Global Strategy and Sustainability Report: Tesla's Market Expansion

This report provides a comprehensive analysis of Tesla's global strategy and sustainability. It begins with an introduction to global strategy and its importance, followed by an in-depth examination of Tesla's external environment using PEST analysis, considering political, economic, social, and technological factors. The internal environment is then assessed through 3C analysis, focusing on the company, its customers, and its competition. The report identifies Tesla's current sources of competitive advantage, such as skilled engineers, efficient human resource management, and effective customer service. The second part of the report explores how organizations enter foreign markets and the motives behind Tesla's international expansion, including profit maximization and market dominance. Finally, the report offers strategic recommendations for Tesla to compete effectively in the global market, including regular PESTLE and Porter's Five Forces analysis, investment in IT resources, and a focus on marketing. The report concludes by emphasizing the crucial role of strategic management for Tesla's continued success.

Global
strategy and
sustainability

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
External Environment analysis....................................................................................................3
Internal environment analysis......................................................................................................4
Tesla’s current sources of competitive advantage.......................................................................4
TASK 2............................................................................................................................................5
How organisations enter into foreign markets and motives for Tesla expanding internationally
.....................................................................................................................................................5
Recommendations for different strategies Tesla can use to compete in the global environment5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global strategy refers to the plan which global companies formulate to survive at the
marketplace and to gain a competitive advantage at the marketplace. In order to lead the global
market, it is essential for a company to develop a strategy with proper sustainability
(Bhattacharyya, 2020). This report contains external, internal environment, competitive and
strategy analysis of company. In this report example of Tesla is taken into consideration which is
a global electric car manufacturing company. Tesla was established in the year 2003 at
California in United States.
TASK 1
External Environment analysis
To understand the external environment of Tesla, it is essential to perform PEST analysis
in a precise manner. The PEST analysis of Tesla is mentioned below:
 Political factors- The political factors are related to policies and regulations which
are imposed on a business. The stable nature of government also plays a critical
role in the development of various functions and operations of Tesla. In the global
market, various countries government’s interference affects the functioning of
Tesla.
 Economic factors- Economic factors are related to economic policies, gross
domestic product and national income of a country. These factors are generally
stable throughout the year in America and different countries are involved with
great economic policies which effect the functioning of company. The trade
policies of different governments in different countries are also major economic
factor which impacts the performance of Tesla.
 Social factors- These factors are related to social tendency of general public
towards the company. These factors are essential in the development of social
advantage (Enos, 2019). The living standard of society and culture both play a
crucial role in the functioning of Tesla.
 Technological factors- In the era of stiff competition, there are various factors
which are related to the information and technology impacts the functioning of

Tesla. Different software and artificial intelligence related tasks are beneficial in
the performance of Tesla at the marketplace.
Internal environment analysis
In order to understand the internal environment of Tesla, 3C analysis is conducted in this
project. The 3 Cs in the internal environment analysis of a company are Customers, competition
and company (Lavery, 2019). The analysis is mentioned below:
 Company- Company is considered as a legal entity which performs its operations
at the marketplace in a precise manner. Company is the most important part of
internal environment as it includes tangible and intangible activities and operations
which are performed by the employees. In the analysis of internal environment of
an organisation complete analysis of Tesla’s internal capability and operations
should be done.
 Customers- Tesla is a global leading car manufacturing company; its customers
are high in number. The customers are also happy with the product and services of
Tesla but it is essential to perform analysis related to its customers in order to
attract large number of customers from the marketplace. In the internal analysis, to
encourage customers, it is essential to take regular feedbacks from the customers.
 Competition- In the internal environment analysis of Tesla, it is essential to
perform the internal competition analysis. Competition analysis provides Tesla
exact value and evaluation which are related to various internal competitive factors.
In the competition analysis, there are various factors which effects on the
company’s performance like bargaining power of customers and suppliers.
Tesla’s current sources of competitive advantage
Tesla is currently functioning as one of the major car manufacturing company in the world.
It requires huge efforts in order to gain competitive advantage at the marketplace which is
very much essential. In general perspective of the company, majorly all the things related to
operations and functions matters the most for a business. The company has current sources
of competitive advantage which are mentioned below:
 Professional and skilled engineers
 Efficient human resource management
 Great supply chain and quality management

 Effective customer service
 Precise marketing strategy
TASK 2
How organisations enter into foreign markets and motives for Tesla expanding internationally
Different giant companies which are competing at marketplace generally enter the foreign
markets with precise strategy and huge investment. In the global market, companies with
professional management and effective risk management related to its operations. In the general
scenario, companies are very careful while entering the foreign market (Moktadir, and et. al.,
2020). These companies perform proper assessment of risk related activities which provides
competitive advantage to them. In the entrance related to foreign market, it is essential for a
company to follow a brief marketing analysis in order to formulate an effective marketing
strategy. It is essential for Tesla to opt for a good marketing strategy in order to perform its
operations in different countries.
Motives for Tesla expanding internationally
 To earn high amount of profit in the international market.
 To attract large number of customers from the marketplace.
 Tesla will get number one position in the global market in the list of global
companies if it expands its operations.
 Tesla will grow as an example for other companies if its operations at the
marketplace.
Recommendations for different strategies Tesla can use to compete in the global environment
Following are the recommendations for Tesla in order to compete in the global market
(Syed, 2020):
 Tesla must perform PESTLE and Porter’s five forces model analysis on regular
basis in order to gain competitive advantage at the marketplace.
 The company must use professional IT experts in order to use its information
and technological resources in a precise manner.
 Tesla must deploy professional staff in order to perform leadership related
activities in a precise manner.

 Company must do huge investment in the marketing operations in order to
attract large number of customers.
 Tesla should do brief analysis of future objectives in order to lead the global
market in an effective manner.
CONCLUSION
From the above stated report it can be concluded that global strategy plays a crucial role in
the development of crucial business activities. This report concludes that, it is essential for
Tesla to deploy professional strategic management in order to get competitive advantage at
the marketplace. This project also concludes that internal and external environment analysis
both are important in order to access the opportunities and challenges for a business global
market.

REFERENCES
Books and Journals
Bhattacharyya, S.S., 2020. International business strategy: development of an integrated
framework and typology. Review of International Business and Strategy.
Enos, L., Kalabokes, M. and Zamora, J., 2019. Business Strategy Game (BSG).
Lavery, S., 2019. The UK’s Growth Model, Business Strategy and Brexit. In Diverging
Capitalisms (pp. 149-170). Palgrave Macmillan, Cham.
Moktadir.M. and et. al.. 2020. Critical success factors for a circular economy: Implications for
business strategy and the environment. Business strategy and the environment, 29(8).pp.3611-
3635.
Syed, R.F., 2020. Ethical business strategy between east and west: an analysis of minimum wage
policy in the garment global supply chain industry of Bangladesh. Asian Journal of Business
Ethics, 9(2).pp.241-255.