Global Strategy and Sustainability

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:

Political factors- Tesla can improve their position and financial performance by
government incentives which will be helpful in reducing carbon emission performed in the
business operations. Some of the political factors, such as- political stability and trade
agreements which offers major market share for the organization and the political factors also
support in business growth of the automotive company Tesla (Kuznetsova and et.al, 2017). The
interest of government in reducing carbon emission and focus towards economic stability has
driven opportunities and advantages for the brand to invest in stronger research and development
and ensure high quality products and services are offered by the company.
Economic factors- Economic factors such as economic instability is responsible for
creating an impact on financial performance of the organization. In context of Tesla, the
company can gain advantage from government tax as this will offer incentives to electric car
manufacture at certain level (Pestel analysis of Tesla, 2021). By providing low battery cost and
low-cost renewable energy this will be helpful for Tesla to maximize greater profits.
Social factors- Some of the social factors such as incline in low-carbon lifestyle and
increase in demand for renewable energy and by improving wealth distribution in developing
markets, this has driven many opportunities for Tesla to expand their business and attract higher
number of customers. On the basis of survey, it can be understood that 66% of respondents focus
on making decision and purchase on the basis of suitability (Consumer driving sustainability,
2021). In context of Tesla, the company offers sustainable products which supports in
minimizing the use of such resources which can be distant to the environment and reduce the
wastage.
Technological factors- The Rapid increase in technological changes is responsible for
creating positive as well as negative impact on operations of Tesla which enhances product
technology and leads to rapid obsolescence (Lin and et.al, 2020). Some of the other
technological factors such as incline in demand of mobiles systems and automation in business
acted as opportunity for Tesla to face obstacles in the business environment and continuously
drive opportunities for business growth and expansion (Tesla PESTEL analysis, 2019).
Environmental factors- Some of the environmental programs organized by Tesla acted
as advantage for the company. Battery solar panel and incline in standards on waste disposable
were also helpful in gaining advantage for the organization. Tesla aims to manufacture their own

batteries which will b offered at lower prices, will have greater energy capacity and will be made
of more sustainable material. The batteries which will be manufactured by Tesla will ensure
higher safety.
Legal factors- Some of the legal factors which has been helpful for Tesla for their
business expansion are International Patent Protection which was helpful in promoting electric
vehicle that are based on Energy Conservation Regulation in global countries markets (Ropianto
and et.al, 2017). Moreover, other legal factors such as Dealerships Sales Regulation in US has
also been an opportunity as well as threat for Tesla to transact with their buyers in the
automotive market of US (Tesla rights to sell cars, 2018).
Three critical factors from examining business environment
 Technological factor- Due to the rapid growth of technology, Tesla now has an
opportunity in the online mobile systems and automation sector, since this advancement
can lead to product upgrades.
 Social factor- Tesla focuses on identifying the growing demand for renewable and
environmentally friendly products (Zhang, Cui and Zheng, 2016). This has assisted Tesla
in meeting customer demands by providing energy efficient products, solar panels, and
renewable energy sources that can facilitate them in meeting the company's socio-cultural
responsibility.
 Highly innovative- This has been Tesla's strength, since the brand employs creative and
constructive concepts that aid in bringing creative change to society, allowing them to
create a sustainable environment via the usage of renewable and energy-efficient goods
and services.
Evaluation of source of competitive advantage of Tesla and define how they maintain
competitive advantage
Some of the sources of Tesla for gaining competitive advantage and how they maintain
such sources have been mentioned below:
 Tesla supercharger network- Tesla has gained a competitive advantage from their
operations and maintained their competitive position by introducing superfast charging
stations for their electric vehicles (Zinovieva and et.al, 2016). This has taken innovation