Global Strategy and Sustainability

Global Strategy and
Sustainability

Table of Contents
Introduction......................................................................................................................................3
Part-A...............................................................................................................................................3
Task-1..............................................................................................................................................3
Critically identifying the internal as well as external business environment of Tesla firm by
using business models..................................................................................................................3
Task-2..............................................................................................................................................6
Explaining relevant models for evaluating the foreign entering strategies along with objectives
and impact....................................................................................................................................6
Task-3..............................................................................................................................................7
Analysing the usage of horizontal integration, vertical integration as well as Outsourcing
alliances and recommending the best action plan........................................................................7
Task-4............................................................................................................................................10
Evaluating current corporate social strategy of Tesla company................................................10
Analysing ethical issues faced by Tesla company along with recommendations.....................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
PART -B........................................................................................................................................13

Introduction
The strategic management is referred as the process which helps in formulation,
implementation as well as evaluation of future decisions in order to attain long term goals and
objectives in most effective manner. The main role of strategic management is to provide
monetary and ethical values by creating new opportunities for growth and development. For this
report, the Tesla company is taken into consideration. The company is known worldwide for
producing and manufacturing electric cars and trucks, solar panels, batter energy along with
other related products and services. The firm is also one of the world's most valuable company in
the automotive sector. In relation to this, the organisation was founded by Elan Musk and is
headquartered in Austin, Texas, USA. This particular report will analyse the internal and external
environment related to Tesla firm along with this it will also evaluate its current sources of
competitive advantage. Moreover, the report will also identify most suitable internationalisation
methods with impacts on current strategy (Ramísio and et.al., 2019). The report will also
critically assess the usage of horizontal integration, vertical integration or strategic alliances in
increasing profitability. It will also evaluate the current CSR strategy of Tesla along with main
ethical issues face by the organization.
Part-A
Task-1
Critically identifying the internal as well as external business environment of Tesla firm by using
business models
The internal and external factors of business are considered critical as it supports the
company to make necessary strategies regarding attaining growth and development. For
analysing the external factor, the PESTLE analysis tool is taken into consideration.
PESTLE business tool:
The application of this business tool allows the organisation to evaluate the external
market forces and also gain insight about the possible future impact on business strategies(Cruz,
Gaspar and de Brito, 2019). In context to Tesla firm, this strategic tool can support the firm in
making goals and objectives according to the current market trends. The following are the
elements of this model which is explained below:
Political factor:

The political force basically involves the government policies related to trade restrictions,
tax, corruption and other legislation acts. In context to Tesla, the company enjoys favourable
response from the USA government as it produces vehicle which only run by using electricity
that is sustainable in nature. This also helps in generating more incentive from government
which allows it to tap into foreign markets in effective manner(Inshakov, Bogachkova and
Popkova, 2019).
Economical factor:
The economic force contains the economic parameters of the country which encompasses
interest rate, exchange rate, inflation rate and many more. In context to Tesla, the company gets
benefit of operating from the country which has world's highest GDP. This support the firm to
arrange large number of capital on lowest interest rates for the purpose of entering in untapped
market.
Social factor:
The social factor generally includes the socio-cultural norms which govern the activities
of society as a whole. It also includes the taste and preferences of customer present in the market.
In relation to Tesla, the increase in the demand of customer to use electrical cars due to its
environmental friendly nature benefits the company to become a leading brand of electrical car
manufacturers.
Technological factor:
This cover the current technological and innovative trends within the domestic market. In
context to Tesla firm, the large number of investment in the research and development area by
government of USA assist the firm to incorporate those latest technologies for growing the sales.
It includes Online mobile system, advanced automation and much more(Ng, 2018).
Legal factor:
The legal factor involves legal rules and regulation of the country which basically cover
the health and safety laws, consumer right, equal opportunities as well as packaging and
advertisement strategies. In relation to Tesla, the firm also gains positive attention from the legal
bodies as it best serve the needs of worker along with posing less damage to the environment.
However, the company may face legal restrictions on direct sale by foreign government due its
overseas operation limitations.
Environmental factor: