This report analyzes the impact of the global business environment on Tesla, including political, economic, social, technological, environmental, and legal factors. It also discusses key drivers of change in the business environment.
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Global business environment Tesla Table of Contents
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Introduction.........................................................................................................................................3 Main body............................................................................................................................................3 Impact of business environment on company....................................................................................3 Key drivers of change........................................................................................................................6 Conclusion............................................................................................................................................7 REFERENCE......................................................................................................................................8 Introduction The global business environment can be defined as the environment in different different sovereign Countries. businesses are greatly affected by the global environment,
which refers to the uncontrollable local and international interaction that influence how Co operate their business. Company on the global levelAffect with the things such as behaviour of the people, Government policies and rules, product prices and product quality it is easy. This report will cover case study of Tesla Which is then American Electricvehicle And clean energy company that is based on California. This company is famous for producing technology based cars and Electric cars (Kauerhof., 2017). in every cars produced by them are highly technology based and they have used information technology effectively within there cars such as autopilot, sensors, 4 by 4 wheels etc. This report will analyse global environment affect on Tesla and it will also discuss about the key drivers of the change within a business environment. Main body Impact of business environment on company Business environment has huge impact on companies who are working on a global level. As compared to the domestic environment and global level has Higher competition and all the external factors affect company on the higher basis. It is necessary for the Tesla company leaders to be aware of factors that are affecting their business. Awareness of those factors can create opportunity for the Tesla company to achieve success in their business and they can take competitive advantages where there operating their businesses. They can use PESTEL analysis Identify that how those factors and analyse how they are affecting their businesses on the global level. PESTEL analysis of Tesla Political factor Political factors has huge impact on Tesla on the global business environment. Tesla has get good responsefrom the different different country Government because they are Producing electric vehicle that Does not affect on environment. Tesla is at the forefront of electric vehicles and there is and traditions of buying a vehicles that are run with the electricity and there does not require fuel to run (Rahman., 2019). Tesla used both gas and fuel vehicles on the global market but there gas cars also does not require that much fuel. All the governments also has been taken distance to improve and develop the new electric vehicle an engine that are hybrid. People who buy electric cars get credit discount which is positive
sign for the Tesla to sell their cars rapidly. This strategy is used by many governments including US which is an home country of the Tesla. Economical factor Sales for the electronic cars has been risen on the international level that affect on global economy and it has been increased. In 2017 it has been assumed that the world economy will grow by 3.5% because of the hybrid vehicles. This can include the economy of US, Asia and some Of the European countries. Tesla vehicles are costly for the people an it is not affordable for all people who want to buy because of their material used within the cars for their manufacturing. Particularly the cost of batteries is lower that is great for the company in fact the more popular their cars become to the public the lower material prices may drops and they can able to provide Their cars in lower prices and satisfy the needs and demand of the customers who want to buy car. Some of the negative impact of economy on the global level are Rising prices of raw materials that is increasing day by day and affecting the prices of Tesla cars. Social factors People usually like technology within a car because it helps to satisfy their needs Anne make their experience more better. Tesla is using high level of technology within their cars that is helping customers of the Tesla to take purchase decision (Pan, Chen and Zhan., 2019). People who have eco friendly Ness in their mind go for the Tesla because it is eco friendly car with the technology Anne attractive design. Tesla have all this that can fulfil the needs of customers an customers get whatever they want. Electric vehicle eliminate the needs of fuel and customers can save money spending on fuel because electricity they can get easily and their cars easily charged in lower prices. But a Tesla is environmentally suitable and there are very few cars within a market who provide luxury and power boat together that Tesla does. This company has done an amazing job of maintaining their places in peoples mindAnn attractpeopletobuy anelectriccarsandgivetheirsupporttowardsthe environment. Their designs are so attractive And it looks luxury car so people who live luxury life can easily buy this kind of cars. Technology factor Technology has provided huge benefits to this company and help them to be successful in a hybrid autumn oil market. Tesla company is using advanced technology
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within their car that satisfy the needs and demand of the customers and forced them to buy cars from Tesla. It helps them to maintain a competitive ages within a market where there operating their business and it allowed Tesla to be fuel efficient an paves the way for the future sustainability and usability. Tesla is using trending technology and future technology within their car. They provide autopilot facility that works so amazing and their sensors work so well and show how technology can be useful. But this factor has also disadvantages, it doesn't take much for the technology to become obsolete First off technology trends change continuously and rapidly and it enable Tesla to adopt each and every technology within their car. It makes necessary for Tesla to adopt new technology so they can be stay within a competition But it’s not easy for them to adopt each and every technology within their cars (Nurmi, and Niemelä., 2018). It’s take time to know about the new technologies before using it within a vehicles. Environmental factor Environmental factors has huge impact on Tesla company to build their image within a market globally. Tesla is selling eco friendly cars that is helping to satisfy the needs of the society and also contributing toward the environment. The cars marked as environmental friendly because it uses electricity more than gas for stop Tesla vehicles abide by many environmental regulations an barely impact carbon emission As compared to the other vehicles that are sold within a market. By focusing on the add environment issues this company has made their name and they are showing presence within automobile market as a electric car seller with the best designs and concepts (Rahman., 2019). This company is also getting invitation from many governments to open their showroom and there Country because they want two improve their environmental condition within a country and they want to encourage people to buy electric vehicles and it has huge advantages for the Tesla company to take growth and they can take competitive advantages within a market. Legal factor Tesla is expanding their business into the global level It makes important for the Tesla to be aware of international rules and regulations an up to date with their patents. If they were not aware of this all then expansion of their business will take a longer time and they can also face a legal issue andcountries. Till the date they started selling their vehicle on the global level this company Has does not face any legal case (Śmigielska and Oczkowska., 2017). Their vehicles are eco friendly so they get support from the government an in fact they are
using all the legal authorities and they are having all the licence that used to run all their business on global level. This is the reason they are getting good response from the government and they are encouraging them to sell their product in their market for the environment of the Country can be improved.This company has done an amazing job of maintaining their places in peoples mind Ann attract people to buy an electric cars and give their support towards the environment. Their designs are so attractive And it looks luxury car so people who live luxury life can easily buy this kind of cars. Key drivers of change There are some drivers within a Environment that has huge impact on the company and it lead Tesla toward the changesIn their strategies so they can take opportunities in future (Priyadarshini., 2020). It is necessary for the Tesla leaders do aware of those factors that can lead them toward the changes because it can affect negatively as well and if they will be aware then they can take competitive advantages of it and they can show their presence in a market where they are operating their business. Here are some key drivers of the change that can affect the strategies of the company and bring changes within the business policies and way of working. Globalisation Business globalisation is an key driver of the changebecausr all the procedure and policies, product quality and customers demand everything is changed on the global level. It makes necessary for the Tesla to research the market and understand the product needs and demandofthecustomerssotheycantakecompetitiveadvantageswithinaglobal environment and they can show their presence globally. Economical change Economical changes within the environment are also key drivers of the change for the Tesla company because it has huge impact and the companies product sailing and their product demand. Recent situation such as coronavirus this is spirit all over the world and affect the all economy globally (Todeschini and et.al., 2017). It also affects the selling of Tesla company because people does not have that much money to spend on the cars. People started saving their money within their banks and many people lose their jobs so they don't have that much money to spend on luxury cars and all. Similarly, changes within the prices of raw material also affect companybecause if the prices of raw material increase then they also have to increase the prices of their vehicle.
Technological change ChangingatechnologyalsoakeydriversfortheTesla.Newtechnology implementationwithin a workplace of Tesla effective way of working. New technology create a desire to no I’m training and development to the employees so they can learn how this technology works and they can Used to satisfy needs and demand of the customers. implementation of technology also take time to give better result for the company. Changing behaviour of customers Customers behaviour and lifestyle change with the time and it is necessary for the Tesla company to be aware of those changes and they also have to develop their products accordingly (O’Sullivan, and Nickpour., 2020). Leaders and managers of the company should beawareofneedsanddemandsofthecustomersandtheyshoulddevelopproduct accordingly. it is a keep driver of the change because Company have to develop new products Which can bring the new task policies and also affect the management of the company. Policies policies in policies also in key driver of the change because it is necessary for the company to adopt and implement new policies made by the government. It is not only bring changes for the Tesla but also affect all the businesses within a market and they all have to follow the policies made by the government itself (Faruque And et al., 2017). The policies can be about Labour, prices of the products an some rules and regulation including their taxation etc. Conclusion As per the report has been Covered case study of Tesla which is one of the famous brand within automobile industry. This report has been discussed about factors such as political, economical, environmental etc. It has been explained how this all the factors affecting the business strategies of the company. In the end of this report has been concluded key drivers of change such as changing customers behaviour, globalisation etc. REFERENCE Books and journals
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