MSc Management Global Strategy and Sustainability Assignment Sample 2023
Introduction
A sustainable business may be termed as the operations of the organisation that may positively impact the environment and society as a whole. A sustainable strategy in business may impact the environment and use of natural resources, maintenance of equality among the workforce, gender equality and avoidance of racial discrimination along with human rights issues. A detailed analysis of Tesla’s sustainability and business strategies to support the organizational functions may be discussed below.
Task 1: The External and Internal Environment
External (Pestle)
Political
The United States of America (USA), is one of the largest democracies in the world, which is also known for holding a fair election process. The US has a stable political environment which allows businesses to flourish experientially along with holding good political relationships with neighbouring countries such as Brazil, India and many more.
Economic
The USA is an economic superpower and a world leader along with the rapidly changing economic structure in the country, providing companies such as Tesla and Google to be able to lead a socio-economic position on the global level. The Gross Domestic Product (GDP) of the USA in 2021 is around 23 Trillion which offers scope for the flourishing of businesses and firms in the country (Data.worldbank.org. 2022).
Social
The social structure of the USA is strong which allows for the opportunity of the businesses in the c country to gain ample labour supply to help in meeting the needs of the diverse consumers. The population in the USA in 2022 is estimated to be around 332,403,650 which has indicated an increase of 0.21% from 2021 (Bureau, U., 2022).
Figure 1: Population increase in the USA in 2022
(Source: Bureau, U., 2022)
Technological
The USA may be termed as the global leader of science and technology which has been successful in meeting the technological needs of the production facilities of the firms in the country. The use of technological innovations in the country has also led to the reduction of production costs in the USA companies such as Tesla.
Legal
The legal structure of the USA has upheld the treatment of the employees and also has contributed to the success of unbiased trials in terms of the judicial system in the country. The Fair Labour Standards Act in the USA states that prescribed wages and overtime pay are compulsory in any private or public firm in the nation (Dol.gov. 2022).
Environmental
In the USA the protection of the environment is strictly maintained by the government officials who also obligate the firms in the nation by maintaining the environmental policies and laws in sustainable business. The Clean Air Act passed in 1963, states that major companies such as Tesla may have to abide by the rules of the Act in reducing air pollutants and reduction of carbon footprint (Ballotpedia. 2022)
Internal (SWOT)
| Internal factors | Analysis |
| Strengths | 1. Electric vehicle (EV) manufacturing
2. Use and storage of renewable energy in the automotive industry 3. Product differentiation 4. Futuristic innovation |
| Weakness | 1. High-cost structure
2. Limited presence over the globe for a competitive business strategy 3. One man dependency 4. Employee’s safety in manufacturing |
| Opportunities | 1. Autonomous driving technology
2. Environment-friendly transportation 3. Aerospace transportation |
| Threats | 1. Confidence in Long term sustainability
2. Increased competition 3. Product deficit 4. Product liability allegations |
Table 1: SWOT analysis
(Source: Self-Created)
The above SWOT analysis has been formulated to gain an understanding of the strengths and weaknesses along with opportunities that are present for Tesla in the USA market.
Discussion on understanding the three most critical factors emerging from the analysis
The competitors of the company are highly challenging for the company to sustain quite well in the market situation and the companies such as Ford Motors and General Motors have been old companies which have become quite good competitors of the company. The services of logistics and customer services of the company have to be highly essential for the company to grow well in the market. The technological mismanagement might become a bigger issue for the company as the cars work through the use of technology and the slight problem may lead the customers to experience greater issues.
Evaluating Tesla’s sources of competitive advantage by understanding and managing effective competitive advantage
The most efficient competitive advantage of Tesla is that the branding of the company is highly efficient and the effective performance of the vehicles has led customers to become more attracted to the vehicles. The company has its own Artificial Intelligence (AI) networking that helps the company to run the digitally innovative cars so well and it even helps the company to manage the cars from any part of the world. The company’s future battery supply has been secured by the development of the Gigafactory which provides Tesla with a cost advantage in the market.
Task 2: Strategy in the Global Environment
Analysing through effective models the way the organisations are able to enter the foreign markets
The effective development and management of the models by the organisation help in effective management of foreign markets development which helps the organisation to flourish well. Moreover, the market entry strategy management has helped in better development through the help of licensing, mergers and acquisitions and joint ventures which helps the organisation to grow well in the competitive market.
Tesla is a multinational and successful company that does not aim for successful management of the company by making commercialisation in the new markets by joint venturing with local markets by taking parts from the markets at a cheap rate that helps the company to flourish well in the competitive market.
The organisational management of the company through better implementation of innovation by better dynamic capabilities by effective business model innovation for the organisation helped in effective strategic leadership management (Schoemaker et al., 2018).
Tesla maintains effective management of the developmental strategies by understanding the effective management by developing strategic management of the leadership development of the company for progressing in the market. Thus, the effective development of the organisational management of better cultural development helps in better development of cultural innovation and it allows the organisation to progress well.
Understanding the motives of Tesla to expand in the foreign market and its impact on the company’s strategy
The motives of Tesla in expanding in the foreign markets have to look after the company quite well to help the organisation impact the strategic management of the company that helps in better progress of the organisation. Furthermore, in expanding in the international market the company has to take up employees in managing the development and promotional events within the organisational management by understanding effective cultural implementation within the employee management.
The incorporation of the innovation development for the organisational development through the help of international business development by effective technological management for running the products of the company in the market well helps in better innovation of the organisation (Zahra, 2021).
The effective development of promotional management by better development of the marketing management of the organisation help in the sale of the products by reaching the customers of the organisation on time. Therefore, the organisational development of Tesla became successful for better management of the leaders of the company by implementing effective business strategies development by helping the company to progress well.
The corporate strategy management by expanding the product in the foreign market by analysing the market well helps the organisation to flourish well in the competitive market quite well. Additionally, the strategic management of the company’s developmental strategy and effective management of the product development as the competition of electric vehicles are quite high for the effective development of the organisation.
The innovative management of the product development of the company was better managed by effective strategies development by effective strategic development by evaluating the competitors of the company to manage the products of the organisation effectively (Bruijl and Gerard, 2018).
Tesla is more inclined in following a market penetration strategy that helps the organisation to develop well by making an effective growth strategy that helps the organisation to develop well and it helps the organisation for better management of the revenues of the company. Effective sustainable energy development and even it helps in better management of the organisational management for better mission and vision management of the company.
Understanding justified recommendations for managing different strategies development of Tesla to compete in the global environment
The recommendation for Tesla for better market entry development has provided the organisation to manage well and even helps the organisation to flourish in the global marketing environment. Moreover, better business innovation and management have provided the organisation to make effective business development by implementing effective business development by managing effective sustainability management for better marketing management of the organisation (Andreassen et al., 2018).
The effective marketing management of Tesla becomes possible by managing effective strategies development by understanding effective marketing management through franchising, joint venture and even through merger and acquisitions that helps the company to expand more quickly in the competitive market such as Volkswagen which uses joint venture as an entry mode in China.
Figure 2: Sustainable strategic management
(Source: Andreassen et al., 2018)
Task 3: Corporate Strategy
Analysing effective use of horizontal and vertical integration and even outsourcing and strategic alliances
Horizontal integration
Horizontal integration in the business strategy management helps a company to acquire or merge and it helps in operating at the same level with other industries and it helps in growing in sizing for better revenue collection by effective competition management.
Moreover, horizontal integration is not much followed by Tesla as the company is more inclined in doing market penetration rather than help in a better supply chain by effective competition management. Horizontal integration helps in better management of the global supply chain networking by understanding the characteristics through the help of industry 4.0 by effective risk management and effective policy management for effective production management (Sun et al., 2020).
Vertical integration
Vertical integration strategy helps in managing by allowing the operational development by taking direct ownership management by effective stages for effective production process management by relying on external stakeholders’ management or supplier management.
Moreover, vertical integration management of Tesla by managing effective production development by effective revolutionising helps in better battery production management that helps the company to develop well. The better growth strategic development of Tesla through better management of effective strategic development by developmental management helps the organisational management for better electric car management (Movsesyan and Anokhina, 2020).
More control management helps in better innovation management that helps in better supplier management of the organisation that helps in effective development by product’s success management and effective product quality management for effective profit maximisation management.
Outsourcing
The outsourcing management of the company provides the organisation with effective business practice management for managing third-party management to effectively perform tasks for handling operations that help in providing services of the company quite well.
Therefore, Tesla demarcates in outsourcing any kinds of products of the company to any other external source which helps the company to keep its authenticity and it helps the company to flourish well and become effectively successful. The process of outsourcing and effective performance management of the organisation has provided the organisation to develop well for managing the operating costs and it helps in better technological innovation management.
Thus, business operations management helps in the better development of the organisation which provides the organisation to make strategic implementations management which helps in effective innovation implementation in better strategic development (Gambal et al., 2022).
Figure 3: Strategic implementation management
(Source: Gambal et al., 2022)
Strategic alliances
The strategic alliances of the organisation have helped in managing the organisation that provides the organisation to flourish well by making effective arrangements by managing effective resource development for better business enterprise management.
Furthermore, Tesla has signed a strategic alliance with Panasonic Corp which helps the leaders of the company to develop well in the competitive market and provides access to world-class automobile manufacturing industry development (Refer to appendix 5). The effective productivity management of the organisation has put the organisational development of the organisation into the organisation management through the help of effective strategic alliance management (Bamel et al., 2021).
A successful strategic alliance becomes possible for the organisation to grow well and it provides the organisation to flourish well in the competitive market in a much more effective manner.
Recommendations for Tesla’s increase in the profitability
Tesla has to manage effective strategic development by managing effective profitability management through the help of an effective increase in the demands of the products in the market and it helps the organisation to flourish well. Tesla, similar to Porsche, might also use horizontal integration that might help the company to flourish well in the global arena and it helps the company to flourish well.
The effective financial management of Tesla helps the organisation to grow well and it provides the organisation to stay authentic to manage vertical integration and not inclining towards outsourcing helps the organisation to flourish well and helps in attracting new customers from the new market.
The financial position of Tesla might help in better performance management by effective profitability management by making effective financial analysis that helps in better production of the organisation quite well (Fang, 2022). The effective management of the resource development helps the organisation to flourish well and it provides the organisation to develop better organisational management effectively.
Task 4: Strategic Purpose – Ethics and CSR
Evaluating effective Tesla’s strategic development of effective CSR strategy
The CSR strategy of Tesla has been stated more in the impact report released by the company in recent years, where Tesla has emphasized more on the environmental factors that carry the objective of the reduction of emissions for Model 3 (Refer to Appendix 1).
Furthermore, it may be said that under the guidance of several types of research conducted, the result has been that an investment in the sales of Tesla impacts the environment positively where Tesla has focused on the efficiency of the electric consumption of automobiles it produces (Dibble, 2018).
Figure: Tesla product’s average lifecycle emissions in China
(Source: Dibble, 2018)
The corporate side of the CSR strategy of Tesla may be cited as the strategy to reduce the cost of transportation in Asian nations, where it has been discussed that an electric car helps in the reduction of transportation costs compared to fuel cars (Li, 2019).
Tesla has come up with an innovative idea which is the direct social responsibility of the company, by having a reduction in non-renewable energy after using the solar power plants developed by Tesla (Refer to Appendix 2). The social impact of the CSR strategy of Tesla has been the building of more than 23,000 supercharger stations, where the cars had halted at a 300 miles distance and need a better network of such Supercharger stations (Refer to Appendix 3).
The strategy of CSR in Tesla has been mostly following up on the different social media spaces, where Twitter has emerged as one of the greater tools for creating a better brand reputation for Tesla (Corbett, 2020). The social scope for Tesla in terms of CSR strategy has widened with the establishment of the Conflict Minerals Steering Committee following the International Material Data System (IMDS) for respecting environmental and social concerns (Refer to Appendix 4).
In the report, Tesla has created leverage in incorporating the CSR of the company through the creation of Solar City’s networking by installing solar installers in one-stop shopping visits, where the consumers may be able to purchase solar energy storage and electric vehicles in one go.
The procedure of Tesla’s technology by allowing the company to produce and store energy and delivery solar energy to the consumers in the market at the same time has resulted in the strengthening of the CSR strategies. According to the report, Tesla has invested $2.6 billion in the acquisition of Solar city which has integrated the company’s position in vertical integration as a sustainable energy organisation and enhanced its CSR strategies in the competitive market.
Analyzing the ethical issues
Tesla has received a good report focusing on the production of eco-friendly products for delivery to the market which has been carried forward by the sustainable development of the company. However, in 2021, Tesla faced a penalty of $1 million faced due to the violation of air quality in the assembly plants which is an issue caused by exceeding the number of harmful gases permitted for the production of goods (Ethical Consumer. 2022).
Furthermore, Tesla has faced allegations of the ethical practices followed by the company which has discriminated against Black workers and has been subjected to compensate a fine of $137 million to the worker (Refer to Appendix 6).
Recommendations for Tesla to decrease the ethical issues
- Tesla should include promotion and rewarding of good ethical behaviour to encourage the employees in maintaining the ethical code of conduct in the company operations.
- Tesla should monitor on a regular basis the ethical policies created and check on the need for the change necessary to improve the ethical position of the company in the market.
- Tesla should invest in the implementation of AI technologies in effective communication systems that may allow the company to get critical feedback from consumers and employees to maintain ethics in business operations effectively.
Conclusion
Finally, it may be concluded that effective business development and management have helped the organisational management of Tesla to flourish well and it helps the organisation to grow and provides the organisation to develop in a competitive market. In addition to that, effective developmental management of the organisation has helped the company to progress well and it has provided the organisation with effective strategic management that provided the organisation to do quite well.
Tesla management helps in better developmental management of the organisation has provided the organisation to flourish well and helps in mitigating ethical and CSR problems in a much-organised manner.
References
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Assessment Self-evaluation
| Tasks | Self-evaluation |
| Task 1-The External and Internal environment | I have evaluated from task 1 that PESTLE analysis has presented the external environment of the company which states that USA as the country may provide the company with economic and technological stability to develop in the long run.
I have also analyzed the SWOT analysis in the internal environment study which points out that the strength of Tesla lies in being an innovative company in the market, however the threat may arise from the rise in competitors in the same market. I have gained knowledge about the three critical factors which may cause issues for Tesla in the long run such as the rise of competitors such as Ford Motors, mismanagement of technology and poor consumer experiences through services. I have also analyzed that the strength of gaining a competitive advantage for Tesla lies in the company having their own energy generation system and implementation of AI technology in the operations management |
| Task 2- Strategy in Global environment | From task 2, I have evaluated that Tesla being a multinational organisation has been able to use joint ventures as a new market entry strategy for business expansion in foreign countries.
I have also analysed that Tesla has implemented innovation in the effective management system of the organisation which has resulted in the company succeeding in the given market. I have gained the knowledge that the company may have incorporated the use of better management strategies under the effective leadership to help in the business expansion in the global market. From this task I have analysed that Tesla has included the market penetration strategy that may result in the comp-any in effective growth and better management of finances in the company. From the recommendations I have evaluated that the implementation of effective sustainable management for marketing through franchising and merger with companies such as Volkswagen may lead to successful business expansion in the global market |
| Task 3- Corporate Strategy | From task 3, I have analysed that Tesla may be benefitted by the use of horizontal, vertical integration, strategic alliances and outsourcing as a means of corporate strategies to increase profitability in the organisation.
I have gained an understanding that horizontal and vertical integration may be beneficial for Tesla in growth strategic development which may result in sustainable organizational development with effective strategy for producing electric vehicles. From this task I have also learned that the process of outsourcing may be used by Tesla in management of operational cost and implementation of better innovation solutions to the production of cars for the target audience. Furthermore, I analysed that the strategic alliances with corporations such as Panasonic may help Tesla in gaining an advantage in the competitive market by gaining new operation management to increase effective productivity |
| Task 4- Strategic Purpose | From task 4, I have evaluated that Tesla has implemented a strategic development on the environmental factors with the objective of the reduction of carbon emission for the Model 3.
I have also learned that the company has taken the CSR strategy by Tesla to reduce transportation cost in the market and also the reduction of the non renewable energy in the solar power plants to inculcate the CSR strategies. I have gained the knowledge from analysing the report, the company has gained the CSR strategies by allowing the consumers to buy from one stop to meet the storage products and electrical vehicles by strengthening the CSR position in the given market. I have analysed the ethical issues in this task which may have led to me realize that there are ethical issues present in the company such as discrimination and violation of environmental laws. However, I have gained an understanding that the recommendations provided in this report, if maintained by Tesla, may help in gaining the CSR strategies to be improved in the long run |
