Discuss about the International Business Management for Knowledge and Services.
International business refers to the activities of the trades and the transactions at the global levels. The international businesses take into account all the products and the services that might be helpful in the earning of revenues like the trade of the various capitals, goods, knowledge, services and technologies among the various countries across the globe. The international management of the business demands the display of the various knowledges and the skills that tend to be above the normal expertise that is required to put forth in the maintenance of a given business. These measures might include the matters that pertain to the business regulations that are followed in the nations wherein the concerned organization has been operating, the customs that are followed within the territories of the concerned countries and the ability to conduct the required transactions involving a number of currencies. The following report attempts to shed light on the management of the political, economic and the socio-cultural environment faced by the department of electric vehicles that is operated by the Tesla Motors. The report also attempts to discuss the entry strategies that were adopted by the concerned company in the process of the expansion to the various other countries. The report further advances to discuss the organizational controls exhibited by the company across the international borders and the business management techniques that should be adopted by the company in order to adopt to the various cultures present all across the globe. The report nears its end with a discussion on the various ethical challenges that have been faced by the company and the ways in which the situations had been responded to. The report finally ends with recommendations that might be implemented by the company in order to bring about an overall improvement of the concerned business organization.
The Tesla Motors was founded in the year 2003 by Martin Eberhard and Marc Tarpenning who was thereafter joined by Elon Musk in 2004. The present CEO and the chairperson of the company, Elon Musk had formerly served SolarCity as a chairman and co-founder. The company is well-known and famous for the various luxurious vehicles that the concerned car-manufacturer provides to the concerned clientele. The present CEO attempts to envision the organization in discussion as one of those independent auto makers and technology companies that is capable of providing the concerned clientele with the electric cars that have been priced on an average basis in order to help the common people have an access to the electric vehicles (Lin, 2018). The company is known to provide employment to almost 37,500 employees all over the world and is known to have earned a revenue of almost 11.76 billion US$ in the year 2017 (Ir.tesla.com, 2018). The company is known to have the branches all over the world especially in the countries of Denmark, Ireland, Portugal, UAE, Hong Kong, Australia, New Zealand, Mexico, Canada to name a few (Tesla.com, 2018). The company specializes in the production of the electric cars, the lithium-ion batteries that are generally used for the storage of the energy, the photovoltaic panels that might be used in the domestic areas.
The concerned company in discussion attempts to manage the political, economic and the socio-cultural environments in a very efficient manner. The concerned company is known to have been strengthening the financial performance by accepting the various incentives that are extended by the concerned governments of the countries wherein the company has been operational and has branches (Chen & Perez, 2017). The insignificant amount of the carbon emissions might help the concerned company in the gaining of the various incentives that are extended by the countries. The economic environments that are faced by the concerned automaker company in discussion, are the decreases in the costs of the batteries and the other renewable sources of energy (Wang et al., 2014). These factors tend to help the concerned automaker organization, Tesla Motors to earn higher revenue in the various countries wherein the company has been functioning. However, the issues that pertain to the economic stability within the concerned countries, mainly in Asia and Europe, might pose to be a threat to the financial growth of the company (Muneer et al., 2015). The company has also been observed to have handled the socio-cultural issues in a very adept manner. The company has benefitted from the various socio-cultural environment that is present in the countries wherein the concerned automaker has been operating. The global acceptance and popularization of the low-carbon lifestyles, the increase in the preference of people for the renewable energy sources and the improvement in the distribution of the wealth in the developing markets has helped the concerned company in the overall improvement of Tesla Motors (Grant, 2016).
The concerned automaker company in discussion, Tesla Motors, is observed to have been using the existing positions in the existing markets to bring about a position of winning in the new markets wherein the company has been planning to expand. The company tends to put forth the various free trade agreements with the governments of the concerned countries that lead to the enhancement of the chances that are related to the overall growth of the concerned company. The free trade agreements help the concerned company to penetrate the foreign markets with ease (Moritz et al., 2015). The other factor that might help the company in the successful penetration of the concerned market is the political stability in the concerned market. The company uses the various wholly-owned subsidiaries in the matters that pertain to the entry in the newer markets (Stringham, Miller & Clark, 2015). The company might find the stable political conditions to be helpful in the matters that pertain to the establishment of the branch of the concerned automobile maker in the chosen market. The company is also observed to have been implementing the strategy of ecosystem carryovers in order to penetrate in a new market. The company already achieved a high position in the global market due to the huge client base of the company that aims to offer Tesla Motors with high loyalty and the high amount of disposable income. This further helps the company to implement the ecosystem carryover strategy in the expansion to the other markets.
The concerned company in discussion, Tesla Motors, has been observed to put forth a highly functional organizational control across the international borders wherein the concerned company has been functional. The company is observed to lay more stress on the managerial control that might be needed in the effective management of the employees of the concern at the various outlets of the company (Mangram, 2012). The headquarters of the company at Palo Alto, California, United States play a hugely important role in the monitoring of the decisions that are generally taken by the various branches of the company at the various countries wherein the company has been active. However, the various branches of the company at the various countries tend to display certain powers that are bestowed upon them in the matters that deal with the management of the workforce of company in the concerned country wherein the concerned organizational has been located. The company is known for the huge amount of attention that it dedicates to the recruitment of the staff members of the concerned business organization (Hbr.org, 2018). The present CEO of the company opines that the recruitment of the proper talent from all over the word might be extensively helpful in the matters that pertain to the overall development of the concerned automaker company. The members of the workforce of the company are encouraged to put forth the innovative ideas and solutions that might help the company to attain new heights by bringing about an overall improvement of the concerned automobile company.
The concerned company in discussion, Tesla Motors, is known for the various strategies that it has adapted in order to deal with the expansion of the company in the various international markets. The company is known for the strategies that it has been adopting in order to procure grants from the concerned government. The concerned company is observed to modify the various products that it has been offering to the clientele with accordance to the concerned market wherein the clientele is based (Hardman, Shiu & Steinberger-Wilckens, 2015). The company has also been observed to set up the stores in the locations that are easily accessible and highly visible by the target clientele of the company. The company is known to abide by the principle of reaching the clientele before the latter develops a plan for procuring a new automobile. The company is also known for the strategies that it has adapted in order to meet the localized needs of the concerned clientele as for example, the automobiles that are marketed in the Chinese market consist of an “executive rear seat” that aims to make the rear seat experience for the concerned client who has been using the concerned automobile (Lambert, 2018). The research and development unit of the company is also known to work in collaboration with the various other companies in order to develop the products that are more sustainable.
The company has faced certain ethical challenges since the expansion of the organization in the various international markets all over the world. The concerned organization has also been observed to have resolved the issues that it had faced in a very effective manner. The company had been reported to have faced issues with the members of the workforce who were reported to have been complaining of various health related issues that they had been facing while they continued to work at one of the manufacturing units of the concerned automaker (Wong, 2018). The CEO had helped in solving the issue by holding meetings with the concerned employees and arranged for the healthier work environments for the concerned employees (Afr.com, 2018). The company had also faced certain legal doubts on the outcomes of the implementation and the launch of the automated vehicles that are marketed by the concerned automaker company (Etzioni & Etzioni, 2017). The company has faced a huge number of questions and doubts on the ethical factors that are to be considered while taking into account the innovative measure of introducing the automated vehicles in the real traffic scenario present in the concerned countries.
The company is advised to abide by certain measures that are needed in order to deal with the various conditions that the concerned company has been facing in the recent times. The company might be advised to employ a medical team in the various locations wherein the company is located so that the concerned employees might have the scope of a regular health check-up as well as an access to the healthcare units in cases of emergencies. The company might also be advised to adapt other strategies in making an entry into the foreign markets, like the strategy of the joint ventures that might help the concerned company to develop a clearer idea about the tastes and the choices of the concerned clientele that has been targeted by Tesla Motors in the concerned country or region. The company might also be advised to implement the better understanding of the cultural and the ethical matters that are present in the various international markets wherein the concerned automobile magnet aims to expand. This might help the concerned company to put forth a clear understanding of the various cultural and ethical issues that might be faced by the concerned workforce of the company in the concerned international market location.
Conclusion
Thus, from the above discussion it might be concluded that the concerned company in discussion, the electric vehicles department of the automaker magnet Tesla Motors has adapted various business strategies that are seemingly helpful in binging about an overall improvement of the concerned company. The department of the company in discussion has been observed to have been demonstrated a proper growth in the matters that deal with the expansion in the concerned markets. The above report also demonstrates that fact that the concerned company has effectively handled the various strategies that are needed in order to control the various overseas branches of the company that are active in the international markets. The concerned automaker might be observed to attain the concerned heights provide that the company implements the recommendations that are extended to the concerned management of the automobile magnet in discussion, Tesla Motors, headquartered in Palo Alto, California, United States.
References
Afr.com. (2018). Is a Tesla really ethical? Company won’t say how its batteries aren’t tainted. Retrieved from https://www.afr.com/technology/is-a-tesla-really-ethical-company-wont-say-how-its-batteries-arent-tainted-20170101-gtkjex
Chen, Y., & Perez, Y. (2017). Business model design: lessons learned from Tesla Motors.
Etzioni, A., & Etzioni, O. (2017). Incorporating ethics into artificial intelligence. The Journal of Ethics, 21(4), 403-418.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Hardman, S., Shiu, E., & Steinberger-Wilckens, R. (2015). Changing the fate of Fuel Cell Vehicles: Can lessons be learnt from Tesla Motors?. international journal of hydrogen energy, 40(4), 1625-1638.
Hbr.org. (2018). What Tesla and Apple Both Know About Entering New Markets. Retrieved from https://hbr.org/2015/05/what-tesla-and-apple-both-know-about-entering-new-markets
Ir.tesla.com. (2018). Financials & Accounting | Tesla, Inc. Retrieved from https://ir.tesla.com/results.cfm
Lambert, F. (2018). First Tesla Model 3 vehicles arrive in China and Dubai. Retrieved from https://electrek.co/2018/04/04/tesla-model-3-china-dubai/
Lin, P. (2018). The Ethics of Autonomous Cars. Retrieved from https://www.theatlantic.com/technology/archive/2013/10/the-ethics-of-autonomous-cars/280360/
Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of Strategic Marketing, 20(4), 289-312.
Moritz, M., Redlich, T., Krenz, P., Buxbaum-Conradi, S., & Wulfsberg, J. P. (2015, August). Tesla Motors, Inc.: Pioneer towards a new strategic approach in the automobile industry along the open source movement?. In Management of Engineering and Technology (PICMET), 2015 Portland International Conference on (pp. 85-92). IEEE.
Muneer, T., Milligan, R., Smith, I., Doyle, A., Pozuelo, M., & Knez, M. (2015). Energetic, environmental and economic performance of electric vehicles: Experimental evaluation. Transportation Research Part D: Transport and Environment, 35, 40-61.
Stringham, E. P., Miller, J. K., & Clark, J. R. (2015). Overcoming barriers to entry in an established industry: Tesla Motors. California Management Review, 57(4), 85-103.
Tesla.com. (2018). Electric Cars, Solar Panels & Clean Energy Storage | Tesla. Retrieved from https://www.tesla.com/
Wang, X., Gaustad, G., Babbitt, C. W., & Richa, K. (2014). Economies of scale for future lithium-ion battery recycling infrastructure. Resources, Conservation and Recycling, 83, 53-62.
Wong, J. (2018). Tesla factory workers reveal pain, injury and stress: ‘Everything feels like the future but us’. Retrieved from https://www.theguardian.com/technology/2017/may/18/tesla-workers-factory-conditions-elon-musk
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