Implementing Frameworks for Macro Environment Impact on Tesla

INTRODUCTION
Business strategy exists as the combination of various decision that are taken by the
organisation to make effective decisions. All the decisions that are taken by the organisation are
formulated in a way that can leads the management to ensure a competitive position in the
market. An effective business strategy states as the backbone of business by working them as a
roadmap which leads organisation to achieve their goals in predetermine period. This reports is
based from the perspective of TESLA which is one of the leading organisation of automotive
industry. Along with this they are the larger manufacture of electric cars. Further, this report
highlights on macro environment and the frameworks for various strategies. Internal
environment and capabilities will also be covered in the report. In the last, Porter's five forces
and various theories, concepts and models related with strategic planning will also be covered in
this report.
TASK 1
P1 Implement of appropriate frameworks and its impact on macro environment on the
organisation
Macro environment undertakes all the external factors that are beyond the control of the
organisation and impacts on the decision-making as well as goal of the organisation. It is
mandatory for the organisation to monitor this changes on regular basis because its directly affect
the performance of the firm. So with the implement of the appropriate framework it is easy for
organisation to deal with changes by developing effective strategies for the organisation. Macro
environment factors and its impact on the influence of TESLA and its strategies is as follow:
Political factors- Political factors related with organisation and industry policies and a
country regulation in which a firm is operating their business. Governmental policies, taxation
rates, trade restrictions and many more are some aspects of organisation by which organisational
strategies will be influenced. Political conditions of the UK are stable which makes business
strategies favourable for the organisation. On the other side Brexit, generates a few instabilities
in the country, so to overcome from political factors TESLA formulates new strategies in order
to perform their operations in complex environment (Buckley, Burton and Mirza, 2016).
Economic Factors- Economic factors are one of the crucial part of the organisation as
they are directly related with organisational profits and financial aspects. In context of macro

environment, interest and inflation rate, GDP rates etc. are some of the major aspect of
economical factor. In the present scenario, UK provides sources such as raw-materials, cost and
other essential resources within minimum time period (Dodgson, 2018). So it works as one of the
major advantage for TESLA as it leads them to complete their production at a minimum cost. So
large profits are earned by the organisation as it helps them to complete their work in appropriate
manner due to which large profits are earned by TESLA.
Socio-cultural Factors- The social factor reflects the lifestyle, preference, taste and the
culture factors that leads organisation to perform their operations according to the society of a
country. In the context of UK market, there are large number of consumers belongs to different
culture, religion and race exists. Therefore, the existing demand of the market is unique.
Moreover, the increased concern about the redemption of natural resources works as a positive
factor for Tesla motors. Further, there is high inequality exists for the market of UK as compare
to developed countries. So to decide the pricing strategies for organisation is one of the major
decision which impacts on the market (Drnevich and Croson, 2013).
Technological Factors- The technical aspects of the organisation relate with
technological advancements, innovations and automated process of a country. In the context of
UK, there are various countries present in the market that are high in technology. Due to which
its directly impacts on the business strategies of the organisation. Moreover, the major benefits
which is gained by the organisation as it is easy for management to grab the upcoming
opportunities in the market. Like Tesla introduces electric cars at its initial stage and later with
the impact of technology. Management started to develop electric sports cars in the organisation.
As the major influence which relates with organisational performance is due to constant changes
in society (Hoejmose, Brammer and Millington, 2013).
Legal Factors- They are various laws and order are present in the country which prevails
an organisation to complete their work in a discipline manner. The main motive of UK laws is to
protect the interest of local organisation, so it is easy for them to perform their work in minimum
time period. It is related with organisational performance. So it is easy for the management of
TESLA to perform their work by considering all the laws in an appropriate manner. On the other
side, there are various laws related with pollution works as an advantageous factor for the
organisation. However, TESLA needs to follow the legislations in order to ensure as a legal
framework for country (Johnson, 2016).

Environmental Factors- There are various environment factors related with the country,
along with this from the several past years, NGO, government and also organisation are aware
about the environment policies. As per the UK environment policies it is based on various
principles of the command as well as control. Like the pollution standards, release of harmful
gases as to release them as per the limits decided by government. Tesla manufactures
environment friendly products such as solar-energy batteries, electric used vehicles which are
beneficial to reduce global warming from the world. So the factors related with environment
leads the management to increase their efficiency by reducing the pollution from the world
(Langabeer and Champagne, 2016).
M1 Analyse of the macro-environment factors to determine strategic management decisions
Macro environment reflects all those external factors that are not able to change and
controlled instead of businesses. This strategic management decision is able to deal with the
modifications in external environment of organisation. Business strategies are developed in order
to reduce the impact of external factors. So it is easy for management to achieve organisational
goals and objectives in an appropriate manner. Tesla must improve their business strategies in
order to deal with instability political and economic conditions of the UK. Further, technological
advancements work as a positive factor for Tesla. Environment conditions of the UK are also a
favourable aspect for the organisation which can enhances the performance for Tesla as it
formulates all policies in favour of Tesla.
TASK 2
P2 Analysis of the capabilities and internal environment of the organisation
Internal capabilities work as a positive factor for Tesla because it assists management to
analysis strength and weakness of the organisation. One of the major positive factor for
organisation is to make modifications through controlling and managing them towards the goals
and objectives of Tesla (Lehmann, 2016). Its includes organisational structure, employee’s
values, physical resources, technological aspects and all those factors which are control by the
organisation. Some of the effective frameworks that are related with internal environment and
capabilities are mention as follow:
SWOT Analysis: SWOT analysis provides a detailed analysis of internal factors of Tesla. The
strengths so analysed can be enhanced whereas the weaknesses are to be dealt with so that the