Business Strategy: Impact of External Environment and Internal Analysis of Tesla

BUSINESSES STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P 1 Impact of external environment in Tesla..............................................................................3
P 2 Internal environmental analysis of Tesla..............................................................................6
LO3..................................................................................................................................................8
P3: Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation............................................................................................................8
LO4................................................................................................................................................11
P4: Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.............................................................................................................11
REFERENCE.................................................................................................................................14

INTRODUCTION
Business strategy is set of competitive moves followed by the company to achieve their
target. It includes actions that uses to enhance performance, attract more customers, complete
successfully, So it clearly defines that it gives outlines how business should be carried out to
reach at their desired result. Tesla is well known for its creative and innovative ideas. It is a large
producer of Electric cars in the industry worldwide. They work for customer satisfaction, saving
environment by using green technology. Their innovations in automotive industry is very
valuable. They launched their electric cars in market as they get success, they are leading name
in EV industry. The S model of electric car is successful in market, and they are inspired to do
more. This report is carried the company's different business strategies, evaluation of company,
like its Strength and weaknesses, their approaches towards markets like it gives brief about their
marketing strategies, their innovations, also it will analyse the competition of Tesla company in
market.
LO1
P 1 Impact of external environment in Tesla
There may be many external or macro environment factors which effects the company
directly or indirectly. There are many Strategic tools to analyse the effects of external
environment factors on the company. These are those factors which company usually does not
have control but are affected by (Moore and et.al., 2015). For the same Tesla as a world leading
auto-mobile company has many factors affecting its working. Some of these factors can be
assessed with the help of various strategic tools.
PESTEL analysis of Tesla.
PESTEL analysis includes analysis of political, economical, social, technological,
environmental and legal factors of the business that impacts the Tesla. PESTEL provides overall
idea about the challenges that company is going to face in nearby future. Thus, a brief discussion
of the macro economic factors is as under.
Political factors impacting Tesla.
Political decisions and factors is important for the Tesla, because as one of the major auto
manufacturer in the economy company is operating in multiple countries with their diversified

political environment. Tesla have to analyse the following factors before entering the certain
market.
Tesla can stabilize its financial stability by the help of incentives which are offered by the
government. Additionally it can have advantages of political stability in some of automotive
markets .many additional benefits has been initiated by the government for the development of
electric and hybrid auto-mobile market which will also be favourable for the company.
Economic factors impacting Tesla.
Factors such as inflation rate, Rate of interest, economic cycle and foreign exchange rate are
economic factors which directly or indirectly impacts the working of Tesla. Economic factors
Tesla have to consider in their analysis. Tesla has contributed in the development of world GDP
by 3% in electric auto-mobile segment. Another economic factor is that declining battery and
material cost which will greatly impact the overall costing of the vehicle.
Social factors impacting Tesla.
Social factors such as culture, language, and way of working also have a great impact on the
working of the Tesla. Beliefs, attitudes, perceptions of the population of the country had effect
on working of the Tesla. In case of Tesla social status is the main thing and people rely on
enhancing their social status by the way of owing Tesla electric car (Pestle and et.al., 2015).
Another favourable thing is that people who are Eco-friendly would have to own this car. And
additionally this cost less in terms of maintenance and servicing as compared to others.
Technological factors impacting Tesla.
The speed of the technological innovation in the economy also impacts the Tesla. The timely
innovation and up-gradation of the technology may effects the Tesla as well as its competitors.
The benefits Tesla enjoys on behalf of the technology is that it goes on the updation of its
technology by time to time (Pankova and Borst, 2016). And technology upgradation is the only
reason of long term survive in the market.
Environmental factors impacting Tesla.