MSc Management Global Strategy and Sustainability Assignment Sample

Introduction

In the present business world, businesses need to focus on analysing business environment in which they are operating. It can be said that if the company focuses on analysing the business environment effectively, then it can assist them in developing better strategies.

In this report external and internal environment will be analysed for Tesla with the help of models. Tesla is a leading automobile manufacturer which is operating at global level (Khan, 2021).http://MSc Management Global Strategy and Sustainability Assignment Sample

Task 1- The External and Internal Environment

Tesla is operating at the global level and for such a firm it is important to focus on analysing the business environment (Stobbe Jr, 2019). http://MSc Management Global Strategy and Sustainability Assignment SampleTwo effective models are used for analysing the business environment are mentioned below such as

PESTLE Analysis

PESTLE analysis is a strategic framework that is beneficial in analysing impact of external business environments on the firm. The pestle analysis for tesla is mentioned below:

Political factors: the government is supporting the electric automobile sector and this creates opportunities for Tesla. Apart from this the political stability of the major markets in which tesla operates also affects the company (Li, 2018).http://MSc Management Global Strategy and Sustainability Assignment Sample

Economic factors: the economic stability is being affected due to the pandemic and because of this Tesla is also facing a negative impact of it. The decreasing cost of renewable energy and battery costs is attracting the customers and providing economic benefit to the company.

Social factors: different factors related to the customer preferences are having an impact on Tesla. The increasing concern for environmental protection and low carbon lifestyle is a positive factor which is affecting the firm (Matthews et. al. 2020).http://MSc Management Global Strategy and Sustainability Assignment Sample

Legal factors: The rules and regulations of government has significant effect on company.  The rules related to energy consumption and the regulations related to sales of the electric vehicle are also affecting Tesla.

Technological factors: the increasing technological advancement is helping Tesla in becoming more advanced and improving the operational efficiency of the firm. Along with this automation is also creating opportunities for Tesla.

Environmental factors: Tesla is working to add value to the environment and due to this reason, this factor creates opportunities for the company.

Porter Five forces

This is effective model that is used for analysing how different forces of industry are having an impact on the company (Maroń, 2021).http://MSc Management Global Strategy and Sustainability Assignment Sample Porter five forces for Tesla is mentioned below such as:

• Bargain power of buyers: The bargain power of buyers is high as there are different companies which are offering similar products to the customers.
• Bargain power of suppliers: Bargain power of suppliers is low as suppliers want to work with tesla due to their effective market image.
• Threat of substitute: due to low switching cost the threat of substitute is higher for the Tesla as the competitors are also offering similar products and there are moderate substitutes available for the customers.
• Threat of new entrants: Entering into the electric vehicle industry is not easy due to this reason threat of new entrants is low for firm.
• Competitive Rivalry: Tesla operates in highly competitive business environment where they face competition from different firms. Nio, Ford and Volkswagen are the top competitors of Tesla (Liu, 2021).http://MSc Management Global Strategy and Sustainability Assignment Sample

On the basis of the analysis, it can be said that there are different factors which are leading the firm towards growth and development. The increasing concern for the environment, government support and the social trend of using renewable energy are the three important critical factors which are helping the company to grow.

It can be said that Tesla is doing well in the industry and there are different factors which are offering competitive advantage to the company.  Innovation in the product and technological advancements are the strengths of Tesla which is offering them competitive advantage over others (Kancherla and Daim, 2018).http://MSc Management Global Strategy and Sustainability Assignment Sample

Along with this the brand image and brand equity in the global market is also helping the firm in gaining advantage over others. It can be said that similar to its competitors Volkswagen, Tesla is also focusing on innovation which is helping them in remaining competitive in the industry.

Task 2- Strategy in the Global Environment

Tesla is focusing on international expansion to lead the firm towards development. The company is focusing on different methods for entering into new markets. The major motive of Tesla to expand is to increase the company presence in the global market which is essential for leading the firm towards success and development (McCain, 2019).http://MSc Management Global Strategy and Sustainability Assignment Sample

The company strategy is to enter into the high-end markets where the customers pay a premium price for the automobile. Tesla is having a transnational strategy according to which they focus on the local requirements of the customer while entering into the new market. Tesla is having strategic alliances with different nations for entering into the new markets and expanding at global level.

For operating in an efficient manner Tesla needs to focus on developing efficient strategies. For market expansion there are different strategies that can be used by Tesla such as direct exporting, licensing and partnering.  These strategies are easy to use and require less legal requirements thus the case company can use these strategies for market expansion.

Tesla can focus on product differentiation strategy which can help them in gaining competitive advantage over others in the industry (Kauerhof, 2017). http://MSc Management Global Strategy and Sustainability Assignment SampleMoreover, the company can also focus on using effective marketing and promotional activities that can help the firm in remaining attractive in the automotive industry.

It can be recommended that Tesla needs to focus on following the market trends and developing strategies accordingly.  This can help them in leading the firm towards success and development.

Conclusion

On the basis of the above-mentioned report, it can be said that Tesla should focus on understanding the impact of both external and internal factors on the firm. Based on the environment analysis the company should develop the strategies so that the firm can work in an effective manner.

References

Kancherla, Y.D. and Daim, T.U., (2018). Technology Roadmap: A Roadmap for Tesla. In Infrastructure and Technology Management (pp. 347-366). Springer, Cham.

Kauerhof, A., (2017). Strategies for Autonomous, Connected and Smart Mobility in the Automotive Industry. A Comparative Analysis of BMW Group and Tesla Motors Inc. GRIN Verlag.

Khan, M., (2021). A critical analysis of Elon Musk’s leadership in Tesla motors. Journal of Global Entrepreneurship Research, pp.1-10.

Li, Z., (2018). Strategic Audit on Tesla.

Liu, S., (2021), March. Competition and Valuation: A Case Study of Tesla Motors. In IOP Conference Series: Earth and Environmental Science (Vol. 692, No. 2, p. 022103). IOP Publishing.

Maroń, J., (2021). Chinese Electric Cars Market: Study of Tesla’s Exclusive Rights and Business Environment. Decision making process in the management of logistics support system, Reszka Leszek Adres publikacji w Repozytorium URL/Publication address in Repository, p.147.

Matthews, T., Hirve, M., Pan, Y., Dang, D., Rawar, E. and Daim, T.U., (2020). Tesla Energy. In Innovation Management in the Intelligent World (pp. 233-249). Springer, Cham.

McCain, C., (2019). A Strategic Audit of Tesla, Inc.

Stobbe Jr, J.J., (2019). A Strategic Audit of Tesla.