Assessment 3 Brief: Subject Code And Title MGT604 Strategic ✓ Solved

Assessment 3 Briefsubject Code And Titlemgt604 Strategic Managementass

The assessment requires students to develop a contemporary strategic analysis report focusing on how external influences impact an organization. The report must include an executive summary, table of contents, introduction, aim statement, discussion analyzing three strategic influences impacting the chosen organization, a conclusion, recommendations for future strategic actions, references in APA style, and supporting appendices. Students are expected to monitor news sources over the course, identify evolving strategic influences, categorize these influences within strategic management frameworks, and propose strategies to capitalize on positive influences or mitigate negative impacts. The report should also include a revised statement of the organization’s goals aligning with the strategic response. The submission must demonstrate comprehensive research, theoretical application, clear analysis, and well-structured academic writing, supported by at least four peer-reviewed sources and five credible non-academic sources.

Sample Paper For Above instruction

Introduction

In today’s rapidly evolving global business environment, organizations must remain vigilant to external influences that can affect their strategic positioning and long-term sustainability. External forces such as technological advancements, regulatory changes, and shifting consumer preferences create both opportunities and threats that organizations need to understand and address effectively. This report aims to analyze three significant strategic influences impacting Tesla Inc., a global leader in electric vehicles (EVs) and renewable energy solutions. The analysis will categorize these influences using strategic management theories and frameworks, critically evaluate their implications, and propose strategic responses that can support Tesla’s long-term growth and competitiveness.

Context and Background

Tesla Inc., founded in 2003, has revolutionized the automotive industry through its innovative electric vehicles and sustainable energy products. The company's success depends heavily on its ability to adapt to external environmental factors. Given the dynamic nature of the EV industry, Tesla faces numerous external influences, including technological developments, regulatory policies aimed at reducing carbon emissions, and shifts in market demand toward sustainable transportation. Over the past few years, these influences have accelerated, requiring Tesla to revise its strategic approach continually.

Research and Analytical Framework

To identify and evaluate relevant strategic influences, the analysis employs Porter’s Five Forces to assess industry competitiveness, and PESTEL analysis to contextualize environmental factors. Furthermore, the VRIO framework is used to analyze Tesla’s internal capabilities vis-à-vis external threats and opportunities, guiding strategic decision-making. The paper examines how these influences are categorized within strategic management practice and explores strategic options for Tesla.

Strategic Influence 1: Technological Innovation and Breakthroughs

Technological innovation remains a critical force shaping Tesla’s competitive advantage. Advances in battery technology, autonomous driving, and manufacturing processes are pivotal. According to Christensen’s Theory of Disruptive Innovation, Tesla’s technological breakthroughs serve as both sustaining and disruptive innovations, allowing the firm to maintain market leadership while challenging traditional automakers (Christensen, 1997). Technological development influences Tesla’s R&D focus, product differentiation, and cost leadership strategies.

The implication for Tesla is the need for continuous innovation to stay ahead of competitors and to meet evolving customer expectations. Strategic responses include increased investment in R&D, forming strategic alliances with tech firms, and patenting innovations to protect intellectual property. These efforts aim to sustain Tesla’s technological edge, foster brand loyalty, and capitalize on the growing demand for high-tech EVs.

Strategic Influence 2: Regulatory Environment and Policy Changes

Government policies worldwide are increasingly favoring sustainable energy solutions through stricter emission standards, incentives, and subsidies. The Paris Agreement’s commitments to reduce global carbon emissions have led governments to implement policies that directly impact Tesla’s operations, such as tax credits for EV buyers and emissions regulations (Lubinski, 2020). These policies form part of the political-legal external environment analyzed via PESTEL.

Using the strategic categorization framework, regulatory shifts are considered proactive external drivers that create opportunities compliant with policy incentives. However, sudden policy reversals or tightening regulations can pose threats, increasing compliance costs or limiting market growth.

Tesla’s strategic response involves lobbying advocacy, aligning products with regulatory standards, and investing in infrastructure (e.g., charging stations) to enhance market penetration. The company also advocates for policies supporting renewable energy, aligning its corporate social responsibility with regulatory trends.

Strategic Influence 3: Market Demand and Consumer Preferences

Consumer preferences for greener, technology-savvy transportation options are shifting steadily toward sustainable mobility solutions. Market research indicates increasing consumer acceptance of electric vehicles, driven by environmental consciousness and technological affinity (Statista, 2022). This influence falls under the macroeconomic and social factors of the PESTEL analysis.

From a strategic management perspective, the rise in demand acts as an external opportunity, encouraging Tesla to expand its product line, improve marketing, and deepen customer engagement. Conversely, consumer skepticism regarding EV range and charging infrastructure can act as barriers.

Tesla’s strategic response to market demand involves expanding product offerings (e.g., Model Y, Cybertruck), increasing global manufacturing capacity, and investing in charging networks to alleviate consumer concerns. These actions aim to reinforce Tesla’s market leadership and capitalize on the sustainability trend.

Strategic Categorization and Implications

The three influences—technological breakthroughs, regulatory shifts, and changing consumer preferences—are categorized within strategic frameworks as drivers of either opportunity or threat. Technological innovation and market demand predominantly present opportunities, whereas regulatory uncertainty can pose threats if not managed proactively.

The practice of strategy categorizes these influences using tools such as SWOT analysis, aligning internal strengths with external opportunities, and correcting weaknesses to mitigate external threats. For example, Tesla’s strong R&D capabilities serve as core competencies enabling it to innovate rapidly. Simultaneously, proactive compliance and advocacy optimize regulatory advantages.

The implications for Tesla include the importance of agility in strategic planning, continuous investment in innovation, policy engagement, and market expansion. These strategies will position Tesla to harness external influences for sustainable growth.

Proposed Strategic Course of Action

Given the influences identified, Tesla should pursue a multi-pronged strategy focusing on technological innovation, regulatory engagement, and market expansion. Specifically, Tesla should increase R&D spending to accelerate battery and autonomous driving innovations, ensuring sustained competitive advantage. Simultaneously, Tesla should establish stronger relationships with policymakers to influence favorable regulation and proactively meet evolving standards.

Tesla’s revised goals should include increased global market share, leadership in autonomous driving technology, and expanded renewable energy solutions. Short-term objectives include scaling manufacturing capacity, while long-term goals focus on achieving full autonomous vehicle adoption and carbon neutrality across operations.

Implementing this strategy ensures Tesla remains at the forefront of technological advancements, leverages favorable regulations, and responds effectively to consumer demand shifts.

Conclusion

This report examined three significant external strategic influences impacting Tesla Inc.: technological innovation, regulatory environment, and market demand. Categorized within strategic frameworks, these influences serve as both opportunities and threats requiring proactive strategic responses. The suggested approach involves increased investment in R&D, stakeholder engagement with policymakers, and market expansion initiatives. These strategies are expected to support Tesla’s long-term objectives of competitiveness, innovation leadership, and sustainability. Addressing external influences through dynamic and flexible strategy formulation will be crucial for Tesla’s continued success in the evolving EV industry.

Recommendations

1. Accelerate investment in research and development to lead innovations in battery technology and autonomous vehicles.

2. Strengthen engagement with policymakers to shape favorable regulatory environments and sustain government incentives.

3. Expand market presence by increasing production capacity and investing in charging infrastructure globally.

4. Continuously monitor technological trends, regulatory developments, and consumer preferences to adapt strategies promptly.

5. Foster strategic alliances with technology firms and research institutions to enhance innovation capabilities.

References

Christensen, C. M. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review Press.

Lubinski, C. (2020). Electric vehicle policies: A review of global best practices. Transportation Research Part D: Transport and Environment, 87, 102523.

Statista. (2022). Consumer electric vehicle adoption worldwide. Retrieved from https://www.statista.com/topics/1133/electric-vehicles/

Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.

Johnson, G., Scholes, K., & Whittington, R. (2017). Exploring Corporate Strategy (9th ed.). Pearson Education.

Barney, J. B., & Hesterly, W. S. (2015). Strategic Management and Competitive Advantage (5th ed.). Pearson.

Grant, R. M. (2019). Contemporary Strategy Analysis (10th ed.). Wiley.

Mourdoukoutas, P. (2020). Tesla: How the EV Maker Is Accelerating Global EV Adoption. Forbes. Retrieved from https://www.forbes.com/sites/panosmourdoukoutas/2020/09/23/tesla-how-the-ev-maker-is-accelerating-global-ev-adoption/

Ghoshal, S., & Bartlett, C. A. (1997). The individual in multinational corporations. Academy of Management Review, 22(2), 366-400.

McKinsey & Company. (2021). The future of mobility: Electric vehicles and beyond. Retrieved from https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/the-future-of-mobility