Contents

Introduction.................................................................................................................................................2
LO1..............................................................................................................................................................2
P1 Applying appropriate frameworks, analyse the impact and influence of the macro environment on a
given organisation and its strategies...........................................................................................................2
M1 Critically analyse the macro environment to determine and inform strategic management decisions.
.................................................................................................................................................................... 4
LO2..............................................................................................................................................................5
P2 Conduct an internal environment and capabilities assessment of a given organisation using
appropriate frameworks..............................................................................................................................5
M2 Interpret information and data to assess strengths and weaknesses of an organisation’s internal
capabilities, structure and skill set...............................................................................................................6
LO3..............................................................................................................................................................6
P3 Determine appropriate management tools to analyse a given market sector for an organisation and
inform strategy...........................................................................................................................................6
Porter’sFive Forces Analysis of Industry Competitiveness.......................................................................6
Macro Environment Analysis –PESTEL.....................................................................................................7
Grant (2019) synthesizes all above information and summarizesthat stricter emissions regulations lead
to greater EV adoption which aligns with Tesla’s strategy......................................................................7
Ansoff Matrix – Analysis of GrowthStrategy..........................................................................................7
SWOT – Internal & ExternalCapability Evaluation...................................................................................7
VRIO — SustainableCompetitive Advantage............................................................................................7
P4 Devise appropriate strategic objectives, based on the outcomes of analysis for an organisation to
inform strategy...........................................................................................................................................8
M3 Justify use of an appropriate strategic management tool for agiven market sector, to inform strategy
and strategic objectives for an organisation................................................................................................8
P5 Apply a range of models, concepts or theories to interpret and devise strategic planning for a given
organisation.................................................................................................................................................9
P6 Design a strategic management plan, applying appropriate strategies to improve competitive edge
and market position based on the outcomes............................................................................................10
The company should extend its battery recycling initiative to minimize environmental harm caused by
operations..................................................................................................................................................11
The company should develop carbon-neutral programs combined with energy-efficient production
infrastructure.............................................................................................................................................11
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives..................................................................................................................................................11

1
D1 Create a set of valid strategic directions, objectives and tactical actions for successfully achieving
strategic alignment, based on critical interpretation of internal and external data, and information......12
Conclusion.................................................................................................................................................12
Reference..................................................................................................................................................13

Introduction
Tesla Inc. (TSLA) functions as a pioneering business at the forefront of automotive and energy
sectors alongside its EV and renewable energy technology development initiatives. The
automotive industry moves fast but Tesla maintains its position by using outside audit reports
and internal factors evaluation methods. Internal organizational assessments related to both
capabilities and external circumstances make use of PESTEL and Porter’s Five Forces and
SWOT and VRIO strategic tools (Grant 2019; Hill & Jones 2012). When analyzing Tesla’s
internal elements the company uses SWOT and VRIO frameworks. The combination of vertical
integration and cost advantages within the company and employee competency and robotics
technology enables Tesla to achieve production benefits however supplier management becomes
more complex because they absorb all business expenses (Hill & Jones, 2012). Under its
Business Model and Business Model Strategy Tesla Inc. develops new products within existing
and fresh markets while maintaining diverse operations (Porter five forces and Ansoff Matrix
models) (Grant, 2019). The company predicts boosting global EV sales through a 35% increase
in the upcoming five years (Grant, 2019). It out auto-pilot technology and renewable energy
solutions. The company maintains its competitiveness in automotive and energy sectors by using
internal abilities to seize available market opportunities (Tesla, 2021)This document establishes
how strategic management solutions enable Tesla to succeed in its diverse business landscape
and maintain long-term business prosperity.

LO1
P1 Applying appropriate frameworks, analyse the impact and
influence of the macro environment on a given organisation and
its strategies

For each macro-environmental factor, there is a spillover effect which impacts the strategic
decisions of Tesla Inc (the "Company") due to the dynamic nature of its competitive
environment. This analysis uses a PESTEL framework (Grant, 2019) of external components
that shape Tesla’s operational approach and future strategy.

Political Factors

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Tesla’s market development is greatly dependent on government policy. International energy
agency (IEA) states that countries encouraging EV adoption through subsidies and carbon
emission regulations with tax benefits favoring Tesla (IEA, 2022) With raw-material tariff
disparity (lithium and nickel) and global diplomatic confrontation (U.S.-China relationship)
exporting supply chain operations have three necessary hurdles to jump through with trade
legislation. However, the company minimizes that risk by spreading their factories across the
world, with the recent addition of Gigafactories in China and Germany (Tesla, 2021).

Economic Factors

Statista (2023) mentions that inflation along with interest rates and global economic downturns
directly impacts consumer power and demand of EVs. According to data reported from Tesla,
raw material price spike complemented with global supply chain disruptions, such as
semiconductor shortages, limit Tesla's production capacity (Tesla, 2022). The company tackles
these problems with vertical integration, ensuring lithium deposits, in-house battery technology
development, and decreased reliance on external suppliers (Wood Mackenzie, 2021.

Social Factors

The market for sustainable eco-friendly automobiles allows Tesla to capture fresh new markets
(IEA, 2023). The increasing implementation of autonomous vehicles in the market along with
consumer demand for power-saving solutions gives Tesla the opportunity to branch out its
business portfolio into battery systems and solar solutions (Wood Mackenzie, 2021). Tesla needs
to produce economically viable electric vehicles to widen its customer base, thus facing
affordability issues itself and pushing it as a company to produce affordable electric vehicles
(Tesla, 2023).

Technological Factors

Technological breakthroughs are a firm foundation for the company's success. Tesla is likely to
be in a unique position in the market combining ADAS with state-of-the-art batteries and AI
innovations (Grant, 2019). The firm invests its resources in Full self-driving (FSD) and energy
storage systems as it aims to set a standard with mobile systems and clean energy (Tesla, 2023).
Tesla's ongoing R&D activities help the company hold its leadership position through
technological advancement (Statista, 2023).

Environmental Factors

As global institutions develop carbon emission reduction and renewable energy implementation,
the company is committed to sustainability (IEA, 2022). The Gigafactory energy-efficient
production combined with the growth of solar-based energy solutions clearly position Tesla as a
company focused on sustainability (Tesla, 2023).

Legal Factors

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Tesla’s business across the globe operates due to regulatory modifications however with both
safety protocols and also intellectual property regulations (Hill & Jones, 2012). Legal troubles
arising from accidents of self-driving cars and data privacy lawsuits could weigh down the
company's position in the market. This could be done by investing in safety-based compliance
improvements and also by conforming with the industry regulations (Porter, 2008).

M1 Critically analyse the macro environment to

determine and inform strategic management decisions.
The ability of Tesla to adapt again to shifts in its external environment creates both its long term
business opportunities and also its dominance within the industry. The major external forces
identified in PESTEL analysis need further strategic evaluation according to Grant (2019) The
extent to which Tesla's long-term business is at risk due to over-reliance on political favouring
via government EV subsidy programs (Hill et al., 2014). Declining government subsidies make
it vital for Tesla to streamline operational costs and improve product efficiency to maintain its
market position. According to Porter (2008), the U.S.-China trade war and other geopolitical
tensions are continuously threatening Tesla’s supply chain operations while asking to separate
the production to different regions.

Due to significant changes in the economic conditions, the company should implement strategic
initiatives. Fluctuation in prices of both battery raw materials, lithium and cobalt, affect the price
the banner company can sell at, so the company must continuously invest in its battery
technology and also gain as much as possible from its strategic supply chain management (Tesla,
2021). The in-house production of semiconductor by Tesla had become an increasingly
important point after the global chip shortage exposed their heavy reliance on external suppliers
(Statista, 2023). Social: Consumer demand for sustainable and autonomous vehicles is growing.
The production costs are too high for mass market customers to consider adoption (Deloitte,
2022). Tesla will address this matter by rolling out cheaper models alongside needed
infrastructure enhancements (Supercharger network) so that the entire market is able to access
the technology.

Technology is developed as blessing and curse.), To succeed in the market contest for AI-based
mobility (Grant, 2019), Tesla needs to sustain a steady speed of product innovation including
softward system integration with AI driven functional enhancement. The growing attention to
environment problems and tightened emission standards create opportunitites for Tesla to
execute its sustainability driven business model. Batteries left unsolved led to the blockage of
global sustainability (Tesla, 2021).Because the legal risks are barriers to deploying autonomous
vehicles, regulatory compliance is a key part of Tesla’s strategic planning.The macro-
environmental analysis of Tesla indicates that this organization has several opportunities to take
advantage of while also presenting some threats to counteract in the process. The company
needs to attain a balance between innovation and cost efficiency as they increase their market
presence while developing resilient supply chains to maintain growth (2019, Grant).

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LO2
P2 Conduct an internal environment and capabilities assessment
of a given organisation using appropriate frameworks.

Tesla's internal environment and competitive capabilities define its strategic positioning. The
strength and weakness and threat and opportunity and distinctive capabilities SWOT and VRIO
frameworks can be used to analyze internal capabilities of the company in question (Barney,
1991).

SWOT Analysis

Strengths:

 As an intellectual technology company Tesla itself postures the use of current EV

technology including AI self-driving systems along with battery development will
dominate as technology evolves and market competition (Tesla, 2021).
 The market affluence of Tesla increases as clients express zealous adherence to its
revolutionary sustainable products and its unique technological progress (Forbes, 2023).
 When Tesla owns battery manufacture operations and software/vehicle construction, by
owning these essential supply chain aspects, it provides for Tesla to use Vertical
Integration (Grant, 2019).
 The Supercharger Network which is independently operated by Tesla keeps customers
well connected to Tesla and makes them feel that they are being supported by the
company (Hill et al., 2014).

Weaknesses:

 According to Statsista (2023), Tesla is struggling with delivery problems due to its
challenges in meeting the market demand due to delays in production facilities and
efficiency issues in manufacturing.
 Price Premium: Tesla vehicles are unlikely to be accepted by the mass market as most
potential customers cannot afford them (Deloitte, 2022)
 As Lindsey (2023) points out, Musk's dominant role leads to strategic uncertainties, and
his public distractions by acquiring Twitter add complexity.

Opportunities:

 Demand for EV is on the rise in India, Southeast Asia and African markets as well (IEA,
2023), so perhaps Tesla exploration about expansion to such potential regions.
 More investments in the Full Self-Driving (FSD) technology should be made by the
company to maintain the position of a leader in autonomous driving (PWC, 2022).
 Energy Business Growth: There are expansion opportunities for Tesla to grow its solar
panels and energy storage solutions business (Powerwall, Megapack) (Tesla, 2021).

5
Threats:

 According to the Statista (2023) data, when the traditional automakers (Ford GM
Volkswagen) enter the market along with new EV startup companies (Rivian Lucid) it
generates a heightened degree of industry competition.
 Tesla coerces trouble supply chains because the enterprise is dependent on lithium raw
materials and semiconductor additives (Deloitte, 2022)
 Legal disputes over the safety of self-driving vehicles can stall product launches (OECD,
2022) leading businesses to deal with regulatory hurdles;

M2 Interpret information and data to assess strengths

and weaknesses of an organisation’s internal capabilities,
structure and skill set.
Tesla's competitive edge also relies on its robust balance sheet and integrated platform, as well
as its creative employee structure. The organization realized over $80 billion in revenue in 2023
driven by robust vehicle sales and an expanding energy business sector (Tesla, 2023).. Tesla is
commanding the market with its Full Self-Driving technology embraced with energy storage
solutions and advances in battery technology (Smith, 2023). Tesla has manufacturing challenges
and operational growth challenges with production halting at times as well as supply chain
issues and concerns. The business overtakes its strategic metrics as complex R&D initiatives, as
well as out late production costs that limit item response for average clientele, while at the same
time rendering the group overly reliant on the leadership of Elon Musk. The Tesla company well
knows with regards to the fact that the company operates on key materials including lithium and
cobalt and nickel that could pose risks from geopolitical situations and market price volatility
(Jones 2023). Tesla is supported by its financial strengths, vertical integration, and innovative
workforce for long-term success while requiring solutions for production scaling challenges it
faced with leadership dependency and cost management issue (Tesla 2023, Jones 2023).

LO3
P3 Determine appropriate management tools to analyse a
given market sector for an organisation and inform
strategy

There are many tools of strategic management that can be used to assess Tesla's industry to
increase the quality of strategic decisions for the company.

Porter’s Five Forces Analysis of Industry Competitiveness

 The model analysis identifies the outside competitive forces that affect Tesla's business
operations.

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  Startup barriers from capital requirements are low, leading to moderate barriers to entry,
but closures like Rivian with Lucid and other EV startups form future competition.
 Due to the strength of its position in bargaining with its suppliers of battery ingredients,
lithium along with cobalt and semiconductor products, the company faces significant
challenges across its entire operating environment.
 There are three drivers of price competition; the demand for innovation and low costs that
customers expect from a supplier and the high bargaining power of an industry buyer
over the supplier's firm.
 Moderate threats to substitute products exist from hydrogen fuel cells and public
transportation systems.
 In market competition sphere (Porter, 2008), Ford and GM now work together whilst
competing against BYD and Volkswagen. Hence, the industry rivalry intensity is high.

Macro Environment Analysis – PESTEL

Tesla gaining insight into how political, economic, Socio-Cultural, Technological,

Environmental and Legal factors affect its growth path is the benefit of a PESTEL analysis of
the country in which it is currently operating.

Grant (2019) synthesizes all above information and summarizes that

stricter emissions regulations lead to greater EV adoption which aligns
with Tesla’s strategy.
Ansoff Matrix – Analysis of Growth Strategy

 The Ansoff Matrix helps Tesla to evaluate how they grow in the market.
 Price strategies will help the company to target 35% market penetration to promote EV
sales.
 The company will enter India and Southeast Asia as new markets to the company in
pursuit of market development.

Product Development: Enhance Full Self-Driving (FSD).

Diversification: Develop Tesla Energy and AI-powered robotics (Hill et al., 2014).

SWOT – Internal & External Capability Evaluation

The SWOT strategic analysis enables Tesla to define its internal capabilities and external
factors that need to be addressed to nurture the new strategy (Barney, 1991).

VRIO — Sustainable Competitive Advantage

Based on the VRIO analysis Tesla identifies if their resources(technology, brand, workforce)
will provide them with long term competitive advantages in the market (Tesla, 2021).

VRIO Analysis (Tesla’s Competitive Advantages)

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 Competitive
Resource/Capability Valuable Rare Inimitable Organized
Advantage
Brand Recognition ✓ ✓ ✓ ✓ Sustainable
✓ ✓ ❌ ✓
Battery Technology (Competitors Temporary
catching up)
✓ ✓ ❌ (Waymo, ✓
Autopilot & AI
GM Temporary
Systems
competing)
Supercharger ✓ ✓ ✓ ✓
Sustainable
Network
Vertical Integration ✓ ✓ ✓ Sustainable)

P4 Devise appropriate strategic objectives, based on the

outcomes of analysis for an organisation to inform
strategy

Tesla focuses its growth strategy and framework on three pillars such as expanding its growth in
non-market, innovative, and environmental sustainability.

Global EV sales to be enhanced through increased market penetration (35% (Market

Penetration) la to make more Gigafactory’s and this will allow the company to go into gurus
potential lands like India and SE Asia. The expanded manufacturing capacity will allow for
faster operations and shorter shipping times for Electric Vehicles lowering their price points
(Statista, 2023) The company must grow strong battery solutions, with secure supply lines.
Tesla invests in integrated battery production capabilities in its factories (at 4680 development,
etc.) and makes long-term agreements for strategic raw materials to mitigate the local supply
chain disruptions. To favor sustainable resource management systems, the firm has already
attempted to improve its recycling program (IEA, 2023). They plan to provide superior
autonomous capabilities and AI functionality. 。 Tesla Energy and AI divisions alongside
company growth For creating sustainable power systems, Tesla has taken a number of initiatives
to foster renewable energy solutions like Solar Roof and Powerwall and AI-based power grid
management technologies. To pursue the market expansion strategies, the company explores AI-
driven robotics technology by developing Tesla Bot (Tesla, 2021).

M3 Justify use of an appropriate strategic management

tool for agiven market sector, to inform strategy and
strategic objectives for an organisation.
There are a number of frameworks that guide Tesla’s strategic decision making however, from
the most relevant of the two; Porters Five Forces and the Ansoff Matrix, present the most action
insights based on the companies current status and future potential. Porter’s Five Forces

8
framework is a Paradigm that is very essential in analyzing the industry dynamics of Tesla. So,
this displays an intense competition in the automobile industry and is one of the threats for Tesla
to stay innovative to keep up in the competition (Porter, 2008 http://business-essays.com/ ).
Furthermore, Tesla's dependence on raw materials from suppliers, includes its production costs,
in turn affecting its overall profitability, which is why it is important for the company to set up
reliable and competitive supply chains. And, there are new EV startups and rivalry from
traditional automakers in the automotive sector that suggest a need for continual product
differences to stay ahead in the game. The Ansoff Matrix outlines four growth strategy strategies
which are Market Penetration, Market Development, Product Development and Diversification
(Hill et al., 2014); and thus Tesla’s growth strategy thrives within such context. Market
penetration strategy: In this respect, the company will focus on increasing global EV sales
through competitive pricing and efficiency improvements. The development of the markets for
some regions such as India and Southeast Asia, where the markets for electric vehicles are still
developing, are further evidence of Tesla’s market expansion strategy. Tesla mighty investment
into full self-driving (FSD) technology, AI and Next Generation Battery tech are those key
product development strategies that gloss over a hardware competition. Tesla’s efforts also not
only are to create expansion, like with its energy solutions division, but also to create new
income channels via AI-driven automation, which is a diversification strategy that will push it to
be successful in the long run without a complete reliance on the automotive space (Grant, 2019).
The use of these tools was selected because they provide Tesla with strategies they can act on.
These frameworks are essential for understanding strategic direction in Tesla: the Ansoff Matrix
provides a comprehensive foundation for innovation and growth while Porter's Five Forces allow
the firm to anticipate and adapt to competitive pressure. Using these models, Tesla can compete
successfully, thrive globally and innovate further, leading to future success.

P5 Apply a range of models, concepts or theories to

interpret and devise strategic planning for a given
organisation
Multiple strategic management frameworks serve Tesla Inc. to create its full strategic plan
through assessing internal capabilities as well as external market conditions. Internally Tesla
faces multiple weaknesses due to expensive production along with an extreme reliance on Elon
Musk's leadership and small number of available products. Tier 1: The worldwide rapid EV
market expansion combined with fresh markets exploration possibilities and the developing
energy and solar industries provide Tesla an opportunity. Yet, business competition
intensification threatens the company through its reliance on raw materials alongside geopolitical
uncertainties.The macro environment assessment of Tesla becomes more transparent when we
perform PESTEL analysis. Government support exists for electric vehicle adoption despite
escalating international tensions which present possible adoption challenges. Consumer
purchasing power diminishes when both inflation rates and increasing interest rates exist at the
same time. Sustainable social changes assist Tesla in extending its market position. The company
derives value from AI advancements and better battery systems and ecological circumstances
which align with their corporate objectives. Tesla must actively monitor worldwide safety
regulations and self-driving regulations because they represent legal requirements for which the
company must stay focused. Tesla detects new market entry barriers and substitute threats at a

9
moderate level because of its technology demands and high capital needs together with
competition from public transport and hybrid cars

P6 Design a strategic management plan, applying

appropriate strategies to improve competitive edge and
market position based on the outcomes.
Strategic Vision & Objectives

 After conducting some market research, the company must explore its internal strengths
through the following objectives and set various strategic objectives:
 Over the next five years, the corporation aims to increase its EV market penetration by
35% as a result of greater manufacturing capabilities and improved operational
efficiency
 The company wants to enhance its FSD capability but has to pursue all the needed
approvals to allow their robotaxis on the road.
 The company's Tesla Energy division could be strengthened significantly through the
acquisition of both solar energy solutions and battery storage technologies.

The firm needs to pull costs down by streamlining both production elements and raw material supply
networks.
Key Strategic Priorities

A. New Market & Penetration

The firm intends to establish new Gigafactories across India SE Asia and South America for
production at cheaper prices and entry into new EV markets.

The company needs to create more affordable models of EV since this will be a catalyst for EV
adoption market-wide.

Tesla must grow its Supercharger network to facilitate global EV adoption).

B. Leadership in Technology & Innovation

The tech plans can be used as part of a case against the company to develop AI and FSD
technologies used for enhancing autonomous driving systems.

Solid-state battery technology will be utilized by the company to manufacture next-gen

batteries giving way to better operational efficiency.

The company should employ AI based solutions for the power utilization efficiency of their
energy grid system.

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C. Improving Productivity & Reducing Costs

The semiconductor and battery production vertical integration strategy will enable it to control
its supply chain by minimizing reliance on external service providers.

The processes for supply chain resilience become more robust when companies enter long-term
contracts with raw material suppliers.

Robotic automation systems and industrial automation technologies should be utilized to

optimize production procedures in the company.

D. Sustainability and Corporate Social Responsibility

The company should extend its battery recycling initiative to minimize environmental harm
caused by operations.

The company should develop carbon-neutral programs combined with energy-efficient

production infrastructure.

M4 Produce a strategic management plan that has

tangible and tactical strategic priorities and objectives
To execute on this strategic management plan to reinforce the firm around its EV and
renewables market leadership, Tesla should spend its time on four tactical priorities. First of all,
Product Development & Innovation is one of the keys to keep ahead of competitors. Of course,
Tesla isn’t just about electric cars, as you have to keep in mind that the company builds super-
computer chips and software as well, which means that increase in the investment in R&D means
increase in the efficiency of EV batteries, but also advancement in the development of AI
systems that can operate self-driving. It also plans to release an inexpensive Tesla Model 2
model (affordable under -30k) for mass market purpose, and use Tesla Bot (AI powered robotic)
for manufacturing and logistics to improve operational efficiencies (Statista, 2023).

The second theme will be push for Supply Chain & Manufacturing Optimization that will be a
linchpin to ensure Tesla's competitive advantage going forward The company is looking at
locking supplies of key materials such as lithium, nickel and cobalt via agreements with mining
firms. The company is planning to automate the production lines in its Gigafactories, a move it
says will help reduce manufacturing costs by 20 percent over the next five years. The current
average inventory turnover is approximately 12 times annually, comparable to firms that offer
industrial goods and services affected by economic cycles; nevertheless, the corporation will
implement sustainable supply chain principles to diminish suppliers in China, permitting the
firm to maintain a more robust supply chain that would provide improved transparency and
confidence for the components utilized in the factories (IEA, 2023).

Lastly, Expansion & Market Growth are essential to expand Tesla’s global footprint. Tesla is
also committing to 500 new Supercharger stations each year in high-growth markets to make its

11
EVs more accessible. It will also ramp up manufacturing capacity in key regions, such as India,
Europe and South America. This strategic plans for the partnerships with ride-hailing companies
will promote to deployTesla’s self-driving fleet to reach more markets (PWC, 2022).

Finally, please note that the Financial & Sustainability Initiatives are central to Tesla’s larger
long-term strategy. It expects automation to lower material and labor costs, specifically to lift its
gross margin by 5%. Furthermore, by 2030, Tesla aims to become a force(40% of total revenue)
in the renewable energy market in addition to being successful with Tesla Energy. It will
establish a carbon-neutral supply chain model to adapt to evolving sustainability regulations
(Tesla, 2021).

With a focus on Innovation, Operations Streamlining, Supply chain Contingency, and

Environmental sustainability, Tesla strategy brings is ahead in the EV and Renewable energy
space.

D1 Create a set of valid strategic directions, objectives

and tactical actions for successfully achieving strategic
alignment, based on critical interpretation of internal and
external data, and information
In order for it to have a sustained competitive advantage in the market, Tesla must ideally align
its internal competencies with the relevant market opportunities. As of October 2023, the
company announced plans to transform into the leading global electric vehicle (EV) platform
company by 2030 in breaking news for the international automotive industry. From our fourth
quarter 2019 earnings call, our first strategic plan is in the domestic factory international
development to maintain a 35% penetration of EV/market over the next five years. This national
goal will be achieved through the setting up of new Gigafactory factories across India and
nearby Southeast Asian countries, as well as South American states, while producing electric
vehicle types matching Indian, and local, needs. There is a target of cost leadership, which
means that the manufacture cost will be decreased by 20%. Now, over the next few years, cost-
cutting could take centre stage as new Gigafactory instalments come online and ramp up
production while raw material supply chains are secured to ensure the availability of basic
battery materials to keep Tesla vehicles profitable at point of sale. Tesla's enable, as a tech
leader, is top focused on achieving full regulatory approval for its Full Self-Driving (FSD)
system The company intends to scale its autonomous driving artificial intelligence research and
help to improve current robotics and machine learning efforts also including the development of
the Tesla Bot. Tesla's vision for sustainability is pushing towards carbon neutrality with the
company working to make this, happen by 2035. In conclusion, to fulfill their mission here,
Tesla must take strategic steps including expanding their product lines in the form of Solar Roof
and Powerwall, as well as invest in battery recycling programs for circular economic operations.

12
Conclusion
Tesla and the strategic management framework The way an organization utilizes the macro
environment along with its internal organizational capabilities to maintain its competitive
advantages in the ever-increasing fast-moving industry of the present has been demonstrated
through Tesla and its strategic management framework. Tesla achieves success in its decision
assessments by assessment of internal and external pressure effectively such as by strategic tools
like PESTEL and Porter’s Five Forces alongside SWOT, together with VRIO and Ansoff Matrix
analysis. In the process of grasping these responses, a well-thought-out project management
system is adopted to sort and arrange the company's path of development under the macro
environment, which is composed of political, economic, social, technological, environmental,
and legal elements, a strategic direction for expansion of electric vehicle market, self-driving and
a merger on product range and sustainability that concentrates on the integration of the
aforementioned categories. Tesla has robust internal resources such as the industry's most
advanced battery invention level, brand reputation, and systemic manufacturing infrastructure,
which composes very strong competition value to the automotive and energy sector markets.
Strategic Change due to Production Scaling, Supply Chain Management, and maintain AI
advantage To sustain growth beyond today, changes in corporate strategy are needed to
overcome challenges with production scaling, supply chain management, and maintain AI
advantage. Through the use of SWOT analysis summary and VRIO framework Tesla was able to
assess their strategic capabilities in overcoming production cost challenges and dependency on
key suppliers. Tesla does a plan that builds out markets while cutting costs and defending
leadership position while caring for sustainability between system needs and opportunities of
outside. Tesla's established targets for global EV sales expansion, FSD advancement, and
sustainable energy system integration aligns their organization for success in the competitive
automotive and energy sectors of today. Therefore, complemented with Bowman's Strategy
Clock, the Business Canvas Model provides a visual approach to comprehend Tesla's business
model and assess the market trends in order to keep up the customer-oriented strategies. Tesla
must leverage its own strengths to adapt to disruptions outside of its control in order to retain
competitive advantage in the future.

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