A brief description of the industry (or industries) in which your company operates as well as context for your organization’ current positioning.
Assignment Brief
Environmental Report
Your paper should address these topics:
- A brief description of the industry (or industries) in which your company operates as well as context for your organization’ current positioning.
- Analyze the current conditions in your company’s industry and in its relevant general environment and their likely implications for successful implementation of your organization’s strategic goals and related actions. Be sure to address the PESTEL framework.
- Apply Porter’s Five-Forces Model to enrich your understanding of the environment in which your organization is now or may be operating. The Five Forces model should stress that this model is used to evaluate the industry, not your selected organization’s activities. The model should be used to isolate the dominant force(s) in the industry faced by all competitors and that produce the greatest threat to your organization’s profits and/or strategy. You should discuss how your firm can provide a defense against this threat or threats.
- Describe your organization’s strategic group and construct a map to show its relative market position. Add in a discussion of your rationale for the grouping.
- Summarize the threats and opportunities facing your organization gleaned from your analysis. (SWOT analysis) Submit the SWOT format in Table form and add in some narrative to discuss the threats and opportunities in more detail. Explain in your discussion (not in the table) why you selected them and how they relate to the VMO and organization’s strategy.
- Evaluate the extent to which your organization’s current strategy appears a good match for the competitive conditions it confronts or any gaps that must be addressed.
- Add in a strong conclusion that ensures the reader leaves your paper with a clear recap of your key points
Sample Answer
Environmental Report: Tesla Inc. and the Global Electric Vehicle Industry
Industry Overview and Company Context
Tesla Inc. operates within the electric vehicle (EV) industry and also engages in energy storage and solar energy products. The EV industry is part of the wider automotive sector, which is undergoing significant transformation due to increasing demand for sustainable transport solutions. Tesla is currently positioned as a market leader in the EV sector, known for its innovation, technological advancement, and vertically integrated supply chain. The company’s strategy focuses on expanding production capacity, launching new models, and developing autonomous driving technology.
Current Industry and Environmental Conditions (PESTEL Analysis)
The PESTEL framework helps to evaluate the general external environment affecting Tesla and its competitors.
| Factor | Current Conditions and Implications |
|---|---|
| Political | Government subsidies and incentives promote EV adoption. Trade tensions, especially US-China relations, can affect supply chains. |
| Economic | High inflation and interest rates affect consumer spending. EVs are costlier upfront but have long-term savings. |
| Social | Growing environmental awareness increases demand for EVs. Urbanisation and climate concerns support Tesla’s strategy. |
| Technological | Rapid innovation in battery tech and autonomous driving. Heavy R&D spending needed to stay ahead. |
| Environmental | Pressure to reduce carbon emissions benefits EVs. Sustainability expectations drive production methods. |
| Legal | Compliance with emission regulations is mandatory. Safety standards and data protection laws for smart vehicles are growing stricter. |
Implications: The general environment supports long-term growth, but Tesla must manage economic volatility and adapt to technological and legal changes to maintain its leadership.
Industry Analysis – Porter’s Five Forces
Porter’s Five Forces model analyses industry-wide pressures that affect all competitors.
| Force | Analysis |
|---|---|
| Threat of New Entrants | Moderate – High R&D and capital requirements deter entry, but new EV startups are emerging globally. |
| Bargaining Power of Suppliers | Moderate – Tesla vertically integrates much of its supply chain but relies on rare raw materials. |
| Bargaining Power of Buyers | Increasing – Customers have more EV choices. Price sensitivity and brand loyalty affect demand. |
| Threat of Substitutes | Moderate – Public transport and hybrid vehicles act as alternatives to EVs. |
| Industry Rivalry | High – Competition from legacy automakers (e.g., Ford, GM) and EV-only companies (e.g., BYD, Rivian). |
Dominant Force: Industry Rivalry is the strongest force due to intense global competition, aggressive innovation, and price wars.
Defensive Strategy: Tesla can defend its position by maintaining technological leadership, expanding production scale, and enhancing its brand value.
Continued...
