2 Responses 09/02

Rajesh Work:

I'm choosing Walmart Inc as my company, as we know it’s multinational retail which has chains of hypermarkets.

Main strategical factor within macro environments includes political factors, economic conditions, environmental factors, technical or technological factors, Internet factors, Social-cultural factors. All these include and affect the strategic movement of the business. For Walmart, the macro-environment determines the company’s success. When we see this pandemic situation Walmart supports people by providing them all the delivery curbside pickup taking precautionary instructions. It continues to withstand all the negative effects of all the factors. According to the PESTEL factors change can be made based on the situation. For example, before we don’t know about this pandemic, but Walmart stood and implemented these changes faster by changing timings for older people so that people can safely do their shopping. Order delivery made easy. In all the factors like technological factors, they tried to maintain their apps good and structured and increasing mobile device usage among customers (Steinkellner, 2015).

As we know Walmart competes against major retail businesses like whole foods, Costco, Wegmans. Also, the intensity of rivalry is high in retails business, so they have to maintain and lookup the competitive company what they are trying to make. Understand their competitive step ahead makes Walmart's business go smoother. It's basically predicting your competitor's next step. Walmart had a built-in advantage and boosting its e-commerce business (Emek Basker, 2007).

Walmart is changing more on its social culture like helping people easy to find an item by its store map features in Walmart app. Whenever they don’t find anything, they can just find the location in this app.  Walmart follows the five forces of porter’s model in business growth. Walmart pickup towers are also one of the major changes without paying for the cost of shipping. Basically, it’s a vending machine and more to come in the year (Reberta Greenspan, 2019).

Environmental factors for Walmart have a significant role in business like business sustainability and providing environmentally friendly products. It also provides pro health care information and on its television ads and provides highly efficient innovative products. This discussion is based on how the PASTEL analysis is made on the company we selected like what factors it's affecting or how it improves changing on environmental factors, legal factors, social-cultural factors to improve its business in this present world. All these include in the strategical planning for business growth.   References: Basker, Emek. 2007. "The Causes and Consequences of Wal-Mart's Growth." Journal of Economic Perspectives, 21 (3): 177-198. Greenspan, R. (2019, February 22). Walmart Inc. Five Forces Analysis (Porter's Model), Recommendations. Retrieved September 04, 2020, from http://panmore.com/walmart-five-forces-analysis-porters-model-case-study Steinkellner, V. (2015). Corporate Cultural Responsibility. Corporate Social Responsibility, 905-919. doi:10.1007/978-3-662-43483-3_60 Thompson Jr. A. A, Peteraf, M. A., Gamble, J. E., and Strickland III, A. J. (2022). Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. 23rd Edition. McGraw-Hill. ISBN: 978-1-260-73517-8

Saisharan Work:

Tesla is a US company involved in car manufacturing and energy. Best described as a battery company, Tesla is best known for its electric cars. The company is also known for specializing in solar panels and Lithium-ion battery energy storage. The strategical relevant factors for Tesla to ensure its long-term competence and resilience in the face of competitive rivalry involving automakers like Honda Motor Company, General Motors Company, Ford Motor Company, Volkswagen, Toyota Motor Corporation, Nissan Motor Company, and BMW (Bavarian Motor Works). The ecological factor of Tesla Inc. directly affects its political and economic factors. The Tesla vehicles that depend more on electricity and less on fuel are environmentally friendly. Thus, buyers stand a chance of getting a specific tax credit for using an electric car. Additionally, the government incentive has strengthened its financial performance owing to its drive for environmental sensitivity. The political factors have favored Tesla’s growth and ensured its expansion in other countries. The economic factor for Tesla is the car comes under the luxury category. The sale of electric automobiles has proven to be a boost for the global economy. The social factor includes the environment-friendly attitude of people and renewable energy resources popularity, both work in favor of Tesla. The technological factors, Tesla cars are at par with technological advancement. These luxurious cars with the latest gadgets are the future, and these features attract buyers (Daniel, 2021).

The rival’s strategic moves for Tesla are outside of and within the United States, there are many companies that are quietly setting themselves up to compete with, and perhaps even to surpass. Founded back in 2014, NIO manufactures premium electric vehicles for the international market. Ford’s investment into electrified cars, trucks, and SUVs is certainly paying off. Volkswagen said that it predicts 50% of its U.S. sales by 2030 to be EVs and the firm is spending tens of billions to push this target.

The factors driving industry changes are autopilot, electrification, design, software. Autopilot allows the car to steer, accelerate, and brake within its lane. It uses the car's eight cameras, 12 ultrasonic sensors, radar, and an onboard computer to read lane paint on the road and detect surrounding cars. Tesla has built out a charging network for its cars across the country. Acting early enabled Tesla to be the only electric car that could drive long distances because there was an infrastructure in place for charging. Tesla’s ability to update the software of its vehicles with over-the-air updates is probably the one thing that makes the rest of the industry highly vulnerable to obsolescence (Connor, 2021).

The external factor for Tesla is it took a unique approach to establish itself in the market. Instead of trying to build a relatively affordable car that it could mass-produce and market, it took the opposite approach, focusing instead on creating a compelling car that would create a demand for electric vehicles. Tesla’s role in pushing the industry toward advanced technologies for sustainable business and products that rely on renewable energy indicates the company’s expectation of successful dominance in the global market for electric automobiles and related products (Nathan, 2020).

The discussion relates the different macroenvironmental factors that would affect the company and its strategic thinking that differentiate it from its rivals to lead in this competitive environment is what makes Tesla great.

References:

Connor, H. (April 2021). How Capable Is Tesla's Autopilot Driver-Assist System? We Put It to the Test? Retrieved from - https://www.caranddriver.com/news/a35839385/tesla-autopilot-full-self-driving-autonomous-capabilities-tested-explained/

Daniel, H. (February 2021). How Tesla and Elon Musk can fight the new EV rivals. Retrieved from https://www.yahoo.com/now/how-tesla-and-elon-musk-can-fight-the-new-ev-rivals-211028294.html

Future of Driving. Retrieved from https://www.tesla.com/autopilot

Nathan, F. (February 2020). Lessons from Tesla’s Approach to Innovation. Retrieved from https://hbr.org/2020/02/lessons-from-teslas-approach-to-innovation