Unit 32 Business Strategy

Unit 32 Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1. Analysing the influence and impact of macro- environmental factors on organization......1
M 1. Critically analysing macro- environment factors...............................................................3
LO 2.................................................................................................................................................4
P 2. Demonstrating internal environmental capabilities of organization with the help of
appropriate framework................................................................................................................4
M 2. Critical analysis on internal environment...........................................................................7
LO 3.................................................................................................................................................7
P 3. Analysing the competitive forces of the particular organization.........................................7
M 3. Devising appropriate strategy to improve market position and competitive edge. ...........8
LO 4.................................................................................................................................................9
P 4. Application of range of theories, models and concepts which helps in strategic planning. 9
M 4. Strategic management plan...............................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is mainly considered to be the set of competitive moves and action
which a company uses in order to attract customers, strengthening performance, attainment of
organizational goals, compete successfully, etc. This is an effective strategy which is useful in
outlining how the operations of the business should be carried out in order to reach the stipulated
goals and objectives. This study will highlight on various macro- environmental factors which
tends to influence the operations of the organization (Johnson, 2016). It will also demonstrate
internal environment capabilities with the use of appropriate framework. Furthermore, this report
will critically evaluate competitive forces in the market sector which in turn is very useful in
determining the competitive position in the market. This study tends to highlight on range of
theories, models and concepts which helps in strategic planning for the organization.
Tesla motors is one of the leading energy and automotive company which was founded
on 1st July 2003 by Elon Musk, Martin Eberhard, Marc Tarpenning, Ian Wright and J.B.
Straubel. Tesla motors is headquartered in Palo Alto, California, U.S. The key products of the
Tesla motors are electric vehicles, Tesla energy, etc.
LO 1
P 1. Analysing the influence and impact of macro- environmental factors on organization.
Business strategy is an effective strategy which is useful in outlining how the operations
of the business should be carried out in order to reach the stipulated goals and objectives.
Vision: “To create one of the most powerful car company of 21st century by effectively
driving the world's transition to electric vehicles.”
Mission: “To accelerate the world's transition to sustainable energy and development
transport”.
Objectives: The key objective of this study is to effectively provide sustainable transport
and energy manufacturing vehicles which in turn results in higher operational performance and
productivity.
PESTLE Analysis
This is an effective management tool which helps in effectively determining the effects of
macro- environmental factors on the company.
Political factor: The political environment factors such as government rules and
regulations, fiscal policy, labour laws, tax policy, foreign trade policy, funding grants, etc.
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mainly influence the working of the business (Sia, Soh and Weill, 2016). Teals motors can
effectively strengthen the financial performance of the company with the help of various other
incentives offered by the government. Consumers can also file with tax credit on the purchase of
the electric car. Political stability is one of the major market which in turn helps in intensive
growth and competitive position to the company (Tesla, Inc. PESTEL & Environment Analysis,
2019). Free trade agreement helps Tesla motors in reaching various market segment in the world
which is useful in boosting up the business. On the contrary, political instability tends to affect
the operations of the business.
Economic factor: The economic factor such as interest rate, economic growth, exchange
rate, taxation, disposable income, interest rate, wage rate, inflation rate, financial capabilities,
etc. largely influence the working of the business. The economic growth of the economy aids to
great opportunity for Tesla motors to capitalize (Thompson, Strickland and Gamble, 2015). Tesla
motors power wall batteries is considered as a great opportunity for the business which in turn
makes it more accessible and affordable. This helps Tesla motors in producing more affordable
electric vehicles. The material cost and other cost to the company are on decline which is very
beneficial for the company. On the contrary, higher inflation and interest rate tends to negatively
affect the profitability of the company.
Social factor: Macro- environmental social factors such as cultural trends, organizational
image, demographics, customer buying trends, etc. largely influence the working of the business.
Tesla motors tends to focus on improving the use of renewable energy which in turn results in
lower carbon footprint. Equal distribution of wealth in the economy helps Tesla in attaining the
long term financial goals of the company. Company not complying with the current trends of the
customers tend to negatively affect the operation s of the business.
Technological factor: The technological is increasing at an exponential rate which is
very useful for Tesla motors to grow. Tesla motors tend to focus on adapting to newer
technology which helps in making much more affordable and friendly products for the
consumers. Tesla motors tend to take advantage of the artificial intelligence and automated
technology in order to integrate such system into the car systems. This in turn aids Tesla motors
to create upholding demand for unique electric vehicle cars. On the contrary, technology tends
to become obsolete which in turn negatively affect the performance of the buisness.
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