An organization is defined as an entity that has a legal entity, rules, regulations and policies, it is run by the individual to attain pre-determined goals and objectives. The present study will be based on an organization namely Tesla, a multinational automotive and clean energy company in America. The report will outline an overview of the company including background, market, industry and objectives and justify the company's suitability as a business, enterprise and entrepreneur. It will also discuss the business environment of Tesla via PESTLE analysis. Moreover, it will compare Tesla with another example, explaining similarities and differences.
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Tesla is a multinational company known for its innovation in electric vehicles, battery storage, and renewable energy solutions. The organization has expanded its operations globally, focusing on sustainable practices and technological advancements. Its continuous efforts in research and development, coupled with a strong market presence, have helped the company meet customer demands and maintain a competitive edge in the automotive and clean energy industries.
Tesla is a multinational company engaged in the manufacturing of electric automobiles, batteries for electric vehicles, home power storage, solar panels and so more. The organization was founded in the year 2003 by Martin Eberhard and Marc Tarpenning and was headquartered in Austin, Texas. The present analysis in the BSNF52 Introduction to Organisations context highlights the company’s journey, innovations, and global operations. The company first launched its electric car namely Roadster in the year 2008 and rapidly became one of the well-known and recognized car brands globally (Slavković, 2022). In 2012, the company focused on the production of a new model i.e. Model S Sedan. However, the model faces criticism due to its design and performance. Apart from this, in the year 2014, Tesla introduces the concept of Autopilot, a form of semiautonomous driving as an innovation in its product range.
Tesla operates in business in an automotive industry within the segment of clean energy and electric vehicles. The automotive industry of the US is considers as a largest automotive markets globally. The industry values at $4.8 Billion in the year 2024 and expected to grow $13.8 Billion between 2024 to 2033 (US Automotive Market 2024–2033, 2025). The growth of industry will efficiently results in tremendous growth of Tesla as well.
The company operates its business globally and has manufacturing facilities in China, the United States and Germany (Wen et al, 2021). It allows the organization to deliver more than 400,000 vehicles each quarter, resulting in meeting the customer needs and revenue objectives of the organization. The company has a market cap of around USD 765.56 Billion which makes the company the most valuable organization in the world. The market of Tesla is very extensive as a result it can sell around 1,103,070 electric cars within the 8 months of the year 2024. In addition, the company witnessed a significant increase in its annual revenue as it generated $ 96.77 billion in 2023 which was an increase of 18.8 % from its previous year 2022. Moreover, within the year 2024, Tesla's annual revenue was valued at $ 97.69 billion, is increase of 0.95% from 2023 (Tesla Sales, Revenue & Production Statistics, 2025).
One of the main objectives of Tesla is to accelerate the globe’s transition to sustainable energy. To attain this objective company focus on manufacturing electric vehicles, battery storage as well and solar panels. The company contributes to protecting the environment by providing sustainable transport options worldwide. This objective of Tesla makes it unique from its competitors resulting in providing a competitive edge within the competitive industry effectively and efficiently.
From the evaluation of the case of Tesla, it is identified that the company effectively fits in the category of business, enterprise as well as innovator. Tesla is categorized as a business because it is engaged in the activity of buying and selling its cars, batteries and other products to generate profit. However, the company is also categorized as an innovator due to its continuous efforts towards its effective and efficient innovation of electric cars within the automotive industry (Maradin, Malnar and Kaštelan, 2022). Moreover, Tesla is categorized as an enterprise as it is a large-scale organization with a mixed structure, multiple divisions as well as greater operations worldwide.
Business environment refers to a total of external as well as internal factors that impact a business. The business environment is complex and dynamic as a result several direct and indirect factors impact the operation of the business. In the context of evaluating the business environment of Tesla, PESTLE analysis was used. It is a model that helps the business to identify the impacts of factors such as social, political, economic etc. on the business and its operations. It is as under:
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The business and entrepreneurs operate differently in the context of global, national and local environments. In a global environment, entrepreneurs and businesses face different kinds of challenges as well as opportunities. For instance, in the global business environment, a company can operate while making partnerships with others including sharing resources, and expertise while an entrepreneur finds it difficult to make partnerships with well-known global companies. However, the entrepreneur is required to enter into the global market with innovative products to mark its footprint as well as market presence in the global environment.
Moreover, it is identified that entrepreneurs and businesses operate differently in global, national and local markets in terms of research and development. For instance, in the local market businesses and entrepreneurs require less investment in research as the area is narrow and less number of customers available (Tereshchenko et al, 2024). Further, in terms of national and global levels, both require medium and high investment to understand current trends, customer behaviour and market circumstances. Apart from this, in a global context, businesses and entrepreneurs operate with economies of scale as they manufacture and produce products in large amounts which brings economies of scale and a declining cost of operation. On the other hand, in the local context, there is a lack of scope for economies of scale as the market and customer base are quite small which makes it crucial for the organization to keep its supply limited.
In addition, in the global environment, businesses and entrepreneurs operate by creating strategies according to the differences in customer behaviour and market situation of different countries worldwide. For instance, if in one country a customer prefers to purchase the premium product then the company use a premium policy where high-quality products are offered at a high price while in another country if a customer with less disposable income prevails then businesses and entrepreneurs furnish affordable product range (Prado, Robinson and Shapira, 2022). This helps the country to satisfy customer needs in a significant manner. In contrast to this, at the national and local levels, entrepreneurs and businesses use one strategy by external environment of the local and national boundaries. For instance, if consumers prefer sustainable products in national and local markets companies focus on sustainable strategy within business.
Through comparing the case of Tesla, a company in the automotive industry with IKEA, a furniture company, it is found that there are several similarities and differences in terms of different contexts. The BSNF52 Introduction to Organisations approach helps in analyzing these differences systematically, highlighting how businesses and entrepreneurs adapt at global, national, and local levels. In the context of innovation, one of the main similarities between the two organizations is both focus on bringing innovation and creativity in their products and services to gain a competitive edge, better customer experience, and satisfaction as well as the creation of a strong brand identity (Sin et al, 2021). Moreover, in the context of meeting customer needs, both organizations focus on building attractive and useful products considering customer behaviour and their needs. For instance, with an increasing number of eco-friendly customers Tesla offers electric vehicles with attractive features. In contrast to this, to meet customer needs IKEA emphasize furnishing furniture at affordable range to a large customer segment. Also, Global presence is one of the main similarities between Tesla and IKEA both companies have a wide range of operations in different countries. Tesla has operations in China, the US and Germany while IKEA has its business in Canada, Europe and so on.
However, there are some differences between Tesla as well as IKEA, in the context of industry, both operate in different one as Tesla engages in the automotive industry while IKEA deals in the retail industry. Besides this, in the context of the customer segment, Tesla focuses on eco-conscious and high-income groups worldwide while IKEA emphasizes customers with low and medium-income groups who looking for attractive and affordable furniture option.
Conclusion
As expressed, one of the main purposes of the organization is to generate profits from its operations. The study was based on Tesla which focuses on innovation and deals in electric vehicles. The company's market is wide as operates business in different countries like Germany, China and so more. The report outlined that the increasing number of eco-friendly customers results in increasing demand for electric vehicles act as a point of success while the trade war between the US and China creates a challenge for Tesco. In addition, it is identified that businesses and entrepreneurs differently and operate at global, national and local levels as greater focus is given to research in a global context as compared to the others.
References
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