Business Contexts and its Management 3rd Assignment Sample

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Introduction

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1 Part 1: Industry trend report

Introduction and identifying issues

The study will provide deep analysis of the external environment of the company Tesla along with the competitive evaluation of this company in the first part. On the other hand, this report will also enhance better understanding about the influence and impact of the change and culture. In the second part, it would reflect client reports regarding the strategic planning and its benefits along with recommendation about best approaches and strategies for the chosen business employed after the pandemic. Finally, it will depict a suitable conclusion about overall lessons learned from the report.

Tesla is an automobile company of America that deals with the manufacture and sales of clean energy and electric vehicles. The headquarter of this company is in Texas and its current CEO is Elon Musk. It also designs battery energy storage, solar roof tiles and panels, and related goods and services. The company has been able to achieve huge overseas success in Europe, North America, West Asia, and East Asia. Tesla had generated production output of 930422 vehicles in the year 2021. This company also provides services such as charging, vehicle charging, insurance, premium connectivity and other. The current annual revenue of Tesla is $53.8 billion and its employee strength is 70575 (tesla, 2022). On the other hand, it has also been identified that the company is looking after opening new manufacturing sites and stores in South Asia too.

An analysis of an organization's external environment

The external environment of Tesla has been full of complications and challenges that have made them suffer losses and resurgence too in the automobile sector. This is evident from the fact that the pandemic that took place due to covid 19 and its related struct lockdown and shutdown of all stores hampered the global electric vehicle sale of Tesla. Moreover, the entire supply chain of this company got completely disrupted due to the cancellation of international flights and shippings for restricting the spread of different deadly variants of coronavirus that has taken millions as death toll worldwide. In case of Tesla, the change rate had been very fast and flexible with rapid advancement of their electric vehicles' technology along with improving the quality of driving and accommodation facilities inside the car like installment of Wi-Fi, radio, air conditioner (Baró?Solé et al., 2018). Moreover, Tesla has also been successful in generating effective utilization of artificial intelligence tools for manufacturing and marketing activities. This further helped them in gaining accurate information about the external market trends along with full governmental support for higher foreign investment in their automotive sector. This organization had been successful in gaining huge political support in terms of tax evasions and allotment of the best land in the economic zones for opening their manufacturing sites. In terms of the environment, Tesla has been successful in retaining sustainability and greenery by producing and selling electric cars that are reusable, rechargeable and removes the cases of high rate of carbon emission and toxic gas. This company also had to follow various types of legal resolutions and legislations that seemed to sometimes impact their international trade. Thus, this organization operates in an environment of medium to high uncertainty.

Business cycle analysis

Introduction

This is the phase when the automotive sector in which Tesla operates was launched in the market before there was any established demand for the electric vehicles. The automobile sector was first invented in France and Germany in the late 1800s. However, it was America that soon gained a monopoly in this sector. Tesla began the production of electric cars in 2003. On the other hand, Tesla first introduced the electric car namely, the Roadster in 2008 (Hess and Andiola, 2018). The risks of facing losses and costs of production were very much high during this phase. Tesla also faced in the initial time the risks of gaining less loan resources and funding as at that time the demand and sale of electric cars was very limited and did not have any broad global ventures.

Growth

The growth of the automobile industry had been very high since their early business and gained a rapid customer base. In current times too, it is achieving huge growth, which is evident from its market sales of 85.32 million units in 2020 with almost market revenue and size of $20.3 billion (Orlando and Zimatore, 2020). Moreover, Tesla is also a part of the automotive industry and has been successful in seeing huge growth in the sales and market size not only in America but also in Europe, North America, West Asia, and East Asia. On the other hand, it has been identified that the company has a market capitalization of $900 billion.

Maturity

This is the stage where the market automobile industry seems to be at peak position but a sudden downfall of sales also takes place thereby generating a saturated market. It is assumed that the automobile industry along with Tesla as its part has already started falling in this stage with little proportion in terms of rising prices of cars in a competitive way due to the increase of so many brandy cars globally. However, the global automotive industry will achieve the complete maturity stage when its market size will increase to $25.7 billion at an 8% CAGR (Begenau, 2020). Moreover, during this maturity stage, production costs of big companies including Tesla due to increasing efficiency in the production procedure.

Decline

This is the last phase of business cycle that states compulsory declination of the market although still major car brands including Tesla will make an effort to keep their sales sustained during the maturity stage. In this phase, the sale falls and consumer behavior decreases rapidly. They will tend to lose their market share along with facing huge financial crunches in the form of deficits (Orlando and Zimatore, 2020). This would even lead to the shutdown and dissolution of the company. However, jt is not at all possible to predict the decline stage of sales of electric vehicles since it is still in the development stage as very few companies produce it with limited market.

An internal environment competence analysis

The internal factors that determine Tesla's competencies in the competitive sector are its own strengths that help them to sustain their market position in this global world of competition. The biggest internal factor for Tesla's competencies is the huge sales and revenue that it generates through international trade. Moreover, its higher brand value as an automotive company also assisted them in gaining a large number of foreign investors who generated stakes by having complete faith in their capacity to tackle the competition of the rival big companies (Fernández-Villaverde and Guerrón-Quintana, 2020). On the other hand, another internal factor that generated a huge increase in its competency is its global business operations. Moreover, it has also been recognized that the stiff competition also acts as an internal factor that challenges its monopoly in the electric vehicle production and sales, thereby reducing their competitiveness. Tesla's rapid advancement in the technologies and modernization in electric batteries also acts as a crucial internal factor that helps them in reducing the hegemony of other automobile companies involved with sales of electric vehicles or cars. On the other hand, the vision and mission, corporate, culture, HR management, future scopes and environment sustainability programs of this organization will determine the competencies in the competitive sector.

Plan

The biggest criteria for becoming successful in the future for Tesla Company is to generate effective planning of the strategy that would assist them in enhancing the effective utilization of its strengths and weakness. It also helps in recognizing the scope that they would be able to gain along with acting as a preventive shield against any challenges that may be awaiting for them from the rival competitors (Matthews et al., 2020). Moreover, rational planning of strategy can be achieved by a company through analyzing the different trends of external environments.

Pattern

It helps in defining that the planning of a strategy will be effective and provide a fruitful outcome, if the pattern of application is correct and goes with the prevailing situation. Thus, it is necessary for a Tesla to pattern their team and question themselves whether those patterns are included in their implicit section of strategy and thereby, thinking about the effect these patterns will have on the way they approach a strategic planning. 

Ploy

This defines that overcoming rival organizations through plotting to dissuade, disrupt, and discourage them could be a section of a strategy. This is the scenario where a strategy could be ployed along with planning it (Narotam, 2021). Thus, it is necessary for organizations like Tesla to use techniques such as scenario and impact analysis. 

Perspective

This is another important factor that helps in identifying whether particular aspects of rival companies are challenges or opportunities for Tesla. It means that it is the perspective of a rival competitor that would assist in recognizing whether it will come as a threat or scope for an organization.

Position

It is also one of the most important factors that would help Tesla in defining the strategy in the sense that the way they think to position themselves in the market (Matthews et al., 2020).. In this method, strategy will help them in exploring the challenges and opportunities such as competition and loss of demands that will prevail between their environment and the activities. 

The impact and influence of change and culture

Kurt Lewins's change management

Unfreeze

As per Cone and Unni (2020), this stage determines that there must be recognition of the necessity for change along with determining the things that are required to be changed. The impact of implementing this stage is that it will encourage the removal of old attitudes along with ensuring complete support from management. It will also help Tesla in understanding and managing the concerns and doubts.

Change

This stage signifies that after determining needs for changes, Tesla should plan the changes and implement it. It would also support them in assisting the employees in learning new viewpoints or concepts.

Refreeze

This stage makes Tesla capable of stabilizing and reinforcing changes along with integrating the changes into the general process of executing things. It also helps them in developing methods to sustain changes and finally celebrating the success (Galli, 2019).

Handy model of organizational culture

Power

The entire power remains in the hands of CEO of Tesla Elon Musk who has the authority to take major decisions and thereby, assign tasks and duties to the employees. However, Elon Musk should also maintain the power culture in a very pyramid shape thereby, transmitting the orders and tasks in a chain from him to the managers to team leaders and finally employees (Umemezia and Osifo, 2021). This type of power culture helps the employees in expressing their views and innovative ideas in an open forum and thereafter final decisions are taken by Elon Musk.

Task culture

As per Skoumpopoulou (2018), Tesla should follow a task culture completely by forming teams for solving critical issues or obtaining targets. Thus, this task culture generates amalgamation of persons with specializations and common motives. In this type of task culture all team members are generating contribution equally and fulfilling tasks in a unique method.

Person culture

Person culture is a culture where the desires of individuals are given more p