Strategic Management: Internal and External Factors of Tesla and Strategic Solutions

Strategic Management

Table of Contents
INTRODUCTION 200....................................................................................................................2
TASKS.............................................................................................................................................2
SET 1: Case Study 1233.........................................................................................................2
SET 2:Strategic Solution Slide 1233......................................................................................4
SET 3: Reflective View 1233...............................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
Strategic management refers to the process in which continuous planning analysing
monitoring and assessment of various requirements of the organisation are made so that the
company can be able to meet their goals and objectives. In order to have effective strategic
management a company is required to analyse the changes in the business environment so that
they can be able to formulate effective strategies for their success. There are various stages that
can be used for a strategic management in an organisation that has setting of goals and objectives
analysis formulation of strategy implementation of strategy and monitoring the strategy. All
these factors helps an organisation to have effective strategy and provides them and direction
towards effective development of plans and policies for the company. In short the strategic
management adopted in an organisation helps them in attaining competitive advantage in the
market. This report is going to evaluate about the internal and external factors of Tesla and how
the company reacts to it with strategies adopted by Tesla which impacts the company during
making decisions and activities. It also explains how the company can deal with the external
environment which is directly linked with the growth of business as well as analysing the
external factors which are beneficial to them to understand the different opportunities to avoid
the market-based risks.
TASKS
SET 1: Case Study
 Strategy adopted by Tesla impacts the company's decision and activities 617
There are various strategies adopted by Tesla which creates major impact on the activities and
decisions of the company.
◦ Building a new architecture- The
◦ Controlling the bottleneck-
◦ Delivering solutions-
The external and internal factors of Tesla and how the company responses to the factors-
PESTLE Analysis of Tesla is explained below-
It assists in knowing the market growth or decline, potential and direction for operation. It is
widely used tool by marketers to monitor the macro environmental factors that have an major
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impact on an arrangement, company or industry. It was known as PEST Analysis. It is an form
used in marketing to examine external factors.
The PESTLE Analysis is applied and estimated in the context of Tesla below:
Political Factors- When the government policies interfere in the economic and other factors that
can affect a business. These include various points such as the labour law, trade traditions, tariffs
trade restrictions political stability, bureaucracy and tax policy. In case of Tesla, the
government's involvement has strengthened the financial position of the Tesla to boost its
performance. The policies of government have also supported Tesla to expand its operating in
the other countries (Grassi and Vallati, 2019).
 Economic factors–Economic factors refers to the economic growth or decline, interest,
exchange,inflation, hours unemployment, credit availability, cost of living and its
profitability. In case of Tesla, sales depend upon the local economy of the country. This
can be done by making cost effective cars for ordinary customers for their benefit to meet
the growing demands of the market.
Social Factors-Social factors are directly attached to the consumers which includes cultural
norms, age distribution, population growth rate, health and safety. These factors are helpful for
companies to better plan their marketing analytics and strategy. Tesla is one of a kind under the
category of luxurious electric cars in the knowledge of people. Social factors are in favour of
Tesla because the environment friendly attitude of people towards renewable energy )(Jones and
Kierzkowski, 2018)(Karpenko and et.al., 2019)(Köseoğlu and Parnell, 2020) (Liu, and et.al.,
2019)(Mayer, 2018)(Nazarova, 2019)(Pasch, 2019)(Phillips, 2018)(Shaner, 2019)(Stephens and
Martin,2019)(Yin and et.al., 2018)( Zahari and Romli, 2019)
 Technological Factors- It includes Innovations and developments in the industries.
These factors create an impact on organization's daily operations. Several new
developments like Deep learning, Artificial intelligence, machine learning are being
made in the technology field and if a company fails to match up the trend it may lose its
place in the market. Technological factors help Tesla to have a competitive edge for the
competition in the market which allows it to be fuel efficient which is possible by
adopting the newer technology.
 Legal Factors-These legal factors have an impact on the business environment in a
country. It includes various laws such as employment laws , discrimination law,
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