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Table of Contents

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Abstract 100

Introduction
Increasing environmental sustainability concerns, combined with a global focus on addressing
climate change issues, are massively influencing worldwide businesses, governments, customers,
and other shareholders. In the context of environmental sustainability, with a focus on emission-
free automobile transportation, Tesla has developed electric vehicles (EVs) that can address the
critical issues of pollution and non-renewable resource depletion due to fossil fuel-dependent
automobiles. The present essay is focused on analysing this successful addressing of
environmental issues by Tesla. Therefore, the next parts are developed by assessing the strategic
management decisions of Tesla considering different frameworks, including SWOT, Value chain
analysis, and Balanced scorecard. This in-depth analysis has shaped the findings and discussion
for assessing the effectiveness of the corporate strategies of Tesla in establishing environmental
sustainability, thereby efficiently evaluating Tesla’s business actions concerning justified impact
for the societal and environmental aspects.
Literature review 800
Strategic management frameworks and tools for addressing the environmental issue:
Different strategic management frameworks can help businesses to systematically identify and
address emerging internal and external issues toward creating sustainable values in the long-run.
SWOT analysis helps businesses assess internal strengths and weaknesses to explore and
alleviate external opportunities and threats. Strengths can be measured with successful
innovation and elevating brand reputation for sustainable products/services. Weaknesses can be
identified with inefficient utilisatiuon of resources and poor environmental performances.
Emerging opportunities can be associated with credible regulatory incentives with eco-friendly
and sustainable operations and products/services. Uncertain Threats are associated with resource
scarcity and depletion, followed by evolving regulatory risks. In this context, value chain
analysis can also be helpful in strategically auditing the internal business environment
concerning value creation by the business activities. The strategic mapping of generated values
extracted from value chain analysis can drive integrating a balanced scorecard as a strategic
framework for ensuring adequate performance management and decision-making for businesses.
SWOT analysis for scanning business strategies of Tesla EVs:

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The SWOT analysis of Tesla highlighted its internal strengths of technological innovation and
brand reputation. These internal strengths of Tesla were associated with developing sustainable
and emission-free automobiles for transportation. Tesla's internal weaknesses were associated
with production constraints and financial instability in the newly developing EV market. Tesla
identified these weaknesses and addressed them through strategic investments for expanding
market oppertunities. In this context, Tesla’s business strategies were also significantly boosted
by the external opportunities of government incentives for EV adoption. These supportive
government incentives have enabled Tesla to navigate its strategic focus on developing electric
mobility and delivering to the market. However, Tesla also faced external threats of massive
competition from existing traditional automobile manufacturers and uncertainty of emerging
regulatory changes related to sustainability and other emerging concerns for businesses. These
strategic initiatives eventually shaped Tesla's aggressive market expansion with an emphasis on
product innovation strategies toward addressing environmental issues and driving long-term
sustainable growth of Tesla’s business.
Value chain analysis for internally auditing the value creation by Tesla:
Value chain analysis was crucial for Tesla in auditing its internal processes and analysing the
process of creating values from the production and distribution of EVs. Tesla has vertically
integrated its operations by adopting the practice of sustainable resourcing. Tesla also optimised
its value chain to minimise environmental pollution and non-renewable resource depletion by
developing an electrical battery source-driven powertrain for automobiles. This Porter’s value
chain analysis framework may have helped Tesla identify opportunities to eliminate carbon
emissions, optimise renewable fuel and energy usage, and enhance environmental sustainability
across its value chain. The value chain analysis also helped Tesla to ensure control over its
supply chain and manufacturing processes, thereby allowing Tesla to more efficient resource
utilisation. This internal auditing of operational processes concerning the creation of values also
helped Tesla to strategically optimise its production process and production volumes in
alignment with market demands and expansion opportunities.
Balanced scorecard for analysing the strategic decision-making of Tesla:
Tesla also may have utilised the balanced scorecard framework as a crucial strategic framework
for aligning its performance measurement with its strategic objectives related to environmental
sustainability. Tesla ensured that its business operational, production, resourcing, and supply

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chain actions were consistent with its commitment to reducing environmental pollution and
addressing resource scarcity due to non-renewable resource depletion. In this context, Tesla
monitored its progress toward environmental goals and identified areas for continuous
improvement by considering performance measurement of financial, customer, internal
processes, organisational learning and growth. Moreover, the balanced scorecard also shaped the
strategic decision-making of Tesla by offering Tesla management actionable insights into the
environmental impact of their business initiatives and investments. These systematic strategic
approaches and decision-making considering the performances of Tesla’s different business and
operational activities in alignment with business objectives eventually shaped the market
performances of Tesla. Therefore, the balanced scorecard provided insights into the
environmental impact of Tesla's initiatives and investments, thereby guiding Tesla’s strategic
decision-making and continuous improvement efforts.
Strategic management of Tesla for exploring consumer demand and long-term market
revenue by addressing environmental issues:
The SWOT analysis highlighted Tesla’s internal strengths and external opportunities to drive
innovation and market expansion in the EV industry. At the same time, despite facing
weaknesses and threats, Tesla’s strategic investments in addressing increasing emission issues
and long-term focus on non-renewable resource sustainability have enabled Tesla to overcome
challenges and maintain a competitive edge. While SWOT analysis highlighted internal and
external factors influencing Tesla's strategic position, value chain analysis analysed Tesla’s
operational processes for driving value creation concerning environmental impacts. Value chain
analysis has provided insights into Tesla's operational processes and value creation activities,
thereby guiding efforts to minimise environmental impact and also optimise resource utilisation.
Tesla has been able to streamline production processes and enhance efficiency by creating values
of addressing to environmental issues, thereby contributing to long-term market revenue growth.
The balanced scorecard complements these frameworks by constructing strategic support for
different performance parameters associated with strategic decision-making in alignment with
environmental sustainability goals. The balanced scorecard framework has served as a strategic
tool for aligning Tesla’s performance measurement with the altering consumer demands and
emerging regulatory requirements in accordance with the environmental sustainability objectives
of Tesla’s business.

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Findings/analysis 850
Strategic global expansion and market competition

Figure: Dominance of Tesla in the EV market in the U.S. in 2022

Driving profitability by product innovation in alignment with shifting consumer demands

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 Figure: Tesla's strategies for developing EV charging stations in the US
(Source: Carlier, 2023)

Strategically increasing market share and profitability

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 Figure: Strategic decisions for Tesla more prioritising sales volume compared to profit
(Source: Armstrong and Richter, 2023)

Tesla driving revenue growth with strategic management

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 Figure: Growth of revenue for Tesla
(Source: Carlier, 2024)
Conclusion 125

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Reference list 80

Armstrong, M., and Richter, F., 2023. Infographic: Tesla Prioritizing Volume Over Profit.
[online] Statista Daily Data. Available at: <[Link]
margin-and-deliveries/> [Accessed 9 Apr. 2024].

Carlier, M., 2024. Tesla’s revenue 2023. [online] Statista. Available at:
<[Link] [Accessed 9 Apr. 2024].

Richter, F., 2023. Infographic: Tesla still dominates the U.S. EV market. [online] Statista Daily
Data. Available at: <[Link]
united-states/> [Accessed 9 Apr. 2024].

Carlier, M., 2023. U.S.: Public Electric Charging stations by Network. [online] Statista.
Available at: <[Link]
network-united-states/> [Accessed 9 Apr. 2024].