Environmental Audit – Tesla Motors, Inc
Business strategy is affected by a lot of factors in the external business environment. An external audit is an evaluation of the factors that would affect business performance and the effectiveness of its strategy (Hillary, 2017). Tesla Motors, Inc. is a revolutionary business being a manufacturer of electric vehicles in an era of fuel-driven vehicles. Due to a lot of factors, no business has been profitable from the manufacture and sale of electric vehicles. Nonetheless, the future of Tesla looks bright as external environmental factors are currently in the company’s favor.
Tesla as the Thought Leader
A thought leader is an authority in a specialized field whose expertise is often appreciated and sometimes sought after. Tesla is a thought leader in the electric vehicle industry. This company is not the first to make electric cars, but it is the first to make them at a relatively large scale and to be consistent with the manufacturing. Other businesses that have tried to manufacture these cars have discontinued them because the electric car manufacturing business is yet to be profitable. Tesla is also currently experiencing losses, but it has continued to operate over 80 manufacturing plants and display centers since the future prospects of the business seem positive (David & David, 2017).
Tesla’s Business Outlook
An overall look into Tesla’s business outlook may seem positive. The expected increase in oil prices is encouraging people to choose electric vehicles. The company’s production rate has also increased significantly since 2014. However, a more in-depth look into the data and trends shows a worrisome future for this company. For instance, the company’s sales in China have declined. The business has also been making lower investments in its Giga factory, reducing its capability of making batteries cheap enough for the mass market. Oil prices have also remained relatively low regardless of the projected exponential increments in prices (David & David, 2017). Thus, consumers are continuing to buy bigger fuel cars. High competition may also hurt Tesla’s business in the future.
Should Tesla Pursue Greater International Expansion?
It may not be the right time for Tesla to pursue international expansion. The company does not currently have the facilities to meet demand at affordable costs. Tesla has also not managed to make itself successful based on profit in the local market. It is a good idea to let the local business grow to a stable level before trying out new markets, which will come with new environmental challenges. The decision of whether to expand internationally or not points out the declining sales trends. There is no reason for the company to try out new markets when the ones it is operating in are not performing well. Instead, the business must solve the issues in its environment currently before it explores new ones.
How Can Tesla Defend against Competitors?
Tesla can defend against its competition by investing in its production plants to reduce the costs of production while making more efficient batteries. Tesla can only appeal to the consumers when its electric vehicles are viewed as efficient and affordable enough for the mass market.
Themes Important for My Project Organization
From the case of Tesla, one can learn that the environment and competitor factors can affect a business’s performance considerably. My project organization Dell Technologies should focus on the technology and computer products market to determine what the customers would demand at a given point.
References
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases. Pearson.
Hillary, R. (2017). Small and medium-sized enterprises and the environment: business imperatives. Routledge.
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Question 
Environmental Audit – Tesla Motors, Inc
The focus of this discussion is on the use of environmental audits (scan—research to gather external information, discussed earlier in Chapter 3). Based on the reading of the Tesla Motors, Inc. 2015 case and your Internet research, write a short analysis of approximately 300 words on your sense of the importance of having goals and assessments of environmental impact on business success.
Who are the thought leaders in this arena?
How is their business outlook?
Do you think Tesla Motors, Inc. should pursue greater international expansion?
What data would you point to?
How can Tesla Motors, Inc. defend against competitors?
What themes are important for your project organization?