Impact of Frameworks on Tesla's Macro Environment

This report analyzes the impact of frameworks on Tesla's macro environment, including strategic planning techniques, stakeholder analysis, PESTLE analysis, and SWOT analysis. It also discusses the internal capabilities of Tesla and its internal environment.

Business Strategy

INTRODUCTION
The business strategy refers to an agonistic action which is taken by every business
organization to attract more and more customers, retaining & sustaining in market, for becoming
successfully, enhancing performance as well as to achieve organisational goals. However,
business strategy is an very important role in every organization that helps in attaining their
goals. The current report is conducted on Tesla Motors, which founded in 2003 by some
engineers. Their aim is to prove that electric motor vehicles can also better as well as effective
quick and give more enjoyment to drive as compare to gasoline cars (Adi, 2015). This report
considers appropriate frameworks analyse of macro environment on organisation and its business
strategies. Along with this, companies internal capabilities are considers. In addition to this,
analysis of market sector is done by using Porter’s Five Forces model. At last strategic models,
& concepts, applications and plan is developed fir directing management of business
organization.
TASK-1
P1. Appropriate frameworks impact on macro environment of Tesla company.
The Strategic Context:
The strategy is defined as method, tool or a plan which is developed and chosen for
bringing and achieving desires of future. Like achieving goal, objective or an solution of an
problem. In other words, strategy refers to art as well as science of planning and putting
resources for utilization of them in most efficient and effective manner (Akter and et. al., 2016).
 Vision- To be most creative and best company which provides all satisfied product,
service and self-fulfilment needs to society.
 Mission- To enhance society by creating, developing high-quality products and become
global leader in auto-mobile industry.
 Financial Objective- To increase net profit by 12% within year.
 Customer Objective- To developing an potential customer base by proving best quality
product.
 Values- To introduce best innovation in market.
Different strategic planning techniques.

The strategy plays an important role in every business organization which helps
management in achieving their organizational goals, objective, strategic intent as well as
direction. As role of strategy in attaining objective is that it provides effective framework for
operational planning, it also gives clarity in direction of activities, it increases and enhance
organizational effectiveness and personnel satisfaction. Along with this it helps in taking
strategic decision as well as it integrated reviews and does facilitation (Amran and et. al., 2016).
The strategic planning is defined as an process which focuses on developing a strategy
planning that helps in execution of strategy. There are different various techniques which are
used to make plans for formulating strategy. Such strategies are: Business Models,
Benchmarking, Capability Analysis Budget Planning,, Business Case,, Business Plans,,
Competitive Intelligence, Business Analysis forecasting, market analysis, financial analysis and
many more techniques. Thus, management of Tesla Motors is focuses on adopting different
strategic planning techniques in their operation in effective and efficient manner.
Stakeholder analysis: Stakeholders refers to an individuals that are actively involved in
any project of organization and their interests is affected by result of project completion.
Although, stakeholder analysis refers to an essential and crucial method that helps management
in identifying stakeholder and also aid in analysing their needs. Stakeholder can be shareholders,
heads of all affected business units, Consultants, executive staff, suppliers, customers, alliance
partners etc. Thus, this processes project involves various steps and this is followed by
management of Tesla Motors for identifying their profitable stakeholders (Beard and et. al.,
2016).
1. Identifying the stakeholders
2. Documentation of stakeholders required.
3. Analysing stakeholders interest.
4. Managing the expectations of stakeholders
5. Taking corrective actions
6. Reviewing the status and feedback.
Stakeholder matrix: This matrix is refers to project management tool which is used for
analysing project stakeholder to regulate those actions that are essential to taken and align to
achieve their goals along with their project. There are many variation of the stakeholder matrix
as its simple and very effective tool which helps in analysing stakeholders (Coltman and et. al.,

2015). In context to Tesla motors, the management of company is focusing on formulating and
implementing this effective strategy as it help them in analysing the potential stakeholder in
effective and efficient manner.
Stakeholder mapping:
Stakeholder mapping is a process which finds the key stakeholders that are connected to
project. This process focuses on identifying every individuals who have deeply interest in result
of project. Although, Stakeholder mapping plays an essential role in success of any project.
PESTLE Analysis
Political: Tesla company is automotive company which manufactures electric vehicles.
The traditional vehicles are requires fuel to run but Tesla has used both electricity and gas for
running their vehicle. Along with this, Tesla drivers are using electronic stations to refill their
cars. In context to Tesla, the political significant influence by governmental payment or profit for
electric auto-mobiles, Political stability, New global trade agreements in markets. Thus, it gives
positive impact to company as they can increase their opportunities or strengthen along with their
financial performance (Echchakoui, 2018). But the national authorities make change in its
trading laws then it unfavourably affect the business of the company.
Economical: This factor includes, inflation and deflation rates, interest rates etc. In
context to Tesla company, if bank rates increase, and company has taken loan then the profit of
company will decreases, which will give negative impact on company. But if there are economic
stability in the nation then favourably influence the business of respective firm.
Social: This factor focuses on needs and demands of society. However, management of
Tesla focuses on consumer needs, preferences, taste, demands as they manufactures
environmentally friendly products which are electric cars. In context to present company, the
management can grab help of this, Tesla is focusing on fulling needs of society, as it give
positive impact to company. This firm offer electric cars which are less expensive than those of
traditional cars in terms of maintenance and running cost which influence the consumers and
their needs.
Technological: Nowadays, technology is changing very rapidly. Although, Tesla Motors,
is starring innovator of company in transforming automotive industry. So, current batteries has
their own strength and drawbacks. But its essential for Tesla for adopt an new upgraded
technology in their business operations for effective working. Thus it helps them in staining in

competitive market. In context to current organization, if management uses an upgraded
technology, then it will give the positive impact on their operations as by this they can effective
execute their function and enhance their productivity as well as performance. Rapid change in
technology affect the business of the repective firm.
Legal: There are different laws and legislation which every company has to follow.
Although, management of Tesla is facing very difficulty with their state laws and regulations
about integrate sales of product and service rather than selling through the authorized dealers
(Eskandari and et. al., 2015). In context to Tesla company, the manager is using various
employment laws in their organization by which they can effectively operate and managing their
employees. Along with this, this will leads to the positive impact to Tesla in effective and
efficient manner. This firm operate its business internationally so when the national authorities
make changes in their laws and legislations then it influence the business of the company
negatively.
Environmental: Electric cars is manufactured that response to awareness of
environmental issues like global warming and climate change. Thus, impacts of electric car is
noticed by both governments and consumers that encourages expansion of electric car
application by government policies as well as changing consumer demands. In context to
Tesla’s, the top level managers has focused on manufacturing electric cars which do not produce
any carbon emissions and also don't contribute in carbon footprint, hybrids or in any gasoline
cars. Thus, it is very helpful and leads positive impact on their operation of company. Tesla's
electric cars have zero carbon emissions and do not contribute to the carbon footprint, unlike
other electric, hybrids and gasoline which affect environment negatively as well as business of
the organisation.
From the above analysis, it can be evaluated that the PESTEL helps Tesla in gaining the
accurate position of the external environment (Wu, Ramesh and Howlett, 2015). The UK
market is stable as of now which means that Tesla can make plans of expanding the business or
introduce new products. Furthermore, it is focused on implementing technology by which
emission of harmful gases can be reduced. This makes it a company which is environmental-
friendly. This is going to help it sustain in the competitive industry for a long time.
SWOT analysis of Tesla

Strength: The main strength of Tesla is that company has highly innovative process due
to which they are on a leading position in country. Along with this, the company has strong
brand image and effective goodwill of their company in competitive market, as they customers
are aware about their product. The next strength of Tesla company is strong control on
production process due to this, company focuses on there production process and manufacture
and does production according to the needs as well as after market analysis.
Weakness: The major weakness of Tesla organization is that they have limited market
presence as well as Limited supply chain system. Along with this, main lacking point of
company is that they are lacking in Shortage of resources (Wong, Wong and Boon-Itt, 2015).
Opportunity: The best opportunity for the Tesla company is expanding their business in
untapped Market. The next opportunity for company is global sales expansion as well as
decrease in prices of cars. So, that more and more customers can buy their products.
Threat: The one of the main threat to the management of Tesla company is that they
have aggressive competition in competitive market. The another threat is fluctuations in the
prices of raw material as well as customer adaption.
Ansoff's growth vector matrix:
One of best strategies that can help management of Tesla business organisation in
growing their business is Ansoff’s Growth Vector Matrix which is introduced by H. Igor Ansof
in 1957. This matrix focuses on considering in identifying best opportunities by offering current
& new products within existing as well as new markets with a high level of risk.
Thus, top level management of Tesla Motors has adopted this strategy for finding best
area for growth and expansion of their business (Wang, Kung and Byrd, 2018). However, top
managers has concentrated most on market development, growth strategies, product
diversification strategy and product development. There are are described as below:
 Market penetration is an strategy which focuses on selling more numbers of established
products into current existing markets. In addition to this, by making uses of this strategy,
the Tesla top level management uses this strategy the company can effectively grab the
market at extensive level. As company is sells its Model 3, Model X, Model S electric
vehicles, solar panels, Power pack 2 energy storage products, electrical hardware,
inverters and monitoring devices in different 29 countries.

 Product development focuses on developing new products and placing them in existing
markets for selling. In context to Tesla, the management can make use of this this
strategy infrequently due to it involves high cost for developing new product in power
storage sectors (Jenkins and Williamson, 2015).
 Market development put existing products into new markets for selling them. In regards
to, Tesla, the management is focuses on adopting this strategy as they searches for new
markets to enter as they targeted Indian market for expanding their business operations.
As it will be very helpful as well as beneficial for Tesla company. Diversification strategy focuses on developing new products and sell them into new
markets at same point of time. In context to Tesla company, it is identified that, this
strategy is very risky as well as complex because expanding business in outside area of
their core activities is very complex for targeting a potential audience. Along with this,
Tesla has to invest a lot of money in the process of NPD. (Marin and et. al., 2015).
Conclusion
From the above mentioned information, it has been concluded different frameworks of
macro environment that have direct impact on business performance and growth of Tesla.
Ansoff's growth vector matrix, SWOT analysis of Tesla, PESTLE Analysis are consider more
effective and useful framework for Tesla. SWOT analysis is useful model that helps company to
identify their strength, weakness, theatres and opportunities. PESTLE analysis also support an
organisation in identification of political, environmental, social, economical, technological and
legal situation of country where they expand their business. Ansoff's matrix is also consider best
framework to develop their growth at marketplace.
M1 Critically analyse the macro environment to determine and inform strategic management
decisions.
Macro environment analysis is one of most important attribute for an organisation that
helps to evaluate the environment while expanding or dealing in respective marketplace. In
context of Tesla they deals in the UK marketplace in which Brexit affect the market such as it
reduces the no. of talented personnel in the economy and bring inflation. Due to the rise in the
pricing it is very much hazardous for the organisation to sell the products and services to the
ultimate consumer base. To remain competitive in marketplace it is very important for them to
drive innovation in products and services as per the consumer demand.

TASK 2
P2. Internal environment and capabilities of Tesla.
Organisational internal environment: Internal environment is main and effective
component of business that consist of different factors that are available within organization
which can affect with activities as well as decisions of organization (Mathooko and Ogutu,
2015). There are some factors which can affected by business are discussed below:
Employees are important assets in every organization. As their dedication and motivation
will impact upon their performance. In case they are positively motivated, results will be positive
and vice versa.
Managers are individual who are associated with management of different task
performing in organization. Their good Woking will impact positively and in case bad
performance result be be negative.
McKinsey’s 7S model: McKinsey 7s model is introduced by McKinsey consultants
Julien Philip & Tom Peters, Robert Waterman in 1980s. The main objective of this model is to
how 7 elements of company can be aligned together for achieving effectiveness in business
organization. Such elements are : Staff, shared values, Structure, skills, Strategy, Style and
Systems,
Structure defined division of business units. It construct organizational chart which shows
different level of management. In context to Tesla Motors, the management has focuses on their
structure as they has an effective organizational structure which follows an hierarchy of level of
management.
Strategy refers to implemented plan in an organization which are formulated for specific
purpose for achieving organisation goals and objective. In regards with present company,
management of Tesla Motors has focuses on formulating an effective strategies for gaining
objective of their organisation. As it will aid management in attaining an more competitive
advantage for the competitive market (Ramírez and Selsky, 2016).
Skills refers to abilities, competences and capabilities of organization employees by
which perform very well. In regards to management of Tesla Motors, it has been said that, that
have effectively focused the skills while hiring an effective and skilled candidates for their
business organization which will help them in attaining their objectives.

Staff refers to workforce of an organization, which they need for achieving their goals. In
context to Tesla Motors, the management of company is focusing on their employees effectively
and efficiently as they recruited, trained, motivated as well as rewarded them for gaining more
productive work (Razak and et. al., 2016).
Style defines approach and method of management which helps them in leading their
company, influencing performance & productivity of employees as well as corporate culture. In
context to Tesla Motors, the management had concentrated on adopting an different and unique
style as it is very beneficial approach that helps manager in managing as well as leading their
organisation in effective way (Scholes, 2015).
Systems of company is defined daily workflow, procedures as well as decisions which
makes operations effective within an business organization. In context to management of Tesla
Motors is following effective system and procedure in their company which aid them in
operating their functions in effective and efficient manner.
Shared values is core element of McKinsey 7s model. It refers to norms and standards
which guides employee behaviour as well as action of company actions. In context to Tesla
Motors, the management has focuses on formulating and implementing an effective and proper

values in their organization, as these will help management in building and creating an effective
relation with their employees.
With the use of this model, it has been evaluated that Tesla is required to opt for the
strategies which are going to create results that are favourable for the company. It should make
improvements in existing as well as introduce new ones in order to manage the work effectively.
Furthermore, new candidates should be appointed who have the required knowledge and skills
and can offer innovation to the company. Furthermore, proper training should be provided in
order to enhance their capabilities that can help the company to achieve its targets within the
time. Through this model, it can change its style of working in order to manage everyday
activities. Rest of the elements do not require much modifications and are in fact well co-
ordinated and organised.
Analysis using the VRIO framework: Its an strategic analysis tool which helps
organizations to expose and protect all resources and capabilities that can give organization to
long-term competitive advantage (Thompson and Gamble, 2015).
Value: These are those resources which gives value to organization. In context to Tesla
Motors, the employees, technology and goodwill are resources which provides value to company
in effective manner.

Rarity: In context to Tesla Motors, employees are not rare resources as company has
number of workforce. Where as technology and goodwill are rare resources as Tesla Motors uses
an effective and unique technology in their operation which helps in building their goodwill. In
context to Tesla motors, the management of Tesla is providing quality products to customers and
utilising it's resources in an effective manner.
Imitability: This factor includes those resources which are not be possible to copy.
Employment, goodwill and technology are imitable resources for Tesla Motors, as other
company can not copy these. In context to Tesla motors, the management is focus son using an
effective artificial intelligence in their operation as well as system.
Organization: There factor consider those factor which value, rarity and imitable to
company. In context to Tesla Motors, employees, technology, goodwill are resources which
helps organization to capture value. Furthermore, they provide sustainability in market and in
gaining competitive advantage (Wang and Byrd, 2018).
Human Resources: The workforce within Tesla is effectively trained, by applying
modern age technologies as well as many other essential training equipments. This will improve
the scope of organising the workforce of Tesla within working in the company and helping them
in creating better products and services.
This analysis has made Tesla realise that it should be more concerned about choosing the
right candidates who have the capabilities to fulfil the requirements of producing the cars. The
resources should be protected from any misuse. It should focus on maintaining efficient
workforce so that vacant positions can be filled within the time. Furthermore, there should be
proper organisation of funds and other valuable resources in order to achieve the targets.
Cost-benefit analysis refers to an effective process used for analysing proper decisions.
The business add on the the benefits of situation, after that they subtracts the costs associates
with taking an effective action. In other words, it estimates as well as totals the money value of
benefits & costs earned by company. This helps managers of Tesla Motors in taking proper
decision in relation to organization so that by making proper estimations, suitable decision could
made in relation to Tesla Motors (Wong and Boon-Itt, 2015). From this analysis, it has been
evaluated that Tesla should focus on those areas in which wastage of costs is huge. By reducing
the cost element, it can ultimately minimise the prices of the final product.
Impact of internal environment and capabilities of Tesla

Main aim of Tesla is to cut down the environmental effects of transportation, electricity
production as well as energy use by people, businesses, homes and the grid. The internal
analysis and capabilities of Tesla highlights the high investment in research, high production
cost, expensive vehicles compared to rivals, high debt load and low production capacity are main
weaknesses that company is currently observing. Along with this, diversification in product
portfolio is major strength of Tesla which has positive impact on its overall operations. Strong
marketing policies and improving customer base is internal capability of Tesla which helps them
in increasing its market share and sales.
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.
For an organisation it is crucial to access the own capabilities and strength to gain
desirable goals and objectives in positive manner. In context of Tesla they are well known brand
name in the business world but to gain sustainability in the marketplace it is very much essential
for them to bring innovation in their products and services. There are some areas in which they
are lacking behind that Tesla have to expand in their market share as they have to enlarge their
supply chain to reach at large no. of potential consumer base. The major threat for respective
organisation that they deal in fierce competitive world the other companies provide products that
are also classic in nature so it is very important for them to obtain the market share by bringing
innovation in a specified time period.
TASK 3
P3. Applying Porter’s Five Forces model evaluate competitive forces of a given market sector
for an organisation.
Porter’s Five Forces model:
Michael Porter has introduced this Five Forces Analysis model as an effective strategic
management tool which helps in understanding impact of external factors on business
organization. Thus, management of Tesla has adopted this tool for analysing their e competitive
forces which are present within industry environment. This Porter's Five Forces analysis helps
management of company in looking into the all factors of external environmental importance in
automotive industry (Grant, 2016).

Competitive rivalry or competition: In this context of Tesla Motors, the external factors
are responsible for companies weak force. It is because there are very few companies who are
dealing in this sector. So due to low number of competitors, the following power is being
considered as low. This company offer products which are designed b y using advance
technologies so there are less number of competitors which influence the business of the
company.
Buyers Bargaining power of Tesla: It has medium force. Thus, consumers are direct
factor which determines the sales revenues of Tesla company. This, bargaining power is low due
to the low switching costs, Moderate substitute availability, Low volume of purchases of their
product. The products which are produced by the firm are unique due to manufactured by using
advance technology so the bargaining power of buyers are low.
Suppliers Bargaining power: The business of Tesla is depends on reliability of suppliers,
which helps them in shaping their business environment by influencing the presence and
availability of raw material that firm required. Thus, it has moderate force due to the number of
suppliers is low and the same as suppliers bargaining power. There number of suppliers in the
market which offer and help in providing raw material to the company to manufacture its
products so the bargaining power of suppliers are moderate.
Threat of substitute goods: In context to Teals company the threat of substitute good is
low as they are manufacturing an unique and different product which has less substitute (higgins
and phillips, 2015). This company offer unique products like electric cars etc. so the switching
cost is low.
Threat of new entry: New entrants gives vast impact on industry environment as well as it
influence productivity and performance of Tesla company. This factor helps management of
Tesla in identifying strength of external factors which creates weak force of threat to new entry.
In context to Tesla Motors, threat of new entry is low as for entering into the new, the company
as its involves very high cost for brand development as well as huge cost of conducting business
(Ivanaj and et. al., 2015). In auto-mobile industry, to operate and run the business, there are
required more cost and capital so it is not easy to establish a new business in this sector. So the
threat of new entrants is low.
The results of this Porter’s Five Forces analysis of Tesla, show that rivalry is the most
essential force that impacts on its overall business. Thus, the organisation must prioritize such

type of force in their strategic formulation. A suggestion is to proceed strengthening Tesla’s
competitiveness: Stronger competitive benefit is accomplishable via innovation as well as
increased market presence. If Tesla use porter's five force model as it will impact on its entire
decision making process.
Balanced Scorecard to match vision and strategy of company:
Perspective Objective Goals Indicators Initiatives
Financial
Increasing sales Increase net sales by
20%
Accounts
statements
Develops new
strategy and policies
for distributors.
Customer
Customer service
and satisfaction
Decreasing the
feedbacks and
complaints by 5%
Feedback chart
sheets
Knowing customers
reviews after sales.
Internal
process
Quality
optimisation
To focuses on ways
on improving
quality of products.
Customer
satisfaction
Adopting of different
quality approaches.
Learning
growth
Having skills and
specialized
workforce.
Providing training
and development
programs to every
employee.
Certificates and
degree acquired by
individual.
By developing
effective relations
with business selling
online courses
Competitive analysis with help of Porter’s Five Forces model:
The threat of competitive rivalry to Tesla Motors is low, as company deals in innovative
product i.e. electric cars which is unique product in market where as threat competitors rivalry to
BMW is high as there are numbers or company are present in market who are manufacturing and
selling same product. If its talked about bargaining power of buyers to Tesla and BMW company
is very low as they both are providing an innovative and unique features product to customer and
customers are also ready and able to pay for their offerings. If it is talked about suppliers
bargaining power to BMW is low as they company can easily switch they other suppliers where

as bargaining power to suppliers to Tesla is high as there are limited suppliers who are selling
some innovative resources in market. Along with this, threat of substitute to both companies are
low reason being they both offers an unique and innovative product to customers which satisfy
them with their luxuries life style. In addition to this, threat of new entry to Tesla Motors as well
as BMW is low as for making entry in electric motors sector the company need high cost and
technological advancement (Wu and Howlett, 2015). With the help of treat of new entrants, the
management of the respective firm get information about its rivals who create create competition
for the business of the company. This company manufacture electric vehicles so there are low
competition. The bargaining power of suppliers are due to less n umber of supplier who provide
material to this firm.
On the basis of this framework, it has been evaluated that Tesla has competitive
advantage as the various risks connected with the competition are low. Also, it has a strong
position in the marketplace together with brand image which is recognised by the world.
Furthermore, it makes cars which are luxurious and the features are usually unique. Therefore, it
has competitive advantage.
M3 Devise appropriate strategies to improve competitive edge and market position based on the
outcomes.
For an organisation it is very much necessary to conduct detailed analysis on the various
factors after that build strategies and tactics in order to gain desirable outcomes. In context of
Tesla they apply various strategies that is market development strategy that helps to enlarge
their products by entering into the new markets by exploring the strength of market and analyse
the demand of consumers in order to serve them in best manner. With the help of outcomes that
are analysed from the above discussion that they needed to bring innovation in their products that
are the demand of competitive world.
TASK 4
P4. Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.
Porter’s generic strategies is used for determining the direction of business
organization. This strategy is introduced by Michael Porter, he describes this theory in his book

“Competitive Advantage: Creating and Sustaining Superior Performance”. Michael gives four
strategies in his theory that are discussed under below:
Cost leadership strategy: This strategy focuses on aiming of decreasing Cost Producer.
With help of this management of Tesla Motors can compete price with other industries and ca
earn more profit. Thus, Cost reduction helps management to focus of organisation’s strategy for
targeting broad market (Ansoff and et. al., 2018). In context to Tesla motors, this strategy will
help management in increasing their profit margin by reducing their cost in effective manner.
Differentiation strategy: in context to company, a differentiation strategy focuses and
deals with development of a product or service that are offered by Tesla Motors, which offers
innovative and unique attributes valued by each and every customers. In context to Tesla motors,
this will help company in developing an different unique product which is aid them in garbing
the competitive market.
Differentiation focus strategy: This strategy is used by management of Tesla company for
targeting niche market the offerings or product or service of Tesla Motors should have unique
and innovative features. In context to Tesla motors, the management of company will focuses on
building brand loyalty as well as the image among consumers. With help of this, the
management of company will ensure that their product and services remains unique in
competitive market for sustaining in possible competition in market.

Cost focus strategy: For targeting a niche market and offering best lowest possible price
of products to customer this strategy is used. In context to Tesla motors, this, the management of
company use this strategy in analysing as well as in targeting the clear niche market by
understanding by changes of market and desires of consumers in order to ensure that their costs
of product remain low.
From the above information it can be summarised that cost focus strategy is essential and
effective for the administration of the company because it help in building string relationship
within each target market and improves the pricing structure for the business. It brings expertise
in to products or service and find out future target audiences with specificity.
Ansoff Matrix was developed by Igor Ansoff to be used as a tool for analysing the
existing strategies for growth. It comprises of four strategies which can be used for higher
growth along with assessing the risks. It has been used for analysing the current position of Tesla
which is as follows:
Market penetration- According to this strategy, an organisation plans to grow by
providing existing products in the current market only. The underlying motive is to raise existing
market share. Tesla can use this approach to increase the customer base because the market is
known to it so the risks involved are comparatively low. For example, Tesla can focus on its
existing models of cars and focus on selling in those markets in which its has established
business such as China, UK, US and so on.
Market development- In this new markets are approached with a view to sell existing
products. This is adopted for expanding the business in international market. It is easy for the
companies having strong brand recognition (Thompson, Strickland and Gamble, 2015). In the
context of Tesla, it can use this target new customers without making any changes in existing
goods. Also, the risks are moderate. For example, Tesla has a good brand image which can be
used for approaching the new geographical regions.
Product development- It is related to development of new products with an objective to
introduce them in existing market. It is an easy for those companies which have good and strong
customer base (Scholes, 2015). With regard to Tesla, it has good customer base which can help
it expand the business through introduction of entirely new product. However, it should take into
account the expectations and needs of the target buyers and fulfil them by this strategy. But the
risks involved are high due to uncertainty of success of the product so launched. For instance,

Tesla can introduce future cars in the market of US and UK by embedding all the essential
features which are demanded by the customers. Tesla already has idea about the working in these
market because of already existing business in these markets.
Diversification- With the use this strategy, organisations bring new products into new
market. It is for those entities which are planning to expand the business in countries outside the
already existing market. It is the riskiest of all the strategies. Tesla can use this for the expansion
in international country but there should be extensive research and evaluation before starting the
business. For example, Tesla can expand the business in India by launching electric cars which
are affordable also.
Strategies- The management of the company can SAF framework to analyse strategic
possibilities.
Suitability- It is the level to which the strategic opportunity is appropriate for the firm.
Feasibility- This is the level through which the strategic option is executable. It includes
looking at strengths and weaknesses that occur from an internal analysis.
Acceptability- The acceptability of a strategic choice occurs by examining at two criteria
like financial aspects and the level to which the choice fits in with stakeholders.
Evaluation- This strategy is beneficial for the administration of Tesla because it help in
analysing the sales and market position of the firm. It is essential for monitoring the financial
situation and choice of stakeholders.
Model of Bowman’s strategy clock is model which focuses on exploring different
effective options for strategic positioning. However, it focuses how can be product and services
should be place in competitive market for achieving competitive & profitable position in
profitable market (Razak and et. al., 2016). The main objective is to lucubrate business which
will numbers of variety of options for positioning their product as well as services on the bases
of two dimensions i.e. price and perceived value. According to this model there are eight position
form which company can position their offerings.
 In position 1 prices of offerings are low and value added-value are also low.
 In position 2 prices are low as they uses cost minimisation strategy.
 The position 3 is described as Hybrid position which focuses on elements of low prices
with product differentiation.

 The 4 potion is differentiation which focuses on adopting differentiation strategy for
offering high level of added value to customers.
 The position 5 is known as focused differentiation, as it aims to position of product which
has highest price level and where the customers are agreed to purchase the product and
services because of high perceived value.
 The Risky High Margins is 6th Position, company faces high margin of risk which can be
doomed to failure.
 The 7th position is monopoly pricing where there is only one single company which are
offering that product (Akter and et. al., 2016). The last and 8th position is known as loss of market share. Where the position of company
can formulate for doing any kind of issue.
Horizontal and vertical integration: Horizontal integration consists of organisations that
take a similar organisation in the same sector, while a vertical integration consists of business
that take a business that operates either before or after the getting organization in the production
process.

Recommendation
From the all the strategies provided above, it has been analysed that Product development
is the most appropriate strategy which can be opted by it. This will help it making electric cars
with better quality as compared to its competitors and by adding new features that can fulfil the
requirements of customers. Furthermore, these cars should be first launched in the existing
market where Tesla already has its business settled. This will help it analyse the success of this
new product by determining the shortcomings and defects in order to make them more efficient
and desirable. With the experience gained in this, it can later plan to expand the business in other
international companies. Also, the related risk is low which can help it save its costs. This can
ultimately lead to lower prices. In nutshell, this approach is beneficial in increasing sales by
attracting existing as well as new customers for higher profit.
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.
Strategic Management Plan
Vision To fulfil the futuristic requirements of customers
Mission To became a leader in the industry of automotive
Objectives To achieve the goal of making electric futuristic cars which
have all the features required by customers. It is targetted to
be attained within 6 months from now and wish to increase
the customer base up to 17% together by meeting the criteria
of the people who are the target.
Strategies Product development strategy is going to be used for
increasing the customer base and complete the objectives.
Suitability- It will give a chance to the company to test the
success of electric car before launching to entire new market.
This can help in knowing the ways in which the quality can be
improved.
Acceptability- this strategy has been approved by the
stakeholder on looking at the results that can be gained by
Tesla. Also, the risk factor is moderate, Tesla can proceed

with the same (Mathooko and Ogutu, 2015).
Feasibility- Tesla has employees in adequate amount who will
be provided the training in order to make them skilled for
undertaking the activities by which new cars can be
manufactured.
Tactics Product- Electric car with features that are futuristic.
Price- It will be using a strategy in which price are likely to
be premium but affordable.
Place- There will be locations for manufacturing the cars in
India only. This will help in reducing the increased costs.
Promotion- The name of the brand is already known to large
number of people therefore, the medium through which it will
be promoted in social media.
Implementation The target date for the same has been fixed 30th May 2020 for
which new recruitments will be done in order to have more
employees who have the knowledge and expertise in the field
of future cars. Together with this, financial resources will be
raised by procurement of funds from different sources
(Ramírez and Selsky, 2016.).
Evaluation This has been analysed on the basis of market share of the
competitors who have made their steps in the segment of
electric future cars. As of today, Tesla's share price is
$328.13. Tesla's Revenue per Share for the trailing twelve
months ended in 2019 was $142.49. Therefore, Tesla's P/S
Ratio for nowadays is 2.30. During the ago 12 years, Tesla's
highest P/S Ratio was 24.28 (Tesla PS Ratio, 2019).
Tangible and tactical strategic
priorities
For an organisation while they aimed to expand in the market
it is very much necessary that build strategic priorities and
objectives. In context of Tesla there tangible strategic
priorities are that they need to appoint one of best personnel

that can be able to give one of their best efforts. By using
machinery that enhance the production capacities of
organisation in order to remain competitive. In there strategic
priorities consist of the enhance the consumer base and focus
on expansion of market in a year.
CONCLUSION
Form above conducted report its concluded that, strategies in business is very essential
past in business organization and there are different types of strategy which is used by
management while executing their business operations. It is important for the companies to take
into consideration the consequence of macro environmental factors on working of an
organisation so that their positive impacts could be taken and negatives could be removed by
formulating suitable strategies and policies. Along with this report focuses on companies internal
capabilities & evaluated the effective outcomes by using Porter’s Five Forces model. At last
different theories & concepts which assist management in their strategic directions for their
business organisation.

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Tesla PS Ratio. 2019. [Online]. Available through:
<https://www.gurufocus.com/term/ps/NAS:TSLA/PS-Ratio/Tesla>