Factors That Influence The Sustainability Of A Company

1333 Words6 Pages
General Environment Outside factors can influence the sustainability of a company regardless of the internal structure within the business. Some factors in the general environment that companies should be aware of include demographics, social, economic, political, and others. Understanding how each of these factors can impact the company allows management to make changes within the company for maximum success. At Tesla, the political, economic, and technological factors greatly impact the efficiency of the company. Demographic When the Roadster model was released in 2011 the market demographic was the upper-class with a target audience geared towards Early Adapters and Eco-Hipsters. With headquarters located in Silicon Valley, CA this…show more content…
Political Political factors that can impact the company range from an increase in oil prices to environmental laws. Tesla’s customer base is not limited to the United States. The company has custom-made and delivered the Roadster, Model S, and Model X to customers worldwide. In order to comply with global environmental laws, the team at Tesla must produce a vehicle that adheres to all requirements of environmental laws set in place by governments around the world. Countries such as, Canada and Norway are encouraging citizens to purchase energy efficient vehicles through offering incentives and discounts to reduce their country’s carbon footprint. Other laws that have impacted Tesla include, a California law, that reduced Elon Musk’s annual salary to a mere $35,360 dollars because of “annualized minimum wage requirements”. Technological The technological factors within the general environment might be the most influential of all. Tesla is known for delivering a vehicle that is above and beyond the standard EV. Every model is made with high quality products that offer a sleek design, maximum acceleration, and futuristic technology. Tesla’s location in Silicon Valley allows for the collaboration of Musk’s other companies to yield further research and development. With energy efficiency at the forefront of the company’s objectives, Tesla has been diligently working to provide consumers with 100% solar powered super charging stations
Open Document