Businesses in the modern marketplace cannot afford to ignore the environments in which
they operate. To navigate this vast and ever changing landscape, businesses must keep a
keen eye on macro environmental factors that influence them. The environmental scan
report is an effort to identify these factors and propose solutions to the risks they pose.
Linkages between Part A and Part B:
Part A focused on the micro environmental factors that affect your chosen business.
Part B serves to expand on Part A by reporting on the macro environmental factors that
affect your chosen business. It provides a comprehensive assessment of the challenges and
risks posed to the business by its macro environment and proposes strategies to counter
Further investigate the organisation you reported on in Part A, or you may choose another
Australian or international business still in operation in consultation with your facilitator.
The macro environmental scan must incorporate the following:
Identify macro environmental factors that influence the chosen business
specifically. These factors may include but are not limited to changes in government
regulation, political, inflation, unemployment, income levels, economic growth,
foreign exchange rates, international trade policies, foreign investment restrictions,
taxation, legal, cultural and social factors.
Analyse their impact on business that may be in terms of but not limited to
changes in business performance, structure, policies, profitability, growth and
Propose solutions to challenges tocounter prevailing/potential
Weaknesses are areas that a company can improve in; they are the factors that prevent an organization from reaching its full potential. While most are highly supportive and encouraging of Tesla and their mission, many of their supporters can’t represent and purchase the car themselves due to the high cost of the car. Tesla’s current models readily available for sale, Model S and Model X, are quite costly with them both having a starting price tag of roughly $80,000. Such a high cost makes them not affordable to be purchased among the middle class, which significantly decreases the size of their potential audience. Tesla fully develops the vehicles as well as their sub-assemblies themselves, which results in a high cost of production per vehicle. With that said, it would be difficult for Tesla to make their cars more affordable whilst making a profit. The Model 3, Tesla’s more affordable model, begins at a cost of $35,000 before incentives which is an extreme price slash in comparison to their other models. While the Model 3 may be well priced for customers, it doesn’t seem to be priced to a point where Tesla will make much profit, if any at all. It seems that Model 3 is a big risk in terms of financial gain because “in order for Tesla to break even on the vehicle, UBS believes that customers must purchase nearly $6,000 in additional options” (Stumpf, 2017). However, the production of Model 3 may provide the company to seek opportunities they could not before. (O)pportunities Opportunities are external factors that may contribute to the organization while supporting the strengths. Model 3 is Tesla’s newest release which is a smaller, more affordable version of Model S with less range, power, and fewer features. The $35,000 model is currently available to be reserved. This is a huge opportunity for Tesla to expand the size of their audience market, primarily because one of the main disadvantages previously was that the cost was too high for the middle class to afford. Upon reserving the model, there is a twelve to eighteen month waiting period to receive the car. “According to an update from Tesla, about 373,000 people want to buy the Model 3” (Shen, 2017). With hundreds of thousands of people waiting for their Model 3, there is more demand than there is supply, which explains the waiting period. According to the Bloomberg Model 3 tracker “Tesla has manufactured 7,618 Model 3s so far, and is now building approximately 1,052 a week” (Randall, 2018). This opportunity of making models for the middle class also creates, and is proven in the current evidence, an increase the ongoing demand. A third opportunity that Tesla is taking the lead in is autonomous driving. Autonomous driving is a big opportunity for Tesla to break through that has the potential to completely change everything about the future of transportation. Although it is more in the test phase at the moment, the possibilities are huge and will disrupt and cause many different industries to be altered once it is under effect. (T)hreats Threats include potential issues and risks that may be caused by external factors. A major threat that Tesla, Inc. faces is competition from both luxurious and environmentally friendly car brands; this will be even more problematic when their competitors, who haven’t already, release their >GET ANSWER