Case study

Case: Tesla powers on with green energy solutions

Current Issue: Challenges in global market connection/globalization

This is a current issue facing international managers. Focusing on Tesla’s case study, the company has unveiled plans to expand power plants in Kauai islands. The company faces challenges on product supply and it has decided to establish effective supply chain which will supply green energy create new move on Powerpack-2 battery units (Stannard, 2017). These solar-plus-solar initiatives will boots global sustainability. 30,000 residents in Kauia have solar panels but at night they do not generate power but they are forced to use burned diesel fuels.  The unveiled plan to develop power plants will save gallon of fossil fuel of 1.6million in yearly basis (Stannard, 2017).

According to my understanding, the challenges facing managers today is based on globalization. Due to economic development, companies need to move to the national borders and offer services to global customers. Globalization is important in that company experiences many opportunities as well as high revenue. Through globalization on, specific regions can access natural resources as well as products and services needed to sustain life (Ball et al, 2010).  However, globalization has its own challenges since the process of moving product to international level requires environmental consideration.  Company should maintain cultural identity. In addition, the process needs ethical concern in order to minimize the damage to the new environment.

 

 Donald et al (2010) asserts that the major driving force of globalization is technology.  Due to rapid growth of technology, corporations are expanding ideas and information in international level and allow customer to utilize the foreign goods. This technology has expanded the markets and has created connection with global customers. Tesla Company expanded its power plan to Kauai to develop the local electricity supply. This is associated with economies of scale where the company globalised its services to improve productivity and efficiency. Due to intense competition, companies develop plants in other areas in order to enjoy competitive advantage and maintain competitive edge (Donald et al, 2010).

Tesla case study relates with innovation of natural resources. This means that companies modify natural resources such as sun, water and more through innovation (Donald et al, 2010).  Due to rapid competition in global markets, companies focus on environmental sustainability. For example, Tesla Company focuses in sustaining environment for future generation.  It has developed long actions -term for bringing environmental benefit to both local and international customers. There are factor conditions which force companies to innovate environmental sustainability. For example, Tesla Company learnt that there is scarcity of power plant in Kauai islands and decided to develop new approaches.  This will lead to comparative advantage through eliminating burnt fossil fuel and providing solar power (Donald et al, 2010).

From personal opinion, the rapid growth of international business is associated with comparative advantage and challenges. The change is inevitable and companies must join the globalization of trade and carry out the business activities in national borders to maintain the competitive edge (Donald et al, 2010). However, managers face globalization-related challenges   such as management strategies, practices and competition. In addition, companies enjoy competitive advantage by sustaining environment. This achieved by using improved techniques which will assist in discovering and innovating new prospecting equipment. Generally, I believe that   modern companies must implement change and expand the business in international level to enjoy competitive advantage.  In order to increase profit, maintain existing market and achieve efficiency,   there are challenges which are met (Donald et al, 2010). They must understand the organization’s mission and vision, and plan how to achieve the goals. They should also understand the weaknesses, strengths and implement strategic planning to address the challenges met.

 

Reference

Donald A. Ball.,Michael, J. Geringer., Michael S. Minor.,&  Jeanne M. McNett  (2010). INTERNATIONAL

BUSINESS THE CHALLENGE OF GLOBAL COMPETITION. TWELFTH EDITION. The McGraw-Hill

Companies, Inc. All rights reserved

 Stannard James. (2017). Tesla powers on with green energy solutions. WORLD FINANCE.

Retrieved from; http://www.worldfinance.com/markets/tesla-powers-on-with-green-energy-solutions