Global Business Environment: A PESTLE Analysis of Tesla Corporation

This report provides a PESTLE analysis of Tesla, examining the political, economic, social, technological, environmental, and legal factors impacting its global business environment. The analysis explores how government regulations, economic conditions, social trends, technological advancements, environmental concerns, and legal frameworks influence Tesla's operations and strategic decisions. The report highlights both the positive and negative impacts of these factors, such as government support for electric vehicles, global economic growth, and changing consumer preferences. It also discusses challenges like limited market reach, inflation risks, and the need for continuous technological innovation. The report concludes by emphasizing the importance of adapting to various environmental factors to maintain effective performance in a competitive global market. The report also includes references to academic sources.

Global business
environment

INTRODUCTION
Global business environment is considered as different activities which are important to run
a business and increase the production. While running a business it is important that to analyses
the environment to know which factors has impacted on their business. This report is about Tesla
organisation that is operating business in competitive business environment. This is car
manufacturing organisation that analyses environment and to run a business effectively.
MAIN BODY
PESTLE Analysis of Tesla company
Political factor: This comparison of rules and regulation offered from the government as
well as political stability within the region in order to make the strategy associated with
expansion. Tesla company comprises of electric cars due to which it gains immense or positive
support from the government in order to participate in the competitive environment and while
developing electric as well as hybrid cars. On contrary, the market of the Tesla company is
limited till the confined region or mostly in developed part of country which leads to the
negative impact in terms of gain global awareness (Mangan and Lalwani, 2016).
Economic factor: It involves factors like purchasing power, disposable income, interest
rate, inflation rate and so on that can change the operations of Tesla company. The manager of
company analyse the economy and carry out policies leading to positive impact due to which
Tesla company was able to gain global economic increase amongst the other luxury vehicles.
Strengthening the market for the high and middle income group is a viable option but at the same
time chances of inflation or recession can leads to negative impact on the global economy.
Social factor: Social factor reflect the existing trend, taste and preferences of customer
which constantly changes after a confined duration. It is vital for the company to constantly work
in order to match up the requirement of prospectus. With the increase in awareness large mass of
the people increasingly love the idea of electric cars. Being efficient substitute of the fuel it leads
to the positive impact by catering the requirements of people. As it is necessary to bring the
desirable changes into the design and attributes to retain the interest of existing and potential
customer leading to negative impact on the economy (Voegtlin and Pless, 2014).
Technological factor: Technology is the part of innovation and latest techniques needs to
be implemented in order to remain ahead of the competitors and gain long term competitive
advantage. Tesla has used and keeps on using latest innovation while developing fuel efficient
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vehicle. The investment on newer technology unlike traditional options upgrades the impact of
company and leading positive impact in the revenue generation. Although significant amount of
efforts is required to train the workforce and update their knowledge, changes of resistance can
leads to negative impact.
Environment factor: It is the responsibility of each and every organization to carrying
out progress by safeguarding the interest of environment. Tesla company abides by all the
regulation and have introduce the revolution into automotive sector by launching electric
vehicles that leads to zero emission of carbon. Along with it has limited the dependency on fuel
on various regions leading to positive impact on the economy (Trevino and Nelson, 2016).
Legal factor: Tesla company operates in various regions and have significantly
understand the legislations or laws passed by the local residence. This has helped company to
gain positive impact by creating impressive image all around the globe. The energy efficient cars
significantly abide by national and internal regulation but it somewhere restrict the actions of
company leading to negative impact in terms to undergo growth and development (Nisula and
Pekkola, 2018).
Therefore, by analysing environment globally Tesla is operating business at different places
and maintain their performance effectively in competitive business environment. This
organisation is following all legislations and political stability which help to operate a business
successfully.
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REFERENCE
Books and journal
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John Wiley &
Sons.
Voegtlin, C. and Pless, N. M., 2014. Global governance: CSR and the role of the UN Global
Compact. Journal of Business Ethics. 122(2). pp. 179-191.
Nisula, K. and Pekkola, S., 2018. How to move away from the silos of business management
education?. Journal of Education for Business. 93(3). pp. 97-111.
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
(Mangan and Lalwani, 2016) (Voegtlin and Pless, 2014) (Nisula and Pekkola, 2018) (Trevino
and Nelson, 2016)
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REFERENCE
Books and journal
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