Case Study on Tesla Assignment
Added on -2021-02-21
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Tesla Strategy Report
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1PESTEL Analysis........................................................................................................................1SWOT Analysis...........................................................................................................................3Porter Five Force Model..............................................................................................................4TASK 2............................................................................................................................................6Bowman's Strategical Clock........................................................................................................6Recommended Strategy...............................................................................................................7Strategic Planning........................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONBusiness strategy is considered as actions and plans of an organization that are designedto get competitive advantage in market place. Main objective of this business strategy is to attractmore and more customer towards the company product and gain maximum revenue by sellingproduct and services to customer (Kushwaha and Sharma, 2016). This is a tactic based plan thatworks with short term and long term goals. Tesla is a multinational organization and servingpeople from all over world. Tesla was established in year 2003. Tesla is providing electricalvehicles to customer and related services to it. Company headquarter in Palo, Alto California,United States. This report is analysing the internal and external factors that can influence thebusiness of company. Marketing analysis of Tesla is also covered in report. Different types ofbusiness strategies are explained in report. Business is explained for Tesla to improve itspositioning in market.TASK 1PESTEL AnalysisPolitical FactorsGovernment is the controlling body of country and it is their responsibility of governmentto make right policies and decisions to keep status of nation stable on global platform.Government makes different policies that are related to various areas. Most of the strategies ofgovernment are related to economic policies, trade policies, foreign policies and tax policies.This polices can affect both company and employees. It can influence the decision oforganization and working of employees (Rawlinson and Wells, 2016). If government change theforeign policy for particular country in which organization is operating, this can affect thebusiness of organization and policies of organization. Economic decision and changes force thecompany to change the pricing methods that is currently used in Tesla motors. Trade rules ofcountry also affects the decisions of organization that are related to marketing policies ofcompany.Economic FactorsThe economic changes on national or international level also can affect the business andeconomy or organization. These different economic factors are related to tax policies of differentcountries and economic crisis and recession are also considered as external economic factors thatinfluences the business of Tesla Motors. Different taxation policies of different nation force the1
company to design individual economic policy for business in each nation. The condition ofeconomic crisis make the company to deal with various problems that are caused by crisis. Theseproblems are unemployment, inflation and reduction of sales of company product. This is howthese economic factors affect the business of Tesla Motors.Social FactorThe social factors are more about personal, social and cultural values of people oforganization. This factors are related to the satisfaction level of people and other issues which arerelated to cultural and social values. This factors are also known as socio-culture factors.Different things are consider in this factor. Education level of people, population of locality andmarket place. Tesla is offering electrical vehicles to consumer and if the customer are aware ofsustainability and well educated then this will help the organization to convince them aboutproduct of company(Thompson, Strickland and Gamble, 2015). Sales of organization isdependent on Population of country and average income of people. Sustainable product willencourage the people to purchase this product and this can improve the business of organization.Technological FactorsTechnological factors are related to technology used in organization. New and innovativetechnology in market is big challenge for organization. If some other company is using the latesttechnology in their product then this will reduce the market share of company. Tesla possessingmonopoly in electrical vehicle market and no other company is closer to the technology used byTesla. So, this is advantage to company that they are holding technological edge in market. Theother technological factors are about how much efficient technology company have. If theproduction line technology of organization is not effective then this will not be good for Teslamotors.Environmental FactorsThis factors affect the production and methods of company. According to availability ofraw material at company location is most important for continuous production of companyproduct. If the raw material are out of reach for company location then it will cost much more tocompany to arrange raw material for regular product. The geographical location of company isImportant to conduct business. Company location should be selected on the basis of connectivityto world. For global business organization need to select proper location to control otherbranches of organization. Other thing in this factor is about the sustainability of production of2
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