Tesla, Inc. is an American company that specializes in electric automobiles, energy storage, and solar panel manufacturing. Founded in 2003, Tesla has recently disrupted many industries, most notably the auto industry. Tesla’s focus on electric power vehicles, lithium-ion battery, and energy storage set itself apart from their competitors. Tesla has expanded its focus from simply building the best electric car to paving the way for autonomous vehicles, solar power, and so much more. The main message of Tesla, Inc.’s mission is “to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible”. This demonstration of leadership and shared knowledge expresses their overall effort to accelerate the advent of sustainable transport. While it isn’t common for a company to hope their competitors copy their products, this is exactly what CEO, Elon Musk, hopes for. While Tesla is a business, it is more Continue reading
Strategic Management Concepts
Harmon’s Process-Strategy Matrix
Process-Strategy matrix by Paul Harmon will be useful in deciding how the process should be managed, it gives two variable one Is importance and other is complexity and dynamics. There may be other variables to consider in practice such as culture, cost and savings and quality. It should be used flexibly by considering all the variable affecting the current and future prospects of the organization. Advantages and disadvantages should be considered before reaching the final decision. How To Assess The strategic Importance? Strategic importance can be assessed by asking what would happen if a process is abandoned. If it impacts the business objective (Quality, cost control and reputation etc.) materially (more than insignificant) than it can be assessed as high strategic importance like threatening to the survival of business. Strategic importance can also be assessed by identifying key stakeholders. If the process affecting the key stakeholders like customers, Tax authorities Continue reading
3 Levels of Business Strategy Hierarchy
A strategy is the model or plan that incorporates an organization’s main policies, action progressions, and goals into a dependable whole. Besides that, it is the way and compass of an organization long time ago, which accomplished improvement for the organization during its pattern of resources contained by a demanding situation, convene the needs and wants of markets and fulfill stakeholder prospection. The strategy of the organization is to match between its internal capacities and its external associations. Business Strategy Hierarchy Strategies subsist at some levels in whichever organization and collection from the generally business or grouping of businesses throughout individuals working. 1. Corporate Strategy Corporate Strategy is the general idea and possibility of the business to meet up stakeholder opportunity. This strategy is a critical level as it’s deeply influenced by shareholder in the business and operates to conduct strategic decision making during the dealing. Corporate strategy is frequently Continue reading
Competitive Differentiation Strategy – Meaning, Areas, Factors and Drivers
An organization that adopts a differentiation strategy seeks to distinguish itself from competitors through the quality of its products or services. Organizations that successfully implement a differentiation strategy are able to charge more than competitors because customers are willing to pay more to obtain the extra value they perceive. For example in case of Rolex they pursue a differentiation strategy, Rolex watches are handmade precious metals like gold or platinum and stainless steel and are subject to strenuous tests of quality and reliability. The firm’s reputation enables it to charge thousands of dollars for its watches. Firms use differentiation strategy to achieve a competitive advantage by providing unique products and these products attributes high quality and innovations. Differentiation is not just limited to the product but it also covers the delivery system and many other factors. Firms provide additional services to its customers with these differentiation characteristics which brings more Continue reading
Acquisition Strategy Development
Not all firms that make acquisitions have acquisition strategies, and not all firms that have acquisition strategies stick with them. In this section, we consider a number of different motives for acquisitions and suggest that a coherent acquisition strategy has to be based on one or another of these motives. Firms that are undervalued by financial markets can be targeted for acquisition by those who recognize this mispricing. The acquirer can then gain the difference between the value and the purchase price as surplus. For this strategy to work, however, three basic components need to come together. A capacity to find firms that trade at less than their true value: This capacity would require either access to better information than is available to other investors in the market, or better analytical tools than those used by other market participants. Access to the funds that will be needed to complete the Continue reading
Strategy Change Cycle: An Effective Strategic Planning Approach
A strategic change cycle is mainly utilized to correlate the planning process of an organization with the vision, mission and values of an organization. This implies that an organization should focus developing its strategies that may assist it to accomplish its long run vision. This will assist the organization in managing the entire organization in a strategic manner in order to gain a sustained growth in the future. The key objective of the strategic change cycle is to make sure that the organization continues to provide maximum value to the stakeholders by undertaking the right strategies at the right time. With the help of the strategic change cycle, the organization should also ensure that a proper vigilance is kept on the internal and external environment to understand the future challenges and opportunities. Hence, this is one of the key concepts that may assist an organization to gain success. 10 Steps Continue reading