Unit 32 Business Strategy Assignment Sample
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Added on 2021-02-20
Unit 32 Business Strategy Assignment Sample
Added on 2021-02-20
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Unit 32Business Strategy
Table of ContentsIntroduction......................................................................................................................................3Task 1 ..............................................................................................................................................3P1 Impact of macro environment on organization and its strategies. ....................................3M1 Critically analyse macro environment to determine decision of management................5P2. Analysis of internal environment.....................................................................................6Task 2...............................................................................................................................................8P3 Porter's five forces model to evaluate the competitive forces...........................................8P4 Apply theories/ concept/ models for strategic plan...........................................................9Conclusion ....................................................................................................................................12References......................................................................................................................................14Books and journals...............................................................................................................14
IntroductionBusiness strategy is a combination of all the decisions taken and actions performed by theorganization for accomplish the business objectives. It useful to secure business organization andcompetitive position in market (Akter, 2016). This process is the backbone and essential forbusiness to achieve goals and meet objective. In this present report, Tesla is being chosen forassessment. Tesla was founded in 2003 by Martin Eberhard. Company is operating their businessat global level. Electric vehicle and energy produce by Tesla because engineers want to provethat electric vehicle is better than petrol cars. This report will be cover macro and micro-environment factors, internal environment porter's five forces model and devise strategyplanning. Task 1 P1 Impact of macro environment on organization and its strategies. Macro environment means factors of environment that put impact on organizationstrategies. It does not affect organization and its performance on regular basis but it isuncontrollable. Tesla use PESTLE analysis to evaluate and analysis of factors that present inexternal environment because it operate to business in many countries and wants to promoteelectric vehicle. . PESTLE stands for P- political, E- economic, S- social, T- technological, L-legal and E- environmental factors.Political factor: - This factor includes tax, rules and regulation of government, politicalstability etc. Tesla produces electrical vehicle to reduce fuel vehicle because abundance of fuelvehicle is harmful for environment. Government takes many types of action to improve thedevelopment of electric and hybrid engines. It also gives tax credit to people for buying electricvehicle. If government stability is not present it is creating the biggest concern that createdifficulties and Tesla must face many problems like change rules of organization, corruption andpay more tax to import and export. So, all these things put impact on strategies of organization.Economic factor: - Inflation rate and exchange rates include in this factor. Teslamanufactures electric vehicle so many types of electrical elements and accessories has need formanufacturing (Olson, 2018). Decreasing battery cost is helping to Tesla for expand theirbusiness. But if economic factors like inflation rate and exchange rates of currency increase sostrategy of organization affected as they must raise the price of the product. Due to increasinginflation rate it cannot manufacture vehicles in huge quantity with reasonable cost. Due to
increase exchange rate organization must reduce export and import. So, these concern affects tostrategies, productivity and profitability of organization.Social factors: - It includes choice, preference and wants and expectation of customers.Tesla strategies affecting due to frequently changing in choice and preferences of customerbecause organization has need to understand and research market time to time and consumesmore cost. So, it effects on budget and strategies. People who are eco-friendly, so they prefer toelectric car and this vehicle also very affordable. These thing helps to improve financial long-term goals.Technological factors: - This factor includes automation, innovation and use of advancetechnologies. As, nowadays technology and innovations are increasing and it is an opportunity toimprove artificial intelligence and automation in vehicle. People are highly aware aboutenvironment so Tesla manufacture renewable energy and electric car through different andadvance technologies. But organization and it strategies affected due to high rates oftechnological changes because it consumes more cost that leads to raise the cost of production.Legal factor: - This factor includes laws and regulations like employment laws, safetylaws and other business laws. So through employment laws employees get protection atworkplace, and they feel safe and secure. As per the law, it is very important that employees donot suffer from discrimination on bases of colour, caste etc. if government increase labour costso organization must pay more cost to employees and it cannot earn more profit. Tesla also hasfaced lawsuit because it has delivers car direct to customers from manufacturer so governmentstop to deliver direct and give order for includes third party. This legal issue reduce profit as wellas it also influxes the reputation of company in negative way along with the strategy oforganization.Environmental factor: - It includes environment sustainability and climate change.Tesla has opportunity to grow market and productivity due to climate change. This factor is astrength for organization because it manufactures eco-friendly car that helps in control pollution.If corporate social responsibility is not followed by Tesla so it affects to investment oforganization because investor not invest their capital in organization and it investment decreasedue to this reason.
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