Discuss Tesla’s investment in Shanghai.

Posted: July 14th, 2022

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check out 2 links down below and answer the following questions ————————– https://www.wsj.com/video/series/news-explainers/tesla-quality-issues-threaten-its-dominance-in-china-ev-market/48ABFC5F-C688-491F-A56C-5DF8EC55BCA4 Question 1. Discuss Tesla’s investment in Shanghai. What are the benefits of building its cars in China versus the United States? How does Tesla’s ability to operate a wholly owned operation in China rather than partner with a local company benefit the company? Question 2. Reflect on Tesla’s publicity crisis in China. Explain the precarious situation in which the carmaker currently finds itself. Why is it so important for Tesla to ensure that its reputation as a ground-breaking leader in the global electric car market remain intact? How could its experience in China impact sales in other markets? Question 3. Unlike its competitors, Tesla was granted permission from Beijing to open a wholly owned production facility in Shanghai. Why did Beijing eliminate its usual demand that foreign investors partner with a local company? What did China hope to gain by allowing Tesla to build its Gigafactory? How will other automakers operating in China be affected by Beijing’s policy toward Tesla and what does it mean for future investment by foreign companies? ——————— https://www.pbs.org/newshour/show/western-companies-face-backlash-in-china-for-speaking-out-against-human-rights-violations Question 1. Discuss the conflicting demands for companies caught in the middle of the controversy over the treatment of the Uyghur people in China’s Xinjiang province. How should companies respond to stakeholders demanding strong profits if generating those profits means failing to respond to stakeholders interested in sustainable production? As a buyer of H&M or Burberry products, how do you feel about the companies’ willingness to overlook possible human rights violations in a quest for profit? Question 2. Reflect on the power of social media in the global marketplace. Social influencers in China are leading the boycott of Western brands that have spoken out against alleged human rights violations in China’s Xinjiang province, forcing some companies to reverse their positions on the situation. How, if at all, do you think Western influencers will respond? What are the implications for companies? Question 3. Comment on the complexity of strategic decisions in multinational companies. How have international marketing, corporate responsibility and ethics, and global supply chain management converged in relation to alleged human rights violations in the Xinjiang province of China? Is it still possible to think of these different functions within the international business individually or does the interaction between them and other functions suggest that companies need to rethink the way they approach strategy?

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