PGBM156 - STRATEGIC MANAGEMENT IN AN INTERNATIONAL CONTEXT.

Table of Contents
1.0 Introduction 2
2.0 Question One: Demand for Globalisation and Localisation 2
2.1 Demand for Localisation 2
2.2 Demand for Globalisation 2
2.3 Reasons for Demand 3
3.0 Question Two: Industry Compliance and Choice 3
3.1 Open & Closed Innovation 3
3.2 Open & Closed Innovation Differences 4
3.3 Factor Endowment 4
3.4 Supporting Industries 5
3.5 Demand Conditions 5
3.6 Strategy, Structure, and Rivalry 5
3.7 Government 6
3.8 Chance 6
4.0 Question Three: Paradox of Profitability and Social Responsibility 6
4.1 Purpose of the Company 6
4.2 Corporate Profitability 7
4.3 Corporate Social Responsibility (CSR) 7
5.0 Question Four: Personal Reflection 8
5.1 Reflection on Learning 8
Reference 10

1.0 Introduction
In today's global economy, the majority of large multinational corporations (MNCs) are
significantly invested in innovation and resource integration from within and outside the
organisation. For decades, Tesla has been one of the most innovative multinational
corporations (MNCs) in the world. Tesla, an electric vehicle manufacturer based in
California, was created in 2003 and currently holds a commanding position in the market.
Tesla, the company's innovative leader, was able to build electric automobiles with energy
storage capabilities. The focus of this research is on Tesla's global business strategies and
outside innovation. In the following section of our study, we'll examine the company's
strategy and its responsibility to the community.
2.0 Question One: Demand for Globalisation and Localisation
2.1 Demand for Localisation
To put it another way, localization is defined as the process by which a product becomes
familiar in the country in which the organisation conducts business. In terms of local and
national legislation, it's the best option. The goal of localization is to focus on a product that
is culturally and linguistically appropriate to the target market (Thomas and Maine, 2019).
According to Matthews et al., Tesla has built a competitive edge in the US market that will
help it sustain growth (2020). In order to improve R&D in the local market, Tesla has
partnerships with a number of hotel service providers. However, Tesla's regular operations
will be affected.
2.2 Demand for Globalisation
The term "globalisation" refers to the process of bringing a company's innovative ideas to
the global market and establishing the business in the place of origin (Kim, 2020).
Tesla Inc.'s internalisation was influenced by current technology and inventive
developments. In addition to renewable energy generation and consumption, the corporation
focuses primarily on clean electricity generation and consumption. We want to be a leader in
the energy storage industry.

2.3 Reasons for Demand
A considerable change in the Internationalization process is not required to suit Tesla's
requirements in the current market. The change in localization is due to a shift in customer
preferences. As a result, the company should focus on exporting distinct products.
A successful product differentiation strategy is to develop several products that can
differentiate the company from its competitors in the automobile market. Tesla enjoys a
competitive advantage because of its incorporation of cutting-edge, environmentally-friendly
technology that are powered by internal combustion engines. Tesla's fresh, unusual, and
gorgeous products are a big draw for many of the company's customers (Thomas and Maine,
2019). They're also easy to use when it comes to purchasing goods.
For the first time ever, the Tesla Roadster is a battery-powered sports car. The
environmental impact of the car in question is really low. As a result, Tesla's products are in
high demand around the world. Using Tesla's products and services is a major priority for the
company. Customers that are interested in purchasing eco-friendly vehicles are being targeted
by Tesla through product differentiation. For the concerned company, gaining a competitive
edge on the global market is incredibly effective.
3.0 Question Two: Industry Compliance and Choice
3.1 Open & Closed Innovation
The term "open innovation" refers to the usage of relevant ideas and facts in conjunction
with one another and other influxes and effluxes in order to speed up internal innovation and
increase the market for external invention. It's big enough to expand the value-creation zone.
Open innovation is based on the belief that innovation is an intrinsic component of a
company, but it also relies on the belief that open innovation is produced by the companies
themselves. The innovation process begins with the conception of new ideas and ends with
the marketing and creation of new products and services for commercial enterprises.
3.2 Open & Closed Innovation Differences
A different approach is referred to as "closed innovation," which focuses on generating
new ideas just within the organization's walls. Closed innovation techniques necessitate self-
contained environments and open access to information resources in order to effectively
manage innovation (Fang et al. 2018). As a general rule, open innovation encourages the
exchange of information and ideas that transcend beyond the confines of a single business
entity. Unlike open invention, closed innovation requires a notion that potential answers can
be found on the internet.
3.3 Factor Endowment
A company's supply pool for innovation is identified via Porter's Diamond Model. Energy
storage items are a good example of these resources. Tesla's energy storage solutions are