Global strategy is the guide to work on the strategy of a company to get globalised. It is the process of working on the globalisation to increase the business expansion in new places and new market. The sustainability works on the performance towards the society and provide a support on social cause for better services of workplace. Tesla is an American company which work in vehicles and electric motors. The company was founded in 2003 and the founder of the company was See & funding’s. the headquarter of the company is located in California, US. The company is serving in Europe, North America, Australia, New Zealand and East Asia. The CEO of the company is Elon Musk and Robyn Denholm is the Chairperson. The company is offering the services of vehicle servicing, Charging, software updates, connectivity etc. the overall revenue for the company in 2020was US$31.536 Billion. The report will explain the importance of sustainability in the workplace and the ways the Tesla is working on sustainability and working on the global strategy
The PESTEL study of the company is the external factors, and this technique aids in understanding the external factors of business. Political, social, economic, technical, environmental, and legal factors all play a role in the PESTEL.(Chang and et.al., 2019). These elements aid in comprehending the necessary external environment, which aids the firm while also limiting its functioning limitations.Their performance in the workplace must be improved when the organisation improves its technique of better operating in the environment. Political influence can have an impact on the business, whilst societal influences affect the market trends in which Tesla operates. The PESTEL analysis assists Tesla in gaining a better knowledge of how to work on sustainability. PESTEL provide the positive impact as it helps in understanding those factor which can lead to increase in better performance for Tesla as they will get to know about the external factor which can cause them in issues for performance. The negative impact of some of the factors are that they control the working of company for example the political influence can cost them in negative impact if the policies are not supporting the business.
Internal environment variables and tools, such as SWOT analysis, assist in analysing strengths and weaknesses, as well as identifying opportunities and threats for Tesla (Cao and Chen, 2019). Tesla's strength is their employees and founder, and the company's working procedure is enhancing the company's chances of long-term viability. Tesla may use the SWOT analysis to improve their market performance and outperform the competition. Sustainability is improving, and Tesla is serving as a role model for other firms looking to improve their sustainability strategies. The positive impact of the SWOT analysis is that it help the Tesla in understanding the strength and weakness which they can use further in development of better business to find the right opportunity and work on the threats which can cost them in their workplace.
Social factor: As the market trend continues to improve, social issues are becoming a more important factor for Tesla. The company is bringing about a change in the workplace as well as a shift in the business's social trend. Tesla is using the market change and the audience are going into hybrid cars and electric motors which can lead the company to better results. The changing market trend can help them in getting better results for their business.
Economic Factor: The rising aspect for Tesla is the economic factor, since they are bringing a change in the workplace and assisting in the growth of the economy. Tesla is increasing its financial support for development while also increasing its business. Tesla is helping the economy by the taxes and opportunity of employment in workplace which help the country in getting better results in market.
Environment Factor:Tesla is focusing on sustainability issues and assisting the environment in obtaining sustainable resources for the company. Helping the environment with the support of working in electric vehicles but on the other hand the company is limiting its waste of resources to provide a support to environment.
Competitive advantage refers to services that are more desirable to customers than those offered by competitors (Chatzoglou and Chatzoudes, 2018). When it comes to competitive advantage, Tesla is leading the market; the company is delivering services to clients and expanding market benefits since they are leading the market's sustainability elements. The competitive advantages of Tesla are their employees and the management which is working hard to provide the company in increase of services and develop better working in market. The company employee are their strength and the way they are enhancing the business for Tesla and finding the innovative product are helping them in better business.
To maintain the competitive advantage the company is working on going for new training and development of the employee and the management are working on studies to find the new invention to help the competitive advantage to Tesla.
Companies such as Tata and others are aiming to expand the number of electric automobiles on the market in order to improve sustainability and market earnings. People and audiences are becoming more interested in electric and hybrid cars as a means of environmental conservation and corporate development.
Entry modes of Market
There are various types of entrance mechanisms that a firm can employ in order to expand its business services. It is critical for the organisation to ensure that it has a variety of market entry options. (Masiero, Ogasavara and Risso, 2017). The company is increasing in the market to develop new customer base and provide services in new market.
Direct exporting: The term "direct exporting" refers to a company's decision to export its goods and services directly to the destination country. That's one of the strategies that many companies employ, and Tesla will use it to sell in the new market. Tesla is working on the expansion in new market to develop the customer base and increase the profit margin.
Joint-venture: it is a process in which the company can develop the joint production of business in the market with the competitive companies to increase the business and develop faster production in market to offer to audience. Joint venture will be beneficial for Tesla as they can utilise this in increasing the profit for business. They can utilise the support from the partner to develop better profit from market.
Licensing:Licensing is a means of fostering internal growth by making the institution's licence available to local residents and organisations with an interest in how it operates. This lead a support form the local of the paces to work in new market which can help them in getting better response.
Retailers Partner:Retailers are companies that buy huge amounts of things and sell them to people in segments (Hilmersson and et.al., 2021). This is one of the tactics for breaking into a new market; the advantage of this method is that the goods are delivered in bulk and can be sold separately. They are not to beneficial for the company as they hire in bulk and not profitable for the Tesla on huge numbers.
Recommendation for strategies
Scope of Operation: In order to develop its market, the Company must explain the extent of its operations and determine the best ways to innovate products and services to give to clients. In order to expand its business, Tesla can sell its products and services in new markets. The company is on top of the market because it has improved its business performance. Tesla need to look for the place where they can produce product and services in low cost for company.
Resource allocation: Tesla is focusing on the entire process of developing waste reduction and resource optimization, as well as allocating company resources. This will help the company improve the battery's power and expand its manufacturing plant. The company need to focus on their new entry market with the strategy to increase better market place.
Competitive advantage:Working on a competitive advantage can assist a company in dealing with new resources and expanding its resources in order to produce a more effective business strategy. Employees and work culture are important assets that allow a business to obtain a competitive advantage. Working on new market need to look for the places where the competition is low.
Companies working in the market are enhancing their performance by developing new market entry strategies and extending their operations. M&S, for example, is expanding its business in India by exporting directly to the country's shops and then supplying them. People are responding positively, and their organisational performance is improving. Tesla can work in their new business expansion to generate new profits. This can lead to improved performance, and the corporation will have complete control over the profits generated by their products on the market(Chew, Shen and Ansell, 2020).
Horizontal Integration: Horizontal integration can assist Tesla in achieving economies of scale, boosting its strength and control over suppliers and distributors. It also gives product distinction to assist Tesla in extending their market and establishing a new market entry(Nguyen, 2017). This may also assist Tesla in obtaining an oligopoly market, which the horizontal market merger generates, as well as working under antitrust regulations. The positive impact of this is that it will help the company in expanding the business product and increase the overall change in workplace for them. The negative that it can lead to diseconomy of scales in workplace which is not good for Tesla. It can also reduce the flexibility in the workplace and need transparency.
Vertical integration: This may result in an increase in business for the corporation because they will have more control over their suppliers in the market, allowing Tesla to create stronger working relationships. Controlling the supplier, distributors, or the value chain are all examples of this. The method aids in gaining control over the process and costs, but it also has a negative influence because it necessitates capital investment(Heeringa and et.al., 2020). This may be a good component for the firm to operate in, and they may be able to lead their production and develop a new service for the overall performance of the business, where they are changing on necessary working for improved performance.
Strategic alliance: This is the process by which the corporation forms an alliance with the competition and establishes a working relationship in which they collaborate on a project to boost manufacturing output. When a company is working in a new market where the alliance market rivalry is fierce, the alliance might be beneficial to the company's operations. This provides a strength for the company in a market where they can lead to develop better performance.
Recommendation for profitability
To boost the company's profitability, they must invest in many areas like new product range, variety of services in order to establish a better business in the market. The corporation can invest and build their new target market in a variety of locations. Tesla is working on sustainability, and there are countries where they may invest and work, boosting the company's market share and yielding better results. They can use this strategy to increase the market impact and develop performance.
To recommend, the corporation should improve on their price strategy in order to expand into new markets. There are a number of countries that wish to use Tesla's products in their countries because they are environmentally friendly, but the pricing is prohibitive. This is an area where the company needs to improve in order to create items that are appropriate for developing countries and aid them in achieving better results. When the outcomes are strong, the company's profitability in the market grows, and it might lead to market growth.
The company needs to works on thenecessary development and they can utilise the integration process to develop their performance in workplace(Alarussi and Alhaderi, 2018). One of the processes can be used by the company to improve its performance. For example, Netflix is working on vertical integration and is receiving positive feedback from the market, resulting in increased profits for the company.
The strategy of the Tesla in their corporate social responsibility is to increase the process of addressing some major interest of stakeholders to work on the energy solutions and automotive business. The company is operating in the automobile sector, and they are growing their sustainability process in the market, where they are developing their process of providing their stakeholders with more opportunities to work for the company's advantage(Bernal?Conesa, de Nieves Nieto and Briones?Peñalver, 2017). The company is increasing their CSR to provide a better ethical sustainability in workplace and provide a support to the society and interna people to develop better recital in country. The CSR will help in developing the support towards the Society and increase performance.The government and employees are very important to the company, and they are creating the process of working for the society in order to assist them in providing a better workplace and social services.
Ethical issues Tesla facing
Workplace behaviour: Tesla is not supporting their employees with the security and safety and the staff of the company are scared to explain the issues they are facing. The company need to provide an ethical workplace to all the employee so that they can lead a better performance (Jamrozik and et.al.,2021).
Non-unionisation Environment: the lack of people who are challenging the company for their safety and injuries are very low and they are facing the issues and feeling demotivated while working. There are no unions which can provide them the support and people are feeling fear to speak up in the company to express their issues in business. The ethical issues are that the companies are not following the guidelines to protect the employees and give them a placer to work.
There are businesses in the retail and other industries where employees are concerned about their safety and security. Companies in the retail and other industries focus on building the essential security hazards to improve the people's working environment and development for results that can lead to business development. Different people are working on the necessary development process, which can lead to an increase in process and improved workplace development. For example, Honda provides safety and security for their employees, which helps them perform better because they are content and working hard to benefit the firm.
The analysis found that it is critical for Tesla to understand the sustainability and ethical method of providing services to audiences and employees in the workplace, as well as the changes and problems that Tesla must address in order to improve their market outcomes. Developing the impact of process change to assist the organisation in improving CSR and performance. The Task provide the understanding of the external and internal environment factor which leads to development in performance which the company needs to work on. Tesla need to provide the understanding on the new entry modes and they also need to work on the change which they are putting in company to develop better results.
Books and Journals
Alarussi, A.S. and Alhaderi, S.M., 2018. Factors affecting profitability in Malaysia. Journal of Economic Studies.
Bernal?Conesa, J.A., de Nieves Nieto, C. and Briones?Peñalver, A.J., 2017. CSR strategy in technology companies: Its influence on performance, competitiveness and sustainability. Corporate social responsibility and environmental management, 24(2), pp.96-107.
Cao, H. and Chen, Z., 2019. The driving effect of internal and external environment on green innovation strategy-The moderating role of top management’s environmental awareness. Nankai Business Review International.
Chang and et.al., 2019. External environment and internal state in relation to life-history behavioural profiles of adolescents in nine countries. Proceedings of the Royal Society B, 286(1917), p.20192097.
Chatzoglou, P. and Chatzoudes, D., 2018. The role of innovation in building competitive advantages: an empirical investigation. European Journal of Innovation Management.
Chew, B.C., Shen, X. and Ansell, J., 2020. Alipay entered Malaysia: a closer look at the new market entry strategy driven by Chinese tourists. Qualitative Research in Financial Markets.
Heeringa and et.al., 2020. Horizontal and vertical integration of health care providers: a framework for understanding various provider organizational structures. International journal of integrated care, 20(1).
Hilmersson and et.al., 2021. Serendipitous opportunities, entry strategy and knowledge in firms' foreign market entry. International Marketing Review.
Jamrozik and et.al.,2021. Key criteria for the ethical acceptability of COVID-19 human challenge studies: Report of a WHO Working Group. Vaccine, 39(4), pp.633-640.
Masiero, G., Ogasavara, M.H. and Risso, M.L., 2017. Going global in groups: a relevant market entry strategy?. Review of International Business and Strategy.
Nguyen, T., 2017. Horizontal and vertical integration of bio-molecular data. Wayne State University.
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