Global Business Environment

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analysis of business environment of a firm................................................................................1
Impact of Government on structure and operation......................................................................2
Impact of changes in business environment................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Global Business Environment refers to the analysis of the various factors which affect a
firm internationally (Barac and et.al., 2016). For this report Tesla has been chosen. It is an
electric car manufacturer based in Palo Alto, California, United States. In this report, focus will
be made on analysis of business environment of an organization, assessment of impact put by the
government. Additionally, understanding of changes in the business environment will be
discussed as a part of this assignment.
MAIN BODY
Analysis of business environment of a firm
The business environment of a firm contains different types of factors which can affect its
working pattern (Bedianashvili, 2016). These are micro and macro factors. Micro factors are on a
small-scale while Macro factors are on a large-scale.
For the analysis of internal business environment of an organization SWOT analysis can
be used effectively. The analysis in the context of Tesla is as follows-
Strengths Weaknesses
 Environment-friendly cars- Tesla
provides environment-friendly cars to
its various customers.
 Efficient production system- Tesla
makes use of efficient production
system which not only saves the costs
but is also eco-friendly.
 Lack of demand in certain segments-
There is a relative lack of demand in
certain segments for Tesla which acts
like its weakness.
 Higher costs- Tesla incurs higher costs
in its production which can reduce its
overall profits.
Opportunities Threats
 Expansion- Tesla can target expansion
in those countries where it is not
present currently so that it is able to
encash this opportunity effectively.
 Innovation- Tesla can use innovation
and can target certain premium
 Competition- Increasing level of
competition in the electric car segment
can result in creation of a threat for
Tesla.
 Tax policy- Increase in the overall tax
rates can increase the costs for Tesla.
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