Analyze External and Internal Environment of a Firm with Recommendations

Solving Future Problems

Analyze External Environment Of The Firm Over a Period Covered In The Case. How Did The Industry And Its Attractiveness Evolve? Why So? Identify Key External Challenges/Factors That Industry Faced Over Time. How Did They Affect Industry? What Has Been The Nature Of Rivalry?

Analyze Firm’s Internal Environment. Identify Key Challenges Facing Firm In The Past. Why Are These Key Challenges? How Did They Affect Firm?

What Are The Firm’s Key Resources/Activities/Functional Expertise? How Have These Resources/Activities/Functional Expertise Affected Firm’s Relative Performance?

Critically Analyze Firm’s Strategy And Competitive Advantage? What Has It Been? Has It Enjoyed Competitive Enjoyed? Suffered From Disadvantaged? Has It Been Sustainable? Why So? Has It Planned Strategy Implementation Well? Has It Been Doing a Good Job Of Evaluation And Control?

The portion addresses about the alternative decisions available to the firm and how the adoption of these decisions are effective for attaining organizational goals. Solving the future problem is assumed as an effective skill that leads to organizational success. Firms undergo various market analysis to under the market status of the consumer and the consumer demand. This is done by understanding the core problems and think of policies according (oGncalves et al. 2015). The firm then critically evaluates the pros and cons of the policy in terms of organizational development and profit.

The business of Tesla is purely based on three strategies like servicing, selling and charging the electric vehicles. It follows a generic business model that enables the firm to maintain a comparative advantage with rest to differentiation, cost leadership and focus (Rothaermel 2017).  Tesla effectively estimates the outcomes of alternative strategies in correspondence to Porter, Pestle and SWOT. It does not consider vague and weak compromise’s and take decisions relating to organizational structure.

Tesla follows a generic strategy model that enables the firm to focus on the usage of advanced technogies in electric vehicles (Nisar, Palacios, & Grijalvo 2016). Tesla calculates the role of advanced technologies in profitability and driving business growth. Tesla serves products that are cost effective and has eco-friendly technology. The firm introduces policies that attracts a large number of international customers. The company analyzes how effectively the policies were running by doing a comparison about the past outcomes (Välikangas 2018). The data of each period is obtained which is then compared with the performance of individual and firms. It clearly estimates the problems being faced by the organization and reconstruct policies that benefits the company. It then uses effective tools to change the organization structure and the management practices that can improve organization performance. Problems are being faced by each company that needs a change in its management and operation policies. (Batson, et al. 2015) Tesla first find out its core competent areas then then implements a strategy that focuses on uniqueness of the products under differentiation strategy.

Key Decision Criteria

The effect of the management policies can be felt on business development as it is primarily focusses on changing the efficient outcomes of the firm. Tesla has already structured its employees as per their background on sales, service and engineering and follows a hierarchical structure. The management operation of the firm is crucial for its effective performance of the organization. Tesla is a big businesses and for maintaining organizational discipline, management board is divided into five components like audit, nominations, disclosure, numeration and corporate responsibility.

Organization is divided into separate teams in order to reach performance efficiency due to increased competition among and outside team members (Rothaermel 2017). . In case of inefficiency of Tesla employees, the management teams can understand the implication of delaying opportunities. They respond by raising the flexibility of operations among the workers and decrease the layers of management. Tesla has quality batteries that uses less power and lower overall cost such that Tesla uses this policy to generate brand value in the market during crisis.

There are various approaches the needs to be followed by Tesla to generate greater sales. It has taken decisions as per generic model and handling the management practices efficiently. Tesla can effectively improve its machine process that will lead to provision of quality products at lesser time frame and gain greater comparative advantage. The effectiveness of the operation can be felt on the business with effective techniques and technologies. (Moritz et al. 2015). The company must focus on its inventory model in order to get huge profits. Tesla does very little to attract customers and generate brand value (Välikangas, L. (2018). It can introduce new marketing policies related to advertising in social media platforms normal platforms.

Tesla must spread about its safety techniques and introduction of energy efficient technologies to its customers. Tesla must increase its global operation and so they must invest in trade and development. The company must make organizational change according to customer needs. Tesla must diversify its products and generate a greater level of customer satisfaction (Goncalves et al. 2015). These decisions are taken with respect to performance of firm and management operations. Thus, Tesla can generate greater sales when it effectively improves its methods of implementing strategic decisions. It is recommended for Tesla to make changes in organizational structure and generate maximum profits.

Reference List

Batson, M. A., Petridou, N., Klomp, D. W., Frens, M. A., & Neggers, S. F. (2015). Single session imaging of cerebellum at 7 Tesla: obtaining structure and function of multiple motor subsystems in individual subjects. PLOS one, 10(8), e0134933.

Goncalves, N. R., Ban, H., Sánchez-Panchuelo, R. M., Francis, S. T., Schluppeck, D., & Welchman, A. E. (2015). 7 tesla FMRI reveals systematic functional organization for binocular disparity in dorsal visual cortex. Journal of Neuroscience, 35(7), 3056-3072.

Moritz, M., Redlich, T., Krenz, P., Buxbaum-Conradi, S., & Wulfsberg, J. P. (2015, August). Tesla Motors, Inc.: Pioneer towards a new strategic approach in the automobile industry along the open source movement?. In 2015 Portland International Conference On Management Of Engineering And Technology (picmet) (pp. 85-92). IEEE.

Nisar, A., Palacios, M., & Grijalvo, M. (2016). Open organizational structures: A new framework for the energy industry. Journal of Business Research, 69(11), 5175-5179.

Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education.

Välikangas, L. (2018). Forum on Tesla and the Global Automotive Industry. Management and Organization Review, 14(3), 467-470.