Analysis of Tesla's ESG and Sustainable Business Practices

This report examines Tesla's commitment to ESG (Environmental, Social, and Governance) principles and sustainable business practices. It assesses the impact of the pandemic on Tesla's sustainability initiatives, analyzes the company's competitive positioning, and conducts SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats. The report further provides recommendations for enhancing Tesla's sustainability efforts, including cutting vehicle prices, improving battery production, enhancing customer communication, and expanding service centers. By focusing on renewable resources, battery reuse, and market strategy reforms, Tesla can further solidify its position as a leader in sustainable transportation and energy solutions. Desklib provides students access to this report and other solved assignments.

Embracing the ESG (Environmental
Social Governance) agenda and
sustainable business practices

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impact on pandemic on sustainable development on organization ............................................3
Competitive stances.....................................................................................................................4
Swot analysis...............................................................................................................................5
PESTLE Analysation...................................................................................................................6
Recommendation.........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Strategic management and sustainability are two important factors needed for any
organization to run efficiently. In order to become more competitive in the business world there
is an utmost need of adopting profitable objectives for the company, hiring skilful employees
who can regulate new ideas and policies along with achieving set goals with a planned procedure
to ensure proper management of companies strategies (Alghalith, 2018). Sustainability also plays
a major role in the development of any business by minimum use of non-renewable resources
and using the available renewable resources carefully without hindering the needs of future
generations. Tesla is an American company situated in Austin, Texas and deals with
manufacturing of electric vehicle, batteries along with solar products which are mostly eco
friendly. In this report we will illustrate how pandemic is affecting Tesla's sustainable
development plans. We will further discuss the company's important features which helps it to
stand out in the competitive world along with analysing different SWOT factors and will provide
recommendation on how we can adopt new strategies and work on them more efficiently to
achieve great heights in the business world along with keeping in mind to maintain sustainability
factor as a part of the working process for company.
MAIN BODY
Impact on pandemic on sustainable development on organization
Tesla is widely viewed with one of the world most sustainable companies. As
sustainability is term used for surrounding the world to mean about many things. It always
includes some aspects of environmental awareness and not only means for having the efficient
make the use of natural resources. The context for discussing the sustainable development which
is being highly developed and that also meets the requirement of present without compromising
the ability of future generation to meet their own needs. Impact over the pandemic, they have
decided for creating the sustainable energy ecosystem and also manufacture unique set of energy
products that can be enabled for homeowners, business and consumption. While for having such
things this could keep for installing solar panels and solar roof to power their home by using
100% renewable energy (2020 Impact Report, 2020). They pull electricity grid and almost all by
gas, oil or coals.

This could be remarkable with inefficient in using raw material with 39% of their
purchasing raw material and also bring scrapped. Alongside, goals for having their all facilities
sending zero wasting and ensure them for having close to being reality (Kumar, 2020). Due to
having Tesla vision that will work only with having better infrastructure, charging station,
widespread car sharing, renewable energy with some substantially capacity, a battery recycling
network that does not exist without billions of dollars for each of their projects. Tesla battery
pack is designed with outlast vehicle itself. Because of their less customer and this could keep
batteries even those from nearly and have been decommissioned to date. In preparation with
having future goals the battery for their vehicles in factories which have been already begun
implementing, closed-loop recycling system that will ensure them with huge percentage.
Sustainability development which seems to be important for the Tesla through which they can
easily ensure them for having effective customer and keep them attract with more ecosystem
products (Wang and Huang, 2021). Therefore, it could imperative for discussing sustainable
production and have their better consumption pattern in the past Covid-19 pandemic. Along with
this prominent economies around their world which could be having their focus on surge demand
within some essential products and services.
Competitive stances
Tesla manufactures not only electric cars but also manufactures the batteries and solar panels.
This sector will include organization manufacturing solar panels while for producing energy and
manufacturing energy storage system and batteries.
Competition- It targeted market those people who look for spending money on their premium
electric or luxury cars. The company is being currently working with some affordable models for
making away from petrol power as feasible if possible (Paré And et.al., 2021). Due to having
effective market position, it has moderated competition. Currently, Honda Civic, Chevrolet Volt,
Toyota Prius are available in market with their full potential alternatives.
Potential to new entrants- Audi, BMW and Volkawagen that have potential for entering into
market. However, for having all situation with states about the threat for entry into market
because Tesla have invested more on research and development and make them proper
utilization. Generally, company also have their supercharge network from their competition and
also creates the barriers for entering comparable owning every gas station.

Power of suppliers- This includes about the type that is being highly dependent on the reliability
of suppliers. While having such things suppliers and level of supply are the most important factor
for determining the influencing power of suppliers. Organization purchases material from huge
numbe4r of suppliers and no one supply enough power for influencing the company. However,
the overall bargaining power of suppliers which keep moderate because factor have their own
moderate force to influence the industry.
Power of customer- While for determining their influencing power of buyers three factors
should be considered such as, volume of purchase, availability of substitutes and switching cost
(Wu, Bao and Yuan, 2021). Moreover, for keeping the influencing power of buyers it must be
important for availability of substitutes. Electric vehicles offered limited considering the other
brands and public transport are being good substitutes.
Threat of substitute products- This is very low because for having their fewer substitution for
environment friendly cars. Although, Nissan Leaf and Chevy volt are cheaper than Tesla vehicle
which is being highly reflected at their lesser quality. Additionally, this could be seemed that
Tesla charging network and have the lack of effective range of the company line-up.
Swot analysis
The word Swot stands for strengths, weaknesses, opportunities and threats related to any
business organization. Analysis of Swot factors for Tesla company has been discussed below.
Strengths
In order to satisfy customers needs and grab their attention Tesla has successfully
designed the electronic vehicle with the latest technologies along with launching renewable
energy products like solar tiles etc. The company has large portfolio with 483 stores around the
world and operates globally (Woźniak and Fill, 2018). To deal with problems related to the
vehicle Tesla provides very successful and skilled technicians who resolve the vehicles dis-
functioning with best services. The use of electric energy to run the vehicle is the strongest
strength of Tesla which reduces carbon emission in environment and makes it pollution free.
Weaknesses
Since the company operates globally it sometimes fails to meet the demands of the
consumers due to battery shortage which is the major requirement in manufacturing process of
the electronic vehicle. In the year 2020 Tesla failed to achieve the target goal of delivering
500,000 vehicle and ended up at delivering 499,550 vehicles only (Quezada and et.al., 2019).

With the use of most innovative luxury ideas the rates are positioned at very high level which
makes the vehicles affordable only to limited range of people. The founder of Tesla Elon Musk
is also equipped with the projects of Space X and hence could not focus and devote his full time
to Tesla which is hindering in the growth of the company.
Opportunities
As the company has gained popularity in manufacturing electronic vehicle, it has a very
good opportunity to cut down the prices of the vehicles and making it more affordable to people
which will expand its boundaries by increasing selling rates and will finally lead to growth of the
and increment company's revenue. This will be beneficial for the company in terms of producing
its own batteries which is considered as a major drawback due to battery shortage in
manufacturing process. Since the demands of the electronic cars is increasing on daily basis
Tesla can increase its manufacturing plants to cope up with rising demands and can also improve
the quality of the products by carefully analysing new techniques.
Threats
Car business market is expanding at faster rates with new technologies and ideas being
invented along with keeping in mind consumers safety and requirements of the vehicle. This is
leading to increase in number of many other car manufacturing company's which sell cars at
much lower and affordable prices to the customers as compared to Tesla whose rates are
touching the heights of the sky (Vigna and et.al., 2018). This is a major threat faced by the
company. The new electronic vehicle manufactured by Tesla has a feature of self driving which
is highly unapproved by the customers as they are more cautious and worried about their safety.
With invention of new technologies, Tesla always adopts new technologies for its vehicle
manufacturing which sometimes fails to fulfil its customers demands due to many defects in
many components of the vehicle.
PESTLE Analysation
Political
factor
Economical
factor
Social
factor
Technological
factor
Legal
factor
Environmenta
l
factor
The Tesla
company can
face political
The company
can
manufacture
The company
must focus on
the changing
The
organization
performs its
In order to
ensure the
smooth
Tesla has been
proven
effective

barriers like
trade imposed
restrictions by
different
government in
order to
improve this
the company
should a prior
knowledge
about the new
trade policies
of different
regions
(Capuder and
et.al., 2020).
the cars
according to
the demands
of the people
in with new
design and
cutting down
the cost price
so that more
customers can
buy it.
taste and the
preferences of
the customers
most of the
operations
within
including the
technological
parameters
therefore, a
keen
observation
over the
changing
technology has
to be made
(Zhou, Li and
Yuen, 2022).
running of the
business Tesla
must focus on
fulfilling the
legal
obligations
that are
mentioned
under the
employment
law.
enough in
maintain the
environmental
aspect as the
concept of
sustainability
has been
performed by
the company
in effective
manner.
Recommendation
With considering the business profit and customers experience for Tesla here are some
recommendations with certain new ideas for producing better eco friendly vehicles along with
maintaining sustainability in the environment (Jin and et.al., 2018). Tesla can cut down high
prices of the vehicles by using good quality products and making it more affordable for larger
audience. Since the cars are electronic in nature the battery requirement for large production
sometimes becomes very difficult task, to over come this Tesla can work more efficiently to
produce its own batteries which will accelerate the buying numbers for the company
(Tenhundfeld and et.al., 2020). The communication between buyers and employees can be
improved by solving their problems, listening to them by connecting through social media
platforms, advertisements and building up the honesty level by keeping a track on fraud policies
There is improvement required in the batteries of the electronic vehicle as there is always some
battery loss in Tesla vehicles to avoid this, more power generating and long run batteries should
be invented to avoid battery discharge problems. Minimizing the cost of repair for Tesla vehicles

is required so that it becomes easy for the customers to not think twice and would not step back
in spending on vehicle repair (Lang, Reber and Aldori, 2021). To increase the efficiency of the
running vehicle there is requirement of more service centres for Tesla so that if there is any
problem reported in the parts customers can have easy access to the service centres and can
easily go for the repair. Tesla produces environmental friendly vehicles with using renewable
resources like solar energy and this could be enhanced by reusing its batteries and saving more
raw materials for producing new vehicles. Reforms in market strategies of Tesla can be done to
keep a track on the new technologies that are implemented in the business world of the vehicle,
look for new competitors in the market and understand their strategies, increment in sales can be
achieved by advertising on social media platforms, through advertisements and indulge in
strengthening customer care services to achieve higher profit rates. More units of manufacturing
are required to be opened to help increase production rates in the market.
This could be suggested that organization for their customer are adopting zero-emission
lifestyles by using solar energy system, electric vehicles. Along with this also installing the
sustainable energy system at their own facilities for utilizing the energy generation and storage
where it could be possible (Shao, Wang and Yang, 2021). Tesla also need to improve their
financial condition through which they can release low cost products in new market and generate
excitement and also raise new revenue to share up the existing production problems. They can
also work with price-sensitive and have their better experience speeding on road while riding
vehicles.
CONCLUSION
From the above report it had been concluded that, sustainable development which seems to be
important for organization through which they can easily work and ensure them with having
some effective environment. Competitive stances for the organization is also essential through
which they come to know about how they have to manage their strategies and create some
innovative ideas so that could be helpful for their customer and employees. Competitive market
positioning this states about for having growth and development by having strength and
opportunities so that can keep the organization for working with some resources. This also seems
that organization have their own sustainable development goals so that could be important and
crucial have their effective impacts over the pandemic so that can improve with using strategies.

In having such things this is also important for having growth and development through which
organization can make sure for having buyer and suppliers for working with more.

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.
Capuder, T and et.al., 2020. Review of challenges and assessment of electric vehicles integration
policy goals: Integrated risk analysis approach. International Journal of Electrical Power
& Energy Systems. 119. p.105894.
Jin and et.al., 2018. Parametric study on Tesla valve with reverse flow for hydrogen
decompression. International Journal of Hydrogen Energy. 43(18). pp.8888-8896.
Lang, J.W., Reber, B. and Aldori, H., 2021. How Tesla created advantages in the ev automotive
paradigm, through an integrated business model of value capture and value
creation. Business & Management Studies: An International Journal. 9(1). pp.385-404.
Paré, P.E. And et.al., 2021. Multi-competitive viruses over time-varying networks with
mutations and human awareness. Automatica. 123. p.109330.
Quezada and et.al., 2019. Measuring performance using SWOT analysis and balanced
scorecard. Procedia Manufacturing. 39. pp.786-793.
Shao, X., Wang, Q. and Yang, H., 2021. Business Analysis and Future Development of an
Electric Vehicle Company—Tesla.
Tenhundfeld and et.al., 2020. Trust and distrust of automated parking in a Tesla Model
X. Human factors. 62(2). pp.194-210.
Vigna and et.al., 2018. Phase change materials in transparent building envelopes: a strengths,
weakness, opportunities and threats (SWOT) analysis. Energies. 11(1). p.111.
Wang, Q. and Huang, R., 2021. The impact of COVID-19 pandemic on sustainable development
goals–a survey. Environmental Research. 202. p.111637.
Woźniak, J. and Fill, K., 2018. Logistic organization of mass events in the light of SWOT
analysis-case study. TEM Journal. 7(1). p.105.
Wu, B., Bao, W. and Yuan, D., 2021, May. Competitive Analysis for Two-Level Ski-Rental
Problem. In Proceedings of the AAAI Conference on Artificial Intelligence (Vol. 35.
No. 13. pp. 12034-12041).
Zhou, Y., Li, X. and Yuen, K.F., 2022. Holistic risk assessment of container shipping service
based on Bayesian Network Modelling. Reliability Engineering & System Safety. 220.
p.108305.
Online
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report/2020>

Kumar, A., 2020. COVID-19 impact on sustainable production and operations management,
[Online]. Available Through :
<https://www.sciencedirect.com/science/article/pii/S2666412720300015>