View attached explanation and answer. Let me know if you have any questions.Hello,Kindly find the attached answer.Let me know in case of any clarification.Looking forward to helping you.Thank you.‫المملكة العربية السعودية‬‫وزارة التعليم‬‫الجامعة السعودية اإللكترونية‬Kingdom of Saudi ArabiaMinistry of EducationSaudi Electronic UniversityCollege of Administrative and Financial SciencesAssignment 2Strategic Management (MGT 401)Due Date: 12/11/2022 @ 23:59Course Name: Strategic ManagementStudent’s Name:Course Code: MGT 401Student’s ID Number:Semester: 1CRN:Academic Year:2022-23-1stFor Instructor’s Use onlyInstructor’s Name:Students’ Grade: /15Level of Marks: High/Middle/LowGeneral Instructions – PLEASE READ THEM CAREFULLY••••••••The Assignment must be submitted on Blackboard (WORD format only) via allocatedfolder.Assignments submitted through email will not be accepted.Students are advised to make their work clear and well presented, marks may be reducedfor poor presentation. This includes filling your information on the cover page.Students must mention question number clearly in their answer.Late submission will NOT be accepted.Avoid plagiarism, the work should be in your own words, copying from students or otherresources without proper referencing will result in ZERO marks. No exceptions.All answered must be typed using Times New Roman (size 12, double-spaced) font. Nopictures containing text will be accepted and will be considered plagiarism).Submissions without this cover page will NOT be accepted.Learning Outcomes:▪▪▪▪Distinguish between different types and levels of strategy and strategy implementation environment ofhypothetical and real-world organizations. (CLO3)Gain insights into the strategy-making processes of different types of organizations (CLO4)Understand the contribution of various functional areas e.g. production, marketing, purchasing, and supplymanagement to the overall well-being of the organization. (CLO5)Understand issues related to strategic competitive advantage in diversified organizations (CLO6)This assignment includes 2 sections:I.Case studyAssignment Question(s):Read carefully the mini case No 18 from your textbook (entitled ‘Tesla Motors Inc.) and briefly answerthe following questions: (1 mark for each question)1. What is the competitive strategy used by Tesla Motors company?Tesla competitive advantage is based on using its own distribution channels. Tesla distributes itsproducts and services through its own network of stores and regional sales agents as opposedestablishing dealer networks which greater efficiency in operations. Tesla considers owning its owndistribution channel as a competitive strategy. Another competitive strategy is to have happy employeesas part of their workforce. As a result, employees are given competitive salaries and allowances ascompared to their peers.2. Use the five forces of the M. Porter matrix to describe the industry that “Tesla Motors” belongs to.Five forces model by porters is a competitive tool for analysing the market position of a givenorganization. This model was developed by Michael E. Porter in 1979.From this model we can analyse Tesla’s competitive advantage in in five dimensions.1. Threats by new entrants (Moderate) – Tesla faces threats of new electric vehicles from othermanufactures such because of green energy shift. This is majorly driven by upcoming initiativesthrough various vehicles. Due to this initiative, tesla is operating in an environment withincreasing competition expansion. Additionally, Electric vehicles manufactures are facing threatsof many regulations by various bodies. Threats of budget cuts because of few lobbyists ascompared to petroleum cares.2. Suppliers bargaining power (Moderate)- Currently, Tesla purchases its parts from over 150suppliers, this gives the suppliers ore power as the batteries are single sourced from them andthis makes Tesla vulnerable to high cost of the parts.3. Buyers bargaining power (Moderate)-The buyers currently have more choices of the electricvehicles which have now flooded the market. For example, American buyers and the buyersfrom the rest of the world have cut back discretionary purchases. This is giving Tesla’s buyers orconsumers a higher bargaining power.4. Threat of substitutes (Weak)- –There is a threat of substitute vehicles which is moderate.Though their availability of substitutes, there is not many manufacturers of the electric vehiclesin the market which have already fully established.5. Competitive rivalry (Strong)-Currently, Tesla faces a strong rivalry among the existingsuppliers, considering that their products are lower priced. We several brands especially BMW,Honda, and Nissan.3. Describe the different functional strategies of the Tesla Motors company…


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