success. As an organisation gets affect by both micro dan macro environment so in order to cope up with the unforeseen conditions the business take primary actions to strengthen its position within the market. It basically refer to the long term plan that is created in order to attain the specific objective of the organisation (Apenko, 2017). For the better understanding of report Tesla company is selected which is known for the manufacturing of electric cars with the help of solar panel in an efficient manner. The company has adopted the sustainable methods due to which it has eradicate the use of fuel which further leads to minimal carbon emission.This report cover different topics like analyse the impact as well as influence of macro environment within the organisation. Access the internal environment as well as capabilities. Moreover, apply porter's five factor model within the given market. Furthermore, application of the models, theories as well as concept to interpret the strategic direction available to an organisation. TASK 1 P1: Apply framework that is used to influence the macro environment Pestle analysis is the efficient strategic management tool that is used to determine the effect of the external factors in the functioning of company. There are vagarious determinant of company that has to function on the basis of external factor like the market share of the company depends on effective technology. So in order to run the business these macro factors need to be studies and evaluated in detail (Chen, Eshleman and Soileau, 2016). Political factor:Political factor include the stability within the market as well as support of government towards the company which are evaluated by the firm before diversifying into new geographical area. Tesla company unlike other traditional vehicle does not depend upon the fuels like diesel or petrol to run the vehicle. It only uses the electricity or gas which is beneficial for the economy. Positive:The government of various countries supports the contribution of Tesla motors due to which they take the responsibility in order to improve the hybrid engines like Tesla Roafstar.
Negative:Although company have gained the positive responses from both public as well as government due to which they undergo global trade agreement but still Tesla motors finds difficulty to stretch its business and spread the awarenesses especially in developing markets. Economical factor:This factor is associated with the different phases of the economy such as recession or inflation that affect the fortune of company. So based on the per capital income and the disposable income of the confined geographical area the company indulges into the market and formulate strategy accordingly (Cubas‐Díaz and Martinez Sedano, 2018). Positive:Initially the company used to segment only the premium group but later on it diversified the market and extent product range by focusing on both high as well as middle income group people like, Tesla Roadstar and Model X falls under the luxury category. Whereas, Model 3 was launched specifically for the middle income group that help company to leverage its market suitably. Negative:Even though people have high purchasing power but still they prefer fuel cars because of lack of awareness among the people in different parts of the country. Like in UK and USA the market share of company is high because in other Asian market the company experiences less loyalty from the end market (Dickson and McCord, 2016). Social factor:It include the preferences, attitude and perspective of customer which changes wityh the trend and affect the demand as well as supply of the offerings. So before launching any product the company need to analyse market situation like today people love the concept of electric cars due to their efficiency and environment friendliness attribute. Positive:As the society understand the relevance of using sustainable environment the fulfil the need to customer as well as does not harm the surrounding for instance, Model X of Tesla. Hence, the transition in the thinking of customer as offer the wide opportunity to the respected company in order to incorporate the business effectively. Negative:Due to the deep understanding the demand of the the Tesla for Roadstar, Model X and S has increased widely. So it is vital for the company to expand its capacity in which they are lacking. Due to the huge waiting time to fulfil the demand leads to the chances of dissonance that is difficult for company to overcome (Pestle analysis, 2018). Technology factor:It refer to the advance methods that is adopted by company in order to identify the new and creative methods to carry out the business. In terms of manufacturing
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vehicle the company remain curious to identify latest technique and use to enhance the manufacturing process. Positive:Tesla has implemented the automation as well as artificial technology to gain the advantage in terms of manufacturing the vehicle effectively (Fontana, Sastre-Merino and Baca, 2017). There are various competitive company that lack to adopt the advancements but Tesla has adopted it effectively. Negative:InordertobringconstantinnovationTeslahastoincurhugecapital expendituretomanufacturedifferentmodelsandincurexpendituretobringsignificant innovation. Along with that if the firm constantly bring innovation then it uplift the preferences of customer for which they need to incur additional expenditure on regular basis. Environment factor:Environment refers to the surrounding within which the business function so all the production needs to be take place after implementing adequate CSR policies for the welfare of society, employees as well as environment. Positive:The main strength of the Tesla is that it is environment friendly and abide many regulation which are related to the environment such as reduction of carbon emission. This can helped the company to cater the huge market effectively. Negative:Inordertoexpandtheoperationsthecompanyneedtoincurvarious expenditure in different parts of the country where it plans to diversify its market. It need to undergo immense expenditure on the development of the gas station in order to expand the business effectively. Legal factor:It involve rules and legislation that is prepared by government with the objective to retain the interest of employee on the company. While expanding from one mnarklet to the other Tesla nee to update and revise all its policies and regulation associates with the business (Ghemawat, 2016). Positive:The company has already expanded in various parts of countries in order to expand the chancesof profitability.So it render each and every internationalregulation efficiently. Negative:The company itself has adopted the sustainable method to perform the business but still they experience the restricted market to function because of the adoption of various law that can hamper the image of company.
M1: Critically analyse macro environment to determine strategic management decisions Tesla has systemically operated in the wide market by analysis both internal and external market to appeal the interest of customer and carry out the functioning effectively. It widely depend upon the technology so that it can easily product the innovation or green vehicle fro the welfare of environment. Due to the company come up with different models like Tesla S or Roadstar with the objective to eradicate the chances of carbon emission. On other side, although it has renowned image but the political instability or conflicts with the competitors can hamper the performance of company. So each aspect has positive and negative affect that need to be considered effectively (Gumusluoglu and Acur, 2016). D1: Interpretation of information and data applying environmental and competitive analysis Informationthatisgrabbed throughanalysingmacro environmentalprovideswith various factors that affects performance of Tesla organisation. Different factors such as legal, political, economical, social, technological and environmental factors influences business in positive and negative manner. All these factors helps in identifying issues that are going to affect business in future. Environmental factors helps in analysing competitive market and how a new or existing business will be turned as threat for Tesla. Analysing these factors set of valid strategies will be designed on the basis of these strategies action plan for Tesla will be designed. TASK 2 P2: Analyse the internal environment of Tesla company Tesla has been emerges as the most competitive company so thisSWOT analysishelps to reveal necessary insights regarding each and every factor of the company that is strength, weakness, threat and opportunities (SWOT analysis of Tesla Motors, 2019). So it helps to determinethe necessary factorsthat isresponsiblefor the competitivenesswithin global automotive market. Strength Tesla has dominated the US markets in terms of the sale of electric cars like in 2019 the company has wide market share in terms of the sales of Model 3 car. Accordingly it keeps on launching various variants or model in order to maintain its pace and retain its position. Along with that Tesla Roadster gained recognition due to its innovative energy management technique which even gained the support from the local authorities in order to strengthen its capability.
Weakness Tesla is unable to meet the surplus demand of the customer due to which the customer have to wait for long to get their offering which at times loose their interest level and they switches to the other competitors. One of the reasons for unbalanced demand and supply is capacity problem because of which company find difficulty to manufacture optimum quality. Opportunity After analysing the existing problem of country in terms of carbon emission and dependency on non renewable resources like fuel is very high. So to cope up with this situation Tesla adopted the latest technology and strategy the manufacturing of hybrid vehicles that are considered as green car and received immense support from the society. Hence, it helped to overcome the problem of carbon emission that leads to climate change by exploiting the external opportunity effectively. Threat In terms of manufacturing electric cars Tesla faces challenges on the basis of design, attributes as well as functioning in comparison with the other tough competitors like Ford and General motors. Stakeholder matrixis the efficient tool that help the stakeholder to determinethe necessary actions which they can align with the perspective to attain the goal effectively. It is basically the mapping of external and internal stakeholder of Tesla in order to attain its goal. This matrix comprises of four elements which are explained below: Keep satisfied:It comprises of the stakeholders who have high in power but low interest in day to day operations. It comprises of the government that analyse the performance of renowned companies like Tesla because in case of high profitability they need to pay more taxes. Monitor:Low power as well as interest involve stakeholders like employee of Tesla who are only responsible to carry their duties diligently. Managed closely:High power as well as interest involve shareholders, investors as well as board of directors to make major contribution by taking valuable decisions and investing fund in the company with the help of which it can expand its operations suitably. Keep informed:These stakeholder have high interest in the functioning of business but low power such as customers of Tesla that help the firm to generate the revenue. Due to which the manager makes necessary measure to fulfil the demand of ultimate user effectively.
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Conclusion Tesla has systemically operated in the wide market by analysis both internal and external market to appeal the interest of customer and carry out the functioning effectively. It widely depend upon the technology so that it can easily product the innovation or green vehicle fro the welfare of environment. Due to the company come up with different models like Tesla S or Roadstar with the objective to eradicate the chances of carbon emission. On other side, although it has renowned image but the political instability or conflicts with the competitors can hamper the performance of company. So each aspect has positive and negative affect that need to be considered effectively (Gumusluoglu and Acur, 2016).Information that is grabbed through analysing macro environmental provides with various factors that affects performance of Tesla organisation. Different factors such as legal, political, economic, social, technological and environmental factors influence business in positive and negative manner. All these factors help in identifying issues that are going to affect business in future. Environmental factors help in analysing competitive market and how a new or existing business will be turned as threat for Tesla. Analysing these factors set of valid strategies will be designed based on these strategies action plan for Tesla will be designed. P2: Analyse the internal environment of Tesla company Value chain:This is the prominent business model that consist of the different range of activities which is required by the company to produce the effective good as well as services. This possible help the company to maximise the chances of value generated at best possible cost. In context to Teslathis analysis is used top gain competitive advantage within the electric auto makers segment.
Illustration1: Illustration 1: Value chain analysis of Tesla, 2018 Source: Value chain analysis of Tesla, 2018 Primary activities:These activities help to add the suitable value in the to the product which help to create the unique image and gain competitive advantage. Some of them are explained below: Inbound logistics:It refer to the use of different raw materials as well as storage system used to build fully electric vehicles with the help of solar panel and storage system. Tesla depend upon various material like steel as well as copper and have the large capacity to store the final product. Outbound logistics:Tesla function in 30 countries including US fro which it has wide distribution network that help to effectively deliver the vehicles to final customers. Most of the customer select the option of customization while ordering the car via online platform. The company prefer to sell the car directly for the customer rather than involving roles of dealer because it's price is already expensive and intervention of middleman can further pushes its price. Secondary activities:These are the support activities that assist the primary activities to function effectively. Some of them are explained below: Technology:The company believes in adopting the latest technology because the product is already based on the new concept under which the company took initiative to adopt latest technique effectively.
Human resource:To add the value to customer, HR manager of Tesla hire the most potential employee that can carry out its activity effectively as well as efficiently. Resource Based view ThisframeworkconsistofthetangibleaswellasintangibleresourcesofTesla organisationsuchasmanufacturingplant,equipments,capital,globalbrandreputation, intellectual property right and so on. This lead the firm either to produce the heterogeneous as well as immobile goods. Firm produces the heterogeneous goods in order to differentiate their services from the other competitors like Tesla. Whereas, due to immobility the firm are not in able to replicate the resources and uses similar type of strategy. Although whether the firm opt different type of resources but to sustain they need to follow VRIO model to enhances the internal capabilities and gain competitive advantage. Strategic capabilityrefer to the ability, existing skill as well as capability of the firm that help to gain the competitive advantage over others. It consist of the VRIO model that help the organisation to recognise its internal capability and makes the best possible use of it in order to gain organisational success. VRIO modelis used to by the company in order to implement the unique strategy as well as features that can help the Tesla to gain competitive advantage by securing better place amongst the competitors (Higgins, Omer and Phillips, 2015). The main purpose of such analysis is that it help to uplift or improve the competitive position within the dynamic market. ResourceValuableRareImitableOrganisation Financial capability YesNoYesYesCompetitive parity Brand imageYesYesNoYesSustainable competitive advantage Unique designYesYesYesYesTemporary competitive advantage
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Highly Efficient YesNoNoYesCompetitive parity Valuable:This area help the Tesla to identify whether the resources of company helps in delivering value to the user which acts as an opportunity for company to establish unique image. In relation with Tesla motors the company has gained the valuable financial capability that can help the firm to adopt the latest innovation and cater the need effectively. Along with that the renowned image of company has helped to developed the unique brand image as well as design that appeal the interest of customer. Further, in terms of function the electronic cars are highly efficient (Linder and Williander, 2017). Rare:It's preferable if the company offer the value to customer but along with that these values need to be rare otherwise it will lead to the situation of competitive parity where business may find difficult to differentiate itself. In term of Tesla company have the rare product design as well as brand image that make it relatively easier for the customer to recognise the brand and differentiate it with others. On other side, there are other major companies like Toyota that too make huge financial investment in order to offer highly efficient vehicles. Therefore, the company need to look for the rare component in their product. Imitable:It refers to the method that is adopted by the other organisation in order to duplicate the resources as well as capability of the organisation. If the resources are imitable then it can lead to the temporary competitive advantage under which the company need to make effort to retain its position. In terms of Tesla the brand image of company as well as its efficient can't be imitated by the other competitors. Whereas, the financial resources as well as design of the company can somewhat comped by the other competitors. Organization:It reflect the structure, processes as well as management system in order to capitalise the capabilities of an organisation. Without the internal support the company will only left with unused competitive advantage.Here the string brand image of Tesla helps it to gain the leverage of sustainable competitive advantage. This is the main reason due to which the loyal customer stick to the particular brand and avail its offering only even if the switching cost is high (Holotiu and Beimborn, 2017). Competitive advantages
This refer to the situation under which the company focuses on their strength and capability by working on the strength and exploit the opportunity present in the external environment. It potentially help them to gain the dominance positions and differentiate their services from the other competitors who deal in similar type of industry. For instance, Tesla took the initiative to reduce carbon footprint by producing the electric vehicles. McKinsey 7 s framework This model consist of the 7 different internal factors that are aligned effectively with the purpose to attain the overall objective of an organisation suitably. It basically comprises of the hard element strategy, structure and system as well as soft strategy which include skill, staff, style and shared values. Tesla needs to adequately focus on each element. Such as it adopts the differentiated strategy under which it make precaution to deliver the valuable services in comparison to other competitor, for this it has adopted Functional structure which which different department such as operations and sales has its own head known as functional head that overall the performance of whole team. Along with that it carry out smooth system the area to operate the business where both manager and personnel participate into innovative thinking and leads to smooth business operations. Further, based on soft elements the manger promote training session in order to enhance the existing skill, knowledge and capabilities. For which Participative leadership style is used to coordinate the efforts of employee and interact with them in order to attain collective goals. Therefore, the share values consist of the particular norms as well as standard which is common for whole staff and manager in order to maintain systematic function to build foundation of Tesla company effectively. Conclusion Tesla motors due to its global image find convenience to sell appeal the interest of customer. This further initiate the company to take the advantage of its economies of scale effectively. For instance, the company has launched different types of SUV and Sedan like Model X and Model 3 respectively to cover the requirement of middle- and high-income group people. Whereas, there are various competitors within electric car company like Audi and Toyota so the company need to incur preferable expenditure in different innovation and technique that is time as well as cost consuming (Maniora, 2018).Thus, the company need to systematically prepare the framework of different models such as VRIO model or the McKinsey framework to
strength its capability, overcome the threat with the objective to explore the opportunity sustain in the external environment. M2: Critically evaluate the internal strength and weakness Tesla motors due to its global image find convenience to sell appeal the interest of customer. This further initiate the company to take the advantage of its economies of scale effectively. For instance, the company has launched different types of SUV and Sedan like Model X and Model 3 respectively to cover the requirement of middle and high income group people. Whereas, there are various competitors within electric car company like Audi and Toyota so the company need to incur preferable expenditure in different innovation and technique that is time as well as cost consuming (Maniora, 2018). TASK 3 P3: Application of five force Porter's model to eResource Based viewvaluate competitive force Porter's five force analysis is a framework which was propounded by Michael Porter that contain five forces which are determined by the company in order to shape the competition level within the industry. Application of these factors can help the Tesla company to analyse the external competitors environment within electric vehicle manufacture. Threat of new entrant:The probability of new firm entering in electric vehicle market is moderate as there are already well established companies such as Toyota, BMW as well as various models of Tesla like Model X, Model; 3 and Model S that has boost the whole market and gained the huge customer base. So due to the monopoly of electronic cars it is quite challenging for the new firms to gain the advantage of huge capital and position itself as a reliable brand whichleads topositiveimpact on company. Further, Tesla Roadstar has gathered the attention of global market so in case if the brand waive its patent right then certainly the percentage of new entrant will enhance refers tonegativeimpact on company. Threat of substitution:Although there are less companies engaged in the manufacturing of electric cars but the threat of substitution is high so Tesla concentrate to differentiate itself from other automotive companies and gain core competencies. So with the assistance of research and development department the company demonstrate the practical needs of customer which needs to be fulfilled desirablywhich leads topositiveimpact(McAdam, Bititci and Galbraith, 2017).Whereas, due to high substitution fear Tesla need to invest enormous amount to bring
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innovation designing and modification this is time taking process thatnegativeaffect business operations. Rivalries among existing firm:The existence of rivalries within the electric vehicles are highly competitive which means that the Tesla needs to function in the wide competitive market. So to sustain in dynamic market the company bring innovative and anticipate the interest of customers on the continuous basis that at-times acts as a constraint andnegativelyaffect the process.Contrary, even the other competitors like Mercedes Benz or BMW are identifying the Tesla's strategy and try to deliver the values to the customer in order gain the support from external market. Hence, earlier Tesla used to segment only the upscale audience but to widen its reach it andpositivelyfunction the company launched various other models like Tesla S to cover wide market effectively. Bargaining power of buyer:Buyer are the ultimate user of the product due to which the bargaining power of buyer for the electric cars arehighdue to significant availability of substitute. With the absence of switch cost from Jaguar, Audi to Tesla considerably extend the buyer's bargaining power.Along with that price sensitivity is again the greater aspect that need to be taken care by the company otherwise it can loose its market andadverselyaffect the operations. Like, if the population is price conscious and they find that Tesla prices are relatively higher then the customer will switch to the other brand. Further, the company manufacture new models like Model S that are exclusively designed to cover the middle income group range as well.This depict that the company makes positive effort to enrich its market. Bargaining power of supplier:To carry out the manufacturing process the company directly depend upon vendors or supplier to get the availability of raw materials which are transformed into the final product. Herein, Tesla has huge brand recognition due to which even the supplier want to be the part of company that lead tolowbargaining power of supplier. Additionally, the company make significant effort in order to maintain the supplier supply relationship whichpositivelyhelp them to get the raw material of supreme quality within specific duration.Further, Tesla needs to be cautious while expanding its operations otherwise this could affect the operations of firm.Thus, it can finally motivate the company to use the resources and prepare the desiredproduct for the organisational success. According to the opinion of(Scholes, 2015)it has been evaluated that, to enhance competitive edge Tesla motors needs to design its products in such manner that it satisfies large
number of consumers on the basis of quality served and price charged. Business environment related to auto mobile sector is very competitive and threat of new entry is very high. To improve competitive target market needs to be diverse that satisfies needs to different consumers. This will help company to enjoy competitive advantage through becoming best in one of its product variant. To manage good market position adoptive strategy needs to be implemented so that changes in the business environment can be used for benefit of business. TASK 4 P4 & M4: Implement different range of theories to conduct the strategic planning TheAnsoff matrixfor Tesla refers to the planning model that is designed by the vehicle manufacturing company to take the strategic decision effectively. It include different strategic options which are prepared by the organisation in order to adopt the best possible strategy for the functioning of company. Market penetration:Here the company are more reluctant to sell the current product in the current market. This strategy is extensively implemented by the Tesla Motors under it concentrate to sell the different design of the vehicle like Model 3, electric hardware, Model X and Model S within twenty nine countries along with the market of United State. Product development:With this strategy the company take the decision to sell the completely new product within the current market. In terms of Tesla Motors the company less frequent come up with new addition as huge cost is involve to carry out the manufacturing of electric cars. Hence, after taking the reviews and constructive feedback Tesla takes the decision to launch new model with new attributes and design. Market development:This is just opposite of product development as here the company seeks for new market or potential area where it can sell or diversify the range of its product. The CEO of Tesla that is Elon Musk has effectively adopted this strategy to expand the market by emerging into both developing and developed market. Diversification:This is considered as risky strategy because company take the wider step to launch the new product in the completely new market. Tesla has successfully used this strategy in order to enter within energy storage sector and manufacture the vehicle suitably. Hence,thecompanycanusevariousstrategybutprimaryitisrecommendedto concentrate on the product development under which the expert of company think that how they
can launch the new efficient product but at minimal prices. This even let the possibility to launch various variants for the convenience of customer. Strategic management plan:It comprises of the suitable strategy as well as allocation of resources which are required to strength the functioning of an organisation. The Tesla has made the strategic business plan for the customised vehicle in order to satisfy individual demand. Vision Tesla'svisionistopenetrateeffectivelyin different geographical areas in order to retain the top electronic position of the company. Mission The mission of company is to promote the brand andconcentratetoimplementthesustainable method for the adequate functioning of firm. Objectives The objective of company need to SMART so that it can be easily measured and implemented by the company. To use product development strategy in order to launch the latest design and model withinmarkettoappealtheinterestof customer and gain competitive advantage. To increase the footfall for latests product by 10% within six months. Strategies (BasedonSuitability, Acceptabilityand Feasibility) Suitability:Tesla being the large and dynamic automotive is the energy solution organisation that has gained the dominant worldwide position. So to servetheglobalcustomeritdeeplyanalyse internal as well as external factors. Like, it has significantly expanded its sales operations into the untapped marketand offer the product atless
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expensive prices to enhance the customer base. This helped the company to wide out the extensive competition available in the external market. This furtherhelpedtheorganisationtoenhancethe internal capabilities and become best selling cars in term of electric vehicles. This further helped the firmtoavoidthelowsupplyofbatteries. Additionally, enhancing the sales lead company to over shortage of necessary accessories. Therefore, thisledTeslatoadoptthe'genericstrategy' which is used to compete against the high level of competitive pressure by focusing on the advance tool and technique. Acceptability:Here the firm makes precaution to carry out the expected performance of different stakeholders such as employees and customers. The performance outcome is received in form of 3 R’s that is Risk, Return, Reactions. Return:Tesla not not attract the newpeople but retain the existing developed talent. Being global operatorin2018itearnedtherevenueof US$21.461billionduetowhichitofferhigh remuneration to their employee because of their determination and hard work. Risk:TeslausestheLithium-ionforthe manufacturing battery packs. This is highly risky because it has lead to increasing cases under which their cars have easily caught the fire. Along with this increasing competition rate within electric cars is again risky situation for Tesla. Stakeholders reaction:Different stakeholders like
investors, customer as well as employee highly relyontheoperationsofTesla.Thishas successfully helped the company to expand their operations in the emerging economies as well. Feasibility:Tesla offer the technical training as well as development session on the regular basis to make it feasible for them in terms of attaining the possible target. There are various tools such as break even analyses and preparation of cash flow statement that help to identify how effectively the goal can be attained by managing the unnecessary expenditure effectively. Tactics (Marketing MixProduct:Tesla offer the fully electric vehicles by using the latest technology for the convenience of customers.Itofferdifferentvarietiesof automotive cars like Model X, Model 3 etc. Price: As the company offer the qua laity product so for this Tesla has set the premium pricing strategy for cover niche market. Later on company launched various models like Model S which is exclusivelydesignedtocoverthemidincome range of the people. Place: Tesla has covered more than 29 countries such as US, UK. China and so on. It opens the physical store at the metropolitan market where the footfall of each store is high. Promotion:So spread the brand awarenessTesla usestakesthehelpofmediatoeducatethe customer and build effective public relation. Along
with that it uses digital media like social media, SEO to transmit the vivid information. Implementation/Control (Resource Allocation and Control Measures) Objective 1 Resources Required:Effective manpower, latest technology and cooperative suppliers. Responsibility:understandtherequirementof existingcustomerandbringtheadequate modificationforwhichrighttoolisusedto promote the brand. Target dates:25thNovember' 2020 Control Measures :Overview the performance to reduce the gap in between the requirementof customer and product done by Tesla in order to meet demand. 1.Hasthestrategybeenimplementedas planned? Yes 2.Based on the observed results, does the strategy need to be changed or adjusted No Objective 2 Resources Required:Potential employee that can maximise customer base and attain the target. Responsibility:Trainthestaffwhichcanhelp them to gain deep insights regrading the offering of company. Target dates:25thMay'2020
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ControlMeasures:Strengthcustomerservice support to reduce the chanceof dissonance and satisfy customers. Evaluation The company has opted for the generic strategy underwhichthemangerarecontinuously responsible to enhance the existing design and offering of company and provide them best suited services. This lead to maximisingthe market share of company. CONCLUSION From the details mentioned in the project report on business strategy it has been concluded that forming an appropriate strategy suitable for business is essential for success. Business strategy is formed on the basis of all the factors that can affects business in long or short run. Macro environment of business is analysed through PESTLE analysis and managers of business will be efficient in identifying factors that needs to be considered while managing business operations. Apart from this strengths and weaknesses of a business is also identified that helps in designing corrective action strategies to execute operations in smooth manner for best results. Area of growth is identified which helps in grabbing opportunities on time and enjoying good market position.
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