Global Strategy and Sustainability

GLOBAL
STRATEGY AND
SUSTAINABILITY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1- INTERNAL AND EXTERNAL ENVIRONMENT.......................................................3
Identification of internal and external environment of Tesla by using appropriate models........3
The three critical factors from analyzing business environment.................................................5
Identification of sources of competitive advantage of Tesla and determine how they maintain
their competitive advantage.........................................................................................................6
TASK 2- STRATEGY IN THE GLOBAL ENVIRONMENT.......................................................6
By using appropriate model, identify how business enter into foreign market and determine the
motives of Tesla while expanding internationally and impact on their business strategy...........6
TASK 3- CORPORATE STRATEGY............................................................................................8
Evaluate and identify the use of horizontal integration, vertical integration, outsourcing and
strategic alliance..........................................................................................................................8
Recommendations on how Tesla can increase the profitability of their business.......................9
TASK 4- STRATEGIC PURPOSE- ETHICS AND CSR............................................................10
Evaluate CSR of Tesla...............................................................................................................10
Determine and discuss main ethical issues which are currently faced by the company and state
some recommendations to overcome such problems................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global strategy is a plan of a business which was developed the motive of targeting
customers beyond its borders and expanding the business globally. The main objective of a
global strategy is to increase the sale of products and services and such strategies covers three
different strategies which involves international multinational and global strategy (Ashby, 2016).
Global sustainability is the condition under where humans, nature, society, biosphere and the
world co-exist which will help in enabling productive harmony stability and resilience to support
present and future generations. This project report is based on internal and external environment,
strategy in global environment corporate strategy of Tesla and how the company form strategies
which has them in gaining competitive advantage and profitability for the business. The report
will define the strategic purpose which will coat ethics and corporate social responsibility of
Tesla and how they overcome challenges which are faced by the company.
TASK 1- INTERNAL AND EXTERNAL ENVIRONMENT
Identification of internal and external environment of Tesla by using appropriate models
SWOT analysis of Tesla
STRENGTHS
 Leading automotive company- Tesla
is one of the leading automotive
company which has created a good
brand image in the industry and with
innovative products, the company
gains huge amounts of profits from
sale of their products.
 Highly innovative- Tesla is highly
innovative as the business bring
innovative products which can attract
customer engagement and increase the
sale of their products. By introducing
self- driving cars, the company has
WEAKNESS
 Lack of high volume production-
Due to high volume and products and
less sale this affects the cost and
financial position of the company and
this also creates a chaos for effective
inventory management (Barkemeyer,
Preuss and Lee, 2015).
 Manufacturing complications- Due
to facing complications in
manufacturing of products, this has
affected the operations and managerial
activities of Tesla.

taken innovation to another level.
OPPORTUNITIES
 Sales expansion in untapped
market- By focusing on expanding
the business in untapped market, will
be an advantage for Tesla for global
expansion and increase in demand of
their products which will make
business more profitable (Belkadi,
Bernard and Laroche, 2015).
 Bringing battery production
technology in-house- As Tesla is
using batteries from Panasonic, they
can get an advantage if the business
start making batteries on their own.
THREATS
 Defects in products- by having
defects in products, this affects the
brand image and customer preference
for Tesla products and services which
can influence negatively on the sale of
the company.
 Lack of regulations for self-driving
cars- Due to lack of governmental
regulations on self- driving cars, this
directly affects the sale and
profitability of Tesla.
PESTEL Analysis of Tesla
Political factors- Tesla can enhance their financial performance and positon through
government incentives and can minimize the carbon emissions from the operations of business.
Whereas, trade agreements and political stability has offered major market share for the
company. Such political factors are responsible for growth of automotive business.
Economic factors- By offering low battery cost and low cost renewable energy, more
profits can be maximized by the Tesla. Whereas, economic instability influences the financial
performance of the business (Casarejos, Frota and Gustavson, 2017).
Social factors- Due to rapid increase in low carbon lifestyle, more demand for renewable
energy and by improving wealth distribution in developing market, this has been an opportunity
for business to expand their business and attract more customers by reducing the carbon
footprints on the environment and by meeting the demands of their customers by brining
innovative products, such as self-driving cars.