Question

Tesla Motors is a California-based company that designs, manufactures, and markets high-performance electric cars. The company's first vehicle to hit the market was the Tesla Roadster, a sporty two-seater. Tesla's performance specifications are truly impressive. For example, the Roadster can accelerate from 0 to 100km/h in under 3.8 seconds. This type of acceleration is comparable to many high-performance Ferrari combustion engine models. The Tesla luxury sedan Model S and sport-utility vehicle Model X have also received accolades for artful design and performance. Not surprisingly, the electric car company has attracted many high-profile customers including Ben Affleck, Matt Damon, and Laurence Fishburne. Tesla automobiles use lithium-ion battery cells and are the first electric vehicles to have a range greater than 320kms per charge. Many reports suggest that Tesla's energy efficiencies are superior to those of all other electric and hybrid cars. These efficiencies come with a cost, however. The base price of the Model S, Model X, and Roadster are about $60,000, $80,000, and $110,000, respectively. Discuss and explain 5 macro-environmental forces that may affect Tesla's business in Canada

Answer 1

Macro Environment factors that may effect the business of Tesla in Canada:

The Canada is country in northern part of North America. It is one of the developed countries and placed at 10-H position in overall world economies.

The following five macro environmental forces are defined as below:

Political Environment:The Canada is a parliamentary democracy and has environment similar to US. The tesla being US based company will not find any political differences and challenges in the market.

Technological Environment: Canada is also a country with very high output of technology growth. Around 7% of total GDP of Canada is from IT industry. Canada is not major hub or origin to any car company. Many other companies from outside canada are working there.

Ecological Environment: Canada is also concerned about growing pollution and environment change. The Tesla cars are non polluting and provide very environment friendly emission. There will be a very good market for Tesla.

Social Environment: Social environment of Canada is also very healthy and society is cosmopolitan and welcomes every one. The Tesla can easily establish its market there.

Economic and Legal Environment: The Canada is highly developed market and economy and placed at 10th position in overall economy by GDP in the world. There is very good per capita income and every household holds the four wheeler and it has very mature and one of the largest auto market. The legal environment and other structure is also not much complex as it is based on British culture of common man or people.