Different Frameworks to Analyse the Impact of Macro or External Environment on a Company and its Business Strategies

UNIT 32
BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Discuss about different frameworks to analyse the impact of macro or external environment
on a company and its business strategies...............................................................................3
TASK 2............................................................................................................................................7
Evaluate internal capabilities and environment of a business firm by adopting appropriate
frameworks.............................................................................................................................7
TASK 3............................................................................................................................................9
Apply porter's five force framework to analyse the competition in marketplace for the
selected company ...................................................................................................................9
TASK 4..........................................................................................................................................11
Apply different kind of concepts, models and theories and formulate a strategic plan to attain
objectives of concerned organisation...................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is referred as the decisions and actions that are taken by a business firm so that
expected outcomes and results can be achieved in a proper manner. These strategies are the
master plan which is adopted and implemented by a company to attain competitive advantage in
market (Amran and et. al., 2016). This report is written for Tesla Motors which is a USA based
automotive organisation, situated in Palo Alto, California. This company was founded in 2003
and perform their business operations in global manner. This report will discuss about various
frameworks and tools to acknowledge the external business environment of a company. Also,
different models to evaluate internal environment of a company are discussed. Other than this,
Porter’s five force model is discussed and a strategic management plan is produced so that
organisational targets can be attained desirably.
TASK 1
Discuss about different frameworks to analyse the impact of macro or external
environment on a company and its business strategies
Tesla motors was founded in 2003 with the aim of producing electric cars and other vehicles. At
present, company is successfully operating in different parts of the globe and assists in clean
energy generation and scalable storage products. To achieve expected results, it is important for

Teslsa to identify their business environment in detailed manner. Some information in this aspect
are discussed below:
Vision: Main vision of Tesla Motors is to build electric vehicles which are better, faster and
more efficient than gasoline cars.
Mission: Major mission of Tesla is to replace gasoline vehicles with electric vehicles so that
environmental sustainability can be supported.
Objectives: Main objective of Tesla are stated below:
 To build brand awareness and manage organisational reputation for long term basis.
 Retaining existing customers of company to create customer loyalty and referrals.
Role of Strategy in attaining business objectives
Strategy is defined as an action which is taken by the manager of a company to achieve
organisational targets and goals in productive manner. With the help of appropriate business
strategy, Tesla can identify counter measures to deal with their rivals. Along with this, different
strategies of business will helps Tesla in identifying needs of customers due to which right
product can be given to them within time. This helps in achieving organisational goals and
targets in a proper manner.
Analytical frameworks in context with Tesla Motors
Stakeholder analysis
Stakeholder analysis benefits in evaluation and analysis of stakeholders on the basis of their
priorities so that they can be managed, engaged and given authority in appropriate way. This is a
systematic way under which power and interest of various stakeholders is identified. In context
to Tesla, this analysis is carried out below:
Stakeholder’s identification: These involves all the people that impacts the business operations
and activities of a company in either direct or indirect manner. In case of Tesla Motors, main
stakeholders for company are its manager, employees, customers, investors, government, interest
groups, senior managers, suppliers, business allies etc.
Prioritising of stakeholders: At this stage, various stakeholders of Tesla will be
prioritised as per their power and interest in the working of company (Anwar, 2019).
 High power and high interest: These stakeholders are most important for company and
their satisfaction is most important for working of company. These stakeholders for
company are investors, alliance partners, customers, manager etc.