Sources from 2019, 2020, 2021
EXTERNAL ANALYSIS
A “lead-in” paragraph should tell a reader what this section basically includes. You may start out describing what the “external environment” consists of. For instance, you may state that the external environment has a dominant influence on a firm’s strategic actions. This analysis consists of three major components: (1) external or macro environment, (2) industry environment, and (3) competitor (strategic group) environment. This section describes basic industry information, and includes the macro environmental analysis, industry analysis (Porter’s Five Forces analysis), and strategic groups (competitor analysis).
Basic Industry Information ( Tesla’s industry)
This is where you describe your industry in general terms (remember, it is your industry, and NOT your company). You may want to identify your industry SIC code and other pertinent information. Then, you may start describing industry growth (in terms of total revenues or other such parameters), industry profits, and industry segments – if applicable – under separate subheadings:
Industry Growth:
Discuss industry growth very briefly. Do not “bore” a reader with numbers. Instead, prepare a chart depicting industry growth (could be positive or negative) for recent four to five years.
Industry Profits:
As you know, just because your industry may be growing (say in terms of revenues), it does not necessarily mean the profits are growing. In this section, you should show a chart depicting industry profits over the past four to five years or so.
Industry Key Success factors (KSFs):
Discuss your industry’s key success factors (KSFs). KSFs are “the strategy elements, product and service attributes, operational approaches, resources, and competitive capabilities that are essential to surviving and thriving in the industry.” Remember that KSFs vary from industry to industry.
Industry Segments:
If your group is focusing on a particular segment of the industry, then you should discuss how your industry is segmented, and which segment you are focusing on. For example, a restaurant industry could be segmented in high scale, middle-scale, and low-scale restaurants. High-scale restaurants may include Nick’s Fish-market and Magnum Steak House, middle-scale may include Outback, and low-scale may include fast-food restaurants. Your group may be focusing on fast-food restaurant industry that could be further subdivided into various strategic groups (such as sandwich, pizza, chicken, etc.).
Strategic Evolution of tesla
A lean-in statement should describe what ‘strategic evolution’ is and why strategies evolve over a period of time. Based on the history described above, identify your company’s intended and emergent strategies, under separate subheadings. Be careful to provide supporting evidence for your company’s intended and emergent strategies.
Intended Strategy
Appropriate verbiage pertaining to the intended strategy goes under this subheading. Make sure you have identified intended strategy specifically.
Emergent Strategies
Related verbiage for the emergent strategy goes under this subheading. Make sure you have identified emergent strategy(ies) specifically.
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