BM461 - Tesla's Global Business Environment: Key Drivers and Impact

This report analyzes Tesla's business environment, focusing on key drivers and functional areas. It begins with a SWOT analysis, highlighting Tesla's strengths in innovative promotion and employee culture, weaknesses in manufacturing complications, opportunities in technology and market expansion, and threats from competitors and product defects. The report then examines the impact of marketing and HRM on Tesla's operations, emphasizing how marketing strategies enhance sales and brand loyalty, while HRM practices foster a productive work environment and positive brand image. The analysis concludes that a dynamic business environment requires adaptability to ensure the company's success. Desklib provides students access to similar solved assignments and study resources.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Firm business environment .........................................................................................................3
Two functional areas ...................................................................................................................4
CONCLUSION ...............................................................................................................................5

INTRODUCTION
Global business environment is defined as environment in different regions where
business has it operation, which influences the decision making on use of resource and
capabilities. Tesla is an American clean energy and electric company which is being based out
of California (Tesla Motors, 2020) . Present report will brief into analysis of firm business
environment. Impact of government on business operation and lastly will explain the impact of
change on business organisation.
MAIN BODY
Firm business environment
This could be understand with helps of SWOT(Internal) of Tesla.
SWOT analysis
Strength- The strength of the company lies with innovative promotion strategies. Most of the
strategies for the promotion being adopted by the brand are highly innovative and creative and
one that pitches directly against the competitors. This leads with serving as strength of the
company as it helps in targeting the right audience. The strength of the company lies with the
manner in which it employs. It has emerged as an ideal company for the employees as due the
diversity of culture which is being highly innovative. It strength also serves with best in the class
for electric cars where it has proven to the best of covering the maximum distances. Its strength
lies with cross selling and diversification as it has launched various insurance program
(Alghalith, 2018).
Weakness- The weakness of the company is being associated with complication in
manufacturing. The higher the standard of innovation, higher will be production risk and
mechanical complications. Unable to meet with the demand might affect with the value of the
brand, whee it states that due to highly complicating and experimenting procedure, Tesla might
face and unbalanced demand and supply to meet with its goals of production (Matthews,2020).
Opportunity- The opportunity of the company lies with continuous advancement in technology.
This will help-in getting valuable insights about the requirement of the customers and fulfilling
the same to achieve higher sales revenue and profit margins. It lies with expanding of the
business in the regions which is are untapped (Tesla SWOT analysis, 2020). The most significant
opportunity for the company is to expand its business in Asian Market. It also lies with
manufacturing of less expensive cars where by its can lead with increase in the market share of

the company. It implies with bringing battery production technology in the house. This move
can be the big game changer, as it will helps the company to increase its manufacturing rate
while reducing with its cost of production.
Threats – This states with the competitors of the company. It includes extensive competition
Volkswagen, Audi, BMW and other who can any- day come up with strategies and policies that
might harm the competitive advantage of the company. This has direct impact on the sales
revenue and profitability in negative manner. The threat can be with the defects in the products.
Due to highly complex engineering for innovative vehicles of Tesla, its cars and other products
are being exhibited with flaws and errors in many of the cases. Threat deals with self driving
cars are still a concern for the Pedestrians, where according to the surveys, it is still unsafe to
walk around the self driving cars. The major threat also implies with the customer adoption
where making to adapt may serve as the biggest challenge for the company and may possess
threat (Stobbe Jr,2019).
Two functional areas
The Key drivers which has impact upon the two functional areas of Tesla are Marketing
and HRM.
Marketing- This has impacted in the manner, as the company marketing has lead to reaching the
target audience of the company more effective and efficiently. It has impacted in the manner
where the marketing has helped with increase in the sale revenue and boosting up of profitability
margins. It has impacted In the manner which resulted in coming up with the strategies of
marketing that capture the right audience of the company. Its impact is considered as serving
with the best means that that of its competitors and how it is better to its customer than that of its
of competitor , which helps in getting the competitive advantage of winning in the market place.
It results in capturing huge customer base. It leads to identify the needs and wants of the target
audience and catering to the same in manner which drives up with high rate of satisfaction. It
leads to building of the brand loyalty towards Tesla. It leads the marketing of the company to
achieve the required set of target . It implies with the leading position of the company and hard
for its competitors to be at that position (Deepak, and Jeyakumar, 2019.). This have impacted in
the manner as it leads with the optimal and effective utilisation of resources in prominent
manner. The key drivers has helped the marketing to make Robust strategy to serve with after
sales support.

HRM- It has impacted in manner as it has lead to hiring of talented and skilled professionals in
the company who will be able to meet various legal requirements. This will ascertain with Tesla
continuous business operation and not result in discontinuation of business operation and
imposing of penalties and restriction and leads with the success of the company. Its impacted in
manner as it helps with the workforce in the company who are able to meet up with the
challenging task and support business dynamics of changing business environment. By this it
helps in having employees who contribute in the success of the company as a result leads with
economic growth of the company (Mothersbaugh, Hawkin, and Kleiser, 2019). It leads with
human resource department of the company to develop culture which is fun loving and
entertaining and leads with less stress to its employees and increases the productivity of various
parties of business operation. It has leads with understanding to take care of the environment by
reducing carbon footprints and effective disposable of waste material which serves as building
with the positive brand image of the company.
CONCLUSION
From the above report it is being concluded that business environment is dynamic and
leads with various uncertainty. There are several factors which affect the business environment
and fulfilling to those leads with success of the company.

REFERENCES
Books and Journals
Alghalith, N., 2018. TESLA: INNOVATION WITH INFORMATION
TECHNOLOGY. International Journal of Business Research and Information
Technology. 5(1). pp.37-51.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Matthews, T.,and et.al ., 2020. Tesla Energy. In Innovation Management in the Intelligent
World (pp. 233-249). Springer, Cham.
Mothersbaugh, D.L., Hawkin, D.I. and Kleiser, S.B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
Stobbe Jr, J.J., 2019. A Strategic Audit of Tesla.
Online
Tesla Motors . 2020[Online]. Available through<https://www.tesla.com/>
Tesla SWOT analysis. 2020[Online]. Available through<https://bstrategyhub.com/tesla-swot-
analysis/>