Unit 32 business strategy assignment : Tesla motors

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UNIT 32BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Impact of Macro and Micro Factor on Organization...................................................................1Porter Five Force Model..............................................................................................................6TASK 2............................................................................................................................................7Strategic Directions Available to Organization...........................................................................7Recommended Policy for organization........................................................................................9Strategic Management Plan.........................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness strategy is set of various competitive moves and actions to attract the customersand improve the business of organization. These strategies of organization are also known as themaster plan that is used by companies to secure a high competitive position in market place(Thompson, Strickland and Gamble, 2015). These strategies help the organization to reach torequired and desired goals. Tesla motors is an automotive industry that is in business of electricalvehicle manufacturer. The company was founded in year 2003 by Martin Eberhard, MarcTarpenning, Elon Musk and j. B. Wright. Headquarter of Tesla motors in Palo Alto, California ,United States. Tesla is a multinational organization that is performing business around world.The impact of internal and external factors are analysed for the business of Tesla Motors. Themarketing strategy and market positioning is also covered in report. Different competitivestrategies and business directions are explained for Tesla Motors. Various strategies and plansare also provided for the growth of company. A strategic management plan is created to managethe plans of organization.TASK 1Impact of Macro and Micro Factor on OrganizationThere are different factors that are exist inside of outside of the organization which canaffect or influence the business of company. Tesla motors is considered as fastest growingautomobile company that is considered as younger organization. There are different factors thatare not in control of organization and they can affect the business of organization. This factorsare Political, Economic, Social, Technological, Environmental and Legal Factors.PESTEL AnalysisPolitical FactorsThe political factors are known as different policies and decisions of government that aresomehow related to the business organizations. Government makes different policies to maintainstability in country. The strategies that are related to economy, foreign trades, foreign policiesand taxation policies(Higgins, Omer and Phillips, 2015). The decision of government on thesepolicies can affect the business of Tesla motors. The taxation policy of government affect thebusiness of organization in different ways. If the government rise the tax on product which areimported by company will affect the manufacturing cost of product. The foreign trades policieswill affect the exportation of company product. The foreign policies of government can also1
affect the business of Tesla motors in other countries. This is how organization function areaffected by political factors.Economic FactorsThe economic factors are mainly the changes in the economy on national or internationallevel. The taxation and import and export taxes are also kind of economic factors. Taxation onthe product of company affect the price policy of organization and it can reduce the marginalprofit of Tesla motors. On the international level the import tax in country can also influence thebusiness policies and procedures of organization. The other economical factors like recessionand economic crisis are the disaster condition for the business. This can cause huge damage tothe economy and capital of company.Social FactorsThe social factors that are more related to human beings and their different attributes. Thesocial factors are also considered as the socio-cultural factors(Chang, 2016). Population oflocality, cultural values of people, education level of people average income of people areconsidered as socio-cultural factors. Tesla is an advance technological company and for optimumperformance organization need highly skills and education to meet requirement. That's how theeducation level of employees affect the business of organization. If the average income level oflocality and other location is then they will not be able to buy the premium product of companyso this also can affect the business of organization. The population of locality will are affectbusiness of organization cause less availability of employees. This is how the social factorsaffect the business of organization.Technological FactorsTesla motors is using most advance technology for the manufacturing and the technologythat is used in product is also high. The technological factors are related to the technologicaladvancement in market. The technological difference between Tesla and other marketcompetitor also can create a huge difference of profit to the organization. This difference cancause large damage to the profit of Tesla motors. The productivity and performance of theautomotive industry is based on the technology used by company. This is how technologicalfactors affect the business of organization.Environmental Factors2
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