Global Strategy and Sustainability for Tesla: External and Internal Environment, Corporate Strategy, Ethics and CSR

GLOBAL STRATEGY
AND
SUSTAINABILITY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part A...............................................................................................................................................3
External and internal environment for Tesla...............................................................................3
Strategy in the Global Environment............................................................................................5
Corporate Strategy.......................................................................................................................7
Strategic Purpose – Ethics and CSR............................................................................................8
Part B.............................................................................................................................................10
Recognise, examine and evaluate the PEOPLE aspect of the three main pillars of sustainability
in relation to Tesla. ...................................................................................................................10
Recognise, examine and evaluate the PROFIT aspect of the three main pillars of sustainability
in relation to Tesla.....................................................................................................................10
Recognise, examine and evaluate the PLANET aspect of the three main pillars of
sustainability in relation to Tesla...............................................................................................11
Important points of interest for the CEO of Tesla relating the future sustainable development
....................................................................................................................................................11
Relevant recommendations........................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global strategy can be defined as the strategy which is adopted by the company when they are
operating at the global level because at this stage the competition is very high. Sustainability
refers to as the ability of the maintaining as well as supporting the process continuously over the
long time period. This is the process which supports the ecological, human as well as the
economic health and vitality. The main aim of the global strategy and sustainability is the give
the opportunities for learning the things conceptually as well as experientially for creating the
value for the shareholders by the becoming more sustainable as well as equitable approaches
(Aghagoli and Sorin, 2020). Tesla company is American involves in the automotive sector and
this company is considered as the most valuable company in the automotive sector. This report is
consisted of the four parts that is the external and the internal environment and the Part 2 is
strategy in the global environment. Along with this, the third part will discuss the corporate
strategy and part 4 will discuss the strategic purpose that is ethics and CSR.
MAIN BODY
Part A
External and internal environment for Tesla
External Analysis
Political
One of the important political factors that affect the company is the political instability. The
political surrounding of any nation creates an impact on the environment of the business directly
and indirectly. Also, it can impact the economic environment of the nation along with the degree
of economic nation and the business.
Economic
The electric cares are becoming famous with each increasing day that is mostly in connection to
the global economy. The economic factors is a wide open door for the Tesla and the economic
powers have the important task in the business world and creates an impact on the business in
numerous ways (Shu, 2022).
Social
The social circumstances and the trends creates an impact on the firm with the help of the
employees, consumers and the investors. The social elements are important as the numerous

factors and in some aspects, they can influence the interest and the supply of the particular
products.
Technological
The automotive and the energy solutions of the Tesla depends upon the prevailing technologies.
For example, the productivity and the cost-viability is decided by the materials building
innovation of the batteries of the organization. The technological modifications occurs each day
and each particular brand is in the race to acquire the latest innovation in the initial stage.
Environmental factors
The vehicles or the cars of the Tesla produces an ample amount of the carbon emissions and the
heat. The company follows many environmental regulations and abide by the laws so that it can
also compete with the rivalry firms and be in the competition. The marketing of the cars shoiuld
be done in an environment friendly manner.
(Nunes and Cooke, 2021).
Legal factors
It is a very important factor that affects the business across the globe. From the 21st century, the
importance of the legal factors have grown. From the guidelines of the work and other kinds of
businesses the law can impact the businesses directly (Carlstedt and Asp, 2020).
Industrial analysis
The industry of the vehicle has improved in a better way than before, although Tesla was
developed in 2003 it has also compelled the envelope past in what most of the auto makers
thought to be conceivable.
Competitor analysis
Tesla always had the competitive benefit over the industry rivals in the innovation of designing
from the initial stage. The company decided to shift to the network of the inventory.
Internal analysis
Business Model
Tesla developed the successful business model for the electric cars in the marketplace. Some
part of the methodology was to create the charging stations for the settlement. Tesla is focused
on changing the prevailing business model by selling directly to the consumers.
Corporate Culture

GLOBAL
STRATEGY AND
SUSTAINABILITY

Table of Contents
INTRODUCTION.........................................................................................................................3
PART A.......................................................................................................................................3
TASK 1- INTERNAL AND EXTERNAL ENVIRONMENT...................................................3
Internal and external environment of Tesla.................................................................................3
Three critical factors from examining business environment......................................................6
Evaluation of source of competitive advantage of Tesla and define how they maintain
competitive advantage.................................................................................................................7
TASK 2- STRATEGY IN GLOBAL ENVIRONMENT............................................................8
With appropriate framework, define how company can enter in global market and outline
motives of Tesla while international expansion and its impact on business strategy..................8
Recommendation for various strategies for Tesla to compete in global business environment..8
TASK 3- CORPORATE STRATEGY.........................................................................................9
Analyze and outline use of horizontal integration, vertical integration, outsourcing and
strategic alliance..........................................................................................................................9
Recommendations for Tesla for maximizing their business profitability.................................11
TASK 4- STRATEGIC PURPOSE- ETHICS AND CSR........................................................12
Analysis of CSR strategy of Tesla.............................................................................................12
Discussion on ethical issues faced by organization currently and recommendations for
managing such concerns............................................................................................................12
CONCLUSION............................................................................................................................14
REFERENCES............................................................................................................................15
APPENDIX 1................................................................................................................................18
PART B.....................................................................................................................................18

INTRODUCTION
Global sustainability is the condition where nature, society, biosphere, humans and world
coexist which will support in enabling productive, harmonious stability and resilience to support
present and future generations (Cuervo‐Cazurra, Mudambi and Pedersen, 2018). Tesla Inc. is and
American automotive company which was started by group of engineers in 2003. The primary
focus on company is to stop relying on fossil fuels and make a move towards zero-emission
future for the betterment of environment and whole community (Tesla, About Us, 2021). Tesla is
one of the leading brands within the automation industry and through their green car market, the
target market of the company has been segmented which makes them different from other brand
operating within the same industry (Tesla’s position in market, 2015). This facilitates companies
to strengthen their position in the industry and have wider customer base. Some of the challenges
which are faced by Tesla is lack of local production of components, touch screen failure, poor
paint finish on products and defects in door, windows and trunks and poor camera quality
(Challenges in tesla, 2021). This report will outline various internal and external business
environment through which better insight can be gained. The study will define strategic purpose
which will outline ethics and corporate social responsibility of Tesla and recommendations for
overcoming such challenges faced by the business.
PART A
TASK 1- INTERNAL AND EXTERNAL ENVIRONMENT
Internal and external environment of Tesla
SWOT analysis
A detailed SWOT analysis of Tesla has been briefly discussed below:
STRENGTHS
 Innovative- Tesla focus on bringing
innovation to their products which
helps them in getting attention of
customers through which they can
lead to incline in sale of their products
WEAKNESS
 Complication in manufacturing-
The complications in manufacturing
of products has been a weakness of
Tesla. The demand driven
manufacturing has been a

(Delgado, 2018).
 Leading automotive company- Tesla
is one of the leading automotive
companies which has strengthened its
root in the industry and strong brand
image with their innovative range of
products.
complication for Tesla to meet their
organizational objectives on time.
 Lack of high-volume production-
Due to high production volume, this
has been a weakness for Tesla to
effectively manage inventory
(Arefieva, Miahkykh and Shkoda,
2019). Other challenges which has
been faced by Tesla due to high
volume of production can be seen in
their cost and financial position of the
business within the industry.
OPPORTUNITIES
 Expansion of sale in untapped
market- To expand the business in
untapped market, this will be an
advantage for Tesla through
international expansion.
 Bringing battery production
technology in-house- Tesla can gain
advantage through manufacturing
batteries as they currently use battery
from Panasonic (Ismail and
Kuivalainen, 2015).
THREATS
 Lack of regulations for self-driving
cars- Due to government interventions
and regulations for self-driving cars,
this can create an adverse impact in
the sale of such products sold by tesla.
 Defects in goods- Due to defects in
goods manufacture by Tesla, this can
hinder the brand image of business.
The touch screen of Tesla car has been
defective which has been a threat for
the profitability and goodwill of the
company (Defects in Tesla products,
2021).
PESTEL analysis
A detailed PESTEL analysis of Tesla is mentioned underneath: