Essay
Need help
- Module
- Unit 5
- Institution
- PEARSON (PEARSON)
International business
[Show more]
Seller
Follow
Content preview
Karl-Loic Landeut190845
P8: Explain how products and processes must adapted for international markets by a
selected business.
Tesla has established itself as a worldwide participant in the automobile business through its
transnational approach of opening stores and service facilities in many countries, selling
vehicles directly, and commencing manufacturing in their various target locations. They
have created cars that do not harm the environment meaning it can be driven in all
continents. Tesla Subsidiary Businesses:
SolarCity Corp.
SolarCity was formed in 2006 by two brothers who are Elon Musk's relatives. Musk came up
with the idea for the firm, and he also provided the initial operating money and acted as
chairman. SolarCity creates, produces, and installs solar energy systems, as well as selling
solar-generated power. Tesla stated in August 2016 that it has struck an agreement to
acquire SolarCity, with the merger to be completed later that year. Tesla stated that the
merger will result in the creation of the world's first vertically integrated sustainable energy
firm, capitalising on synergies provided by combining Tesla's energy storage with SolarCity's
solar power. Even though the merger was authorised by most Tesla shareholders, several
Tesla investors eventually sued the business.
Maxwell Technologies Inc.
The firm was established in 1965 as Maxwell Laboratories Inc. It went public in 1983 and
was renamed Maxwell Technologies Inc. in 1996. The manufacturer of energy storage and
power transmission solutions specialises in ultracapacitors, which are devices that can hold
several times the energy of normal capacitors. Its products are utilised in many applications
such as transportation, industrial, and grid energy storage. Tesla purchased Maxwell in May
2019. Musk has previously stated that ultracapacitors would be a game changer in the
manufacture of electric automobiles. He was particularly bullish about Maxwell's efficient
approach for generating electric battery components, which may significantly cut Tesla's
manufacturing costs.
Grohmann Engineering
Klaus Grohmann created Grohmann Engineering in 1963 in Germany. The firm specialises in
automated manufacturing system design and development. When Tesla announced its
acquisition of Grohmann in November 2016, the company had 700 workers and sales had
grown at an average annual rate of 6% over the previous 20 years. Tesla paid $135.3 million
for the acquisition in January 2017. The overall cost comprised a $109.5 million cash
payment up front, as well as an extra $25.8 million paid in the first quarter of the year as
part of an incentive compensation plan. Tesla stated that the acquisition will help the
electric vehicle manufacturer increase the speed and efficiency of its manufacturing
processes, resulting in considerable cost savings.
Perbix Machine Co. Inc.
Perbix, which was created in 1976, specialises in the design and construction of specialised,
highly automated production equipment. In 2017, Tesla bought it. Earlier this year, Tesla
purchased Grohmann Engineering, a German firm in a similar field. Tesla's acquisition of
Perbix allows it to manufacture more car parts in-house, giving it greater control over auto
, Karl-Loic Landeut
190845
production. Following the Grohmann acquisition, the acquisition was another move in
Tesla's drive to streamline and speed its electric car production process.
Hibar Systems Ltd
Hibar Systems, situated in Canada, was formed in 1974. The firm specialises on high-
precision dispensing pumps and filling systems, such as automated vacuum filling systems
for lithium-ion batteries used in electric vehicles. It's unclear when the transaction occurred
because Tesla made no notification. According to many US and Canadian outlets, Tesla
designated Hibar as one of its companies in an October 2 file with the Canadian
government.
The primary advantage of subsidiary firms stems from the fact that they are separate legal
entities from their parent company. This implies that the two entities can minimise common
duties or obligations and will be regulated and taxed separately.
A joint venture is a commercial transaction in which two or more parties agree to combine
their resources in order to accomplish a common goal. This effort might represent the
beginning of a new project or any other form of business activity. A Joint Venture's earnings,
losses, and expenditures are the responsibility of each member. However, the endeavour is
distinct from the individuals' existing commercial interests. Panasonic provides batteries to
Tesla in the United States, where the two businesses have a $5 billion joint venture in the
shape of a Gigafactory in Nevada. Tesla, which partnered with Panasonic to use the
Japanese company's sophisticated battery technology and intellectual property, stated in
September that it planned to manufacture its own batteries as part of its vertical integration
strategy.
A partnership is a legally binding agreement between two or more persons to manage and
run a business while sharing profits. Tesla and Panasonic have a partnership as they create
batteries for Tesla products.
Why does Tesla use Subsidiaries?
Financial problems. The insolvency of a subsidiary company has no effect on
other firms in a group of companies since it is contained inside that subsidiary.
Property. Intellectual property and other assets can be transferred to a
subsidiary firm, which may shield them from obligations elsewhere in the group.
Tesla use joint ventures to share investments and so that they have a new revenue stream.
One reason why Tesla use a joint venture is because it avoids competition and pricing
pressuring, it can also gain a business intellectual property gain.
Why Tesla have partnerships:
Competitive advantage
Partnerships boost the amount of information, skills, and resources
accessible to you in order to create better goods and reach a larger audience.
Increase their customer base
There are several methods for accomplishing this. It might be through a direct arrangement
you have with a company that sells complimentary items to your own. Customers are drawn
to quality products and services; thus, this alone will help you build your consumer base.
Long Term stability
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller k1landeut. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £16.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now