Global Business Environment: Analysis of Tesla Company

Global business
environment

INTRODUCTION
Global business environment is considered as different activities which are important to run
a business and increase the production. While running a business it is important that to analyses
the environment to know which factors has impacted on their business. This report is about Tesla
organisation that is operating business in competitive business environment. This is car
manufacturing organisation that analyses environment and to run a business effectively.
MAIN BODY
PESTLE Analysis of Tesla company
Political factor: This comparison of rules and regulation offered from the government as
well as political stability within the region in order to make the strategy associated with
expansion. Tesla company comprises of electric cars due to which it gains immense or positive
support from the government in order to participate in the competitive environment and while
developing electric as well as hybrid cars. On contrary, the market of the Tesla company is
limited till the confined region or mostly in developed part of country which leads to the
negative impact in terms of gain global awareness (Mangan and Lalwani, 2016).
Economic factor: It involves factors like purchasing power, disposable income, interest
rate, inflation rate and so on that can change the operations of Tesla company. The manager of
company analyse the economy and carry out policies leading to positive impact due to which
Tesla company was able to gain global economic increase amongst the other luxury vehicles.
Strengthening the market for the high and middle income group is a viable option but at the same
time chances of inflation or recession can leads to negative impact on the global economy.
Social factor: Social factor reflect the existing trend, taste and preferences of customer
which constantly changes after a confined duration. It is vital for the company to constantly work
in order to match up the requirement of prospectus. With the increase in awareness large mass of
the people increasingly love the idea of electric cars. Being efficient substitute of the fuel it leads
to the positive impact by catering the requirements of people. As it is necessary to bring the
desirable changes into the design and attributes to retain the interest of existing and potential
customer leading to negative impact on the economy (Voegtlin and Pless, 2014).
Technological factor: Technology is the part of innovation and latest techniques needs to
be implemented in order to remain ahead of the competitors and gain long term competitive
advantage. Tesla has used and keeps on using latest innovation while developing fuel efficient
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