Analyzing Tesla's Business Environment Changes Post COVID-19: A Report

This report provides a comprehensive analysis of Tesla's strategic adaptations in response to the COVID-19 pandemic. It examines the significant changes implemented across various aspects of the business, including operational adjustments like minimum basic operations and extended work-from-...Read More

THE GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Critically analyse the changes that company have made in the last few months in light of the
COVID 19 Pandemic..................................................................................................................4
Sustainable changes after COVID -19:.......................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journal.....................................................................................................................10

INTRODUCTION
Market is wider and broader in which wide range of enterprises exist. In business sector,
it is essential to focus on business environment so that goal as well as objectives are achieved in
proper manner. Global environment is to be defined as environment in foreign countries which
impact upon environment of home country. Main aim of this report is to understand the
importance of global business environment in contemporary businesses. Tesla, an electrical
vehicle firm headquartered in U.S. Firm has wide range of products such as electric cars,
battery energy storage etc. It has many competitors such as Toyota, MG Hector, Kias, and many
more. This report comprises of recent changes made by organisation in in pandemic situation and
PESTEL analysis with arguments of sustainable changes.
MAIN BODY
Critically analyse the changes that company have made in the last few months in light of the
COVID 19 Pandemic.
COVID 19 situation has changed the business sector at wider scale. Many organisation
have taken measures and implemented changes within their functions and operations deal with
this situation. There are many businesses have changed their overall organisational structure to
get protected from such uncertain situations. It is crucial to be aware about market analysis so
that decisions are taken accordingly(Tallman, Luo and Buckley, 2018). Moreover,it is analysed
that it is crucial to have appropriate market information to deal with such situations. Tesla which
is an American based electric vehicle company has also affected by this pandemic situation at
larger scale. Many new strategies and tactics have been implemented within business sector.
Also, these are adopted with proper considerations so that better results are achieved.
There are various changes that have been made by Tesla & are mentioned below-
Minimum basic operation's- Tesla has its plants and operation base in many
countries. Due to this ongoing pandemic situation, they will run minimum basic operations and
wages will be given to all employees during this suspension period. For example- they are
developing their electric cars with minimum requirements. With their minimum basic operations,
they will protect their employees and their family members from COVID 19.
More new electric vehicles to safeguard environment- Environment has been
impacted by pandemic situation at wider approach. To protect environment from pollution,

Tesla has made changes in their electric vehicles as they will use more short batteries and
resources as they are planning to enter into India by year 2021. Also, cheap cars of Tesla are
being at producing stage with price of $25000 with more half cut batteries shortage and parts.
With use of less resources, it will assist in providing of access to longer future stability and
protection to environment at wider approach(Fabus, 2018). Therefore, EV sector has gone with
many changes to safeguard environment and provide peace within community.
Work From Home extension for employees- It is another which has been made by
Tesla in which they have extended period employees of work from home. Moreover, it has been
also seen that with this change, retention period of employee increased for longer period.
Through this change, Tesla is able to provide better work opportunities to subordinates.
Enhanced activities on digital sales- It is another change which is made by chosen firm
within their electric cars(Doh, Luthans and Slocum, 2016). As, due to occur of pandemic
situation, more new digital activities has been increased by company and they are enhanced their
digital business activities by promoting their brand to more new e-commerce sites and digital
display within international countries. Company also sell their electric vehicles products and
equipments through their website to customers and clients. The digitalisation has impacted and
adapted by business sector at wider scale.
New supply chain of EV- The demand for electric vehicles has increased within year
of 2020. To properly manage these demands it is essential for enterprises to ave simpler supply
chain management system so that needs or demands are fulfilled in appropriate way. So, in
context of selected organisation, they have changed their supply chain network and distribution
channel due to COVID and trade war with China(Keivanpour, Ait Kadi and Mascle, 2017). Due
to this change, it has made easier to deal with suppliers in most effective manner.
From above discussed changes, it is analysed that it is essential for entity to focus on
external as well as internal analysis so that objectives are achieved in proper manner. Moreover,
decision making is taken in most efficient manner. Manager of firm make assures that these
changes are being adopted with proper considerations. The crisis of pandemic has made it
difficult for entity to carry out execute their business activities in correct way. In auto mobile
manufacturing industry, , they are have been affected by this situation at larger scale.

Sustainable changes after COVID -19:
A global business environment of an organisation is affected by various factors that
influences decision making of many sovereign countries on use of resources and their
capabilities. Tesla is one such international companies whose global business is both affected by
its internal and external environment. The company has gained good popularity worldwide with
its sustainable changes taking place post COVID-19(Bhagra and Sharma,2018). The vehicle
structure introduced by Tesla rely more on electricity than petroleum or any fuel resulting in
reduced carbon footprint. Given below are the major findings of the organisation with the help of
its PESTLE analysis:
Political factors: The growth of environment friendly Tesla electric cars has undergone a
lot of stances such as qualification of tax credits, electronic stations for refilling for Tesla drivers
etc. The cars introduced have tried eliminating use of abundance of fuel by introducing hybrid
engines too that uses both gas and electricity.(Aithal,2017)Government has taken various
political steps to help improve development of electric and hybrid cars initiative. Expansion in
other countries too like India or other countries , Tesla is also introducing short batteries for
making available affordable cars to many economies entering into global auto-mobile industry.
Economic factors: Growing sales of electric cars has let the world economy also grow
leading to more and more electric developments. The popularity of such long lasting cars among
public has broadened its market. Therefore for more availability of such cars , its material prices
and battery cost is lowered bringing great advantage to Tesla in creating more cost-effective cars
for public. Today's consumers are quality specific and aware about brands preferring to buy
luxurious cars such as BMWs which makes it more of an opportunity for Tesla(Veselovsky and
et.al., 2017). As the company is showcasing new gadgets and technology into their luxury
vehicles attracting maximum consumers. Not just the rich but making electric vehicles available
for middle class at cheap[er prices is also a smart move to take in future. Hereby, with reduced
battery costs, decrease in renewable energy price company has been focussing on ensuring
economic stability.

Social factors: People who love environment friendliness are definitely in support of
electric vehicle idea as it helps reducing pollution with less usage fuel requires by traditional
vehicles. The cars are also tested and come out to be environmentally sustainable in future. Also
with not much competition Tesla have been successful in boosting its power with his limited few
cars providing such luxury.(Akhtar and Sushil, 2018) Therefore, buying such a luxury car is one
of the best options for eco-friendly consumers of the society. The socio-cultural factors of the
company consist of popularity of less-carbon lifestyles, renewable energy preferences and
improved wealth distribution in markets that are developing for enhancing the opportunities of
multinational companies growth of automotive business.
Technological factors: COVID-19 has made consumers aware of using digitisation and
technology more. Less contact and safety is kept at huge importance giving chance to new
technologies that can be used entering into the market industry. Tesla in such situation has got an
easy arrival into technology of artificial intelligence and automation. This technological change
help the corporation maintain a competitive edge and digitize its supply chain soon for more
expansion into global market. The automation and AI adopted by the selected company allows it
to be more fuel efficient ensuring rise in usability and sustainability in future. The electric cars
introduced are designed in such a way that they can easily adopt to new technologies irrespective
of traditional cars currently available in industry of auto-motives.
Legal factors: International patents is one thing that companies like Tesla before
entering into other markets need to keep them up-to date. As patents on global level may face
legality issues if taking much time in expansion. Also, we know since the company is focusing
on electric cars that are environment friendly should be also abide by environmental regulations
on an international level. The company following its legalities should keep in mind it fulfils all
its statements done such as promotion of their cars as being energy- efficient. The company
therefore following legalities regarding, patent protection, regularities of energy consumption,
dealership sales regulation of US etc.

Environmental factors: The brand image and recognition of Tesla lies with its
environment friendly vehicles using less of gas and more of electricity. This is the strength of
organisation where compared to other traditional cars , it has barely resulted in any emissions of
carbon. The company after COVID-19 crises ensured proper use of waste management
techniques for hazardous disposals, discharges of waste water etc. Also introduction of air
pollution control equipments for workforce, storage areas for chemical products and safe supply
chain delivery systems were done for start-up plans and executions. Use of latest technology did
not just included electric cars but also use of temperature screening tools for employees, eye
washing stations and availability of PPE supplies etc. Social distancing being key rule was
defined by making many control points where checks were done related to masks, sanitizers
scanning and six foot distance maintained. To overcome climate changes , there has been
adoption of various environmental programs for rising standards on waste disposal.
About sustainability of Tesla in future, people are aware that technology can go anytime
obsolete with its latest upcoming upgrades or updates of gadgets, new applications etc. The
company relying on automation and technology may face both positive and negative challenges
in the form of advancement in Artificial intelligence and technology. Therefore consistent
development of products and anticipation of advancement is must for selected entity. However,
Tesla is a future oriented company that is already one-step ahead in applying automation to its
vehicles as many companies still are not ready for such transformational advancements.
The company also has good scope in improving its operations by the help of porter's
Five Forces model. This includes knowing the actual competition the company may face, new
entrants who can beat the new innovation in coming years, Power of how much supplies
company can offer, the consumer market aware and interested to buy the newly automated
vehicles, and threat of substitutes if any may arise in future should be properly analysed and
worked upon. The five forces can be utilized in guiding the company make good business
strategies increasing productivity and provide a competitive advantage to the organisation.

CONCLUSION
After a brief analysis of above report, it has been concluded that it is essential to have
appropriate information regarding market so that all business activities are carried out in
effective manner. So, discussions have been made about changes made by Tesla during COVID
19 and sustainable changes in pandemic situations. It has been evaluated that it is crucial to be
be active & adopt reliable changes in this flexible market so that sustainability period of business
increases for longer period of time. It is responsibility of manager to analyse changes that can
impact on functions or operations of business. There are a lot of sustainable solutions that took
place keeping into consideration the pandemic conditions such as no-touch digital technologies,
up-gradation of studying menus of many companies over application scanner on mobile devices,
scanning of temperature tools, hybrid and electric vehicles etc. Teams working remotely in the
cloud has been one of the advantageous benefits for a better global business environment of an
organisation. At such conditions the new start-ups that took place by chosen company also
increased employment opportunities around the world.

REFERENCES
Books and Journal
Aithal, P. S., 2017. Impact of Domestic, Foreign, and Global Environments on International
Business Decisions of Multinational Firms: A Systematic Study. International Journal of
Management, Technology, and Social Sciences (IJMTS). 2(2).pp.93-104.
Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain
business environment. Business Process Management Journal.
Bhagra, A. and Sharma, D. K., 2018. Changing paradigm of employability skills in the global
business world: A review. IUP Journal of Soft Skills. 12(2). pp.7-24.
Doh, J. P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction
to the special issue.
Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY
SLOVAKIA. Journal of Security & Sustainability Issues. 7(4).
Keivanpour, S., Ait Kadi, D. and Mascle, C., 2017. End-of-life aircraft treatment in the context
of sustainable development, lean management, and global business. International Journal
of Sustainable Transportation. 11(5). pp.357-380.
Keivanpour, S., Ait Kadi, D. and Mascle, C., 2017. End-of-life aircraft treatment in the context
of sustainable development, lean management, and global business. International Journal
of Sustainable Transportation.11(5). pp.357-380.
Tallman, S., Luo, Y. and Buckley, P. J., 2018. Business models in global competition. Global
Strategy Journal.8(4). pp.517-535.
Veselovsky, M. Y., and et.al., 2017. Business environment in Russia and its stimulating
influence on innovation activity of domestic companies. Journal of Applied Economic
Sciences. 12(7).