Tesla CompanyAnalysis PaperMGMT 3310Vanessa BarajasCSU Stanislaus The general term for global environment refers to an environment in whicha company operates. This includes a range of factors that can influence abusiness, including its location, politics, technology, culture, and theeconomic status of the global environment. Tesla Motors has also expanded intointernational markets. Tesla started delivery of its Model-S in Europe inAugust 2013, while deliveries in Asia occurred in April 2014.
Tesla had a lotof success in Europe, Tesla is already the best-selling model in Norway. Norwayhas a reputation for being environmentally friendly. The incentives provided bythe Norwegian government have helped Tesla sell more cars there. China has alsoovertaken the US as the world’s biggest automotive market. General Motors sellsmore cars in China than it does in the US.
Currently, Tesla does not have anyjoint venture in China. However, most other automotive companies including Fordand General Motors have formed joint ventures with domestic Chinese companies.As Tesla grows in China, it might want to explore joint venture partners in thecountry (International, 2015). Tesla also believes that China could be one ofits biggest markets in the coming years. Socially responsible companiesare extremely rewarding for investors.
The California-based automotive companymanufactures and sells zero-emissions cars, which cause less harm to theenvironment than gas-powered-vehicles thereby making it a socially responsiblecompany. “Tesla’s social responsibilities include communities(highest priority), customers, employees, investors/shareholders, andgovernments. At Tesla Motors communities are an automotive business that directly accomplishes theconcerns of the community and stakeholders that determine the brand image (Tesla,2017). One of Tesla’s main interests are to emphasize how much the naturalenvironment needs to be conserved or protected. The communities have statedthat they are very satisfied with how environmentally friendly the products arebecause of zero emissions. In 2014, CEO Elon Musk announced that the companywould allow other individuals and organizations to use its patents. Thiscorporate social responsibility strategy directly benefits communitiesinterested in using or developing technologies, and emphasizing Tesla’s missionstatement (Tesla, 2017).
Tesla has also partnered with SolarCity to createmore electric power charging stations in order to bring more sustainable energysolutions to the community. Tesla plans to bring down its battery costs by morethan 30% with its Gigafactory. This would be a competitive advantage for Teslaover other electric vehicle manufacturers (International, 2015). According to Tesla, “By2020, the Gigafactory will reach full capacity and produce more lithium ionbatteries annually than were produced worldwide in 2013.”Customers are interested in the quality of products as well asaffordable pricing in a vehicle. The company gives high priority to thesestakeholders. To address these interests of customers the company continues to searchfor new ways of lowering battery costs. The company plans to manufacture itsown batteries to make its electric automobiles more affordable instead of continuingto purchase batteries from Panasonic.
This approach will improve customerexperience and convenience as well as the social responsibility efforts toensure Tesla satisfies the interests of customers as a stakeholder group.Tesla Motors believes that their employees are a major successfactor in its business. Employees as stakeholders influence businessperformance and productivity. Tesla’s interests include high compensation and considerablecareer opportunities.
Tesla satisfies these interests through a competitivecompensation strategy, as well as HR programs designed to enhance skillsdevelopment and leadership development. The company’s corporate socialresponsibility strategy offers learning experiences through collaborativeprograms with partner firms, thereby satisfying the interests of employees asstakeholders (Tesla, 2017). Tesla’s early days depended on the amount of funding that came frominvestors.
These stakeholders are important in influencing the capitalizationof the company (Tesla, 2017). Investors and shareholders have interests in theprofitability and growth of the business. Tesla’s corporate socialresponsibility strategy approaches these interests through long-term strategiesthat directly aim to transform the automotive market (Tesla, 2017). The companyallows its patents to be used by other companies in hopes that it will increasemarket demand for electric vehicles. This in turn will create more growth opportunitiesfor the company.
The sustainability and environmental friendliness ideals ofthe company are also in line with current sociocultural trends, supportingbusiness growth. Tesla’s corporate social responsibility strategy satisfies theinterests of investors/shareholders as stakeholders of the business (Tesla,2015)Tesla Motors experiences the effects of governmental action bystakeholders that present requirements, limits and opportunities to thebusiness. This stakeholder group’s interests include legal compliance, as wellas business contribution to economic growth. With plans for strategic globalexpansion and an excellent sustainability record, Tesla’s corporate socialresponsibility strategy satisfies these interests (Tesla, 2015).Diversity at Tesla motors is something they take huge pride in.
“Diversityis one of the many factors we consider when hiring and recruiting, and we arefortunate to benefit from a wide range of backgrounds, perspectives, and ideasfrom our employees. This diversity will remain a key feature of work life atTesla going forward states Tesla.” The gender gap within Tesla Motors’leadership ranks is more like a canyon. All top executives and board membersare men.
The technology industry has been widely criticized for its lack ofwomen long with a shortage of blacks and Hispanics. References International Expansion Is Crucial for Tesla MotorsMark O’Hara | Aug 31, 2015 11:26 am EST -http://marketrealist.com/2015/08/international-expansion-crucial-tesla-motors/ Tesla Motors, Inc. Corporate Social Responsibility, StakeholdersRoberta Greenspan – http://panmore.com/tesla-motors-inc-stakeholders-corporate-social-responsibility Tesla’sgender gap http://fortune.com/2014/08/06/teslas-gender-gap-among-senior-leaders-narrows-but-just-a-little/