International Business Management Report: Tesla Motors' Expansion

This report provides an in-depth analysis of Tesla Motors' international business management practices. It begins with an executive summary and an introduction to international business, highlighting the company's operations in political, economic, and socio-cultural environments. The report explores Tesla's market entry strategies, organizational controls across international borders, and the business management techniques employed. It also addresses ethical challenges faced by the company and the responses implemented. Furthermore, it offers recommendations for improvement and concludes with a summary of the key findings. The report covers Tesla's global expansion, including its strategies for entering new markets, managing operations, and adapting to diverse cultural contexts. The report also considers the company's efforts to address ethical concerns and offers suggestions for enhancing its international business performance.

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EXECUTIVE SUMMARY
The following report attempts to shed light on the management of the political, economic and the
socio-cultural environment faced by the department of electric vehicles that is operated by the
Tesla Motors. The report also attempts to discuss the entry strategies that were adopted by the
concerned company in the process of the expansion to the various other countries. The report
further advances to discuss the organizational controls exhibited by the company across the
international borders and the business management techniques that should be adopted by the
company in order to adopt to the various cultures present all across the globe. The report nears its
end with a discussion on the various ethical challenges that have been faced by the company and
the ways in which the situations had been responded to. The report finally ends with
recommendations that might be implemented by the company in order to bring about an overall
improvement of the concerned business organization.

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Table of Contents
Introduction..........................................................................................................................3
Brief overview.................................................................................................................4
Management of political, economic and socio-cultural environments............................4
Entry strategies for newer markets..................................................................................5
Organizational control across international borders........................................................6
Business management practices adapted by Tesla Motors..............................................7
Ethical challenges faced and the responses meted out....................................................7
Recommendations................................................................................................................8
Conclusion...........................................................................................................................8
References..........................................................................................................................10

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Introduction
International business refers to the activities of the trades and the transactions at the
global levels. The international businesses take into account all the products and the services that
might be helpful in the earning of revenues like the trade of the various capitals, goods,
knowledge, services and technologies among the various countries across the globe. The
international management of the business demands the display of the various knowledges and the
skills that tend to be above the normal expertise that is required to put forth in the maintenance of
a given business. These measures might include the matters that pertain to the business
regulations that are followed in the nations wherein the concerned organization has been
operating, the customs that are followed within the territories of the concerned countries and the
ability to conduct the required transactions involving a number of currencies. The following
report attempts to shed light on the management of the political, economic and the socio-cultural
environment faced by the department of electric vehicles that is operated by the Tesla Motors.
The report also attempts to discuss the entry strategies that were adopted by the concerned
company in the process of the expansion to the various other countries. The report further
advances to discuss the organizational controls exhibited by the company across the international
borders and the business management techniques that should be adopted by the company in order
to adopt to the various cultures present all across the globe. The report nears its end with a
discussion on the various ethical challenges that have been faced by the company and the ways
in which the situations had been responded to. The report finally ends with recommendations
that might be implemented by the company in order to bring about an overall improvement of the
concerned business organization.

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Brief overview
The Tesla Motors was founded in the year 2003 by Martin Eberhard and Marc
Tarpenning who was thereafter joined by Elon Musk in 2004. The present CEO and the
chairperson of the company, Elon Musk had formerly served SolarCity as a chairman and co-
founder. The company is well-known and famous for the various luxurious vehicles that the
concerned car-manufacturer provides to the concerned clientele. The present CEO attempts to
envision the organization in discussion as one of those independent auto makers and technology
companies that is capable of providing the concerned clientele with the electric cars that have
been priced on an average basis in order to help the common people have an access to the
electric vehicles (Lin, 2018). The company is known to provide employment to almost 37,500
employees all over the world and is known to have earned a revenue of almost 11.76 billion US$
in the year 2017 (Ir.tesla.com, 2018). The company is known to have the branches all over the
world especially in the countries of Denmark, Ireland, Portugal, UAE, Hong Kong, Australia,
New Zealand, Mexico, Canada to name a few (Tesla.com, 2018). The company specializes in the
production of the electric cars, the lithium-ion batteries that are generally used for the storage of
the energy, the photovoltaic panels that might be used in the domestic areas.
Management of political, economic and socio-cultural environments
The concerned company in discussion attempts to manage the political, economic and the
socio-cultural environments in a very efficient manner. The concerned company is known to
have been strengthening the financial performance by accepting the various incentives that are
extended by the concerned governments of the countries wherein the company has been
operational and has branches (Chen & Perez, 2017). The insignificant amount of the carbon
emissions might help the concerned company in the gaining of the various incentives that are

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extended by the countries. The economic environments that are faced by the concerned
automaker company in discussion, are the decreases in the costs of the batteries and the other
renewable sources of energy (Wang et al., 2014). These factors tend to help the concerned
automaker organization, Tesla Motors to earn higher revenue in the various countries wherein
the company has been functioning. However, the issues that pertain to the economic stability
within the concerned countries, mainly in Asia and Europe, might pose to be a threat to the
financial growth of the company (Muneer et al., 2015). The company has also been observed to
have handled the socio-cultural issues in a very adept manner. The company has benefitted from
the various socio-cultural environment that is present in the countries wherein the concerned
automaker has been operating. The global acceptance and popularization of the low-carbon
lifestyles, the increase in the preference of people for the renewable energy sources and the
improvement in the distribution of the wealth in the developing markets has helped the
concerned company in the overall improvement of Tesla Motors (Grant, 2016).
Entry strategies for newer markets
The concerned automaker company in discussion, Tesla Motors, is observed to have been
using the existing positions in the existing markets to bring about a position of winning in the
new markets wherein the company has been planning to expand. The company tends to put forth
the various free trade agreements with the governments of the concerned countries that lead to
the enhancement of the chances that are related to the overall growth of the concerned company.
The free trade agreements help the concerned company to penetrate the foreign markets with
ease (Moritz et al., 2015). The other factor that might help the company in the successful
penetration of the concerned market is the political stability in the concerned market. The
company uses the various wholly-owned subsidiaries in the matters that pertain to the entry in

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the newer markets (Stringham, Miller & Clark, 2015). The company might find the stable
political conditions to be helpful in the matters that pertain to the establishment of the branch of
the concerned automobile maker in the chosen market. The company is also observed to have
been implementing the strategy of ecosystem carryovers in order to penetrate in a new market.
The company already achieved a high position in the global market due to the huge client base of
the company that aims to offer Tesla Motors with high loyalty and the high amount of disposable
income. This further helps the company to implement the ecosystem carryover strategy in the
expansion to the other markets.
Organizational control across international borders
The concerned company in discussion, Tesla Motors, has been observed to put forth a
highly functional organizational control across the international borders wherein the concerned
company has been functional. The company is observed to lay more stress on the managerial
control that might be needed in the effective management of the employees of the concern at the
various outlets of the company (Mangram, 2012). The headquarters of the company at Palo Alto,
California, United States play a hugely important role in the monitoring of the decisions that are
generally taken by the various branches of the company at the various countries wherein the
company has been active. However, the various branches of the company at the various countries
tend to display certain powers that are bestowed upon them in the matters that deal with the
management of the workforce of company in the concerned country wherein the concerned
organizational has been located. The company is known for the huge amount of attention that it
dedicates to the recruitment of the staff members of the concerned business organization
(Hbr.org, 2018). The present CEO of the company opines that the recruitment of the proper
talent from all over the word might be extensively helpful in the matters that pertain to the

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overall development of the concerned automaker company. The members of the workforce of the
company are encouraged to put forth the innovative ideas and solutions that might help the
company to attain new heights by bringing about an overall improvement of the concerned
automobile company.
Business management practices adapted by Tesla Motors
The concerned company in discussion, Tesla Motors, is known for the various strategies
that it has adapted in order to deal with the expansion of the company in the various international
markets. The company is known for the strategies that it has been adopting in order to procure
grants from the concerned government. The concerned company is observed to modify the
various products that it has been offering to the clientele with accordance to the concerned
market wherein the clientele is based (Hardman, Shiu & Steinberger-Wilckens, 2015). The
company has also been observed to set up the stores in the locations that are easily accessible and
highly visible by the target clientele of the company. The company is known to abide by the
principle of reaching the clientele before the latter develops a plan for procuring a new
automobile. The company is also known for the strategies that it has adapted in order to meet the
localized needs of the concerned clientele as for example, the automobiles that are marketed in
the Chinese market consist of an “executive rear seat” that aims to make the rear seat experience
for the concerned client who has been using the concerned automobile (Lambert, 2018). The
research and development unit of the company is also known to work in collaboration with the
various other companies in order to develop the products that are more sustainable.
Ethical challenges faced and the responses meted out
The company has faced certain ethical challenges since the expansion of the organization
in the various international markets all over the world. The concerned organization has also been

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observed to have resolved the issues that it had faced in a very effective manner. The company
had been reported to have faced issues with the members of the workforce who were reported to
have been complaining of various health related issues that they had been facing while they
continued to work at one of the manufacturing units of the concerned automaker (Wong, 2018).
The CEO had helped in solving the issue by holding meetings with the concerned employees and
arranged for the healthier work environments for the concerned employees (Afr.com, 2018). The
company had also faced certain legal doubts on the outcomes of the implementation and the
launch of the automated vehicles that are marketed by the concerned automaker company
(Etzioni & Etzioni, 2017). The company has faced a huge number of questions and doubts on the
ethical factors that are to be considered while taking into account the innovative measure of
introducing the automated vehicles in the real traffic scenario present in the concerned countries.
Recommendations
The company is advised to abide by certain measures that are needed in order to deal with
the various conditions that the concerned company has been facing in the recent times. The
company might be advised to employ a medical team in the various locations wherein the
company is located so that the concerned employees might have the scope of a regular health
check-up as well as an access to the healthcare units in cases of emergencies. The company
might also be advised to adapt other strategies in making an entry into the foreign markets, like
the strategy of the joint ventures that might help the concerned company to develop a clearer idea
about the tastes and the choices of the concerned clientele that has been targeted by Tesla Motors
in the concerned country or region. The company might also be advised to implement the better
understanding of the cultural and the ethical matters that are present in the various international
markets wherein the concerned automobile magnet aims to expand. This might help the

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concerned company to put forth a clear understanding of the various cultural and ethical issues
that might be faced by the concerned workforce of the company in the concerned international
market location.
Conclusion
Thus, from the above discussion it might be concluded that the concerned company in
discussion, the electric vehicles department of the automaker magnet Tesla Motors has adapted
various business strategies that are seemingly helpful in binging about an overall improvement of
the concerned company. The department of the company in discussion has been observed to have
been demonstrated a proper growth in the matters that deal with the expansion in the concerned
markets. The above report also demonstrates that fact that the concerned company has effectively
handled the various strategies that are needed in order to control the various overseas branches of
the company that are active in the international markets. The concerned automaker might be
observed to attain the concerned heights provide that the company implements the
recommendations that are extended to the concerned management of the automobile magnet in
discussion, Tesla Motors, headquartered in Palo Alto, California, United States.

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References
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Retrieved from http://www.afr.com/technology/is-a-tesla-really-ethical-company-wont-
say-how-its-batteries-arent-tainted-20170101-gtkjex
Chen, Y., & Perez, Y. (2017). Business model design: lessons learned from Tesla Motors.
Etzioni, A., & Etzioni, O. (2017). Incorporating ethics into artificial intelligence. The Journal of
Ethics, 21(4), 403-418.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
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