Strategic Management Plan

Strategic
Management Plan
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Table of Contents
Introduction...........................................................................................................................................2
Part A: An internal and external analysis.....................................................................................2
PESTLE and SWOT of the company...........................................................................................2
Competitive environment analysis using Porter’s Five Forces model.....................................6
Identification and justification of the organisation’s existing and/or potential competitive
advantage........................................................................................................................................8
Valid strategies and tactical objectives to achieve overall strategic objectives......................8
Part B: On the basis of this analysis critically evaluate and justify strategic options for the
business:..........................................................................................................................................9
Critical evaluation of the different types of strategic directions.................................................9
Justification and recommendation of the most appropriate growth platform/s.....................11
Evaluate ways and means by which the chosen strategy/ies can be monitored.................11
Conclusions..........................................................................................................................................12
References...........................................................................................................................................14
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Introduction
In the company strategy formulation plays an effective role it helps in effective
decision making in the business so that effective functioning of the company can
take place in the economy. Various strategy formulations helps in increasing the
growth chances of the business in the marketplace. if the company will not plan its
activities affectively its strategies properly then it can affect the performance and
productivity of the business in the marketplace. if the business wants to enhance its
profit in the market then it is important for the business to increase it productivity in
the marketplace. there are various internal and external factors that can affect the
profit of the business in the economy. It is important for the business to plan its
strategies accordingly so that changes of loss can be reduced in the company.
Tesla is the best electric generation and automobile company in the world it provide
the best unique services to the customers so that its demand in the market can be
increased and more profit can be earned. It was founded in 2003 and based in
California. Tesla does not pay the huge amount for promoting their product they
believe in advertising the products through maintaining the proper relation with the
customers in the market. Tesla focus on the young generation so that they can earn
more profit in the business. In this report it will be observed that how business
strategy helps in increasing the profit of the organisation in the economy (Luedke,
2020).
Part A: An internal and external analysis
PESTLE and SWOT of the company
Internal and external factors can affect the overall performance of the business in the
market there are various macro environment factors like political, economical, social,
technological, legal, and environmental and internal factors like strength, weakness,
opportunities, threat these factors can affect the performance of the business due to
which organisation has to plan its strategies accordingly. Business has to plan its
strategies accordingly so that goals of the company can be achieved effectively in
the economy.
Pestle analysis
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Tesla can analyse the external environment with the helps of the pestle
analysis. It helps in determining the need and requirement of the customers on the
basis of which services of the business can be developed in the marketplace.
Political factors: If the government will implement the trade policies then it can
affect the performance of the business in the market. free tarde expansion can
provide various opportunities to tesla to perform effectively in the marketplace. if the
government will increase tax rate then it can affect the revenue generating power of
the business in the market (Wardhaningrum, 2020). Government is providing
incentives for automobile industries which will helps in enhancing the financial
performance of the company due to which company can achieve more profit in the
marketplace. Free trade agreements will help the business
Economical environment: These factors involves market growth, currencies, trade
level etc. If the cost of batteries will be reduced in the market then it will helps in
increasing the revenue of the company. because tesla deals in solar energy
products, if renewable energy cost will be decrease then tesla can provide different
variety of goods and services to the customers. If the inflate rate in the economy will
rise then it can create various issues for the business to survive in the market
because charges of every resources will be increased automatically which can affect
the financial stability of the company. Reduction in the battery cost and renewable
energy cost is the opportunity for tesla which will helps the in achieving the mission
of the business properly in the marketplace. If the economic environment will not be
stable then it can create issues for Tesla.
Social environment: This environment deals with the changes needs and
requirement of the customers so that they can provide the best variety of goods and
services to the customers. Tesla develops its services as per the need of the
customers so that best variety can be given to them so that revenue of the company
can be developed. Providing the electric vehicle services to the customers helps in
developing the growth of the economy by providing the innovative services to the
customers. If the business will not develop its services as per the requirement of the
customers then it can affect the productivity of the firm. Preferences for renewable
energy is increasing which will helps the business in increasing its revenue
generating power of the company in the marketplace. Tesla helps in reducing carbon
pollution which helps in increasing its demand in the marketplace. Tesla helps in
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