Business Strategy: Internal Environment and Strategic Direction of Tesla

Business Strategy

Table of Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
TASK 2............................................................................................................................................1
P1Assess the internal environment and capabilities of Tesla.....................................................1
M2 Measure the internal environment to assess strengths and weaknesses of Tesla.................2
TASK 3............................................................................................................................................2
P1 Interpretation strategic direction for Tesla.............................................................................2
M4 Produce a strategic management plan for Tesla ..................................................................5
References........................................................................................................................................7

Introduction
Business strategy refers to combination of different types of decisions that are taken in
the organisation and actions are taken in order to achieve them and hold competitive advantage
in the industry. It act as a roadmap to the company which provide direction by analyse it
competitive position in the market to fulfil the organisational objectives (Phawa, 2020). Business
strategy is the process which help in overall organisational planning, find the strength and
weakness, strategy to have control over the decisions, Provide competitive advantages and also
ensure the efficiency and effectiveness. For current report, chosen organisation is Tesla, an
electric car manufacturing company founded by Elon Musk in 2003.
Main Body
TASK 2
P1Assess the internal environment and capabilities of Tesla.
VIRO Analysis: The model help management authority to analyse the company's resources and
capabilities. It is acronym that stands for Value, Rarity, Imitability and Organisation. Theses four
components of the model help in discover the sustainable competitive advantage for company.
Thus it help in long term growth.
Core competency value Rarity Imitable Organise
Innovation    
Product extent   
Suppliers   
Brand image    
In order to understand the model the following components of this model is discussed in
following section in context to Tesla:
Value: The company is gaining popularity only because of the innovational thought they have
put in the company. It is the innovation around which the whole business model of Tesla revolve
around. The idea was profound by Nicolas Tesla and winged by Elon Musk. The company
through its vision have provide clarity in future of vehicle industry which will going to dedicate
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