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Strategic Management Theories of Tesla

   

Added on  2021-02-20

12 Pages4109 Words1149 Views
Unit 32

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Impact of macro environment on Tesla.......................................................................................1Internal Environment Analysis....................................................................................................2Competitive Force Analysis of Tesla...........................................................................................5TASK 2............................................................................................................................................7Strategic Management Theories..................................................................................................7Recommended Strategy for Tesla................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10

INTRODUCTIONBusiness strategy may be defined as a combination of various actions and decisions takenby company in order to achieve the targets of the organisation and to make competitive positionin a market. It is considered as foundation of the business and also acts as a roadmap for theorganisation in order to achieve common goals (Mourdoukoutas, 2015). Business strategyshould be formulated in such a way that it should suit to the organisational objectives. With highlevel competition, importance of business strategy has been increased. This also resulted inincrease in types of business strategies which can be used by the organisation. In this reportTesla is taken as an organisation, which is electric car manufacturing company of United States.This report discusses about the impact and influence of macro environment on Tesla andanalysing its internal environment and its capabilities. Present report also discusses about thePorter's five force of Tesla and their outcomes and includes the application of theories, conceptsand models in order to devise strategic planning of the organisation. TASK 1Impact of macro environment on TeslaMacro environment is the environment which is present outside the organisation and istotally out of control of the organisation (Najafizadeh and Kazemi, 2019). In order to understandthe impact and influence of macro environment PESTLE can be applied in a following way: Political factors: There are range of political factors which can have an impact on theautomobile manufactures and it also has huge impact on Tesla such as:Positive impact: One of major political benefit for Tesla is that UK's national and stategovernment are formulating polices which encourages the manufacturing and sale of electricvehicles in the country which may prove beneficial for Tesla. Negative impact: Brexit may have negative impact on the sales of Tesla in the countries asTesla is US company, it would have to face some restrictions in operating business in UK. Economic Factors: It is also one of the major factor which have an impact on the organisationsuch as:Positive impact: Increase in economy will lead to increase in purchase of Tesla cars.Negative impact: With the increase in demand there will rise in prices of electric batteries willmake more expensive which may decline the sale of company. 1

Social Factors: This factor also plays an important role in the success of the business and itsimpact can be explained as:Positive impact: The idea of electric car is fascinating for the people particularly for those whoare eco-friendly and people in UK want eco-friendly environment and surrounding which mayincrease the sales of the organisation.Negative impact: Some people may not prefer electric cars as they think there are many issueassociated with it like, low power, recharging issue etc which may decrease the sale of cars.Technology Factors: For Tesla this factor plays an important role for formulating the businessstrategy and have impact on the performance on the company which includes:Positive impact: Due to improvements in technology, Tesla model will be equipped with driverless technology which gain company a competitive advantage.Negative impact: There is a chance of getting technology obsolete in the future which is used byTesla. Legal Factors: This is major factor which have impact on the organisation such as:Positive impact: UK' is planning to shift from tradition cars to electric cars by 50 percent in2050 which will be major positive impact on sale of Tesla models in UK in the future.Negative impact: There may be increase in the standards and regulations in electric cars willprove challenging task for the organisation. Environmental factors: It impacts the organisation in following ways:Positive impact: Environmental factors are the key opportunities for Tesla as its cars areenvironmental friendly which could rise the sale of the company. Negative impact: Maintaining the standards of low or zero emission is challenging task forTesla. Internal Environment AnalysisThe micro environment factors are the factors which are present inside the businessorganization and can be controlled by organization (Cortimiglia, Ghezzi and Frank, 2016). Aorganization internal environment can be analysed by SWOT analysis.SWOT AnalysisStrengthsTesla is well known brand on international level which is known for its innovativeapproach towards the product development. The Tesla is known for its innovation in auto mobile2

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