Business Environment Analysis: Tesla Company's Strategic Report

This report provides a comprehensive analysis of Tesla's business environment, encompassing its mission, vision, and core competencies. It evaluates the influence of macro-environmental factors using PESTLE analysis, assessing political, economic, social, technological, environmental, and legal aspects. The report delves into Tesla's internal environment through SWOT analysis, identifying strengths, weaknesses, opportunities, and threats. It further examines competitive forces using Porter's Five Forces model to evaluate industry rivalry, the threat of new entrants, the bargaining power of suppliers and buyers, and the threat of substitutes. The analysis extends to stakeholder considerations, including customers, employees, and investors, and concludes with an assessment of strategic directions and recommendations for fostering effective business contributions. The report also includes VRIO and Porter's Value Chain analysis to determine competitive advantage.

BUSINESS ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Evaluate the different frameworks which influence macro environment on tesla company
along with its strategies...............................................................................................................3
P2 Assess the different organisational internal environment along with capabilities.................5
P3 Evaluation of competitive forces with application of Porter’s Five Forces model in tesla....9
P4 Evaluate the understanding and interpretation of strategic directions available to an given
organisation................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is been identified as the planning and implementation in process in having
the in order to have goal and objectives. This help in the company in having the leading
information for developing and implementation the different various strategies to have proper
analysis of marketing activities in order to have proper evaluation of the marketing impacts in
the business procedure and development. Tesla is the American automotive and the energy-based
company which have the specific specialization in electric manufacturing which have proper
multiple level of product. The company is been identified as world best-selling plug in passenger
in car manufacture both as the brand and automotive group.
In this report there will be there will be providence of information about mission, vision
and level of core competencies along with objectives in tesla organisation with proper evaluating
the effectiveness. The next part will have report current strategic operating positioning in
performance of internal audit in way to determine strength, weakness, opportunities and the
threat of company. Moreover, there will be more consideration with stakeholder analysis in
appropriateness of strategies development in order to have proper justification with development
of new strategy in order to achieve the goal and organisations. In completion of this repost, there
will be proper understanding of the strategies to foster an effective and efficient contribution
towards the development of a business.
MAIN BODY
P1 Evaluate the different frameworks which influence macro environment on tesla company
along with its strategies.
Tesla is the American automotive and the energy-based company which have the specific
specialization in electric manufacturing which have proper multiple level of product.
Vision
To have creations of the most compelling car company for the 21 St century by driving the
world instantiation level of electric vehicles.
Mission
to have acceleration of world transition ion order to have sustainable transportation.
To have acceleration over world transition to sustainable energy.
Objectives
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Primary objective of company is to create the demand and drive sales up for the tesle mortar
car company.
Company want to build long term level of brand awareness and managing corporation and
reputation.
To properly manage Tesla existing customers in order to create loyal and customer
referrals.
The business strategy use by Tesla is my making most of the efforts in market penetrations
and level of product developmental in order to have growth in automotive and energy solution.
The company have application of differentiation generic competitive strategy in order to have
success with use of intensive growth stratergy.
Pestle
The pestle analysis will help in analysing the external environment factor which is affecting the
performance of company Tesla. the companies is formerly known as Tesla motors which is
American based automotive and energy company which is being headquartered in California.
The companies have been ranked as the bestselling headquarters in the electric world in the year
2018.
Political factor
The political factor makes the company in order to avail the opportunity in strengthening
financial performance through different level of incentives which is offered by company. The
government is having full level of tax credits in order to have the purchasing of electric care. In
has been identified the company is having the redemption of tax credit up to 7000$. This helps
the company in order to make competitive strategy in order to gain the competitive strength. The
government of countries is trying to take level of stances in order o having roper development in
automobile sector with hybrid and electric vehicles. The company is having level of expansion
its products with providence of loan from department of justice at low interest loan.
Economic factor
The factor working at economic level is gaining the electric popularity day by day it is
connected with global economy which having expected growth in year 2019-2020 at 3%. This is
turning out to be level of opportunity for tesla to have its proper capitalization. Battery cost is
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important factor in cost of electric vehicle so the economic factor is decreasing cost. This makes
company more affordable and accessible to have production of more electric vehicle. This is
tuning to additional material cost which is material which is more cost effectives in public.
Social
The idea is turning more fascinating as most people as especially true for those which is eco-
friendlier. The used of electric car have elimination of use fuel which makes environment better.
These are less expensive as compare to traditional cars in terms of terms of maintaining and
running cost. The company has been identifying as environmentally friendly along with increase
social status.
Technological factor.
Rapid changes can be factor which having positive impact on tesla as well as negative. They
also create he level of threat and opportunities for company as better use of technology makes
enhancing the portfolio products. The company owner Elon musk is trying equipped with fully
driverless technology, which if possible, will be a great technological competitive advantage for
Tesla Motors over its competitors. On the other hand, the companies have the negative impact as
the turning out be without technology will more obsolete in nature which always needs the level
of upgradation and development.
Environment factor
The company is trying to have proper building in strong brand image which is been recognised
by various level of competitors. The company has been identifying as environmentally friendly
along with increase social status. The company is trying to have level of sustainability in orders
roar aver he proper energy diversification which proper enjoying of proper reputation supply
chain to be more energy efficient.
Legal factor
The company is facing major of several law suits and the regulatory level of issues and
investigation as the 2 tesla crashes in 2019 the National Highway Traffic Safety Administration
and Transportation safety Board are investing the main causes of these crashes. This have proper
effect car delivery along with more expense and less level of profitability.
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SWOT
Strengths
Ideal employees
Increase level of sales.
the finest level of electric cars
Opportunities
Opportunity in field of Asian market
the latest version of model S with range,
power, and fewer features
Unconventional reliance on innovation,
Weakness
Maximum level of damages
Mechanical and risk factor
Unbalance level of supply and demand
Threat.
Quality assurance a high level of
manufacturing
Successful attempts in innovative launching.
Major lawsuits facing extensive level of
competition.
Stakeholders matrix
There rea various stakeholders which are both at internal and externa; level affecting business s
environment which is running business which is vice versa impact business directly and
indirectly. The stakeholder is inclusion of various communities, customer, employees along with
investors and government. Communities have made up general ecosystem who are influencing
the brand image as the company have responsibility to have look over major concerns in order to
protect and conserve environment.as the company is having proper design over production of
electric cars other have to pay the major concerns.
The consumer is majorly interested and influence in generation of revenues. The company’s is
more exploration in cost reduction of its products by manufacturing their own batteries which are
aimed at making their cars more affordable. As a result, they satisfy the interests of this group of
stakeholders.
The internal stakeholders having inclusion of employees and management team of tesla motors
in order for taking responsibility of their employees in order to give them good salaries and best
career opportunities. This assurance gives level of high productivity and better performance of
their employees.
Th last is about shareholders and investors to have best interest in success of company as they
have providence of funds invested in company. The company has to ensure level of growth and
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profitability in order to have successful implementation. The government majorly influence the
requirement which is met by company along with their respective limitation.
P2 Assess the different organisational internal environment along with capabilities.
SWOT
The company has reached to various heights in success as a dynamic automotive and different
level of energy solutions with in innovative approach in creating the dominate position in
worldwide area. The companies have emerged among the most business enthusiastic. The
SWOT analysis will have revelation in all significant insights regarding various factors which
includes the several reforms in light of all the SWOT factors, i.e., strength, weakness,
opportunities, and threats.
Strengths
The company has the key factor as remarkable level of employees which is having the impact in
remarkable success. The company is been recognised as the ideal company for significant
employees with its innovation and diversified encouraging culture. On the other hand, tesla has
been one of innovative automotive company despite o being various level of legal issues. The
company has level of increased sales that is leading automotive brand for 2019, delivering
90,000 vehicles for the last quarter of 2018, including 63,150 Model 3 (+13% from Q3), 13,500
Model S, and 14,050 Model X vehicles. The next strength is having the finest level of electric
cars for covering best maximum level of distances. There is coverage of 600 km on single
battery charge as compare to competitive brand opera with rang of 520 km.
Weakness
The internal factors which have maximum level of damages or having bound performance in
proper evaluation are been identified as weakness. The company is facing major complication in
mechanical and risk factor due to higher standard performance of innovation. Tesla faces
continuous launch, manufacturing and production ramp delays while launching their new
vehicles and other products. The company has faced the similar level of trouble in manufacturing
Model X’s battery module assembly line at Gigafactory 1. On the other hand, the company is
able to meet the unbalance level of supply and demand in order to meet the production level of
requirement. The company is face up to 31% drop in meeting demands as compare to year 2018.
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With respect to that company is failed in order to produce high volumes of automobiles along
with in terms of production cost and management resources and space expansion in Gigafactory
1.
Opportunities
The company have significant opportunity in field of Asian market as there is still as level of
unsaturated field of automotive and renewable energy markets. There is more need for financial
stability and strong level of market presence. The company have been identified as expensive
due to its unconventional reliance on innovation, which requires maximum financial support to
entertain new technology. With respect to that company has launched model 3, latest version of
model S with range, power, and fewer features
Threat.
The tesla is facing the liability claims issues with quality assurance a high level of manufacturing
which can be turned out to be major of financial blows. The company launched products have
faced various crashes over there successful attempts in innovative launching. The company is
facing major lawsuits due to failure of their attempted innovative materials which are subjected
as financial setbacks. the company is on other and is facing extensive level of
competition. .Many automotive brands in the luxury segment like Mercedes, BMW, Audi, Lexus
and in the economy segment like Toyota, Ford, Volvo, General Motors are getting ready for a
fierce competition
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VRIO ANALSYIS OF TESLA
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PORTERS VALUE CHAIN
It is analytical framework this is use to have the assisting the identification over different
business activities in order to have creation over creative value and competitive advantage in
electric automaker.
Tesla primary activities
Inbound logistics
The receipt and storage of different raw material in building the electric vehicles, energy storage
a panel of solar level. The company have the level of involvement of using scare resources such
as aluminium, steel, cobalt, lithium, nickel and copper. It is required for company in order to
have proper establishment long term strategic relationship with suppliers along with proper
working of build to order basis which clearly means bottlenecks in parts supply could be a big
headache.
Operations
The operation of company is been divided into two different segment that is automotive and
energy generation along with storage. In former there is inclusion of design, development,
manufacturing, and sales of electric vehicles. Tesla produced only 101,420 Model S and Model
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X vehicles and 1,764 Model 3 vehicles in 2017. Th latter segmentation have the use with design,
manufacturing and level of installation or lease of stationary energy storage products and solar
energy systems, and sale of electricity generated by Tesla solar energy systems to customers.
There are level of integration of various robust in manufacturing process which is the major
sources in creation of values in tesla company.
Outbound logistics
N outbound logistics there is more involvement of warehousing and distribution of electric
vehicles, energy storage systems and solar panels produced by the company. The company has
the direct delivery of the demanded electric cars to its customers. The company have maintained
of sall inventory management od scales in their different store for the immediate purpose. The
company don’t deal with dealer another partners and resealing as a significant source of value
creation in Tesla outbound logistics for two reasons. As firstly there is high account for
demanding electric vehicles which decreases with account high demand to is following
customers. On the other hand, in second reason the expensive cost of tesla in having furthers
level of increases which is already turned out to be more expensive through dealers and re-sellers
would have pushed the prices even higher.
Tesla Marketing and Sales
These services are more unconventional and similar to other business practices which are not
having visually the advisement sn endorsements, simply have realising on word of mouth. The
next ability in able to have proper attraction over media coverage at the global scale serves as a
major source of value in terms of increasing the level of brand awareness in the global scale. The
company is selling other brand vehicles in brand vehicles to general one. There is sells its
vehicles online and in company-owned showrooms. The electric automaker does not use
dealership networks to sell its products.
Tesla Service
The company is having the high-profile level of having sever level of complaints in recent areas.
The company’s is having the refusion in entering or returning phone calls and answer different
emails along with customers. The company tents to have providence over post sales services at
company service centres at service plus level locations. The company have recent development
of 100 new service sinters in maximum prime location.
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P3 Evaluation of competitive forces with application of Porter’s Five Forces model in tesla.
PORTERS FIVE FORCES MODEL.
There is majorly impacts of porter five forces which is depending of firm level of profitability in
this industry. There is also have proper five forces in business world in porter five forces analysis
as the factor are
Thereat of new entrants the new entrants in auto manufacturing as majorly bringing the
innovation is new and several ways for performing the different things in order to have pressure
over compost tesla. there is several strategies used by competitors as the lower pricing strategy,
along with reduction cost and the value of new proposition in gaining competitive advantage.
The tesla can have the development of various innovation in new products and services in give
old customer the basic reason in orders to by tesla again. There are bailments of economies of
scales by lowering the fixed cost per unit. There is biding of captivities in extracting the
discourage be new players in industry.
Bargaining power of suppliers as There is major industry have proper buying od the raw
materials having level of numerous suppliers in having dominate over position to decrease in
margin of tesla. Powerful suppliers in Consumer Goods sector use their negotiating power to
extract higher prices from the firms in Auto Manufacturers - Major field. The overall impact of
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higher supplier bargaining power is that it lowers the overall profitability of Auto Manufacturers
- Major. The company can tackle better supply chain with multiple level of supplier along with
multiple suppliers. the company should develop the third-party manufactures creating a scenario
where third-party manufacturers have significantly less bargaining power.
Bargaining power of buyers have the power to buy the best products in order by paying the less
level of prices which can be possible which is putting tesla in pressure of earning the profitability
at longer run. The company ahs smaller base of customer which makes the bargaining power
higher where customer seeks increasing level of discounts an suffers. The company should
tackle issues but increasing level of customer base which provide level of opulently to streamline
its sales and production process. There can be majorly more level of development of new
products which will lose the defection of existing customers of Tesla, Inc. to its competitors.
Threat of substitute products the threats of substitute is level higher as the company have to urge
a high level of service along with value of proposition which uniquely different from the level of
presents offering in industry. The tesla can have the development of various innovation in new
products and services in give old customer the basic reason in orders to by tesla
The company has turning out to be more service oriented rather than be just products one. The
company should have the understand rearising various needs of customers by level of increasing
in searching cost for the customers.
Rivalry among existing players. There is level of viably companies which are having fulfilment
of need of similar customers with having intense drive down prices and decrease the overall
profitability of the industry. The company have the level of differentiability in manner over the
having building the sustainable relationship and differentiation of products so that the company
can compete at better level. again. There are bailments of economies of scales by lowering the
fixed cost per unit. There is biding of captivities in extracting the discourage be new players in
industry. There can have collaboration of competitors over increasing eth market size along with
small market.
FORCES HIGH LOW
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Thereat of new entrants LOW
Bargaining power of supplier LOW
Bargaining power of buyers HIGH
Threat of substitute products HIGH
Rivalry among existing players. HIGH
Asnsoff matrix
Market penetration have the involvements id the selling of existing product into existential
market which have using of the penetration strategy has been used extensively. The company is
focused on selling its Model S, Model X and Model 3 electric vehicles, Power wall 2 and
Powerpack 2 energy storage products,
Product development is selling of new product into existing market which have engagements of
Tesla in frequently manner. This is mainly due to overly high cost of new product development
in electric vehicles and power storage sectors.
Market development is having finding of new market which is of selling of existing product .
This is because of the entering into new market is strategically appropriate decision for the
electric auto maker, taking into account estimations.
Diversification is developing the business of new product into new market as the company was
started only as electric vehicles' manufacturer in 2003 and later changed its name from Tesla
Motors Inc. after purchasing solar company Solar City in 2016 to enter energy storage sector.
P4 Evaluate the understanding and interpretation of strategic directions available to an given
organisation.
Porters generic model.
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Tesla have the application of generic strategy in order to having the gaining of compititve
advantage anther compete firm I automobile industry. The company has the major focus on the
having the company approaches I having the generic strategy using the advance level of
technologies with electric products and electric vehicles. Strategic adjustments, over time, ensure
the corporation’s resilience in the face of technological advancement and changing customer
preferences. There is the broad differentiation in compete strategy which si based on
development pf products comparative to neither industry. The company tents to have focus on
development of differentiae focus strategy which helps the company in having major focus on
development of unique products along with having the first mover advantage which used to
have the level of affluent customers. The company is been popular on in decaling production cost
with the purchase of new product.
The next is about the intensive growth strategy in which the tesla intensive strategies which is
taking place in different level that is market penetration (primary stage), Product development
(secondary stage) along with market development and diversification. At the first stage in is
market penetration (primary stage) as the current intensive strategy of growth as it increases the
growth by increasing the level of sales revenue in order by developing the competitive advantage
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bases on increase level of market share. The main objective of the company is to have the grow
the company’s sales revenues through aggressive marketing.
The next sage is about product development is which company have development of new
product s in order to have generation over sales. The company at this stage tries to develop new
product with advance technologies with menials’ environmental factors. the company is majorly
using the unique high-technology automobiles and related products that attract target customers.
In this stage the company gas the objective in orders to relate intensive growth strategy is to
maintain extensive investments in research and development. Th stage next is about the level of
product development as a tertiary intensive growth strategy. This strategy involves the company
tesla of entering new markets to generate more sales and grow the global business. The campy is
gradually trying to have its expansion over the new level of offices and facilities. This stage
helps the company in achieving its mission and vison in which is there is major highlight of
achieving the global leadership in the automotive industry, with energy solutions for the
transportation and other sectors. This helps the company in creating the unique level of products
in order to have proper attraction of customers in new market for development as multinational
business as compare to answers companies which makes company to enter market in easier
trends.
The last is the application for diversification is orders to have growth of company as a new
company’s as it is affecting the financial performed of company. this has the major focus on the s
on market penetration and product development to grow its automotive and energy solutions
businesses. This have the proper application in order to have success of intensive growth
strategy in order to have increase over research and development or enter joint ventures to
develop entirely new products.
CONCLUSION
In the following repost there is major discussion on the providence of information about
mission, vision and level of core competencies along with objectives in tesla organisation with
proper evaluating the effectiveness. The repost consist of major considerations consideration
with stakeholder analysis in appropriateness of strategies development in order to have proper
justification with development of new strategy in order to achieve the goal and organisations.
The pestles and stakeholders analysis helps in identifying the major impact of business of
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different externals factor upon business and other stakeholders. The company is face up to 31%
drop in meeting demands as compare to year 2018. With respect to that company is failed in
order to produce high volumes of automobiles along with in terms of production cost and
management resources and space expansion in Gigafactory 1.Many automotive brands in the
luxury segment like Mercedes, BMW, Audi, Lexus and in the economy segment like Toyota,
Ford, Volvo, General Motors are getting ready for a fierce competition. . This have the proper
application in order to have success of intensive growth strategy in order to have increase over
research and development or enter joint ventures to develop entirely new products.
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