Tesla's Global Strategy and Sustainability: A Detailed Analysis

This report provides a comprehensive analysis of Tesla's global strategy and sustainability initiatives. It begins by examining Tesla's external and internal environment, including political, economic, social, technological, environmental, and legal factors, as well as an industrial and competitor analysis. The report then delves into Tesla's strategy in the global environment, covering mergers and acquisitions, research and development, new product development, and geographic expansion. Recommendations for competing in the global market are also provided, such as hiring a chief operating officer and being more transparent about key performance indicators. The report further explores Tesla's corporate strategy, including horizontal and vertical integration, outsourcing, and recommendations for increasing profitability through car sales and energy solutions. Finally, the report discusses the three pillars of sustainability—people, profit, and planet—in relation to Tesla, offering recommendations for future sustainable development. This document is available on Desklib, a platform offering study tools and solved assignments for students.

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

The organizational culture of Tesla develops the human resource competition that is necessary
for the innovation of products in the automotive business across the globe.
Most critical factors
Strong branding
The increased end model X was primarily promoted for developing a luxuru image and after that
a more affordable version was being developed to increase the revenue.
Leadership
The CEO Elon Musk has the acquired the strong leadership skills and a continuous
entrepreneurship and a highly competitive management team.
Continuous cultivation of technology
Tesla collaborated with the Panasonic in order to deploy the NCA battert technology and creates
continuous profit in the battery technology, cruising range and the cooling.
Capacity
The problem of the production capacity can be solved by developing a new factory in China.
Tesla’s current sources of competitive advantage
The Tesla's prevailing sources of the competitive benefit includes its supply chain of the battery,
its fastcharging network, its software updates and its Artificial Intelligence.
Strategy in the Global Environment
Mergers and Acquisitions
Tesla company of the cars and the vehicles has gained 6 companies along with acquiring 3 in the
past 5 years. In total 2 acquisitions were acquired from the private firms that are equity. In the
year 2016, the Tesla company has its biggest acquisition when it gained the solar city for $2.6 B.
The company has its acquisitions in 3 various US states along with 2 nations. The most targeted
sectors of the company were the automotive that counted for 17 % and the machinery which
counted for up to 34 %. The latest acquisitions were the siilion in the year 2021 in november, the
automation tooling system in the year 2020 in october.
Research and Development
Tesla noticed a valid price evaluation by 35% in the year 2019 along with the increased revenues
and the improved cost management systems. Although, the Research and the development
expenditure of Tesla was dropped by 8% in the year 2019. The research and development of the
company focuses on the improvement in the quality of the battery and the range for the

electronic vehicles. In the year 2019, Tesla reported that the plan of the company is to shift to a
building currently which is used as a warehouse in the Fremont into a big latest vehicle R&D lab,
that is a future energy reliability lab and for the improvement of the reliability, a vehicle testing
facility has been developed.
New product development
One of the successful year of the Tesla was 2019 in which it saw important growth in the
production and various latest product launches like the Tesla Model Y in March 2019, The Tesla
moedl of the X and the Y model refresh in the year 2018, Tesla Semi and the new Tesla Battery.
Geographic Expansion
The domestic market of the company has increased the efforts for the expansion in the
international market which aims to increase the transnational demand for the electric vehicles.
The company also constructed its factory in Germany. The CEO Elon Musk of the Tesla Motors,
revealed that the company is planning to expand its market across various markets.
Recommendations for various strategies Tesla can use for competition in the global
market.
Hire and empower a chief operating officer
One of the criticism that the Musk and the Tesla face is that it does not fulfil the promises that it
makes especially about the ways in how fast the company can grow its production. It solution
can be hiring a big name and popular chief operating officer which has a reputation as the guru
of manufacturing. Moreover, Musk can make announcement at the off-site conferences about the
climatic change and the machine learning that provides the suggestion of being more into the
vision.
Being more transparent about the important things.
It is difficult for the company to come up with the numbers that would display the investors
about the medium term future of the company. The most suitable way of shutting down the
guesses and the surmises about the demand is with providing the real information which will lwt
the analysts and the investors examine the long term trajectory of the business of the Tesla. The
main answer is to provide Wall Street more information.
Considering separate mobility and the car business

After a point of time, mobility will generate more amount of money for a competitor or Tesla.
And a well timing spin-off or the tracking stock might be the suitable way of putting the largest
share of the money in the pockets of the shareholder.
Being less transparent about the unimportant things
One of the important thing is to avoid the short term promises about the details that will arrive in
the wash once. Some few thousand cars give or acquire in a given quarter which will not matter
in a year. The success or the failures of the Tesla will be on a larger scale so offering the noise
machine one less topic to talk about and emphasize on the things such as demand that will matter
in the longer period of time.
Corporate Strategy
The use of horizontal integration, vertical integration, outsourcing or strategic alliances.
Horizontal integration
For avoiding the monopolies, the anti- trust laws are being subjected on the horizontal
integrations in the United States. Also, these laws are used for protecting the customer from the
combined entity if it creates too much influence and the increased market concentration in the
industry. The horizontal integration functions by combining the two or more than the two
companies that cover the same levels in the production of the supply chain. Also, this kind of the
integration may exist in different or in the same kind of the industry. This procedure is also
known as the lateral integration or it is opposite of the vertical integration where the firms are at
the various stages or levels in the supply chain of production.
This would also permit the company to produce more profits and to be able to reach into more
market (Hoeft, 2021).
Vertical Integration
It is a kind of corporate strategy that includes the growth with the help of the streamlining
operations. This happens when a single company takes a producer, supplier, distributor, vendor
or other relevant companies in the same company. The companies that select to integrate in the
vertical form do this to make their supply chain strong, decrease their cost of production, take in
account their upstream or the downstream revenues or accessing the latest distribution channels.
The vertical integration can assist the company in reducing the costs across various parts of the
process of production, developing a strong control of the quality.
Outsourcing

The multiple types of the outsourcing involves the business process outsourcing, knowledge
process outsourcing, out tasking and the selective outsourcing. The reasons of the outsourcing
includes the increased efficiency, optimal scalability, faster response, improvement in the
quality, costs saving and the lack of know-how. Generally, with the help of outsourcing, one or
more than one task are provided to the external partner (Hess and Andiola, 2018).
Recommendations for Tesla to increase their profitability.
Tesla produces profits from various goods and services.
Car Sales
Also, Tesla provided 936,172 cars in the year 2021 which is 87% increase on the 499,647 cars
in the year 2020 and 308,600 cars in the fourth quarter of the year 2021 (Cooke, 2020).
Energy solutions
Power pack and the solar roof which enables the homeowners and the businesses to tackle with
the renewable energy generation, storage and consumption.
The energy revenue of the company (Ibrahim and Jiang, 2021).
Servicing
By servicing the old Tesla cars, it created another revenue stream for it, like during the third
quarter of 2021, the company suffered 39%. These includes the vehicle repairs and the sales
parts and the cars that are used.
Also, the owner of the company should shire and encourage and accordingly appoint a new chief
operating officer who can handle a large production sector and also executes the activities in a
big solar panel. And being more real and transparent about the important things and being less
transparent about the things that are not important for the company, concern should be more on
the mobility, keeping the mobility and the business of the cars to be separate and being
profitable.
Strategic Purpose – Ethics and CSR
CSR strategy of Tesla
The corporate social responsibility of the Tesla is that emphasizes on the business's
characteristics and its products. The stakeholders of Tesla considers the following according to
its CSR prioritization-
Communities (top priority)

The company directly considers the concerns of the business. Communities are the stakeholders
which helps in determining the image of the brand with the help of their important. The main
concerns of this group of the stakeholders is to make sure that the environment is not exploited
which includes the electric auto mobiles, solar panels and the batteries of the company. For
instance, the society is impressed with the environmental friendliness of the particular products.
The corporate social responsibility directly takes into consideration the communities from the
developmental projects that includes such technologies. These initiatives focuses on the
sustainable energy solutions that are at the centre of the Tesla's mission and the vision statements
(Elia and Margherita, 2022).
Customers
The consumers creates an impact on the profits of Tesla company and are interested in the
quality of the product and affordable pricing. The company also give more importance to the
stakeholders in its programmes that are related to the corporate social responsibility. To
acknowledge such interests, the company look for new ways for decreasing the costs. Moreover,
the company increases its business of charging stations to enhance the accessibility for the
customers. This approach enhance the customer experience and the satisfaction. These efforts
make sure that the Tesla satisfies with the interests of the consumers as a stakeholder group
(Veer and Riepe, 2022).
Employees
The employees creates an impact on the productivity of the employees and its performance as
stakeholders. Their CSR involves increased compensation and important career opportunities.
The corporate responsibility of Tesla fulfil these interest from the competitive compensation
strategy and the HR programs for the development of the skills and the development of the
leadership. Also, the corporate social responsibility strategy of the organization provides learning
experiences. These satisfy the workers interests as the stakeholders (Thomas and Maine, 2019).
Investors/ Shareholders
The chief executive of the Tesla has invested $21 bn of his money for the funding of the
packaging for the purpose of the acquiring the platform of the social media and he also sold
some of the tesla shares which were about 9.6 m in the stake business on the bsis of the financial
regulator of the business of the United States.
Governments

The company experiences the impacts of the actions of the government. Government are the
stakeholders that offers the needs, limits and also provides the opportunities to the businesses.
The interests of the groups involves the legal compliance, business contribution to the growth of
the economy. Moreover, the government also impose the needs that creates an impact on the
operational tactics (Meshginqalam and Bauman, 2021).
Ethical issues of Tesla
The ethical issues or the problems related to the ethics of the company includes the business
practices of the company that involves the fraud, violations of the environment and the culture of
the workplace, the safety problems of the employees working in the organisations and it has also
reported numerous deaths because of the driver assisting technology that is also known as the
auto pilot. The company was also being criticised for coming or fulfilling its promises.
Part B
Recognise, examine and evaluate the PEOPLE aspect of the three main pillars of sustainability in
relation to Tesla.
The people pillar or it is also known as the social pillar or the aspect of the three important pillars
of the sustainability that are relevant to the Tesla includes the defined concept that is in the poor
way is the social license. The kind of the sustainability organisations should have the
encouragement and the acknowledgement of the employees and the stakeholders and also the
particular company in which it carries out its operational activities. The main approaches for the
securing and the maintenance of this encouragement are multiple but it also should treat the
employees in a fair manner and also being the better neighbour and the member of the
community in both the global and the local way.
Recognise, examine and evaluate the PROFIT aspect of the three main pillars of sustainability in
relation to Tesla.
For the making of the profit aspect or pillar of the sustainability, it is also known as the
economic aspect in which most of the businesses think that they are successful. An organisation
need to be profitable in order to be in the sustainability environment. Governance and the risk
management are the main activities that are able to fit in the economic pillar or aspect. In the
matter of the governance the investors are keen to know about how the company uses the proper
and the real methods of the accounting.

Recognise, examine and evaluate the PLANET aspect of the three main pillars of sustainability
in relation to Tesla.
Most of the companies focus on the reduction of the carbon footprints, the usage of the
water, any exploitation or the damage which is done to the environment and the packaging of the
waste. Instead of helping the planet, the practices and the activities can also create a major
influence on the financial effects that are positive in nature like the reduction in the usage of the
packaging materials which is called as enhancement in the efficiency of the fuel and spending
less which also helps in the budget of the organisation.
Important points of interest for the CEO of Tesla relating the future sustainable
development
 Its acceleration of the take up of electric vehicles
 It increased the capacity of the power wall for free
 Its CEO is encouraging amazing new technology
 It is increasing collaboration
 Its huge Gigafactory will be fully powered by renewable
Relevant recommendations
 Hiring and empowering- a chief operating officer
 Being more transparent about the things that are necessary
 Being less transparent about the things that are unnecessary
 Deciding early about what to do about mobility
 Consideration of separating the mobility and the business of car
 Turning profitable
 Expanding the operational activities in the foreign markets for the exploitation of the
growth of the renewable energy industry across the globe.
 Continuing or increasing the investments for the innovation of the product
 Classifying the supply chain for the reduction of the supply side risks.

CONCLUSION
From the above report it can be concluded that it is very important for the organization in
developing sustainability as this will help the company in effectively save the planet by the
harmful activities of the business. This report has discussed the external and the internal
environment as well as the strategy in the overall global environment of the organization. Along
with this, this report has also covered the external as well as the internal environment, strategies
in the global environment, corporate strategy and its strategic purpose.

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