Business Environment of Tesla Report 2022

Running head: BUSINESS ENVIRONMENT OF TESLA
Business Environment of Tesla
Name of the student
Name of the University
Author note

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Introduction
The business environment comprises of the internal and the external factors that
influences the operating situation of a company. Business environment includes the factors
like the clients, suppliers, competitors and the government activities that have an effect on the
functioning of business. Business environment helps in identification of opportunities for a
business by taking recourse to the useful resources that helps in improving the performance
and the profitability of business. Macro environment refers to the external factors that have
an influence on the process of decision making in a company. The economic, legal, social,
political and the technological factors have an influence on the functioning of a business in a
country. Tesla is the name of an American energy company that is based within California.
Tesla specializes in the electric car manufacturing and the company operates multiple
production plants (Tesla.com. , 2019). This report throws light on the impact of the macro
environmental factors on Tesla. The report elucidates on the effect of the external factors on
the performance and the growth of the business. The report also proposes the solutions that
can help in countering the risks for the company.
Analysis of the macro-environment factors for Tesla
Political- Australia has the constitutional monarchy that has Elizabeth II in the head of the
state. Australia accounts to be member of Commonwealth of Nations along with World Trade
Organization. Australia maintains close association with that of the United States. The
country has a safe along with a stable political environment that can act as an impetus for the
flourishing of Tesla (Prajogo, 2016).
Economic- Australia can be said to be 13th largest economy of the world. It is expected that
the economy of Australia would grow by around 3 % in the year 2018 that can help in serving
the various kinds of industries in Australia. The business investment along with the

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household incomes of the people are increasing in Australia that can help in the growth of
Tesla.
Social- Australia can be said to be the best country in relation to the wealth, health along with
the quality of the life. Australia can be said to be a multicultural country and it has heritage
from that of the indigenous people. Australia has a great number of the public along with the
private universities that helps in attracting a large number of the international students. The
living standards of the people are high that can help in favouring the growth of Tesla. The
Australians are lively and they spend a great deal of time in playing sports.
Technological- Australia can be stated to be a technologically advanced country that can
pave the path for the development of Tesla. It has adopted the new technologies at that of a
faster rate as compared to the other developed countries. Australia has been witness to the
growth in the technology in the last few years (Botha et al., 2016). The technology purchase
in Australia would grow from that of4 % in the year 2018 to that of $ 65 billion in the year
2019 that can help in the development of the company. The rapid advancement in the arena
of technology can help in facilitating the growth of Tesla. The local companies of Australia
are making investment in the area of technologies that can be instrumental in meeting
growing demand of customers. The development of the software along with the artificial
intelligence can help in driving the investment that can be utilised for the growth of Tesla.
Environmental- Australia is a beautiful country and it is famous for the picturesque beaches
along with the mountains. Australia has a rich biodiversity and climate change poses to be a
challenge for Australia. Tesla can be said to be a sustainable company as it makes an efficient
use of the raw materials and the battery recycling network of the company can help in
offering protection to the environment (Kolk, 2016). The company is working very hard so

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that it can achieve ambitious goal of the acceleration of the transition of the world to that of
the sustainable energy.
Legal- Australia have the fair trading laws that can act as a barrier for the growth of the
business. There are privacy laws within Australia that helps the business in handling personal
information regarding the customers.
Political Economic
 Stable political environment in
Australia
 Increase in the business environment
 Increase in the household income
Social Technological
 Quality of life of the people is good
in Australia
 Living standard of people is high
 Rapid advancement in technology
Environmental Legal
 Rich biodiversity  Existence of the fair trading laws
Figure: PESTEL analysis of Tesla
Source: Created by the author
Challenges for Tesla and the solutions
Tesla would have to face the challenges on account of the fact that the renewable
energy agenda of the country is under a lot of criticism that have put pressure on the
government for taking the action. The Model 3 of Tesla has drawn criticism from the people
owing to the reliability issues. Australia is in line to meet the 2030 emissions targets that is

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under Paris agreement and it has the stringent environmental policies that can hamper the
growth of Tesla. The bio-diversity of Australia can be said to be poor and it is worsening in
the present age. The country does not have any kind of long-term vision on that of the
sustainable development that can act as a barrier for the growth of Tesla. Australia can be
stated to be a carbon-intensive economy within the economy and it does not have any kind of
long-term strategy pertaining to the lowering of the emissions (Gray, Harymawan &
Nowland, 2016). This can threaten the impact that is made by Tesla in Australia that can hurt
the fortunes of the company. It has been estimated that the emissions would increase by the
end of the year 2030 that can raise challenges in relation to the growth of Tesla In Australia.
The wildlife of Australia is in the poor condition and the growth of Tesla can be curbed
owing to the biodiversity laws that are in place in the country. The biodiversity policies can
threaten the growth of the electric car maker that can cause the company to face the losses in
Australia (Pow, 2019). The country is focussing on the element of the climate change along
with the biodiversity policies that can help the country in moving towards the sustainable
development. There exists low carbon transition for Tesla that can pose challenges in the path
of Tesla. Australia is laying efforts that can help in the conservation of the unique
environment in Australia and this can constrict the development of Tesla in the environment
of Australia (Stubbs, 2017). The environmental protection can be said to be a shared
responsibility that exists among the different levels of the government that can hamper the
growth of Tesla in Australia. There exists a persistent attitude among the politicians that
environment should not suffer for the profit of the companies that can act as a challenge for
the company.
There are certain measures that can be undertaken by Tesla that can help the company
in overcoming the challenges. Tesla can take recourse to the design along with the
manufacturing improvements that can help in improving the operations of the company. The

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company can take the feedback from the customers that can aid in the process of
development of company. Tesla can make improvements in the air suspension along with the
all-wheel drive standard that can prove to be useful for the company (Smith et al., 2019). The
company can make the longer range batteries that can be instrumental in solving the
reliability issues of the company. Tesla can abide by the biodiversity policies in the event of
the company in the event of bringing about innovations in the supply chain of the company.
The company lays focus on the leading indicators like the safety training along with the
ergonomic opportunities that can help the company in solving the problems in relation to the
environmental issues (Grey & Tarascon, 2017). The company can provide the safety
solutions with the help of the active safety teams that can help in the operations of the
company. Tesla can carry out partnerships with various kind of organizations that can help
the company in increasing its dominance in the market. The company can create a transparent
culture that can help the company in solving the problems related to environment (Song &
Han, 2016). The company can take steps in relation to the cost-effective storage that can help
the company in rising above the circumstances prevailing in the environment. The company
can work with various kinds of the sourcing groups that can help in taking care of the fact
that the materials that have been used for making the products are sustainable.
Conclusion
Australia has a political environment that is stable that can help in the growth of
Tesla. The standard of living of the people have increased in Australia that can aid in
developing the company. Australia can be said to be technologically advanced that can help
in growing the profits of the electric car maker. Australia has taken recourse to new
technologies that can prove to be an advantage for the company. Tesla can have to face the
challenges owing to the renewable energy agenda that can put pressure on that of
government. The company can improve in the arena of the air suspension which can act as an

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advantage for the company. Tesla can manufacture longer range batteries that can be
instrumental in solving reliability issues of company.

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References
Botha, T., Van Rensburg, M., Du Toit, G. S., & Motlatla, M. D. C. (2016). Introduction to
business management. B. Erasmus, J. W. Strydom, & S. Rudansky-Kloppers (Eds.).
Oxford University Press Southern Africa.
Gray, S., Harymawan, I., & Nowland, J. (2016). Political and government connections on
corporate boards in Australia: Good for business?. Australian Journal of
Management, 41(1), 3-26.
Grey, C. P., & Tarascon, J. M. (2017). Sustainability and in situ monitoring in battery
development. Nature materials, 16(1), 45.
Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
23-34.
Pow, C. P. (2019). Of Tesla and Eco-city: Urban Sustainability as Territorial Local Trap?.
In Remaking Sustainable Urbanism(pp. 19-35). Palgrave Macmillan, Singapore.
Prajogo, D. I. (2016). The strategic fit between innovation strategies and business
environment in delivering business performance. International Journal of Production
Economics, 171, 241-249.
Smith, E., Callan, V., Tuck, J., & Smith, A. (2019). Employer training in Australia: current
practices and concerns. International Journal of Training and Development, 23(2),
169-183.
Song, M. K., & Han, H. (2016). Materials for energy and sustainability.
Stubbs, W. (2017). Characterising B Corps as a sustainable business model: An exploratory
study of B Corps in Australia. Journal of Cleaner Production, 144, 299-312.

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Tesla.com. (2019). Electric Cars, Solar Panels & Clean Energy Storage | Tesla. Retrieved 20
August 2019, from https://www.tesla.com/