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Macro Environment and Competitive Forces in an Organisation

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Added on  2021-02-20

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This company is providing its products to different parts of the world and evaluating all micro factors are very important as it effect decision making as well as helps in developing effective strategies. In order to analyse and evaluate all factors of micro environment Tesla company needs to conduct PESTEL analysis as it will provide a proper framework for manager to monitor different elements of micro environment (Amran and et.al., 2016).

Macro Environment and Competitive Forces in an Organisation

   Added on 2021-02-20

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Business Strategy
Macro Environment and Competitive Forces in an Organisation_1
Table of ContentsINTRODUCTION...........................................................................................................................1P1. Applying appropriate frameworks analyse the impact and influence of the macroenvironment on a given organisation and its strategies..........................................................1P2. Analyse the internal environment and capabilities of a given organisation usingappropriate frameworks..........................................................................................................3P3. Applying Porter’s Five Forces model evaluate the competitive forces of a given marketsector for an organisation.......................................................................................................6P4. Applying a range of theories, concepts and models, interpret and devise strategic planningfor a given organisation..........................................................................................................7CONCLUSIONS............................................................................................................................10REFERANCES..............................................................................................................................11
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INTRODUCTIONStrategy can define as a action plan that is developed in order to achieving goals andobjective of organisation (Akter, and et.al., 2016). It is very important for business developeffective and efficient strategies so that desired targets can be accomplished timely. Strategiesare very significant for foresee of future as well as identifying and analysing various factorswhich can affect business as well as its operations. Company chosen for this report is Tesla. Thisorganisation was established in 2003 and this company was foundered by Martin Eberhard, MarcTarpenning, Elon Musk, J.B Straubel. Tesla is dealing in automotive and energy storage sectorand it is providing its prodcuts or services to all round the world. Headquarter of Tesla is locatedin Pola Alto, California, US. This company is developing Electric vehicles and Tesla Energy.This report is going to include the impact of macro environment as well as internal capabilitieson the organisation. It consist of Porter's five force model and different theories and models isalso included in order to develop an effective strategies. P1. Applying appropriate frameworks analyse the impact and influence of the macroenvironment on a given organisation and its strategies.Micro environment refers to all those factors which can have major impact on businessand these factor can not be control by organisation. Tesla company have to deal with variousfactors of macro environment and these factor have huge influence on its business operations.All strategies and important decision of Tesla company should be taken after evaluating businessenvironment and identifying its effect on company. This company is providing its products todifferent parts of the world and evaluating all micro factors are very important as it effectdecision making as well as helps in developing effective strategies. In order to analyse andevaluate all factors of micro environment Tesla company needs to conduct PESTEL analysis as itwill provide a proper framework for manager to monitor different elements of microenvironment (Amran and et.al., 2016). It includes political, economical, social, technological,environment and legal factors. All these factor with their impact on Tesla organisation inmention below.Political factor: Political factor includes different types of rules and regulation that isformed in political and government party. This factor is helpful in identifying the impact of1
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government on business and its operations. Political factor includes government policies,stability of political party, foreign trade policy, taxation policy, restriction on trade and manymore. This factor will have both positive and negative influence on strategy making as well asdecision taking for business. Stability in UK political party can be consider as a positive impacton political factor on Tesla business as it will lead to smooth functioning of business operations(Bharadwaj and et.al., 2013). There is strict trade restriction policy developed by UKgovernment which will have negative impact on Tesla as it will affect it's sales and profitability. Economical factor: Economical factor play a crucial role in developing effectivestrategies for achieving goals and objectives of receptive organisation. This factor includesinterest rate, exchange rate, economic growth, inflation, income of consumers as well as businessetc. Economical factor is majorly related to financial condition of a country which affectbusiness operations. UK has one of the most growing economical condition which lead toincrease customer base of Tesla as they have potential to buy premium products. Negativeimpact of this factor on Tesla business is that high interest rate is charges in UK which directlyaffect the pricing of Tesla's products. It will lead to increase the price of products. Social factor: This factor is also considered as socio-cultural factors and it includesattitude, belief, living standard, culture, custom and many other factors. It is very important toconsider social factor while developing strategies for respective organisation as all products andservices are developed in order to satisfy customers. Social factor will have direct as well asindirect impact on business operations. Positive impact of this factor on Tesla business is that itis developing products after considering needs and wants of customers. Respective company isconducting proper research for identifying requirement of society and buyers. Negative impact ofsocial factor on Tesla is that customer's needs and want is continuously changing. This will affectsales of Tesla company. Technological factor: Technological factor includes new and innovative way ofdeveloping and producing products. It is very important for Tesla company to use advance andupdated technology in this operation process so that they can create better products in order tosatisfy customers (Blackburn and Hartand Wainwright, 2013). Technology factor will havepositive as well as negative impact on business and this will directly affect decision-making ofrespective organisation. Positive influences of technological factor is that UK country has mostdeveloped and advance technology which will help in producing better products as well as2
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