BM461: Global Business Environment Analysis of Tesla Company

This report offers a comprehensive analysis of Tesla's global business environment, focusing on the impact of various factors on the company's operations and strategic decisions. The analysis employs the PESTEL framework, examining political, economic, social, technological, environmental, and legal factors that influence Tesla's performance. The report delves into how these factors, including government policies, economic trends, technological advancements, and environmental regulations, affect Tesla's market position and growth prospects. Furthermore, the report identifies key drivers of change within the business environment, such as globalization, economic shifts, technological advancements, changing customer behavior, and policy changes, and assesses their implications for Tesla's future strategies. The report highlights the challenges and opportunities Tesla faces in navigating the complexities of the global market and adapting to evolving industry dynamics.

Global business environment
Tesla
Table of Contents

Introduction.........................................................................................................................................3
Main body............................................................................................................................................3
Impact of business environment on company....................................................................................3
Key drivers of change........................................................................................................................6
Conclusion............................................................................................................................................7
REFERENCE......................................................................................................................................8
Introduction
The global business environment can be defined as the environment in different
different sovereign Countries. businesses are greatly affected by the global environment,

which refers to the uncontrollable local and international interaction that influence how Co
operate their business. Company on the global levelAffect with the things such as behaviour
of the people, Government policies and rules, product prices and product quality it is easy.
This report will cover case study of Tesla Which is then American Electric vehicle And
clean energy company that is based on California. This company is famous for producing
technology based cars and Electric cars (Kauerhof., 2017). in every cars produced by them
are highly technology based and they have used information technology effectively within
there cars such as autopilot, sensors, 4 by 4 wheels etc. This report will analyse global
environment affect on Tesla and it will also discuss about the key drivers of the change
within a business environment.
Main body
Impact of business environment on company
Business environment has huge impact on companies who are working on a global
level. As compared to the domestic environment and global level has Higher competition and
all the external factors affect company on the higher basis. It is necessary for the Tesla
company leaders to be aware of factors that are affecting their business. Awareness of those
factors can create opportunity for the Tesla company to achieve success in their business and
they can take competitive advantages where there operating their businesses. They can use
PESTEL analysis Identify that how those factors and analyse how they are affecting their
businesses on the global level.
PESTEL analysis of Tesla
Political factor
Political factors has huge impact on Tesla on the global business environment. Tesla
has get good response from the different different country Government because they are
Producing electric vehicle that Does not affect on environment. Tesla is at the forefront of
electric vehicles and there is and traditions of buying a vehicles that are run with the
electricity and there does not require fuel to run (Rahman., 2019). Tesla used both gas and
fuel vehicles on the global market but there gas cars also does not require that much fuel. All
the governments also has been taken distance to improve and develop the new electric vehicle
an engine that are hybrid. People who buy electric cars get credit discount which is positive

sign for the Tesla to sell their cars rapidly. This strategy is used by many governments
including US which is an home country of the Tesla.
Economical factor
Sales for the electronic cars has been risen on the international level that affect on
global economy and it has been increased. In 2017 it has been assumed that the world
economy will grow by 3.5% because of the hybrid vehicles. This can include the economy of
US, Asia and some Of the European countries. Tesla vehicles are costly for the people an it is
not affordable for all people who want to buy because of their material used within the cars
for their manufacturing. Particularly the cost of batteries is lower that is great for the
company in fact the more popular their cars become to the public the lower material prices
may drops and they can able to provide Their cars in lower prices and satisfy the needs and
demand of the customers who want to buy car. Some of the negative impact of economy on
the global level are Rising prices of raw materials that is increasing day by day and affecting
the prices of Tesla cars.
Social factors
People usually like technology within a car because it helps to satisfy their needs
Anne make their experience more better. Tesla is using high level of technology within their
cars that is helping customers of the Tesla to take purchase decision (Pan, Chen and Zhan.,
2019). People who have eco friendly Ness in their mind go for the Tesla because it is eco
friendly car with the technology Anne attractive design. Tesla have all this that can fulfil the
needs of customers an customers get whatever they want. Electric vehicle eliminate the needs
of fuel and customers can save money spending on fuel because electricity they can get easily
and their cars easily charged in lower prices. But a Tesla is environmentally suitable and
there are very few cars within a market who provide luxury and power boat together that
Tesla does. This company has done an amazing job of maintaining their places in peoples
mind Ann attract people to buy an electric cars and give their support towards the
environment. Their designs are so attractive And it looks luxury car so people who live
luxury life can easily buy this kind of cars.
Technology factor
Technology has provided huge benefits to this company and help them to be
successful in a hybrid autumn oil market. Tesla company is using advanced technology

within their car that satisfy the needs and demand of the customers and forced them to buy
cars from Tesla. It helps them to maintain a competitive ages within a market where there
operating their business and it allowed Tesla to be fuel efficient an paves the way for the
future sustainability and usability. Tesla is using trending technology and future technology
within their car. They provide autopilot facility that works so amazing and their sensors work
so well and show how technology can be useful. But this factor has also disadvantages, it
doesn't take much for the technology to become obsolete First off technology trends change
continuously and rapidly and it enable Tesla to adopt each and every technology within their
car. It makes necessary for Tesla to adopt new technology so they can be stay within a
competition But it’s not easy for them to adopt each and every technology within their cars
(Nurmi, and Niemelä., 2018). It’s take time to know about the new technologies before using
it within a vehicles.
Environmental factor
Environmental factors has huge impact on Tesla company to build their image within
a market globally. Tesla is selling eco friendly cars that is helping to satisfy the needs of the
society and also contributing toward the environment. The cars marked as environmental
friendly because it uses electricity more than gas for stop Tesla vehicles abide by many
environmental regulations an barely impact carbon emission As compared to the other
vehicles that are sold within a market. By focusing on the add environment issues this
company has made their name and they are showing presence within automobile market as a
electric car seller with the best designs and concepts (Rahman., 2019). This company is also
getting invitation from many governments to open their showroom and there Country because
they want two improve their environmental condition within a country and they want to
encourage people to buy electric vehicles and it has huge advantages for the Tesla company
to take growth and they can take competitive advantages within a market.
Legal factor
Tesla is expanding their business into the global level It makes important for the Tesla
to be aware of international rules and regulations an up to date with their patents. If they were
not aware of this all then expansion of their business will take a longer time and they can also
face a legal issue and countries. Till the date they started selling their vehicle on the global
level this company Has does not face any legal case (Śmigielska and Oczkowska., 2017).
Their vehicles are eco friendly so they get support from the government an in fact they are

using all the legal authorities and they are having all the licence that used to run all their
business on global level. This is the reason they are getting good response from the
government and they are encouraging them to sell their product in their market for the
environment of the Country can be improved.This company has done an amazing job of
maintaining their places in peoples mind Ann attract people to buy an electric cars and give
their support towards the environment. Their designs are so attractive And it looks luxury car
so people who live luxury life can easily buy this kind of cars.
Key drivers of change
There are some drivers within a Environment that has huge impact on the company
and it lead Tesla toward the changesIn their strategies so they can take opportunities in future
(Priyadarshini., 2020). It is necessary for the Tesla leaders do aware of those factors that can
lead them toward the changes because it can affect negatively as well and if they will be
aware then they can take competitive advantages of it and they can show their presence in a
market where they are operating their business. Here are some key drivers of the change that
can affect the strategies of the company and bring changes within the business policies and
way of working.
Globalisation
Business globalisation is an key driver of the changebecausr all the procedure and
policies, product quality and customers demand everything is changed on the global level. It
makes necessary for the Tesla to research the market and understand the product needs and
demand of the customers so they can take competitive advantages within a global
environment and they can show their presence globally.
Economical change
Economical changes within the environment are also key drivers of the change for the
Tesla company because it has huge impact and the companies product sailing and their
product demand. Recent situation such as coronavirus this is spirit all over the world and
affect the all economy globally (Todeschini and et.al., 2017). It also affects the selling of
Tesla company because people does not have that much money to spend on the cars. People
started saving their money within their banks and many people lose their jobs so they don't
have that much money to spend on luxury cars and all. Similarly, changes within the prices of
raw material also affect companybecause if the prices of raw material increase then they also
have to increase the prices of their vehicle.

Technological change
Changing a technology also a key drivers for the Tesla. New technology
implementationwithin a workplace of Tesla effective way of working. New technology create
a desire to no I’m training and development to the employees so they can learn how this
technology works and they can Used to satisfy needs and demand of the customers.
implementation of technology also take time to give better result for the company.
Changing behaviour of customers
Customers behaviour and lifestyle change with the time and it is necessary for the Tesla
company to be aware of those changes and they also have to develop their products
accordingly (O’Sullivan, and Nickpour., 2020). Leaders and managers of the company should
be aware of needs and demands of the customers and they should develop product
accordingly. it is a keep driver of the change because Company have to develop new products
Which can bring the new task policies and also affect the management of the company.
Policies
policies in policies also in key driver of the change because it is necessary for the
company to adopt and implement new policies made by the government. It is not only bring
changes for the Tesla but also affect all the businesses within a market and they all have to
follow the policies made by the government itself (Faruque And et al., 2017). The policies
can be about Labour, prices of the products an some rules and regulation including their
taxation etc.
Conclusion
As per the report has been Covered case study of Tesla which is one of the famous
brand within automobile industry. This report has been discussed about factors such as
political, economical, environmental etc. It has been explained how this all the factors
affecting the business strategies of the company. In the end of this report has been concluded
key drivers of change such as changing customers behaviour, globalisation etc.
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