Strategic Planning of Tesla - Doc

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Apply appropriate framework that influences macro environment.......................................3
M1: Critically analyse macro environment to determine strategic management decisions.........5
TASK 2............................................................................................................................................6
P2: Analyse internal environment for an organisation................................................................6
M2: Critically evaluate the internal strength and weakness........................................................8
TASK 3............................................................................................................................................8
P3: Apply Porter's five force model to evaluate the competitive forces......................................8
M3: Devise strategies to enhance the competitive edge............................................................10
TASK 4..........................................................................................................................................10
P4 & M4: Applying range of theories in order to devise strategic planning.............................10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy refer to the core management practices that include combination of
decision and their implementation in order to avoid the existence of adverse condition within the
organisation (Scholes, 2015). Such strategies assist the firm to secure desired position which
leads to meeting desired ends of firm. For the better understanding of report Tesla company has
been selected which is specialised in manufacturing electric cars by using solar panels in order to
carry out multiple production in more quicker and efficient manner. The company is known for
its innovative approach to come up with electric cars that leads to minimal or zero emission of
carbon. This report cover topics like impact and influence of macro environment on an
organisation. Access the internal environment as well as capability of an organisation. Along
with that application of the outcome by using porter's five factor model. Furthermore, application
of the models, theories as well as concept to interpret the strategic direction available to an
organisation are covered in the report.
TASK 1
P1: Apply appropriate framework that influences macro environment
Pestle analysis: This include various external environment that help the firm to
understand the macro environment in which it operate its business and can affect the functioning
or performance of firm. Tesla is well know brand that has used sustainable methods to
effectively designed the business model for which it focuses on the energy product. Thus, in
order to adopt and implement the changes to concentrate on the various external factors that are
explained beneath:
Political factor: The political environment of any nation directly as well as indirectly
affect the economic activity and the rate of employment (Johnson, 2016). Usually the nations
which are politically stable leads to prosperity due to rise in higher economic activity and vice
versa.
Positive impact: Tesla unlike other vehicles depends upon electricity as well as gas
instead of fuel to run the cars. Along the drivers of Tesla can refill the cars by just visiting
electronic station for the convenience of user. Such initiative was highly appreciated by local
authorities and helped the company to expand by giving them state tax credit in order to widen
its reach.

Negative impact: Even after signing the global trade agreement and positive response
from government Tesla can find huge complexity to expand in the emerging economies because
there they can face the issue of political instability.
Economical factor: It include different economic phases that need to be studied by Tesla
company as it can affect business fortune. With the increase in awareness and disposable
economy of the people the demand of electric cars has grown up in both developing and
developed countries.
Positive impact: In order to meet the upcoming demands and expand the reach Tesla
company has come up with various variants in luxury cars like it launched Tesla Roadstar,
Model X which is the electric SUV car and gained immense attention of people. Along with that
the company introduced Model 3 which is low cost car that met the demand of middle income
group effectively.
Negative impact: Though the company has low competition in terms of electronic vehicle
but still majority of the people spend in fuel cars instead of green cars.
Social factor: This is simply of the most important factors that can influence the strong
demand and supply of product. It is vital for the company to understand the perspective and
desire of the target market for launching any product.
Positive impact: Nowadays most of the people are aware about the environment and
understand the relevance of sustainable product due to which they are favourable to seek interest
for sustainable brands like Tesla Roadstar. Thus, such transition in the attitude and preference of
people have affirmatively enhanced the market of company.
Negative impact: In order to cater the growing market for fuel efficient car Tesla need to
expand its capacity otherwise the company can consume huge time and money to supply the car
to end user which can reduce the interest level of consumer and lead to dissonance.
Technology factor: This is one of the most influencing factors that has assisted the firm
to expand their business globally from smooth production till the marketing of brand. Adoption
of latest and newest technology has lead to the growth and profitability of company.
Positive impact: Tesla has gained the special position due to the implementation of
artificial intelligence as well as automation in vehicle that leads to the advancement which is not
achieved by the other countries (Verbeke, 2013). Implementation of such strategy in terms of
technology gained huge recognition.