Business Strategy Report: Tesla's Competitive Analysis and Planning

This report provides a comprehensive business strategy analysis of Tesla, a leading automotive and energy company. It begins with an introduction to business strategy and its importance for organizations. The report then applies various frameworks, including PESTLE analysis, to examine Tesla's macro-environment within the UK market, considering political, economic, social, technological, legal, and environmental factors. Next, it delves into Tesla's internal environment using SWOT and VRIO analyses to assess its strengths, weaknesses, opportunities, and threats, as well as the value, rarity, imitability, and organization of its resources. The report also applies Porter's Five Forces model to evaluate the competitive forces within Tesla's market sector. Finally, the report integrates various theories, concepts, and models to devise strategic planning recommendations for Tesla, offering insights into how the company can achieve its objectives and maintain a competitive edge. The report concludes with a summary of the findings and a list of references.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Apply appropriate frameworks to analyse the macro environment for a given organisation 1
TASK 2............................................................................................................................................4
P2 Using appropriate frameworks analyse the internal environment and capabilities of a given
organisation............................................................................................................................4
TASK 3............................................................................................................................................7
P3 Apply Porter’s five forces model and to evaluate the competitive forces of a given market
sector for an organization.......................................................................................................7
TASK 4............................................................................................................................................9
P4 Apply a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation................................................................................................................9
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is regarded as the set of competitive actions as well as moves which a
entities utilises for attracting clients, enhancing performance, compete successfully as well as
attaining the objectives of firm. Moreover, this represents that how enterprises have to be
performed for reaching out the expected targets (Bharadwaj and et. al., 2013). This is essential
for organisation as it is helpful to develop vision as well as guidance for overall entities. As per
the scenario, the undertaken company for this report is Tesla which is large automotive as well as
energy firm. It is specialises in manufacturing and selling electric cars and also operates in many
countries like U.S., U.K and others. This report covers the application of effective framework to
examine external as well as internal atmosphere and application of porter's five forces model to
assess competitive forces. Moreover, utilisation of range of theories, concepts and model for
devising a strategic planning is also mentioned in this report.
TASK 1
P1 Apply appropriate frameworks to analyse the macro environment for a given organisation
Macro environment is regarded as the situation which exists into economy as whole
instead of into specific region or industry. This involves trends into GDP, employment, fiscal
policy, inflation and many others.
The mission, vision and objectives of TESLA Vision: Its vision is “To produce electric vehicles which are not costly and are of standard
quality as well as also produce most captive cars for 21st century through performing the
world transformation to vehicles which are electric. Mission: Its mission “ To speed up world transform to ongoing energy”.
 Objectives: Its objectives is “ To develop sport cars which are of standard quality as well
as effectual design with zero emission”.
This vital for entities to perform effective analysis external factors in order to formulate
appropriate decision as per the firm's and country circumstances. By this, it can become
competent to obtain competitive edge at market area through performing efficacious operation of
entities. For instance, organisation can adapt many techniques like PESTLE. In respect of
respective organisation, their manager perform external evaluation by PESTLE for ascertaining
UK market area are discussed underneath:
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PESTLE analysis:
This is regarded as the techniques which is applied through entities for examining as well
as observing the macro factors which has effects upon entities. It stands for political, economical,
social, technological, legal and environmental (Bocken and et. al., 2016). This plays vital role
into the development of entities. Either it is a development of product line or initiating new
business at new areas. So, the PESTLE Analysis of TESLA are discussed below: Political factor: UK is regarded as country that operates within parliamentary system.
This is considered as the stable and fair nation that have ample number of opportunities
for entities. In respect of respective organisation, this is an opportunity for this to explore
and operate their entities at UK effectually as it have stable political circumstances.
Moreover, their government also supports those entities that develops goods or services
as eco friendly way, this is an opportunity for them. Economical factor: UK has effective economical position as compare to another country.
It also has higher number of domestic goods with some problems. Also, they ahs huge
number of population that permit smaller marketplace to be profitable. This is vital for
TESLA to manufacture goods as per the countries economies. For example: In case
respective organisation introduce more costly cars within lower economy then it have few
clients who will buy its vehicle because of which it has to face the decline circumstances. Social factors: In respect of UK, there is higher social standard that aids entities to run
its enterprises effectually. Its people also have higher standard of living which will
considered as an opportunity for respective organisation as it can sell its vehicles
appropriately at particular country. Moreover, this country's society are also attracted
towards innovative technology that render opportunity for TESLA to perform effectually.
This is also vital for them to undertake the societal aspects at the time of formulating or
manufacturing its vehicles in order to introduce this as per clients needs. Technological factors: The UK is regarded as MEDC which stands for More
economically developed country that has higher access over technology (Cassidy, 2016).
This particular country persons are also has quality like creative skills that has proficient
into technology as well as science. Moreover, respective country also has effective
regulations that assists entities to conduct enterprises in efficacious way. In respect to
respective organisation, this is an opportunities for them to perform their operation
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effectually at UK as they render higher technology that depends goods which may be
effectively sold at respective market. Legal factors: This is regarded as factor that aids firms to perform its entities properly
and legal way. The government of UK formed several laws that assists entities to run its
enterprise effectually. In context of TESLA, at the time of performing their practices,
they required to obey several rules for obviating the legal actions. Such as equality act
2010, employment act, 1996 and others.
 Environment factors: The country's environment may get impacted by their economic
circumstances but UK has done effective improvement in order to minimise their
pessimistic affects. This particular country faces problems regarding weather situation
that effects upon production of several companies. In relation to respective organisation,
this particular aspects so not effect them as it has effective set ups in order to manufacture
auto-mobiles. But UK weather can affects their supply chain as well as this results into
late delivery (PESTEL analysis of the UK. 2017).
So, with the aids of this analysis respective organisation management can able to
formulate appropriate plan of action which will assists to operate their operations effectually and
to attain objectives in proper manner.
Critical analysis of the macro environment
As per the viewpoint of Jermias, there are many environmental factors such as political,
economical, social and others which may impact the decision making of business. Whole these
factors develop optimistic and negative affects to business. Such as in TESLA have adapted
technology factors then this aids them to produce goods or services with aids of new machinery
that drives to enhance brand loyalty and consumer satisfaction. On another hand, if TESLA will
not adapt technological factors then they can not able to accomplish present requirement as well
as individuals demand and also this maximises the cost fro adapting new technologies for
enterprises.
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TASK 2
P2 Using appropriate frameworks analyse the internal environment and capabilities of a given
organisation
This is crucial for all entities to perform effective investigation of their inside abilities as
well as environmental as this aids firm to formulate appropriate plan of action which drives
towards achievement of objectives (Cavusgil and et. al., 2014). The entities intrinsic ability as
well as atmosphere may be ascertain by several techniques or methods. In context of respective
organisation, it manager can perform internal analysis for ascertaining their strengths,
weaknesses and others that aids to formulate effective strategies. So, for this they applied SWOT
and VRIO that are described below:
Internal environment:
This is regarded as elements of entities surroundings that is combination of several
components which is present into firms. Also, which may be impacted with their preferences,
decisions as well as practices. In addition to this, it is also considered as factors, culture and
others into firm which have the capabilities to influence their decision basically the attitude of
their staff.
SWOT analysis
This is regarded as the strategic planning tool which is adapted through an entities for
identifying their strengths, weaknesses, opportunities and threats which are associated with
enterprise competitive strategy (Chang, 2016). Moreover, the main intent of this particular model
is to assign as well as recognise overall larger variable which can be indirectly impact their
objectives and strategies. TESLA SWOT analysis are discussed underneath:
 Strengths – Tesla is an organization that is recognized and has operations globally. It has
a strong dealer community which also promotes the company's products. The brand has
put in a lot of efforts to build a diverse brand portfolio over the years by coming up with
new innovations in its products constantly. Because of the high quality products produced
by the company, the customers are highly satisfied. Tesla is also known to among the top
employers in the world.
 Weaknesses – One of the company's weaknesses is that it not very good at forecasting
the product demand. The products that are sold by the company have various gaps that
need to be fulfilled. Also, there is no focus given to the infrastructure of the cars. The
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brand is primarily dependent upon continuous innovation. Tesla has a very limited
customer base with a poor brand awareness.
 Opportunities – One of the major opportunities for Tesla is expanding in markets that
are untapped and where the customers are not aware of the company and its product
offering. The company has suppliers for the battery of its cars and therefore can start the
production by itself. With the customers becoming more environment conscious, Tesla
can pay attention to promoting it's electric cars in the market more.
 Threats – With the rise in the bargaining power of suppliers, the company has been
sometimes forced to purchase the raw material at high prices. Also, intense competition
posed by the company's competitors can act as a threat. The brand is also exposed to
currency fluctuations as it has operations in various different countries. There have been
recent cases where customers raised concerns of defects in the cars they purchased from
the brand.
VRIO Analysis:
This is regarded as the technique that is adapted through entities in order to perform
analysis of their resources so that they may identify as well as examine their competitive
enhancement (De Massis and Kotlar, 2014). Moreover, this particular analysis render
information as well as the outcomes will facilitated a competitive advantage. It stands for Value,
Rare, Imitable and Organisable factors. The Tesla's resources are evaluated by this particular
model are discussed below:
Resources Valuable Rare Imitable Organised
Innovative design YES - - -
Supply chain management YES YES - -
Proprietary battery YES YES YES -
Capable staff YES YES YES YES
 Valuable: This is regarded as vital resources that are valuable for entities as it will aids in
accomplishing their objectives in impressive way. For a firm, there are several valuable
resource like their staff, technical procedures and others. In context of Tesla, some
valuable resources are:
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◦ Innovative design: The respective organisation develop innovative design that aids
them to attain attract ample number of consumers and this is also helpful in obtaining
competitive enhancement.
◦ Supply Chain management: This is also regarded as the valuable resources for Tesla
as by this they can able to supply its goods of services effectually at certain period to
its potential clients at target market. It will also assists them to accomplish consumers
requirements in order to gain more profitability.
◦ Proprietary battery: Tesla formed battery by using higher technology as well as
innovation which aids entities to gain competitive enhancement and also it has
trademark on this that develops it more valuable.
◦ Capable staff: This is also regarded essential resources that is valuable for respective
organisation as by these individuals, they can able to accomplish their objective
effectively. Also, staff of them are more capable, innovative as well as
knowledgable. Rare: This is regarded as that resource of entities which are rare for another one at
similar sector as well as this will assist them to achieve competitive enhancement at their
potential market (Drnevich and Croson, 2013). In context of TESLA, their few resources
are rare such as:
◦ Supply Chain: This is regarded as rare resources of TESLA as it adapt unique as well
as advance supply chain as compare to their rivals. It will aids them to accomplish
users requirements at appropriate time with standard quality.
◦ Proprietary battery: This is also considered as rare resources as this will assist them
to produce higher quality auto-mobile that grab the attention of users as well as try to
accomplish its desired. Moreover, they also has proprietary upon this as no one can
able to copy that.
◦ Capable staff: Staff of respective organisation are knowledgable, capable and
proficient that aids them achieve its objectives and also they are always motivated to
adapt advance technology in order to formulate standard quality goods. Imitable: This is regarded as that resources of entities which are not copied through any
another competitors or firm. In context of respective organisation, there are few resources
that are imitable such as:
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◦ Proprietary battery: This is respective organisation imitable resources as the battery
that is developed through advance technology as well as very innovative that can not
be copied through any another entities in easier manner. Moreover, it also assists
them to accomplish goals.
◦ Capable staff: This is regarded as the imitable resources because it can be copied
through any another organisation. TESLA employees are so much loyal towards
them. As well as it provide its full potential to perform the task effectually. Organised: This is regarded as that resource that have to be organised into various
smaller aspects so that entities may able to perform its practices in appropriate way in
order to accomplish goals (Elhamma and Zhang, 2013). In context of respective
organisation, they are many resources that are required to be organised in some aspects.
Few imitable resources are:
◦ Capable staff: The employees or respective organisation are so much proficient,
capable and knowledgable that knows that in what way the task are to be performed
effectually. It only required to be organised when TESAL adapt any modification into
operations.
Therefore, through performing SWOT analysis the respective organisation can able to
perform their internal atmosphere which aids them to ascertain its strengths and weaknesses.
Also, through performing VRIO analysis TESLA may able to get knowledge about its capability
that aids them to accomplish their goals effectively.
TASK 3
P3 Apply Porter’s five forces model and to evaluate the competitive forces of a given market
sector for an organization.
This is regarded as the models this is usually adapted through entities for evaluating as
well as ascertaining the level of competition at market location. By this, organisation's
management will also become competent to perform appropriate planning that assists them to
accomplish objective in successful manner (Mellat-Parast and et. al., 2015). In addition to this,
this will aids to deals with purchaser as well as suppliers. In relation to TESLA, It perform this
particular model for analysing competitive forces at their potential market area. Its all the forces
is discussed underneath:
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 Threats of new entry: This is regarded as where any entities may enter into specific
sector in easier manner because of lesser regulations and rules. In relation to respective
organisation, this particular forces is low as auto-mobile that are formulated through
TESLA are higher as well as premium cars are restricted to smaller range of clients and
also this is not simple for new or small business for developing likewise goods at lesser
period.
 Threats of substitutes: This is regarded as circumstances where there is large
availability of goods or service that render through certain entities. In case there is higher
threats in this respect purchasers can switch from one firm to others in order to obtain
standard quality of goods at lower costs. In respect to respective organisation, this
particular factors is low as within market area there are less number of entities that render
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Illustration 1: Porter's Five Force Model
(Source: PORTERS-FIVE-FORCES-MODEL-ANALYSIS-TEMPLATE-EXAMPLES.
2019)

similar types of auto-mobile goods. Moreover, there are also very less company that
provides such types of creative as well as technical based vehicle.
 Bargaining power of suppliers: This is regarded as situation where entities suppliers has
power to influence the goods price as per the circumstances. In case the power will be
higher then it may ask for more amount at lower quality goods or materials. In relation to
respective organisation, the bargaining power of supplier is higher as they depends upon
suppliers for effective quality material, resources as well as technology.
 Bargaining power of buyers: This is also regarded as the circumstances where
audiences may change goods or service cost as per them. In case the buyers power will be
higher then it may demand for standard quality of goods at lower cost as well as in case
the power of purchaser is lower then it has to buy lower quality goods at higher cost. In
relation to respective organisation, the purchaser bargaining power lower as their vechiles
render through TESLA are more based on technology and it also has target clients who
are loyal to them.
 Competitive rivalry: This is regarded as the situation where there will be several another
firms who facilitates similar goods or service which are rendered by specific entities. As
per this, firm can understand their strengths as well as weaknesses that aids them to
formulate effective decisions (Scholes and et. al., 2014). In relation to respective
organisation, its competitive rivalry is so much stronger as there are various another
entities that render similar variety of goods or vehicles like Mercedes, Audi and many
more (Tesla Inc. Five Forces Analysis (Porter’s Model) & Recommendations. 2019).
After performing the competitive analysis, the respective organisation management will
able to ascertain its market position into competitive marketplaces that assists to formulate plan
of action as well as accomplishing objectives in profitable and successful manner.
TASK 4
P4 Apply a range of theories, concepts and models, interpret and devise strategic planning for a
given organisation.
There are several kinds of models that are adapted through entities for developing
effective strategic planning. In relation to Respective organisation, it adapts two model such as
Ansoff matrix and porter's generic as this will aids them to formulate proper strategic planning
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