Business Strategy on Tesla Assignment
Added on 2021-02-19
21 Pages5508 Words63 Views
Business DevelopmentLeadership Management
|
|
|
BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................4TASK 1............................................................................................................................................4P1 Apply frameworks to analyse impact and influence of macro environment........................4TASK 2............................................................................................................................................6P2 Analyse internal environment and capabilities by appropriate framework...........................6TASK 3............................................................................................................................................9P3 Applying porter's five force model to evaluate the competitive forces in given market.......9TASK 4..........................................................................................................................................10P4 Apply range of theories, concepts and models for devise strategic planning......................10CONCLUSION .............................................................................................................................12REFERENCES..............................................................................................................................13.........................................................................................................................................................1
INTRODUCTIONBusiness strategy is an competitive move and actions that helps in attract large no. ofconsumer base, compete in business environment to strengthen performance to achieveorganisational goals and objectives in proper way. It is an action plan to carried out desiredobjectives for end user. This report is based on Tesla which is an American automotive andenergy company, headquarter is in California. It specialize in manufacturing of electric cars withits solar city subsidiary. This report is based on analysis of analysis of various factors in whichPESTLE and SWOT analysis to gain capabilities with the help of VRIO analysis. To analysiscompetitive environment organisation by implementing Porter's five force model with variousstrategies directions also plays very crucial role to build strategic management plan to reach atdesirable goals and objectives in proper way. With the help of these tools and techniquesorganisation can be able to evaluate their competitiveness in market.TASK 1P1 Apply frameworks to analyse impact and influence of macro environment.Everyorganisation always want to remain competitive in market place for that theybuild various kinds of strategies and tactics and models that are as follows:In that report Tesla willing to prove that masses do not need to compromise regarding drivebecause organisation always focus on produce products as per the needs of them. Mission:Tesla's mission statement, “ To accelerate world's transition to sustainable transport.”Vision:There vision is to remain establish in market for long time by accessing emerging needsand wants of consumers.Objective:The main objective is to build cars effectively that people do not have to compromise todrive electric as they are effective, quicker and more fun comparatively to gasoline cars. Strategy:Strategy is the action that assist managers in achieving organisational goals andobjectives in proper manner by providing definite path for it. It sets a general path andcomponents to achieve desired state.
The major role of business strategy that it helps to give direction while starting a new project anddetailed out the proper roles and responsibility to each individual so that they can give their best. The major kinds of strategic directions are:culture, ideology, principles and values with grand strategies to get optimum kinds of output incontext of an organisation. Tesla bring vehicles that are electric which provide better and give quick services in comparisonto gasoline vehicles (Bharadwaj and et.al ., 2013..). Before implementing that plan organisationhave to evaluate various models and strategies to evaluate external environment with the help ofPESTLE analysis that are as follows:PESTEL analysis is an framework of macro environmental that helps in evaluating variouscomponents of strategic management that are as follows:Political factors:The one of the important attribute for Tesla to remain always competitive by satisfyingneeds and wants of consumer base and also of environment (Blackburn, Hart and Wainwright,2013). Tesla is one of the forefront organisation in electric vehicles such as in traditional vehiclesthat needed lots of fuel to run. To give best products as per consumer needs and save theenvironment provides electric cars with government also support to bring improvement anddevelopment of electric and hybrid engines. In context of Tesla which operates in Asia, Europeand united states to enlarge business opportunities. Government also provide benefit of taxcredits while buying electric cars. Specifically in context of Virginia and Colorado statesprovides tax credits to consumer at time of purchasing electric cars. All these factors sometimesaffect in positive and negative manner for that organisation use various kinds of strategies andtactics.In context of Tesla political factors affect their business because they are dealing in manycountries simultaneously so they have to build various strategies and tactics to remain alwayscompetitive in market.In context of Tesla as they operated in large market share such as in Asia, Europe andUSA markets so they have wide opportunities to enlarge business opportunities but on otherhand they suffer from lots of debts and financial instability which hinders their self interest. Economic factors:
Tesla when introducing electric cars in market by analyse needs and wants of consumersin proper way which helps them to risen their sales. In 2017 when the economy would grow by3.5 percent simultaneously sales of Tesla also rises because they are interrelated to each other inmarket of Asia. Sales rises particularly in countries Asia and Europe with united states by morein electric developments (Ghezzi, 2013.). The main factor behind their success that firstly it isinnovative product and price of materials is on decline for Tesla particularly of their batteriesthat used in their cars. All these factors helps them to build cost effective vehicles in public thatdirectly and indirectly proved beneficial for economy. So their innovation helps them to remainalways competitive in market place to grab opportunities in better way. With the advent ofeconomic stability organisation can easily prosper in dynamic environment.In context of Economic factors they operate at various nations and share proper roles togain profitability but change in economic conditions of a particular nation it affected in theiroverall business growth. Social factors:It is one of best idea for both public and organisation and particularly people who preferseco friendly products and services. That kind of vehicles helps to eliminate fuel that are used intraditional vehicles which proved harmful for environment of market of Asia and Europe. Peopleprefer electric vehicles as they are supposed to the cheaper source of transportation incomparison to traditional vehicles (Grover and Kohli, 2013.). It focused majorly on environmentfriendly products and services that are innovative in nature that helps in giving best products asper needs and demands of consumers.. It is one of string factor in front of Tesla to give bestproducts that are far away for their competitors.In context of Tesla social needs and wants of consumers as changes they have to put more effortson research and development that are cost consuming activity for them. Technological factors:Technology is one of the most important factor that helps to organisation to remainalways competitive in marketplace. Technological up-gradation helps to remain always efficientfor sustainability and usability in marketplace. Electric cars of Tesla are highly upgraded incomparison to traditional cars in that industry. The another important factor that they majorlyfocus on bring innovative products and never use obsolete technology by adopting newestgadgets and apps to remain always competitive in marketplace. So it is a great hub of artificial
intelligence and automation in their motor vehicles to always lead in marketplace. As theconsumers become more demanding and needs innovation in their products and services in betterway. To give best products organisation have build electric vehicles that are more efficient incomparison to traditional vehicles.As Tesla invest time and resources to apply one of best tools and techniques in theirorganisation but by using it they have to spend more amount on training and development ofemployees. Environmental factors:The one of the biggest strength lies that it marketed their products and services as ecofriendly products in marketplace by providing cars that are electric and not consumes fuel(Hoejmose, Brammer and Millington, 2013). It follow or abide rules and regulations ofenvironment that less effect on carbon emission. By saving self interest of environment theybecome major brand name in which organisation cannot compare by it. In context of Tesla theyby producing eco friendly products and services can enlarge business opportunities.Due to rising awareness towards environment they bring electric cars in the market and invest inCSR activities by following carbon emission regulations that hinders self interest of anorganisation. Legal factors:Tesla is an multinational brand name to remain always up to date with their internationalpatents and sometimes they have to face legality issues that hinders self interest of them. As thatorganisation focus on eco friendly products and services and promote themselves as as energyefficient by abiding international rules and regulations. While operating in different nationswhere requirement of consumers different from each other such as employee legislation,environmental laws and many more.AS the operate in many countries simultaneously so they have to mould their internal works andactivities accordingly then their internal department affected from it. Shareholder Mapping:Shareholder mapping is an visual representation of analysis of stakeholders by organisingpeople as per their criteria during a specific project. In context of Tesla they use power interestmatrix in which they provide power to their stakeholders to stop or change the project and on
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Different Frameworks to Analyse the Impact of Macro or External Environment on a Company and its Business Strategieslg...
|19
|6394
|46
Business Strategy - Tesla Assignmentlg...
|18
|5840
|66
Impact and Influence of Macro Environment on Strategieslg...
|20
|6553
|93
Analyzing the Impact of Macro Environment on Tesla's Business Strategieslg...
|23
|6401
|68
Business Strategy - Tesla Assignmentlg...
|15
|4042
|25
Analyzing the Impact of Macro Environment and Internal Capabilities on Tesla's Business Strategylg...
|19
|6513
|55