logo

Strategic management plan for Tesla Motors

   

Added on  2021-02-21

14 Pages4247 Words207 Views
Tesla Strategy Report

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1P 1 Impact of macro environment on organizational strategies and business activities..............1LO 2.................................................................................................................................................3P 2 Internal environmental analysis of Tesla Motors..................................................................3LO 3.................................................................................................................................................5P 3 Competitive forces for Tesla Motors.....................................................................................5LO 4.................................................................................................................................................6P 4 Strategic management plan for Tesla Motors........................................................................6CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONBusiness strategy refers to a plan or set of steps that states how the company will beachieving its goals and objectives as well as what measures it will take to sustain competitiveadvantage in the market. This report is based on the study of business of Tesla Motors, Inc. It isan American company that is specialized in manufacturing of electric cars through solar energy.Tesla also deals in manufacturing of solar plants and energy being served worldwide. Consistingits headquarters in Palo Alto, California, U.S., Tesla has overall revenue of US$21.461billionand has 45000 of employees working under it. This report will highlight the impact of macroenvironment on the organization and analyse its internal environment and capabilities. The reportwill also study the application of Porter's Five forces of competition on Tesla Motors company.The report will also include the application of different models and theories to drive towardsstrategic directions for the organization.LO 1P 1 Impact of macro environment on organizational strategies and business activitiesTo understand the impact of macro environmental factors on the business of TeslaMotors, PESTLE analysis is being initiated for the company which include following factors- Political Factors- Political factors as fast being concerned posses benefits to TeslaMotors in various forms. The current step being initiated by Federal Government is to offer$7500 Tax credit to the people buying electric cars, which turns out to be main financial benefitfor Tesla Motors as more consumers will turn up to its products. Tesla can grab this opportunityby improving its financial performance through the different incentives being offered by thegovernment. On the other hand the political stability of automobile industry turns out to befavorable environment for Tesla's competitive strategy and its growth strategy. Government istaking various initiatives for the support of manufacturing electric cars and hybrid vehicleswhich turns out to be political advantage for Tesla Motors. The company is been getting lowinterest loan from US government which turns out another benefit to expand its products byTesla Motors(Morden, 2016). Economic Factors- There has been immense growth and popularity of electric carsacross the different economies of the world. The global economic growth is being expected to be3% in the year 2019 and 2020 and the $39.8 billion market of electric vehicles is expected to be1

$1.5 trillion by 2025. Thus economic factors turns out to be a great opportunity for Tesla Motorsfor its growth and capitalization. Another benefit from these factors is the decreasing costs ofbatteries. As the cost of battery is the important cost factor in determining the overall cost if anyelectric vehicle, it will turn out to be a major benefit for Tesla Motors. This in turn will make thecompany to produce more electric vehicles at affordable prices by consumers. In addition therehas been decline in the material cost of the electric vehicles as Tesla provide its electric car withlow maintenance cost which in turn benefits the customers and company as well, resulting intocreation of more customer base for the company(Lasserre,2017). Social factors- Social factors include the mindset of people as well as their purchasingpower and preference. The concept of electric cars is being more popular and fascinating for thepeople especially due to their rising concern for Eco-friendly products. The elimination of theuse of fuel and reducing the pollution as well as concerning about the nature and environmenthas created positive impact on the society by Tesla motors(Hitt and et.al., 2016). Anotheradvantage is the cars of Tesla are less expensive and at low maintenance cost which is commonlyaffordable by the people of moderate income group as well. Thus, the company creates positiveimpact on the society as well as resulting into a flow for its growth strategy of business. Technological factors- Technological factors comprises the technology that impacts thefunctioning as well as business strategy of Tesla motors. There may be various positive andnegative impacts on Tesla Motors on the rapid change of technology . Tesla Motors is totallybased and dependent on the use of advance technology which help them to be at top list ofcompetitors in the market. The company effectively uses the technology for development andadvancement of its electric vehicles. The CEO of Tesla Motors, Elon Musk stated that there willbe the application of driver-less technology for Tesla vehicles which will turn out to be greattechnological advantage for the company. But on the other side the use of technology becomesout dated and has to be upgraded every time and it is same in case of Tesla Electric vehicles asthey will become obsolete will the change in time and hence the company has to upgrade thesame resulting into more investment in research and invention components(Davidand David,2016). Environmental Factors- These are the factors or components that relate in sustainabilityof nature resources, impact of company's operations on environment, carbon emission etc. Teslabeing an eco-friendly company as it uses electricity over fuel for its cars results in creating more2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
The Global Business Environment
|9
|2672
|52

Strategic Planning of Tesla
|15
|4310
|440

Unit 32 Business Strategy
|16
|4972
|66

Business Strategy: Impact and Influence of Macro Environment on Tesla
|15
|4259
|100

Opportunity Analysis for Tesla Motors
|10
|1932
|424

Business Strategy Assignment sample : Tesla
|14
|4198
|84