Impact of Macro Environment on Tesla's Strategies

Business Strategy

 Table of Contents
 INTRODUCTION...............................................................................................................3
 LO 1.....................................................................................................................................3
 P1) Discuss the impact and influence of macro environment on a given organization and
it's strategies...........................................................................................................................3
 M1 Critically analyse the macro environment to analyse the strategic management
decisions.................................................................................................................................5
 LO 2....................................................................................................................................5
 P2) Assess internal environment and capabilities of a firm. ..........................................5
 M2) Critically examine the impact of internal environment on organisational capabilities,
structure and skill set..............................................................................................................8
 P3) Discussion of porter's five force model as well as evaluation of competitive forces..8
 M3 Determine appropriate strategies to improve competitive edge and market position.. .9
 LO 4 ....................................................................................................................................9
 P4 Applying a range of model, concept and theories to interpret strategic planning.....9
 M4) Produce a strategic management plan that has tactical priorities and objectives..10
 D1)Critically analyse the data applying environmental and competitive analysis to
produce a set of strategic direction, objectives and tactical action.......................................11
 CONCLUSION..................................................................................................................12
 REFERENCES..................................................................................................................13

INTRODUCTION
Business strategy is explained as set of actions which is used by an organization in order
to attract potential customers towards their product in order to accomplish set goals and
objectives (Anwar, 2019). It is mandatory to build business strategy in order to gain competitive
advantages against rivalry. Effective business strategy aid firm to gain productive results in the
set time frame. This report is based on Tesla that came into existence in the year 2003 by a group
of engineers. This leading organization not only build all electric vehicles but also provide
infinitely scalable clean energy generation and storage product to their customers. The main aim
of this firm is to provide zero emission electric power car. This assignment covers impact and
influence of macro environment in a firm and it's tactics. The internal and external environment
analysis is done in order to gain best results. Porter's five force model is deeply studied to
understand the competitive forces. Numerous models and theories are explained in order to
devise strategic planning in a firm.
LO 1
P1) Discuss the impact and influence of macro environment on a given organization and it's
strategies.
Macro environment is stated as those economic factor such as, technological changes, political,
demographical, social conditions and so on which directly or indirectly affect the smooth
functioning of the business in intense competitive world (Cubas‐Díaz and Martinez Sedano,
2018). In order to grow and develop successfully it is the core element which need to examined
effectively for better outcomes. Some of the factors that affect the businesses and consumers on
day to day basis are unemployment rates, taxes and inflation. This has effects internal business
strategies and capabilities at a tremendous scale. Tesla is a American auto-mobile company that
execute design business plans so as to competitive edge in open market place. There are
distinguish macro factors which affect business functions can be explained by using PESTLE

analysis.
PESTLE analysis refers to as business tool that are adopted by firm in order to
examine external environmental factors which directly or indirectly influence overall
productivity and profitability ratio of the businesses. Tesla can adopt this tool in the premises in
order to understand the drawbacks of macro factors which are, social, political, legal economic,
and technological on their business strategies and activities. Factors of pestle analysis are
illustrated below:
Political factor: Political stability, taxation policy,trade restrictions, foreign trade policy,
competition regulation and so on are some of the factor of political factor. In the success path of
the business this factor directly or indirectly affect day to day working in both positive and
negative way. In order to grow the business of Tesla management need to scan the political
condition of UK in order to accomplish best results as compare to rivalry. As UK has stability in
their political environment so it favour expansion of business across the globe. It aid in
enhancement of market penetration that raises sales volume of the product at tremendous scale
(Grayson and Hodges, 2017I).
Economic factor: Some of the examples of economic factor are, policies, tax rates,
interest rates, wages and so on. All this uncontrollable factor greatly affect the business strategies
and function in intense competitive world. As the economical condition of US, Europe and Asia
raises gradually it is beneficial for Tesla as this nation leads towards development of electric
vehicles. By this Tesla is able to gain huge profit that can be further used in growth and
development of business in the coming years.
Social factor: In order to raise goodwill in the eyes of the customers it is essential to
follow social factor on priority level. Society tradition, culture, beliefs, economic status, religious
orientation etc. are included in social factor. All this factor directly affect business policies and
functions as they need to changed as per the requirements. In order to satisfy client it is essential
to perform social factor effectively as it builds positive image in their mind regarding the
companies product and brand. Tremendous changes in consumer demand increases the
preferences of electric car because they unlike traditional cars. Client seems to satisfactory as
this goods are uplifting their living standards. Countries like, Europe, USA and Asia has raised
their wealth dispersion which directly assist in enterprise financial execution.
Technological factor: In order to compete with tough bench mark of competitors it is