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Impact of Global Business Environment on Tesla

University: University of Cambridge

  • Unit No: N/A
  • Level: Post Graduate/University
  • Pages: 3 / Words 683
  • Paper Type: Assignment
  • Course Code: BM461
  • Downloads: 152
Question :

This assessment will cover following questions:

  • Generate information relevant to the analysis of Tesla business environment.
  • Tesla is a luxury car manufacturing company. Assess the impact of the government of the structure and operation of Tesla.
  • Provide an in-depth understanding of the impacts of changes in the business environment and in its activities.
Answer :
Organization Selected : Tesla

Global business environment and its impact on auto mobile industry.

Auto mobile industry is one of the most developing and profitable sector that help business to achieve their goals and objectives. Global environment effects decision making of auto mobile sector and make them ineffective towards overall development. Government intervention and increase in taxes effect expansion of business. UK auto mobile industry facing huge problems and recent changes to due to decrease in sales of cars. Due to Brexit impact auto mobile industry lost large number of customers of their business that help them to increase in their overall business(Tallman, Luo and Buckley, 2018.). Global business environment effects overall use of resources that auto mobile sector of UK is using for their development. Impact on decision making of organization and make them unable to cope up with the changes. Changes in economy and income level of customers is responsible for development of auto mobile sector.

Global environment impact on organization

Tesla in an American auto mobile company. Their speciality to manufacture electric cars make them one of the leading business in their sector. Economic changes like purchasing power of their customer increases help company to increase overall sales of their business. Due to political stability in an territory help Tesla to grow at an extreme level. Due to high taxes on auto mobile sector force them to increase overall prices of their products. Due to new trade policies of government help Tesla to operate smoothly in market. Due to decrease in battery cost help them to develop their business. Economic stability of nation help company to improve capabilities of their business. Due to their environment friendly products they are able to attract customers towards their services. Due to development of their business in global market help them to develop at a large scale. Due to increase in overall presence in an individual to use technology.

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Driver of changes

Large number of issues influence Tesla to change overall working of their business and influence them to improve effectiveness of their business.

SWOT analysis

Strength:-

Strong brand image of Tesla help them to develop their business at an dominant level. Their innovation in their products and services attract customers more easily(Endsley, 2017.). Smooth working of their production process make them one of the leading organization in market. Company need to analyse unique feature or product that help them to expand their business.

Weakness:-

Due to their limited market presence their overall business effected. Weakness reduces overall growth of Tesla. Due to high prices of their products make their customers to think twice before purchasing their product. Limited suppliers are available in market to grow their business.

Opportunities:-

Due to increase in auto mobile sector and expansion in sales at a global level. Customers are able to cope up with technology and able to understand use of their products. Diversification in their business like manufacturing electric car help them to grab attention of customers.

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Threats:-

Due to increase in competition effect overall growth of their business in market and make them ineffective to develop at a high level. Due to increase in prices of raw materials.

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References

Books and Journal

Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global Strategy Journal. 8(4). pp.517-535.

Endsley, M.R., 2017. Autonomous driving systems: A preliminary naturalistic study of the Tesla Model S. Journal of Cognitive Engineering and Decision Making. 11(3). pp.225-238.

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