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  • Subject Name : Management

Sustainability-Oriented Business Model Development

In the corporate environment, business organizations must seek for sustainability as it helps businesses to lead successfully in the long run. With a growing population, business competition and communal concern towards protecting the environment, organizations look for ways to contribute towards the welfare of such. Tesla is an American firm that deals in producing electric cars and clean energy-based in California (Tesla.com). The company specializes in manufacturing electric vehicles, solar panels, solar roofs tiles, and battery energy storage to make a contribution towards a green initiative or green energy (Tesla.com). This indicates how the company has created a plan of sustainability by providing a valuable contribution towards environmental protection initiative. The business model of Tesla is unique and has great potential to ensure sustainability within the growing competitive market. Concerning such fact, there are numerous factors that have helped Tesla to cater a positive effect on the environment. Understanding how Tesla is been able to create a positive effect on the environment will enlighten to understand the importance of sustainability and environmental protection as both factors are crucial for any business to survive within the highly competitive corporate environment. Thus, this research report will help analyze how Tesla has created a positive effect on the environment and how does it helped to gain sustainability.

Sustainability is an important factor to consider for every business that is competing with end number of competitors having a similar product and service line. According to a study by (Breuer et al.), which states that a shared understanding among stakeholders, customers, and firm would help in creating a mutual understanding to contribute towards sustainability mutually (Breuer et al.). The study reveals that making a business model that can ensure the sustainability-oriented business would be an advantage towards reaching the goal of sustainability of the business as well (Breuer et al.). Similarly, Tesla has adopted an equal or equivalent business model or strategy that is effectively sustainability-oriented and can make sure organizational efficiency.

On the other hand, the environment is a serious concern that the world is facing in the recent era of business. With emerging pollution from industries, waste disposal, and lack of concern by the business organization has created a serious concern both for the communities and firms operating their business. Therefore, it is advisable as per the concept of sustainability, business organizations must adopt to ensure their business competence with the upcoming and ongoing requirements to compete in the market. A study by Bergquist claims that issues of business and sustainability must be a central issue rather than a marginal one (Bergquist). According to the study, (Bergquist), states that sustainability needs to be incorporated in a wider managements in order to ensure that it adheres to the business discipline, communal concern, and enhancing social contribution effectively (Bergquist). Now concerning Tesla, they have adopted the concept of sustainability efficiently and created a business that provides energy-efficient vehicles and clean energy to the society it serves (Vynakov et al.). There is been a tremendous contribution by Tesla concerning environment protection and environmental sustainability as the company believes, to sustain it important that businesses must safeguard the ecosystem where they operate their business (Tesla.com).

Concerning green initiatives, it can be referred to an initiative of contribution and effort towards safeguarding the environment by adopting practices that helps sustain and reduce the harmful effects on the environment. Relating to such fact, Tesla can be taken as an example in regard to a business organization which has shown massive effort and contribution towards initiative an innovation approach of manufacturing electric cars based on clean energy (Vynakov et al.). According to a research study by (Vynakov et al.), which investigates the impact of electric cars by Tesla on the environment and company’s business, indicates that the company has the potential to gain success in term of profit, growth, and productivity (Vynakov et al.). The study also claims that government of many countries are recommending and asking citizens to switch to electric cars as it will help minimize the harmful effects on the environment and a step towards sustaining and protecting the environment (Vynakov et al.). Thus, Tesla has provided a great contribution towards safeguarding the environment.

By manufacturing electric cars and elimination the use of typical fossil fuels in vehicles that emits harmful carbon dioxide and other gas that directly affects the environment negatively, Tesla has magnificently emerged as a leading player in stepping towards the green initiative concept. Besides, the concern towards the environment and making a product that people regularly use that will create less effect on the environment is been a great idea of the company as a whole. It has been understood that the company has provided a positive effect on the environment by taking concern of protecting the environment and producing a product by which people can contribute towards making a green world where there will less pollution and more greenery. Overall, it gives a significant idea and knowledge of how communities and business can share a helping hand towards contributing efforts to safeguard the environment and adopts clean energy. However, there are more knowledge and awareness required to educate about the importance of environmental sustainability and protection by corporate like Tesla.

Works Cited

Bergquist, Ann-Kristin. "Business And Sustainability: New Business History Perspectives". SSRN, 2017, https://ssrn.com/abstract=3055587.

Breuer, Henning et al. "Sustainability-Oriented Business Model Development: Principles, Criteria And Tools". International Journal Of Entrepreneurial Venturing, vol 10, no. 2, 2018, p. 256. Inderscience Publishers, doi:10.1504/ijev.2018.092715.

Tesla.com. "2019 Impact Report". Tesla, 2019, https://www.tesla.com/impact-report/2019.

Vynakov, O. F. et al. "MODERN ELECTRIC CARS OF TESLA MOTORS COMPANY". Automation Of Technological And Business Processes, vol 8, no. 2, 2016. Odessa National Academy Of Food Technologies, doi:10.15673/atbp.v8i2.162.

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