Applied Business Project: Marketing Influence on Tesla's Stock Market

This report provides an analysis of Tesla's business environment and the impact of its marketing strategies on its stock market performance. The project begins by outlining the background, problem statement, aim, and objectives, focusing on evaluating the usage of marketing and its effect on the stock market. It includes a PESTEL analysis of the external environment, covering political, economic, social, technological, environmental, and legal factors, and a SWOT analysis of the internal environment, highlighting Tesla's strengths, weaknesses, opportunities, and threats. The report also examines Tesla's financial performance, noting significant revenue and delivery increases. Furthermore, it delves into identified business problems such as production process management, talent management, and workplace culture, and their potential impact on Tesla's brand image and stock value. The report concludes with recommendations for improved marketing strategies to enhance Tesla's stock market position and overall success.

Applied Business Project

Table of Contents
Executive summary..........................................................................................................................3
Topic: To evaluate about the usage of marketing along with its effect on stock market. A
research project on Tesla........................................................................................................1
Background of the project......................................................................................................1
Problem statement..................................................................................................................1
Aim and objective...................................................................................................................2
Research objective..................................................................................................................2
Main body........................................................................................................................................2
Part 1: Analysis of the business environment.........................................................................2
Part 2: Critical analysis of the identified business problem (s)..............................................6
Conclusion and Recommendations......................................................................................10
CONCLUSION....................................................................................................................12
Reflection on Academic and Professional competency skills..............................................13
INTRODUCTION................................................................................................................13
MAIN BODY.......................................................................................................................13
CONCLUSION AND RECOMMENDATIONS.................................................................15
RECOMMENDATIONS.....................................................................................................16
REFERENCES..............................................................................................................................16

Table of Contents
Topic: To evaluate about the usage of marketing along with its effect on stock market. A
research project on Tesla........................................................................................................1
Background of the project......................................................................................................1
Problem statement..................................................................................................................1
Aim and objective...................................................................................................................2
Research objective..................................................................................................................2
Main body........................................................................................................................................2
Part 1: Analysis of the business environment.........................................................................2
Part 2: Critical analysis of the identified business problem (s)..............................................6
Conclusion and Recommendations..................................................................................................6
Reflection on Academic and Professional competency skills.........................................................6
REFERENCES................................................................................................................................7

Report Introduction
Topic: To evaluate about the usage of marketing along with its effect on stock market. A
research project on Tesla.
Background of the project
The concept of the Marketing refers to activities that a company undertakes to promote the
buying or selling of a product or service. Thus, the concept of the marketing includes advertising,
selling, and delivering products to consumers or other businesses. Some marketing is done by
affiliates on behalf of a company (Leung, Gu and Palmatier, 2022). On the other hand, the stock
market tends to refers to the collection of exchanges and other venues where the buying, selling,
and issuance of shares of publicly held companies take place. Thus, the concept of the share
market is tending to related with determining and analysing about the value of the share and
assets of a firm within the share market that tend to reflects about its success and growth level. It
has been also seen and observed that the price of the stock tends to increase and decrease every
day that is tend to depend on the market forces along with the forces of the supply and demand.
But it the value of shares also tend to base and depend on the marketing and awareness level of a
firm within the share market that tend to reflect about its share value. The organisation selected
for undertaking current project is Tesla which is an American electric vehicle as well as the clean
energy company based in Austin, Texas. It has analsysed that the Tesla is tend to being operated
in the designs and manufactures electric cars, battery energy storage from home to grid-scale,
solar panels and solar roof tiles, and related products and services.
Problem statement
The decreasing in the value of the share is tend to a be vital issue and problem for a
business organisation that tend to reflect the unsuccessful level of a business organisation. Thus,
current study is focused and emphasis in determining and analysis about the main reasons and
factors that tend to create and leads to stock market goes up and how they become successful
(Todd, Higgs and Mumford, 2022). Along with this, current project also focus on the evaluate
about the usage of marketing along with its effect on stock market for which a research project is
conducted on Tesla.
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Aim and objective
The aim of current project is, “To review the importance of the usage of marketing along
with its effect on stock market.” A research project on Tesla.
Research objective
 To review about the concept of marketing along with analysing the need and importance
of analysing business environment.
 To determine about the main reasons and factors that reflects how stock market goes up
and how companies become successful.
 To investigate about the effect of marketing on the stock market and profitability level of
Tesla.
 To recommended effective ways that supports improved marketing and higher stock
market and success of a firm.
Research questions
 What is meant by the concept of marketing along with analysing the need and importance
of analysing business environment?
• How stock market goes up and how companies become successful?
• What possible effect of marketing is seen on the stock market of Tesla?
 What are the effective ways that supports improved marketing and higher stock market
and success of a firm?
Main body
Part 1: Analysis of the business environment
Overview of the organisation
The organisation selected for current project is Tesla which is a well-known America
Electric vehicle and the clean energy based company situated and located in Auatin Texas.
Further, the main business operations and activities of the Tesla company comprises of the
design as well as the manufacturing of the electric cars along with designing and leading of
battery energy storage from the home to a set grid scale. Along with this, Tesla is also focusing
in supporting use of clean energy that comprises of designing of solar panels and solar roof tiles
and other related product and services (Aghdaie, Talaei and Soltanpour, 2022). Currently, Tesla
is facing a reduction on its productivity and sales because of the global pandemic of Covid-19
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thus its stock bales is also getting affected by that. Therefore, current project is lead out in Tesla
to analysis about the concept of marketing along with analysing the need and importance of
analysing business environment together with the possible effect of marketing is seen on the
stock market of Tesla.
Analysis of the external environment (PESTEL)
The external environment comprises of the factors which are outside the control and
reach of the firm but it tends to have significant impact on its decision making and strategy
formulation. Use of PESTEL analysis supports one of the most systematic way to analysis the
external market of a firm that has been discussed below in context of Tesla.
Political factors- This tend to comprises of the level of involvement of government
within a particularly industry includes the policies, set restrictions, trade laws, etc. As Tesla is
focused on creating environmental friendly and electric vehicles thus governmental incentives
and befits in form of tax reduction are enjoyed by Tesla that is creating higher level of
opportunity and positive impact on business operations (Vriens and et. al., 2022).
Economic Factors- Theses are related with the economic growth and development of a
nation comprises of the current interest rates, inflation, income level, etc. The UK tend to have
stable economy which supports positive impact on Tesla but the recent global pandemic of
Covid-19 has created a negative impact on the economic stability that has resulted in form of
reduction in the productivity and sales level of Tesla.
Social factors- This aspect of external environment is related with the consumer
behaviour and attitude that influence the overall consumer demand. A higher level popularity and
purchase intention is seen in the customers of UK towards the low carbon and electric vehicles
that is creating positive impact and opportunity for Tesla.
Technological factors- this set of external environment is associated and related with the
regular advancement and betterment within the technical aspects. The business environment of
UK tends to have regular advancement in technology that is leading a sportive impact on the
business preparation of Tesla by the way of supporting cost effective business operation along
with increasing automation and online mobile system that increased growth level for Tesla
(Kumar and Sharma, 2022).
Environmental factor- it is related and associated with the conservation and preservation
of the environment that is leading positive impact on higher growth and expansion of Tesla as its
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operations are based on electric vehicles and clean energy which supports low carbon emission
and protection of environment.
Legal factors- It is tending to be related and associated with the legal acts and legislation
that are bring by government of UK for reaction of consumers and employees. Legal factor is
having both positive and negative impact on Tesla as strict rules and regulation are hampering its
business operation while the laws related with consumption of clean energy are creating
opportunity for Tesla.
Analysis of internal environment (SWOT analysis, financial performance)
Use of SWOT analysis is made for the analysis of internal factors that prevails and
existing within the firm and reflects about its key strength and weakness.
Strengths Weakness
 Tesla is being a top employer company
that supports and encourages diversity
along with leading a culture of
innovation and creativity.
 Tesla is leading pioneer in terms of
providing electric vehicles and
promotion use of renewable energy
such as solar power.
 Being highly innovative and creative in
its product design and feature is also a
key strength of Tesla.
 Manufacturing complication are
tending to be big weakness of Tesla.
 Lack of high volume production is also
the limiting the expansion growth of
Tesla (Leung, Gu and Palmatier, 2022).
Opportunity Threat
 Opportunity to expand at global level
through focusing in higher productivity
level based in increasing awareness of
environmentally friendly cars.
 Focusing on less expensive cars based
on innovation would support higher
productivity level
 Increasing level of business
competition
 Spread of global pandemic of Covid-19
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Financial performance of Tesla
Tesla continued its profitability streak, reporting Wednesday net income of $1.62 billion
in the third quarter, a nearly fivefold increase from the $331 million it earned in the same period
last year (Todd, Higgs and Mumford, 2022).
Figure 1: Zandt. 2022
(Source: Zandt. 2022)
The above graph is depicting and presenting that the Tesla’s sales revenue was $53.8
Billion with 936,172 cars delivered to customers in fiscal year 2021. The increase in the number
of deliveries and its profitability of $5.6 Billion pushed the company’s market capitalization to
over $1 Trillion (Aghdaie, Talaei and Soltanpour, 2022).
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Figure 2: Richter. 2022
(Source: Richter. 2022)
It has been reflected on the basis of above graph that in 2021, Tesla delivered 936,172
vehicles, an 87% increase in vehicle delivery compared to 2020. Despite the supply chain
challenges and shortage of chips, Tesla demonstrated incredible performance in 2021 (Vriens
and et. al., 2022).
Part 2: Critical analysis of the identified business problem (s)
There are different types of problems that has been identified and that create huge impact on the
Tesla organisation and become major risk for the organisation in Order to achieve their goals and
objectives. Inadequate management of an industry's production process can have a negative
impact on the business brand. The manner the company's production process was activated to
accomplish the objective and adapt to client requests has generated concerns about person
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working hours. According to the research of Tesla concerns raised, the company's staff worked
120 hours per week to achieve the target. In addition, a number of customers were dismissed for
insufficient productivity with no explicable reason. Apart from this, it also has been analyse that
the organisation are facing morning Shoes which is related to the employees of the organisation
as they are not talented in order to book for the organisation and grab more opportunities for the
company (Aghdaie, Talae and Soltanpour, 2022). That is why it’s become very important for the
company to adapt the talent management strategy and provide appropriate training and
development program so that they can improve the productivity in deficiency of their employees
and overcome the problem the car sitting by the company. Apart from this, the activities and the
behaviour of the directors of the organisation on the social media platform which is regarding to
the termination of the workers create huge impact on the organisation and also create huge
impact on the brand image. Apart from this the company has also feels different kind of
repetition of laws because of the different injury of the plant workers at their work place. Apart
from this there are different kind of questions that are raised in context of the workplace culture
and workplace surroundings of the company and the depression that the workers are facing and
do you have to encounter while operating in the Tesla organisation. Apart from this there are also
with the major problems that has been identified which is related to the safety of the employees
in the organisation factories that has revealed that they were so many Violations cases that has
been revealed by the employees at their organisation (Vriens and et. al., 2022). Poor management
of the safety of the user in the cars might have a detrimental influence on consumer reaction. It
has been determined that the autopilot option is quite high in demand, and that problems with the
autopilot's operation have lessened customers' enthusiasm for it. Consumers' unfavourable
feedback about the efficiency of automobile models with autopilot mode has resulted in a decline
in sales of those models. Employee security concerns also resulted in a lower response to the
company's offering of electric vehicles for purchasing. Furthermore the response of the consumer
towards the organisation create huge impact on the organisation and it is a very important for the
organisation to maintain the Brand image of the organisation and overcome the negative reviews
of the consumers because it creating back on the efficiency of the car models and create huge
impact on the brand image and productivity deficiency of the company (Zhao and Jiang, 2021).
The performance of the business has been declining over the years due to its inability to
respond to the rapidly expanding consumer spending for the new model. It was found that the
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company had invested a significant amount of money in the production process but still unable to
provide the products to the customers, resulting in a decrease in revenue. Other Tesla
management concerns, such as poor consumer security and safety administration, have also
slowed sales of the various car types. To secure their existence in the sector, businesses must
allocate their financial resources properly (Baneres, Rodríguez and Guerrero-Roldán, 2020). The
advertising campaigns of the corporation were badly damaged because the company spent the
majority of its resources on manufacturing goods. As a result, the corporation was unable to
attract buyers' attention to new model. This has caused a reduction in sales of the new product, as
well as a decrease in the company's financial performance. Based on the total analysis of the
study of Tesla operational decisions, it has been determined that Tesla has a manufacturing
major challenges and that they have been unable to meet the needs of customers per the their
estimates. As a result, the examination of Tesla's performance plainly shows that the business
was unable to improve its comparative edge by maintaining demand-supply equilibrium. Ford
Motor Company, on the other hand, has been successful in meeting demand for materials. As a
result, when it comes to competitive advantages, Ford Motor Company outperforms Tesla.
Tesla's client base has been impeded by a lack of production, which has resulted in a decline in
profit margins. Ford, on the other hand, has improved its competitive position as a result of its
still on delivery of items to consumers. When it comes to financial income or expenditures, it has
been determined that Company has no comparative edge over Tesla. This is due to the fact that
Ford Motor Company has had money troubles with cash management. On the other side, one of
Tesla's management challenges is that the firm has a big debt problem, which has caused the
company's tax base to degrade (Bestvina Bukvić, Buljubašić and Ivić, 2020). As a result, the full
analysis shows that both organisations are all in the same condition in terms of earnings
(profitability). Tesla has a competitive edge over Ford Motor Company in regards of
management of working capital. As a result, both organisations must concentrate on the financial
allocation of resources and management approach. Ford's profit increased as a result of its
appropriate behavior. Ford Motors had a higher profit margin than Tesla, with a profit of
US$160.33 billion in 2018, compared to US$21.461 billion for Tesla in 2018. This disparity in
data could be attributed to Ford's approach to ensure in order to manage their supply chain more
efficiently. If the obtained from the pilot of Tesla is compared to that of Toyota, it can be seen
that Toyota has a market edge over Tesla in the production of driverless cars. The corporation
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has placed a strong emphasis on worker health while also increasing automotive efficiency,
strengthening the company's overall competency in the commercial environment. Because
Toyota's cars are more efficient than Tesla's, the firm can be deemed to have a stronger market
response due to its sustainable management and pleasant behaviour. The company has improved
its skills by focusing on processes that use less power (Furr and Shipilov, 2018). The risk of an
incident has been lowered as a result of the development of this automobile on the marketplace,
and it can be argued that Tesla has yet to adopt a completely autonomous vehicle. As a result,
based on a comparison of manufacturing and performance indicators among Tesla and Toyota, it
can be concluded that Toyota is significantly superior in terms of improving output. When
contrasted to Tesla's management style, Toyota has been deemed to have a stronger brand image
for its honest and accessible processes in delivering messages to consumers. Based on the
aforementioned, 3 firms have three separate anatomies of difficulties, according to the overall
study. According to the entire conversation, it is critical for Tesla to foster the growth of
production management in order to improve comparative edge and eliminate management
concerns. Furthermore, in order to improve their fund performance, the corporation must
implement strategic policies. Tesla's management, on the other hand, must place a greater
emphasis on the research & design wing in order to increase manufacturing of a completely
autonomous vehicle (Kenny, Breske and Singstock, 2022). The firm's competitive edge with
Toyota in the complete corporate environment would be aided by effective technological
development. Apart from this, there are more problems that has been identified that great impact
on the organisation. The organisation are facing different problem which is related to the
continuous behaviour of the organisation. As the organisation has faced the problem is it is it in
addition to the controversial images that create several problem on the brand image and also
create impact on the financial resources. And create a huge impact on the organisation and a lead
to social loss. Apart from this the organisation are also facing different problem which is related
to the management of the production, management of the financial resources, impact on
customers response , and impact on profitability (Nwosu and Chukwuere, 2020). Apart from this,
in order to overcome the problems there are different kind of determination that helps
organisation to achieve their goals and objectives. Furthermore, northern Asia should not require
to focusing on the health and safety of the employees. The organisation feels different kind of
problems that create impact on the company and face the great reputation loss due to different
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