24445- Global Strategy and Sustainability(2)

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Global Strategy and Sustainability 1

Table of Contents Introduction ...................................................................................................................................... 3 Task 1 ............................................................................................................................................... 3 Task 2 ............................................................................................................................................... 6 Task 3 ............................................................................................................................................... 8 Task 4 ............................................................................................................................................... 9 Conclusion ..................................................................................................................................... 12 References ...................................................................................................................................... 13 Appendix ........................................................................................................................................ 15 Part B ............................................................................................................................................. 15 There was no guidance provided that we have to attempt that part also. Thought it will be done by client. If it is to be done than additional wc will be required. 2

Introduction Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning, however Elon Musk, J.B. Straubel, and Ian Wright are also often credited as co-creators of the company. Tesla's mission is to speed up the expansion of renewable energy. The company's long-term goal for its zero- emission electric sports cars is to reinvest its revenues in cheaper electric family automobiles. First, Tesla started trading on the NASDAQ stock exchange under the ticker symbol on June 29, 2010. Tesla These days, disruption is one of the most overused buzzwords in the corporate world. Currently, Tesla Motors has been receiving a great deal of media coverage, particularly in the United States and Europe. The automotive industry has benefited greatly from their innovative ideas. Therefore, the purpose of this report is to examine corporate strategy from the perspective of the organisation and top management. 3

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Task 1 The analysis for Tesla It is quite essential for Tesla to main at regularly analysing and evaluating its micro and macro environment. This can be done using PESTLE and SWOT analysis. PESTLE analysis Political - Businesses, across all sectors and industries, are profoundly impacted by the policies and regulations enacted by government bodies. Examples of trade regulations that might limit an industry's growth and bottom line include tariffs and quotas. There are a number of external difficulties like change in government policies, tariff, etc. that Tesla car and energy solution industries must overcome. By taking advantage of tax credits and other government aid, Tesla, Inc. may boost its bottom line. This external variable is associated with the company's efforts to reduce carbon emissions throughout its operations and product lines ( Gomes et al, 2015 ). If there is any change in the laws implemented by government that it will become quite difficult for Tesla to handle its business operations. Economic - This external aspect contributes to the competitive pricing of the company's electric vehicle offerings. As more individuals switch to alternative energy sources, business conditions improve. The business's performance success is in risk because of the unstable economies in Europe and Asia. The potential for growth is especially high in the automobile sector, so Tesla can aim at forming plans according to the current situation of these unstable economies. The main reason for such type of problem is limited availability of resources. Social - The business climate of Tesla Inc. is heavily influenced by social and cultural aspects. Societal factors and trends impact a company's macro- environment , like when there is any change in demand of customers than it will lay direct impact on the business performance ( Schaltegger et al, 2016). Tesla, a manufacturer of electric cars, may gain from the widening wealth divide in emerging nations. Because of this shift in the distribution of wealth, there are now more people who could buy the company's luxury automobiles. 4

Technological - In this scenario, the rapid pace of technology development presents both opportunities and risks. The significant cost tag may be invested in enhancing Tesla's product offerings. It is possible that the company's marketing innovation may get stale because of these external circumstances. Although automation in the workplace is a positive trend, For example, Tesla may be able to expand if it implements further process automation ( Aghelie, 2017). With the rise in popularity of smartphones, the automaker will undoubtedly feel pressure to include additional internet-connected features into its vehicles. Rapid expansion based on technological progress is shown by an examination of the current status of the macro-technical environment. Environmental - Sales of the company's electric vehicles may increase as a result of more strict controls concerning the disposal of garbage and a general increase in interest in environmental protection. The company's electric vehicles, batteries, and solar panels may swiftly satisfy outsiders' worries about its future viability and ecologically beneficial products. Tesla has significant development potential because of the revolutionary nature of its goods ( Sun et al, 2018). Legal - The profitability of a business or organisation is intrinsically linked to its adherence to the law. In the instance of Tesla, for instance, the marketing mix, or 4P, complies with all regulatory restrictions. If Tesla's patent laws are extended globally, the business has a potential to grow its business outside of the United States. There is a clear association between rights and rules systems and the profitability of a corporation. SWOT analysis Strength Weakness  Diversification of massive manufacturing made possible by advances in electric train technology.  Increased output in the factory thanks to advances in mains adapter technology ( Whelan and Fink, 2016 ) .  Rules for adaptive marketing that are both rigorous and successful in growing  The cells in battery packs are constantly recharged from the same location.  Expertise is needed in both new product development and the administration of many frameworks at once.  Low profits and high production expenses. 5

a business and satisfying existing customers.  Assembly facilities that produce both automobile batteries and their associated components. Opportunity Threat  Increasing eco-awareness in nations and communities worldwide.  Education about how to reduce one's carbon footprint.  Making a green market research platform.  The Economic Classification and Entry into the European Market  Distributor serving the international market with high bandwidth connections ( Rezaee, 2016 ) .  The value of a currency relative to other declines.  Competition in the electric vehicle market is quite high. Critical factors While the high cost of production and rising financing for research into cutting-edge technology provide obstacles for Tesla, they also present an opportunity to develop even more effective materials for and methods of constructing electric vehicles. The company's competitiveness is being limited, however, by its high manufacturing costs and slow revenue growth ( Whelan and Fink, 2016). Tesla's approach to expanding its company has been influenced by global economic and ecological concerns. Sales of electric vehicles have surged as a result of the large increase in gasoline prices, which has helped the firm. Improvements in technology are to the organization's advantage. As a determinant of market globalisation enhancing awareness of technical development among emerging and underdeveloped nations, governments are allocating greater resources to its advancement. Therefore, Tesla may gain by extending its operations internationally. 6

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Competitive advantage Tesla has a significant advantage over rival creators. In the near future, Tesla will manufacture four distinct electric vehicles: the Model S, X, 3, and Y. Tesla has started building its first "Gigafactory" to mass produce rechargeable batteries. Certified fast charging stations, like those offered by Tesla, allow drivers of electric vehicles to quickly and efficiently replenish their batteries ( Rezaee, 2016). Tesla's current line-up of Speed vehicles has a wide variety of configurations. Upgrades have been made to the vehicles onboard video system, dashcam viewers, entry locks, language choices, and the system's TuneIn radio, in addition to the addition of controls for traffic indicators and stop signs. These developments in technology have implications for the automobile, battery, and power generation sectors. Therefore, it is necessary for the firm to assess its competitive standing relative to other automotive manufacturers and energy providers. 7

Task 2 Motives for Tesla expanding internationally One of Tesla's main missions is to accelerate the global shift to renewable energy. When Tesla Motors was founded in, high-tech automobiles were a relatively new and untapped market. Clean energy infrastructure was jointly developed by Solar City and Tesla Inc. The amount of money allotted to research and development at Tesla has been boosted. As part of its R&D, Tesla is focusing on improving its automated processes, reducing the cost of its raw materials, and enhancing its software. Consumers are unable to make customizations to their offeringsdue to the company's production methods ( Mahajan and Bose, 2018). The yearly worker turnover rate of Tesla is 44%, which is much higher than average. In order for the company to become industrially efficient, it requires long hours of work and a dedicated workforce. Tesla's in-house training programme educates workers on the significance of the company's culture to the company's overall business goals and objectives. To fully grasp Tesla's global strategy, it's important to consider the company's transnational perspective. To attain low pricing and take into account regional variations in quality, Tesla's strategy makes use of efficiencies, exploit opportunities, and learning effects ( Pieroni et al, 2019). Certified Pre-Owned (CPO) is Tesla's used car warranty scheme. Tesla's CPO repurchase program is available in nations where the company sells its electric vehicles, including Germany, Sweden, Norway, and Canada. After three years, customers can return their Tesla Model S for a reimbursement equal to 43% to 50% of the purchase price. Tesla Motors' product strategy involves penetrating the high-end market first and then expanding into the mass market. Tesla's first car, the Roadster, was a luxury sports car, but the company later released more inexpensive models, including a sedan and an SUV. Tesla's plan is to launch its first model at the top of the market, where buyers are willing to pay a premium, and then rapidly move down the market to greater unit numbers and cheaper pricing as they release subsequent models. Tesla has a transnational approach on a global scale. Therefore, they have a 8

worldwide presence and get the benefits of Tesla's organisational design, while yet being willing to modify their product and sales strategy to individual markets. Justified recommendations Tesla, Inc. uses this process as a whole to get a competitive edge in the international automobile market. When it comes to guaranteeing their company's growth, businesses often resort to more narrowly focused approaches in addition to the more general nonexclusive strategy. This contextual study makes use of Tesla Inc. as an example to demonstrate how the company's concentrated development strategies have evolved over time. However, Tesla's sales strategy emphasises personalised marketing to clients, and the firm provides online platforms, unlike traditional promotional strategies rely on franchising dealership tactics to build business in the worldwide market. Tesla, which is having supply chain issues, has to improve customer service by adopting a competitive price strategy in order to compete with Apple's sales plan ( Ng and Rezaee, 2015). Since the advent of the worldwide epidemic produced by COVID-19 has wreaked havoc on the globalized trade, it is unlikely that any customers will be able to access the internet. If the organisation is concerned about growing, it should adopt a franchising business model for expanding its business in the foreign market. Bringing together retailers and support staff can boost business operations. Tesla may set up shop in the nation's urban centres. Market expansion is a secondary focus for Tesla, Inc.'s expansion efforts. More sales and expansion of the company internationally are the goals of this plan to penetrate new markets. The corporation, for instance, continuously increases its global market presence by setting up shop in new locations. 9

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Task 3 Utilization of strategic alliance Tesla reorganised the complex manufacturing network in the auto industry by employing vertical reconciliation. Electric engine production, autonomous driving calculations, and a robust central control system are all areas in which Tesla has made significant progress. Vehicle manufacturers were hampered in their efforts to fully define and perform vehicle engineering due to insufficient resources. Every time a new feature is released, the provider will likely also offer an ECU control framework in order to maximise the increased value ( Henderson, 2015). At initially, Tesla had no choice but to vertically integrate its products to speed up the development process. Elon Musk acknowledged that making critical products in-house was essential to go forward. In the future, it may be possible to streamline the battery, electric engine, and other components. The company is making significant strides toward expanding its client base and sales of existing products to other automakers. The company's focus is not limited to the assembly of vehicles; rather, it extends to the improvement of efficiency in areas such as technology, design, and fuel consumption. The organisation actually has a unique business model. Tesla uses the strategy of emphasis differentiation to reach middle- and high-income customers with its high-performance automobiles and innovative technologies. As a premium brand, Tesla is aware that its customers would demand great quality from their vehicles. There are two main aspects of the horizontal and vertical narrative contexts that help a corporation expand its activities inside the global economy. The benefits and cons are seen in a new light when using these integrative methods. If a firm wants to maximise profits and implement a successful corporate strategy, it must stick to one overarching business plan at all times. This convergence of vertical strategies is becoming increasingly challenging in today's international economic climate. In today's global economy, several well-known corporations adopt vertical integration tactics. Taking advantage of another another perk of highly integrated design, Tesla has figured out the intricate transmission networks that underpin the automotive industry. 10

The level of employee engagement for their job and the efficiency of their organisation have both increased because to Tesla's mindfulness and the improved vertical control mechanisms he has implemented. Tesla has focuse efforts on enhancing the innovative creative process using these strategies. For example, the vehicle manufacturer may share their thoughts on how to enhance student learning results with other service providers, which might help the dealership develop effective sales strategies thanks to the company's background in inventory management. Tesla's CEO, Elon Musk, has been outspoken about how the company's investments in R&D and improvements to manufacturing procedures have improved the quality of their products. However, the company does not even need to rely on rivals for access to resources ( Abdelkafi and Täuscher, 2016). Recommendations toenhance its profitability The board of directors and CEO of Tesla Inc. should reduce expenses to increase the company's competitive edge. Now that cost and customer polling data is readily available, customers do not have to call around to get the best deals. The company's current development makes it challenging to get the lowest pricing on that marketplace. Therefore, firms will compete to grow their client base and revenue by decreasing prices on already existing items. According to predictive analytics, managers may pick and choose what they want to do. Data visualisation tools are accessible from any device and can produce in-depth reports with a few mouse clicks ( Yang et al, 2017). If Tesla Inc. is going to take any action, it has to improve its ability to identify promising beginning pitching and somewhat higher compared opportunities and to deliver mission-critical business information straight to the advised intake. Managers may now move swiftly and skilfully in response to pact-driven systems, which may also help develop contracts and improve results. Horizontal strategy can be used by Tesla for increasing and expanding their profitability. Such type of strategy will allow the organization in handling complicated situations. 11

Task 4 Evaluation of Tesla’s CSR strategy Tesla's mission was to design cars that did not compromise on performance or luxury like earlier generations of electric vehicles did. The company's stated mission is to "accelerate the expansion of renewable transportation by producing affordable next-generation autos." Tesla created a lot of new tech to aid in the design and manufacture of high-end electric vehicles, and then patented it all to keep its monopoly. Elon Musk, CEO of Tesla Motors, has indicated that the company was established to hasten the introduction of environmentally friendly modes of transportation. Attempting to create desirable electric cars using a strategy that promotes innovation by planting intellectual property in the path is destined for failure ( Evans et al, 2017). This is seen as a major competitive advantage by both consumers and industry professionals. Manufacturers like Toyota and Honda are working hard to develop automobiles with zero emissions and improve fuel efficiency with each new model year. After uncovering the fake products, investigators were able to pin down a specific group of Tesla employees who had been involved in the fraud for quite some time. Anything related to Tesla's sales forecast raises awareness about the company's earnings and sustainability. Sales of automobiles are the main contributor to the company's revenue. Tesla's corporate social responsibility strategy emphasises product development and customer satisfaction above anything else. There appears to be a net positive environmental impact from the production and widespread use of self-propelled vehicles. CSR should be highlighted to investors. Tesla's business model is to immediately respond to the needs of locals and organisations. During public events, the positive representation of the country was largely due to the efforts of networks functioning as partnerships. In this context, an ecological person is one who prioritises ecological sustainability ( Morioka and de Carvalho, 2016). The local populace has good reason to be on edge about Tesla for a number of reasons. Therefore, the locals are overjoyed with Tesla's eco-friendly product. The CEO of Tesla has hinted that starting in 2014, other companies would be able to use Tesla's licences. This CSR initiative had direct positive effects on the target 12

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population. This corporate push places an emphasis on supportable configurations that are in line with Tesla's core company goal statement. Retailer price points and product efficacy are of great interest to consumers and other stakeholders. The company prioritises its customers and looks for ways to reduce its cost of products sold to achieve this. The corporation has teamed with Panasonic to purchase rechargeable batteries from either party at a discount, therefore reducing interest payments on loans. The company also constructed specialised charging stations. Employees are the backbone of every successful enterprise, since they bear the brunt of responsibility for the organization's productivity and output. Community service learning improves classroom dynamics via collaborative initiatives. Early on, a company's fortunes would rise and fall with the actions of a single stakeholder. How firms are financed is heavily influenced by investors. Many stakeholders are interested in corporate social responsibility (CSR) programs that have a long track record of consistency. Limitations, opportunities, and duties are all things that governments do to businesses. Directors have a vested interest in seeing that both the law is followed and that their organisation thrives. The government approves of Tesla because of the company's green image and its global development plans. Tesla Company’s ethical concerns A number of sources agree that Tesla treats its employees with a lack of ethics in the workplace. A recently released independent analysis suggests Elon Musk's production goals got too lofty, creating unsafe working conditions. About 5,000 Tesla employees put their lives on the line. It rose by 15% in absolute numbers compared to 2014, and by 31% compared to the norm in 2015. The employees claim that the company's reluctance to implement crucial screening measures led to this ( Al Omoush et al, 2018). Wellness reward schemes should be encouraged inside the organisation to protect the safety of its employees. Directors should place a premium on actively engaging with potential team members and solving issues. There are a number of potential actions that may have been taken to lower the occurrence rate. Information that might boost Tesla Inc.'s earnings should be given the 13

company's full attention. With the use of good knowledge, the promotional numbers and monitors of an industry like the auto industry may be rapidly handled. In 2020, Tesla generated a profit of $2,721,000,000, after having lost $862.35 million in 2019. The credibility of an organisation may now be determined by quantitative measures like the success rate of its executive education programs ( Al Omoush et al, 2018). The company should replace its batteries and repair its flaws in order to maximise its potential. 14

Conclusion From the above report it can be concluded that the future of sustainable energy and progress may lie in the hands of electric automobiles like Tesla's Model S and X. This research endeavoured to better appreciate TESLA's beginnings and goods, the association's current direction and advantages, the organizations present advertising mix practises, and the impact of TESLA's items. Success of the technique was evaluated using three criteria. To begin, a surge of inquiries from potential buyers indicated strong interest in the automobile. Customers who try out the Model S or Model X at authorised Tesla retailers are recorded in a database. 15

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References Abdelkafi, N. and Täuscher, K., 2016. Business models for sustainability from a system dynamics perspective. Organization & Environment , 29 (1), pp.74-96. Aghelie, A., 2017. Exploring drivers and barriers to sustainability green business practices within small medium sized enterprises: primary findings. International Journal of Business and Economic Development (IJBED) , 5 (1). Al Omoush, K.S., Al-Qirem, R.M. and Al Hawatmah, Z.M., 2018. The degree of e-business entrepreneurship and long-term sustainability: an institutional perspective. Information Systems and e-Business Management , 16 (1), pp.29-56. Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E.A. and Barlow, C.Y., 2017. Business model innovation for sustainability: Towards a unified perspective for creation of sustainable business models. Business Strategy and the Environment , 26 (5), pp.597- 608. Gomes, C.M., Kneipp, J.M., Kruglianskas, I., da Rosa, L.A.B. and Bichueti, R.S., 2015. Management for sustainability: An analysis of the key practices according to the business size. Ecological Indicators , 52 , pp.116-127. Henderson, R.M., 2015. Making the business case for environmental sustainability. Harvard Business School working paper series# 15-068 . Mahajan, R. and Bose, M., 2018. Business sustainability: Exploring the meaning and significance. ImiKonnect , 7 (2), pp.8-13. Morioka, S.N. and de Carvalho, M.M., 2016. A systematic literature review towards a conceptual framework for integrating sustainability performance into business. Journal of Cleaner Production , 136 , pp.134-146. Ng, A.C. and Rezaee, Z., 2015.Business sustainability performance and cost of equity capital. Journal of Corporate Finance , 34 , pp.128-149. 16

Pieroni, M.P., McAloone, T.C. and Pigosso, D.C., 2019. Business model innovation for circular economy and sustainability: A review of approaches. Journal of cleaner production , 215 , pp.198-216. Rezaee, Z., 2016. Business sustainability research: A theoretical and integrated perspective. Journal of Accounting literature . Schaltegger, S., Hansen, E.G. and Lüdeke-Freund, F., 2016. Business models for sustainability: Origins, present research, and future avenues. Organization & Environment , 29 (1), pp.3-10. Sun, J., Wu, S. and Yang, K., 2018.An ecosystemic framework for business sustainability. Business Horizons , 61 (1), pp.59-72. Whelan, T. and Fink, C., 2016.The comprehensive business case for sustainability. Harvard Business Review , 21 (2016). Yang, M., Vladimirova, D. and Evans, S., 2017. Creating and Capturing Value Through Sustainability: The Sustainable Value Analysis Tool A new tool helps companies discover opportunities to create and capture value through sustainability. Research-Technology Management , 60 (3), pp.30-39. 17

Appendix Part B 18

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. Learning opportunities through collaborative activities with a wide range of partner businesses are also provided as part of the specialised CSR requirement plan, which helps to keep 19

employees engaged. To keep up with the ever-increasing intensity of market competition, it is essential to strengthen the watchdog as globalisation becomes more pervasive in the economy (Lorincová et al, 2019). Customers are a potential source of effort and a path to new business during trade show attendance, especially in the international market. By following proper CSR strategies, Tesla can easily aim at increasing the profits in certain period of time. Before implementing CSR strategies, company can aim at seeking help from stakeholders and top management (Martínez-Martínez et al, 2019). 20

The quantity of beautiful sunshine seen by the driver and passengers in a vehicle, such as the Model S, may depend in great part on where and how often the car is driven, and car manufacturers are aware of this. It appears that in the United States, everyone uses a somewhat different combination of petroleum fuels in their everyday infrastructure (Sonnemann et al, 2015). The Model S may be slightly less harmful to the environment than other cars since it uses a "greener" power generator. Contaminants per unit of distance are often lower than those of competing interior fire strategies. Determine the efficiency with which vehicles equipped with backup batteries convert energy into usable structures. 21

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There is no question that organisations are merging with one another in order to create a network, expanding people's horizons and relieving them of stress. If Elon Musk had his way, every home would have a Tesla in the garage, Tesla solar panels on the roof, and a Tesla Energy Powerwall to store excess electricity for use when needed (Bergquist, 2017). As a revolutionary leader of rational new development, Tesla's objectives will force other industry pioneers in the energy sector to adapt to the challenge of climate variability. 22

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Tesla uses environmental factors to inform the design and development of its own main bars. Changes in customer preferences and expectations encourage to increase transaction volume and launch an expansion plan. Tesla's priority is satisfying its customers, and it will do all it can to make their lives easier. 23

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24445- Global Strategy and Sustainability(2)

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