Impact Of Government Action On Business: Short Paper Topic

Impact of government action on a business: short paper topic selection

Final project for this course involves creating a paper analyzing the impact of governmental action on a business. For Milestone One, you will submit a short paper selecting and describing your chosen business and the relevant government impact it has faced or is likely to face. This includes providing background on the business, its industry, market share, competitors, opportunities, and threats outside of the specific governmental action. You should identify and briefly describe the government impact or potential government action that could affect the business, explaining its significance and appropriateness for the final project.

Your choice should be aligned with the business idea you previously developed in MBA 560: Marketing and Strategy, or similarly related if not previously specified. The analysis aims to develop your understanding of how government regulatory, political, or policy decisions can influence business operations, strategic planning, and ethical considerations. Select a business that has experienced or may experience governmental impacts such as new regulations, incentives, legal challenges, or political decisions that could influence its financial health, public image, or operational strategy.

Paper For Above instruction

The impact of governmental action on a business is a pivotal factor in strategic planning and operational success. For the purpose of this project, I have selected Tesla, Inc., an innovative leader in electric vehicle manufacturing and renewable energy solutions, to analyze how governmental policies and incentives influence its business operations, growth trajectory, and strategic decisions.

Tesla operates within the highly competitive automotive industry, with a particular niche in electric vehicles (EVs). Its market share has been steadily increasing due to technological advancements, consumer preferences shifting towards sustainable transportation, and supportive government policies promoting clean energy. Tesla faces competition from established automotive companies like General Motors, Ford, and newer entrants such as Rivian and Lucid Motors. Opportunities include expanding EV infrastructure, technological innovation, and government incentives for clean energy vehicles. Threats involve regulatory changes, market volatility, and geopolitical uncertainties affecting supply chains and market access.

The government impact most relevant to Tesla relates to federal and state policies aimed at reducing carbon emissions through incentives for EV buyers, stricter emission standards, and infrastructure development. One particular government action that significantly impacts Tesla is the ongoing extension and potential expansion of federal tax credits for electric vehicle purchases. These incentives reduce the cost of EVs for consumers, thereby increasing demand, which aligns with Tesla's strategic goals of expanding market penetration.

Currently, the federal government offers a tax credit of up to $7,500 for EV buyers, depending on the vehicle’s battery capacity and the manufacturer's quota. Tesla, having crossed the threshold of high-volume production, previously benefited from this incentive. However, recent legislative proposals aim to modify or sunset these credits, potentially affecting Tesla’s sales, especially in the United States. Meanwhile, several states, such as California and New York, have implemented additional incentives or stricter emission standards that favor electric vehicles, providing further strategic opportunities for Tesla to capitalize on regulatory support.

Analyzing the potential governmental actions reveals both opportunities and challenges for Tesla. On the positive side, increased incentives and infrastructure investments can boost consumer adoption of electric vehicles, thereby expanding Tesla’s customer base. Furthermore, government policies aimed at phasing out internal combustion engines reinforce Tesla’s market position as a leader in electric mobility. Conversely, legislative rollback of incentives or introduction of unfavorable regulations could constrain sales and profitability, requiring Tesla to adapt its marketing, pricing, and production strategies accordingly.

Beyond direct incentives, governmental policies on trade and manufacturing also influence Tesla’s global expansion plans. For instance, tariffs and import restrictions on Chinese-made vehicles, or subsidies for domestic manufacturing, could affect Tesla’s operational costs and supply chain management. The recent emphasis on local manufacturing in the United States, exemplified by Tesla’s Gigafactory in Texas, aligns with government policies to promote domestic production and jobs, thus creating strategic advantages for the company.

Furthermore, Tesla’s engagement with regulatory bodies underscores the importance of government relations in shaping corporate strategy. The company actively participates in policy discussions related to autonomous driving regulations, safety standards, and energy policies. These regulatory frameworks determine the speed of innovation deployment and the scope of AI-driven features, which are core to Tesla’s product differentiation.

In identifying this topic for the final project, the focus on Tesla and governmental impact offers a comprehensive case study of how public policy decisions directly influence industry dynamics, corporate strategy, and competitive positioning. The evolving regulatory landscape presents both risks and opportunities, making it a suitable subject for analyzing strategic responses to government actions. Understanding these influences will enable a more nuanced view of strategic management in the context of government-business interactions.

In conclusion, selecting Tesla’s experience with government incentives and regulations as the focus of this project aligns with the requirement to analyze significant governmental impacts on business. Tesla’s strategic adaptations to these policies demonstrate the critical interplay between government action and corporate decision-making, providing valuable insights for understanding the broader implications of policy on industry and market development.

References

• Harrison, K. (2021). The impact of government incentives on electric vehicle adoption. Journal of Sustainable Transportation, 15(3), 245-260.
• Jones, T., & Smith, L. (2020). Corporate strategies in response to environmental policy changes. Business and Environment Journal, 22(4), 410-427.
• Lee, A. (2022). Regulatory policies and the electric vehicle market: A case study of Tesla. Energy Policy, 167, 113-125.
• Martinez, R., & Chen, Y. (2019). Government subsidies and renewable energy industries. Renewable Energy Review, 37, 1021-1033.
• O’Neill, P. (2023). Trade policies and international manufacturing strategies of tech companies. Global Business Review, 24(1), 88-104.
• Silver, D. (2022). The future of electric vehicle regulations in the United States. Policy & Society, 41(2), 225-239.
• Thompson, G., & Lee, S. (2021). The influence of government policy on corporate innovation. Innovation Management Journal, 18(4), 330-345.
• U.S. Department of Energy. (2023). Federal incentives for electric vehicles. Retrieved from https://www.energy.gov/eere/electricvehicles/benefits-and-incentives
• Watson, P. (2020). Strategic responses to environmental regulations: A Tesla case analysis. Business Strategy and the Environment, 29(2), 345-359.
• Zhang, L. (2023). U.S. government policies and the evolution of renewable energy businesses. Journal of Policy Analysis & Management, 42(1), 157-173.