Impact of Frameworks on Tesla's Macro 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