The Global Business Environment

THE GLOBAL
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Analysis of the forces which shaped the car manufacturing industry environment and
evolution of automotive industry............................................................................................3
TASK 2............................................................................................................................................5
Analysis and examination of the opportunities and challenges that are present in the company
and overview of how company can gain competitive advantage. .........................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
With the increased globalisation the international expansion of business captured great
attraction. The global business environment refers to the business environment in different
countries pertaining to host and parent country operations. Every business now wants to expand
its operations internationally, in order to grow and prosper further. The operations in going
international need thorough understanding of the internal and external environment. The aim of
this report is to highlight the international factors which affect the automotive industry. The
reason behind selecting automotive industry is that this industry is changing rapidly and
(Arumugam, Kannabiran and Vinodh, 2020) factors influence its growth. In order to develop the
understanding of micro and macro factors which affect this industry growth this report is
presented. The organisation selected is Tesla Motors, Inc. founded in 2003, headquarter in US.
This company is engaged in production and manufacturing of electric vehicles and solar operated
automotive parts. The internal and external analysis of the factors is examined in order to see the
company’s global expansion efficiency.
TASK 1
Analysis of the forces which shaped the car manufacturing industry environment and evolution
of automotive industry.
The PESTLE analysis helps in analysing the impact of external environment on the
company. The Tesla Motors, Inc. PESTLE analysis will help in analysing the external
environment which are impacting it in automotive industry.
Political factor
The political factors play major role in determining the growth and direction of company.
The Tesla has the advantage of the political stability across its headquarters and subsidiaries
countries. The government forces play important role in shaping political factor. The company
deals largely in automotive electric cars, the company is highly in advantage because of its major
working. The Tesla can have the advantage of subsidies and incentives provided by the
government for enhancing the use of electric cars. The free trade agreements between
government and political stability will ensure opportunity for the company in increasing its
operation globally (Dower, 2017).
Economic factor