Environmental Business Audit: Analysis of Tesla's Impact on Auto Retail Market

Hello Teacher, i’m Hannah and today i with PRESENTATION ABOUT
ENVIRONMENTAL BUSINESS AUDIT
First u can seethe table of contents, which of 5 main parts:
Introduction
Tesla Inc was founded in 2003 by Martin Eberhard and Marc. Tesla also recognized
Elon Musk, JB Straubel, and Ian Wright as co-founders. While Tesla isn't a very old
company, it has made a tremendous contribution to the industry with a market cap
of around $28 billion. Tesla is a phenomenon in the automotive industry and has
literally changed the future with its innovative approach to the market. The
company entered the industry as a newcomer to the technology market, consuming
its assets and causing a major shock. Their release of the technology-based electric
vehicle made it a product propulsion system for the industry. It has been accepted
by customers for its many advantages, such as: lower gas costs, fewer mechanical
failures, and less pollution. As battery manufacturers continue to drive down the
cost per kilowatt hour, it has become affordable for the mid-range.
This presentation includes a PESTLE analysis to determine the favorable and
unfavorable effects of outside factors on the auto retail market, a traffic light system
to assess investment opportunities, Porter's Five Forces analysis to determine the
competitive environment, and finally a SWOT analysis to look at and clarify the
organization's internal strengths and weaknesses.
Macro-environmental Factors Analysis
PESTEL is a framework for thoroughly analyzing the operational environment of a
firm and formulating possible business strategies. PESTEL analysis is used in
strategic planning, marketing planning, the creation of new products or services,
and research (Vasileva, 2018). It is important to clearly state the purpose of using
pestle analysis and to list the components of the external environment analysis.

2.1. Political Factors
P stands for political. Politics can refer to a particular political scenario or to laws
that have an impact on businesses (Matovic, 2020). Vietnam is a neutral nation with
a peaceful political environment free of war or international disputes. The
legislation in Vietnam has not altered significantly after many years and the country
also enjoy excellent ties with USA. As long as Tesla operates in Vietnam, they won't
have to worry about finding employees or meeting their shopping demands, which
is a good indicator. Tesla's product import is now simpler and less constrained. (+)
- Nevertheless, the tax on bringing a foreign automobile into Vietnam is too high,
ranging from 54% to 74% of the car's worth. This raises the price of the Tesla
product, resulting in fewer people purchasing it, which has a negative impact.
Human Rights Watch (HRW) says that there are problems with free expression and
human rights in Vietnam, Tesla must address this since it may have an impact on its
operations and expose it to spurious litigation. (-)Political is yellow light.
2.2. Economic Factors
E stands for economic. Vietnam's economy has demonstrated extraordinary
resilience throughout times of crisis, most recently the COVID-19 epidemic, thanks
to a stable base. GDP growth is anticipated to drop to 2.58% in 2021 owing to the
appearance of the Delta version of the Sars-CoV-2 virus, before rebounding to 8.02%
in 2022 and 6.6% in 2023. (Man, 2023). In 2021, Vietnam's average inflation rate
rises to 3.23% year on year before falling below 1% in 2015. In 2015, Vietnam's
inflation appears to have steadied and is predicted to drop. For the following three
years, growth will slow to approximately 3.5%. This bodes well for the future of the
Vietnamese economy and the car sector.

In addition, the implementation of the socio-economic recovery and development
program in accordance with Resolution 11 of the Government of Vietnam with
specific solutions such as supporting workers to return to the labor market, and
solving employment decisions for workers were implemented synchronously at
enterprises across the country, contributing to promoting the economy's strong
recovery of the labor market in the second quarter of 2022. Thus, the
underemployment of labor has improved significantly with this rate gradually
decreasing respectively 2.46% in the first quarter of 2022 and 2.32% in the second
quarter of 2022. People with stable jobs will generate stable and high personal
income growth, from which the demand for cars can be born, and Tesla can profit
from it, and in the future. , more Vietnamese people will be able to buy Tesla cars.
(+)

2.3. Social Factors
S represents social. Vietnam is showing a tendency of having a large proportion of
the "young population," with an average age of 30-34. A growing portion of the
young population supports Tesla's workforce. Tesla primarily targets people in this
age range as prospective buyers. On the other hand, Tesla is a business that values
youthful talent, so this it's a good opportunity for Tesla(+)
Besides, due to Vietnamese customers' fondness for imported goods of excellent
quality from European and American nations receiving more and more attention,
the middle class in Vietnam is growing day by day. Customers in Vietnam will be
drawn to Tesla by the brand's repute and the advancements in automotive
technology. (+)

Social is green light