INFLUENCES ON BUSIIsmail Omar, a sole trader, owns a retail outlet in a shopping mall in Bahrain. He sells jewellerycompetition from other retailers inside the mall. However, one of his main rivals closed down inthat he imports from overseas. In 2014, the business was struggling to survive owing to strong2015 and now his business is increasing its sales.A02 aA02bA01CA01dA01A02A03ㄖˋA04eState one non-financial aim of a business.State one way of measuring the success of a business.(1)(1)Explain one way in which a fall in the exchange rate might affect a business. (3)Explain one disadvantage of operating as a sole trader.Ismail read in a newspaper that interest rates in Bahrain were likely to risein 2017.(3)Explain one possible effect on a business of an increase in interest rates. (3)In 2017, Ismail was informed that his rent in the shopping mall would double.As a result of the news, Ismail was considering two options:Option 1: Move his shop to a Bahraini side street where rent is very cheap.Option 2: Cease trading from a shop and set up an online business sellingjewellery.f Justify which one of these two options Ismail should choose.(9)Total marks for this question = 20

A02 a)State one non-financial aim of a business.A non-financial aim of a business is to enhance its…

Answered: INFLUENCES ON BUSI Ismail Omar, a sole…

Principles of Management

OER 2019th Edition

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax

Chapter8: Strategic Analysis: Understanding A Firm’s Competitive Environment

Section: Chapter Questions

Problem 2CTQ: How has Teslas strategic position changed since it was founded in 2003?

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Similar questions

How has Teslas strategic position changed since it was founded in 2003?
What is a firms micro environment, and why is it important?
Despite Ubers apparent success in launching in multiple markets, it continues to post quarterly losses in the millions and shareholders effectively subsidize 59 percent of every ride (https://www.reuters.com/article/us-uber-profitability/true-price-of-an-uber-ride-in-question-asinvestors-assess-firms-value-idUSKCN1B3103). How is this an outworking of Ubers overall corporate culture?
Explain what favorable PESTEL factors support LEGOs efforts.
The case focuses on U.S. markets. How are European markets affected by holiday shopping?
What kind of responses would you expect from Teslas rivals in the automobile manufacturing industry to the Model 3s popularity?
Explain the differences between the three business-level generic competitive strategies.
What strategic actions do you think a store like Macys can undertake to survive in the current retail industry?
Inside Teslas Strategy for Growth Tesla has been pursuing a strategy of aggressive growth since its founding in 2003. The companys mission is to accelerate the move to vehicles that will save energy while saving the planet. The key word here is accelerate. Teslas strategy combines a long-term vision of a world fueled by renewable energy with a sense of urgency about creating Earth-friendly vehicles that customers will want to drive now. Because it relies heavily on technology, its not surprising that Tesla is based in Palo Alto, California, home to tech giants like Hewlett Packard and Facebook. The firm operates a single, highly automated manufacturing plant in Fremont, California. It also built its own massive production facility to supply lithium-ion batteries for its vehicles and developed a network of charging stations from coast to coast. Instead of selling through dealers, Teslas strategy is to sell directly to consumers. This unusual arrangement allows more control over the sales process and yields a higher profit margin per vehicle, because dealers arent part of the distribution channel. In planning its products, Tesla has gone beyond the green appeal to showcase the style, speed, and status of its vehicles, marketing to people who want a special driving experience. Consider the Roadster, a snappy, low-slung sports car introduced in 2008. The attractive and sporty Roadster broke the mold for traditional electric cars and rocketed Tesla into the public eye. The company stopped selling the Roadster in 2011 as it focused on launching the Model S, a stylish, high-end, high-performance sedan with self-driving capabilities. The head designer knew he had to create an all-electric sedan that would stand out in a crowded field of competing vehicles made by international giants such as Audi, BMW, and Mercedes. His design blends the best of today and tomorrow, creating a classically elegant yet forward-looking exterior. Just as important, the Model S has an extended driving range, thanks to the companys advanced battery technology. Next, Tesla introduced the head-turning Model X, a luxury SUV with unique falcon wing passenger doors that open upward for access to rear seating. Thousands of consumers rushed to put down a deposit for this new product, eager to be among the first owners. Despite strong demand, the company struggled to increase production output because of the complexities of manufacturing the unique vehicle and because of parts shortages. Tesla delayed deliveries for months while it ironed out these problems. Expanding the product line and targeting a new customer segment, Tesla then introduced the Model 3. This sedan is more affordably priced than the firms previous vehicles, part of the strategy to enter the mainstream of high-volume, all-electric car marketing. The Model 3 has a modern, uncluttered look with curb appeal. The dashboard is similarly uncluttered, replacing the usual gaggle of gadgets and buttons with one touch-screen control panel. Enhancing Teslas reputation for technology, the Model 3s autopilot feature allows for some driverless operations. More than 450,000 people have already submitted a deposit of 1,000 each to reserve a Model 3. Still, Tesla has had difficulty bringing production to full throttle and, as a result, has been forced to delay some deliveries. Looking ahead to the long-term goal of producing 500,000 vehicles per year and profiting from economies of scale, Tesla is hiring thousands of employees and revamping facilities for higher output. It is preparing for several product introductions, including a new Roadster sports car, a Model Y crossover vehicle, and a Semi truck. Can Tesla achieve sustained profitability as it races to meet its ambitious goals, tries to outpace competitors, and seeks to accelerate the transition to renewable energy?30 What are Teslas core competencies, and how do they help the company compete with long-established car companies?
What are generic competitive strategies, and how are they implemented in a firms value chain activities?
Describe a firms macro environment.
How does strategic analysis help a firm develop its own strategic position? Why should that position be unique?

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