Global Strategy and Sustainability

Global
strategy and
sustainability

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
External Environment analysis....................................................................................................3
Internal environment analysis......................................................................................................4
Tesla’s current sources of competitive advantage.......................................................................4
TASK 2............................................................................................................................................5
How organisations enter into foreign markets and motives for Tesla expanding internationally
.....................................................................................................................................................5
Recommendations for different strategies Tesla can use to compete in the global environment5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global strategy refers to the plan which global companies formulate to survive at the
marketplace and to gain a competitive advantage at the marketplace. In order to lead the global
market, it is essential for a company to develop a strategy with proper sustainability
(Bhattacharyya, 2020). This report contains external, internal environment, competitive and
strategy analysis of company. In this report example of Tesla is taken into consideration which is
a global electric car manufacturing company. Tesla was established in the year 2003 at
California in United States.
TASK 1
External Environment analysis
To understand the external environment of Tesla, it is essential to perform PEST analysis
in a precise manner. The PEST analysis of Tesla is mentioned below:
 Political factors- The political factors are related to policies and regulations which
are imposed on a business. The stable nature of government also plays a critical
role in the development of various functions and operations of Tesla. In the global
market, various countries government’s interference affects the functioning of
Tesla.
 Economic factors- Economic factors are related to economic policies, gross
domestic product and national income of a country. These factors are generally
stable throughout the year in America and different countries are involved with
great economic policies which effect the functioning of company. The trade
policies of different governments in different countries are also major economic
factor which impacts the performance of Tesla.
 Social factors- These factors are related to social tendency of general public
towards the company. These factors are essential in the development of social
advantage (Enos, 2019). The living standard of society and culture both play a
crucial role in the functioning of Tesla.
 Technological factors- In the era of stiff competition, there are various factors
which are related to the information and technology impacts the functioning of