The Strategic Audit of a Tesla Motors

Running Head: Strategic Management 1
Environmental Analysis of Tesla Motors

Strategic Management 2
Contents
Introduction......................................................................................................................................3
External environment.......................................................................................................................3
General environment....................................................................................................................3
Porter’s five forces.......................................................................................................................3
Competitive environment.............................................................................................................4
Internal environment........................................................................................................................5
Resource and capabilities.............................................................................................................5
Value chain analysis.....................................................................................................................5
Strengths and weakness...............................................................................................................6
References........................................................................................................................................7

Strategic Management 3
Introduction
This report is all about the strategic audit of a company. or the discussion, company Tesla
Motors is taken. Tesla Motors is the American Automobile company which is manufacturing and
designing the electric cars and vehicles. Tesla Roadster manufactured by Tesla was the electric
sports car that followed other electric and luxury vehicles. In current time, Tesla is operating at
the global level including the major markets of America, Asia and Europe. It is observed that the
demand for electronic and sustainable vehicle is increasing continuously and it is increasing the
opportunity of the companies like Tesla for manufacturing innovative products. Now, Tesla has
better chances to expand in various countries like India, New Zealand, and Dubai and in many
countries. This report focuses on the external and internal environment analysis of Tesla for
successful business operations (Miller, 2012).
External environment
General environment
Current market situation of the company Tesla Motors can be analyzed by various
analyses such as Porter’s five forces, SWOT analysis etc. In case of general environment
analysis, there are some factors i.e. development of technologies, legal and political factors,
changes in the demography, economic factors which impact on the business operations and
growth of the company. The political factors impact on the electric car manufacturing company
including laws and rules set by the government. These rules can impact on the manufacturing
and distribution of the motor vehicles. Demographic factors include country barriers that impact
the marketing of the products in all over the world (Andrews & Johansen, 2013).
Porter’s five forces
Threats of new entry-
 High level of knowledge is expertise is needed,
 No economies of scale because of low volume production,
 Need high capital investment to enter, and
 Companies with high economic power can easily enter in market