STRATEGIC MANAGEMENT 17 STRATEGIC MANAGEMENT Strategic Management Name of the University Name of the student Name of the university

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of the student
Name of the university
Author note

1STRATEGIC MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Determination of the business strategies.........................................................................................2
Environmental analysis....................................................................................................................3
Resource and competence analysis..................................................................................................4
Argument for the strategic direction................................................................................................6
Development of the strategy plan....................................................................................................6
Vision and mission statement......................................................................................................6
Gathering information.................................................................................................................7
Formulation of the strategy..........................................................................................................8
Key performance indicators.........................................................................................................9
Strategic implementation plan.......................................................................................................10
Communication method.............................................................................................................11
Monitoring and evaluation process............................................................................................12
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................15

2STRATEGIC MANAGEMENT
Introduction
Effective process of strategic management is important for the business entities in order
to have the understanding about the strengths and the areas of improvement. In the current
competitive business scenario, it is important for the organizations to initiate their strategies on
the basis of the identified factors. This includes the determination of the business strategies and
environmental factors (David and David 2013). Effectiveness of the strategic intent of the
organization will determine the extent to which they will survive in the competition. This should
also be noted that strategic management process will not be effective only by initiating but also
by effectively implementing. Hence the implementation plan should also be designed in the most
suitable manner.
Tesla is the leading and the most emerging automobile brands in the world in the current.
They have changed the entire business scenario of the global automobile sector by introducing
the electric mobility solution. In the last few years of their operations, Tesla gained enough
market presence and brand identity for their innovation. However, still there are areas where they
are trailing behind their competitors, which should be identified (Stringham, Miller and Clark
2015). This report will discuss about the business level and corporate level strategies of Tesla.
Environmental analysis will also be initiated and on the basis of the identified factors, strategic
plan will be developed. This report will also develop the implementation plan for the strategic
plan including the KPIs.
Determination of the business strategies
In terms of the business level strategy, it is identified that Tesla is following
differentiation and market focus strategy. According to the differentiation strategy, the products

3STRATEGIC MANAGEMENT
of Tesla are distinctive and unique in nature in terms of looks, performance and range. Thus,
even with the higher price, Tesla cars are attracting fair segments of customers. On the other
hand, as per the market focus strategy, they are catering to the customers seeking for emission
free cars with the higher performance and acceleration. The cars of Tesla are being designed in
view to the expectations and preference pattern of the target market customers (Mithas, Tafti and
Mitchell 2013). It is also identified that in terms of the corporate level strategies, Tesla is
following diversification strategy. This is evident in their product portfolio where Tesla is
offering batteries, superchargers and electric cars. Among the electric cars, they are having
different products ranging from super premium Model X to more affordable Model S. This is
also helping them in catering to different customer segments. However, due to the lack of cost
leadership approach, Tesla is losing out to the mass market customers and sales volume
(Robinson and Verdier 2013).
Environmental analysis
Political factors  Tesla is currently operating only in USA, Canada and China.
These countries are having different political scenario with China
is having completely different with the other two.
 Positive political factor is evident for Tesla as different countries
are embracing electric mobility (Bettig 2018).
 However, the emerging global instability can be challenging for
Tesla because huge investment is associated with their foreign
operations. Hence, political instability will be detrimental for
Tesla in managing their positive return on investments.
Economical factors  With the average increase in the global economic rate, the