Unit 32 Business Strategy: Assignment
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Added on 2021-02-19
Unit 32 Business Strategy: Assignment
Added on 2021-02-19
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Unit 32 Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................3LO1..................................................................................................................................................3Influence of macro environment on Tesla .................................................................................3LO2..................................................................................................................................................5Influence of micro environment on Tesla ..................................................................................5LO3..................................................................................................................................................7Porter's five force model ............................................................................................................7LO4..................................................................................................................................................9Evaluation of different strategic directions ...............................................................................9Recommendation ......................................................................................................................10Strategic management plan ......................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12
INTRODUCTIONBusiness strategy refers to the term that defines setting objectives and goals for thecompany for taking decision in the organization (Johnson, 2016). There are three differentstrategies such as leadership, differentiation and focus that will be used for enhancing business. Present study will be based on Tesla company. It is an American automative and energycompany that specializes in electric car manufacturing. Report mainly emphasized on different frameworks that is having an impact on macroenvironment as well as micro environment of the organization. It includes porter's five forcemodel that help in evaluating competitive forces for an organization. Furthermore, it includestheories, concepts and models that help in interpreting strategic planning in an organization andalso emphasized on strategic management plan that provide tangible and tactical priorities andobjectives. LO1Influence of macro environment on Tesla Macro environment are the external factors that are uncontrollable and having greaterinfluence on business decision making that also affects performance and strategies. It includesfollowing factors such as political, economical, social, technological, legal and environmentalfactors. Political factors Tesla is dealing in automobile sector that may have influence of government taxes andthat affect performance of it in the future. Changing in tax rates affect functioning of Tesla asselling its automobile into the global market. As Tesla is providing both gas and electric vehiclesto consumers that influence various perspective of company. Policies that will be implementedby government limit trade and performance of company's revenue of Tesla. In some countries itis banned to drive automobile that emit gas so it becomes difficult for Tesla to sale its productinto the market (Akter and et. al., 2016). Political instability providing bigger impact onbusiness operations as create more competition in the future. Due to penetration in the marketthat affect sale of automobile in other countries.Economic factors
This include economic condition that includes market growth, change in currency ratesand other variables that impact on automotive business. Decreasing cost of battery is useful forTesla as manufacturing car that provide effective use of products into the car and provide lowcost product into the market. Through this performance of company increases and enhancebusiness operations. Economic stability is the biggest threat for Tesla as changing in currencyrates influence import and export of business from other countries. This will have impact onfinancial performance as currency cannot be exchanged so provide slow growth for business. Itis providing consumers luxury vehicle by using the latest technology. This is beneficial formiddle class people in the country.Social factors Socialtrends affect firm's performance through employees, customer and investors. Thisis providing electric cars that is liked by most of the people in the country that is of less cost tooand affordable. Tesla is providing sustainable environmental friendly products to consumers thathelp in increasing social status in the marketplace. Word of mouth affect most as friends andreference group provide feedback from the market that influence purchasing decision by buyer.For maintaining trust of consumers it is providing low cost product that influence operationalactivity in the company (Buckley, Burton and Mirza, 2016). Through this it boosts its financialperformance and help in achieving objectives of the company. Change in Lifestyle is anotheraspect that influence business operations of Tesla. Technological factors Change in technology is the biggest factor that lead to increase operational cost of thecompany. Development in Tesla's product depend on technology that is available in the market.Increasing automation is an opportunity for the company to grow at larger pace of scale. Rapidchange in technology create problem for Tesla to beat competition in the market. It is not easyfor adopting technological change at fast speed as that may take time to build efficiency inbusiness. Increasing online mobile system also help in enhancing business as connectingautomobile industry for providing technological changes in the company. It provides moreimportunities for Tesla to grow in the market for the future. Legal factors This includes laws and regulation that help in shaping decision and developing businessfor the future. Tesla is having an opportunity for expanding its business at international level for
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