Global Business Environment: Tesla Company

This report provides an overview of the global business environment since September 2017, focusing on the auto-mobile sector and its impact on Tesla company. It also discusses the changes in the global environment using PESTEL and Porter's five force model.

Global Business project
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of Global business environment since September 2017.............................................3
Changes in global environment...................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
Global business environment can be describe as the environment in which company is
performing organisational task globally (Bedianashvili, 2016). This report is based on Tesla
company. This company was developed in year 2003 and founder of this organisation is
developed in Martin Eberhard, March Tarpenning, Elon Musk and J. B. Strubel. In this report
overview of global business environment has been determine as well as different model related
to changes in identified.
MAIN BODY
Overview of Global business environment since September 2017.
Auto mobile sector is developing and creating different types of high quality vehicles and
other auto-mobile products which is significant for meeting with customers requirement. Since
September of year 2017 there is slowdown in auto-mobile sector globally. The one of the major
reason for the slowdown in this sector is domestic factor. There is high competition in pre owned
cars market which lead to decrease in sales of new car or vehicle products. Due to this many jobs
has been lost in this sector which has negatively affect auto-mobile global business environment.
Changes in global environment
Global business environment includes various factors which lead to have impact on
decision making process of business (Barac and et.al., 2016). PESTEL and Porters five force
model in mention below in context of Tesla company.
PESTEL Analyse
This is effective model in order to analyse various external factors of business
environment. This will affect decision making process and strategy of Tesla company. Political factor – Development of new global trad agreement will support in sales of
Tesla company. Economical factor – High economic system or growth in GDP of UK market area will
lead to decrease in cost of battery. This will help in saving cost of Tesla and earn more
profit.
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 Social factor – Increase in popularity of low carbon lifestyle among customer is
opportunity Tesla company. Technology factor – Development of automation of business with advance technology
will have positive impact on business. Environmental factor – Tesla company can promote electric vehicle with the concerns of
changes in climate (Hamilton and Webster, 2018).
 Legal factor – This company is following all laws and legislation which support in
smooth functioning of business.
Porters five force
This will help in determining the position of company is overall auto-mobile industry
area.
Force Impact
Threat of rival competition This company is dealing in highly competitive environment
and its force have strong impact.
Bargaining power of buyers Tesla is developing high quality product which reduce
bargaining power of buyers.
Bargaining power of suppliers There are many suppliers so this force have moderate impact.
Threat of substitution Low cost of switch increase the threat of substitution.
Threat of new entrant Tesla is well established company and new entrant threat will
have weak impact.
CONCLUSION
From the above report it has been analysed that it is important to identify and analyse
global business environment in order to successfully conduct task and meet with the needs of
customers. There are different models that assist in determining the changes in business.
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REFERENCES
Books and Journals
Bedianashvili, G., 2016. The Global Business Environment, European Integration and the
Cultural Potential of Social-economic Development of Georgia. Globalization & Business.
Barac, K. and et.al., 2016. The capability and competency requirements of auditors in
today's complex global business environment.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
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