Strategic Management in a Dynamic Environment

Assignment Brief

This paper entails writing business documents carrying the theories and frameworks of strategic management and differences analytical tools to define tactics at corporate, business and functional levels. You are required to form a unique strategic audit of a business concentrating on the environment that inculcates its operation and competitors. Moreover, interpret the inputs to develop strategic alternatives for productive implementation of strategic schemes within an organization. Also, explore different resources to accumulate organizational data.

Instructions 

MGMT660 – Strategic Management in a Dynamic Environment

Course Description

This is the capstone course of the core management curriculum that unites the various functional subjects taught in a business school. The center of attention in the course is the total enterprise perspective in a dynamic business environment. It is designed to integrate knowledge of the functional areas of business with the design and execution of competitive strategies. Strategic management requires the application of strategic intelligence and competitor analysis to shifting economic conditions, industry forces, business practices, and managerial variety. The focus of the course is decision making that results in competitive advantage and long term growth potential for the enterprise. Towards that end, strategic audit methodologies and procedures are introduced to analyze environmental variables external to the firm, and their impact on internal resources, capabilities, and management practice.

Course Learning Outcomes

Upon completion of the course, students should be able to:

1. Apply strategic management theories, frameworks and various analytical tools to formulate strategies at corporate, business, and functional levels.
2. Create a real-world strategic audit of an organization with focus on the environment in which the firm operates and the industry in which the firm competes.
3. Analyze inputs from organizational analysis to formulate realistic strategic alternatives and propose methods and procedures for effective implementation of strategic plans
4. Apply research methods to gather organizational information/data and write business reports with appropriate content, substance, and documentation.
5. Deliver multi-media business presentations to executives in a professional manner.

Sample Answer

Strategic Management: A Comprehensive Business Audit and Strategy Development of Tesla, Inc.

Executive Summary

This report provides a strategic audit of Tesla, Inc., examining its external and internal environment to identify opportunities, threats, strengths, and weaknesses. By applying strategic management theories and analytical frameworks, the report proposes strategic alternatives at corporate, business, and functional levels. The recommendations focus on achieving sustainable competitive advantage and long-term growth in a dynamic automotive and clean energy market environment.

Introduction

Strategic management in a dynamic business environment requires understanding both internal capabilities and external forces that affect performance. This report applies theories such as Porter’s Five Forces, PESTEL analysis, Resource-Based View (RBV), and SWOT analysis to evaluate the business environment of Tesla, Inc. The aim is to develop actionable strategic alternatives that enhance competitiveness and facilitate effective implementation.

External Environment Analysis

The external environment shapes strategic choices through economic, political, social, technological, environmental, and legal factors (PESTEL). For Tesla, economic factors include fluctuating raw material costs and global supply chain pressures. Technological advancements provide opportunities for innovation in electric vehicles (EVs) and energy storage solutions but also increase competition from traditional automakers and startups. Industry analysis using Porter’s Five Forces reveals moderate threats of new entrants, high bargaining power of suppliers, and intense competitive rivalry, particularly in the EV market, necessitating strong differentiation. Environmental regulations and government incentives for green energy further influence Tesla’s strategic choices.

Internal Environment Analysis

A Resource-Based View (RBV) approach identifies Tesla’s core competencies, including advanced battery technology, proprietary software for autonomous driving, and a strong brand image associated with innovation. SWOT analysis highlights key strengths such as cutting-edge R&D capabilities, global brand recognition, and vertical integration. Weaknesses include high production costs, reliance on a limited number of suppliers for key components, and operational challenges in scaling production. Aligning internal capabilities with market opportunities is crucial for achieving sustainable advantage.

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