This comprehensive assessment dives into the intricate dynamics of Tesla Motors, a pioneering company founded in 2003 by Silicon Valley engineers. Tesla’s mission to revolutionize the automotive industry with electric vehicles (EVs) has propelled it to the forefront of sustainable transport. The assessment explores the company’s background, from the launch of the groundbreaking Tesla Roadster to its ambitious plans for mass-market acceptance with the Tesla Model 3.
The sustainability-related strategies of Tesla are examined, emphasizing its vision for an electric-powered future and the establishment of a charging infrastructure. The analysis delves into the impact of these strategies on buyer rationalization, brand advertisement, and the positive feedback loop that propels the company toward its goals.
Human resource management practices within Tesla, based in Silicon Valley, are discussed. The assessment notes the utilization of the soft model in this technology-driven industry, focusing on innovation and increased production. The role of international business is explored, highlighting its importance in meeting import needs, supporting economic growth, and enhancing national income.
The assessment elucidates the role of technology management, showcasing how technology reduces operational costs, introduces new products, and enhances customer service. A detailed analysis of entrepreneurship and innovation at Tesla reveals how the company, as a high-end disruptor, has outperformed existing products and garnered investor support.
Tesla’s future strategies management is outlined, covering its current mission, objectives, and policies. The company’s commitment to growth, technological leadership, sustainability, and social responsibility is discussed, along with its product differentiation strategy focusing on high-priced, high-performance EVs.
In conclusion, the assessment emphasizes Tesla’s transformation into a collaborative force in the automotive industry and its pursuit of a differentiation business strategy. Tesla’s commitment to innovation and market leadership positions it as a global leader in sustainable transportation.
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Topic Name: Tesla Motors
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Contents
Background, introduction and importance of the company: ...................................................... 3
Sustainability related strategies: ................................................................................................ 3
Human resource management practices: ................................................................................... 5
Role of international business: ................................................................................................... 6
Role of technology management: .............................................................................................. 6
Analysis of entrepreneurship and innovation: ........................................................................... 8
Future strategies management: .................................................................................................. 9
Conclusion: .............................................................................................................................. 10
References ................................................................................................................................ 12
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Background, introduction and importance of the company:
The company undertaken fore review is Tesla Motors which was founded during the year 2003
and this was done by a group of the engineers in the Silicon Valley that wanted to prove the
fact that the electric cars were much better when it came to performance than the gasoline
powered cars. They had the instant torque, incredible amount of power and also emitted 0
emissions. The cars of this company were the cars without any compromise. The new
generation of these cars were affordable and also helped the company towards accomplishing
its mission. It further accelerated the world’s transition to the sustainable transport.
The engineers of this company were the first ones that had designed the powertrain for the
sports car and this was built in around of the AC induction motor which was patended during
the year 1888 by Nikola Tesla who was the inventor of the company and was also inspired by
the name. The resulting of the Tesla roadster was launched during the year 2008. There was an
acceleration of 0 to 60mph in 3.7 seconds and also that went on to achieve the range of 245
miles per charge of its lithium battery. The roadster set in a new standard for ensuring the
electric mobility. The company sold about 2400 roadsters in about more than 30 countries
(Tesla, 2017).
Sustainability related strategies:
The vision of this company is the future of the electric powered future for the automobiles and
also the use of the sophisticated energy of the various storage systems so that the company
must go on to change the culture which is accustomed to the internal combustion engines. This
further revolutionised the fuel delivery infrastructure of the nation.
As more and more people went on to buy these cars, the demand for the charging infrastructure
further increased. With the increase in the number of the charging stations, the potentiality of
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the buyers to rationalise the purchase also increased each one of the charging location became
a powerful advertisement of this brand and also showed room for its vehicles.
The culture of the company and the effects of the network went on to reinforce one another and
this was accompanied by a positive feedback loop. This moved the company towards its goals
and also sold all of its all electric vehicles towards an increased larger group of the buyers
wherein the buyers were confident that they would have the access to the power as and when
required (Tech crunch, 2017).
As far as the future of the company is concerned, the company wanted to match up its sales
with the sales of the company Apple. In order to achieve this, the company went on to increase
its unit sales and hence, the stock of the company increased to 2700%. The annual profit of the
company went into tens of billions. These were the sales of the most ambitious projections.
This was the step of the company that was very much challenging. The Tesla model 3 which
was rated at $35,000 is to be released during the year 2017 since the nameplate which has been
positioned is just for the mass market acceptance. This is one of the key determinants when it
comes to the long term success of the Tesla. The leading business magnet Elon Musk also
confirmed that the market capitalisation of the company matched up with the sales of Apple at
$700 billion by the year 2025. The sales of the company increased to 50% each one of the years
and the stock of the company also increased by 2700% higher along with the annual amount
of the profit which ranged to about tens of billions (QMac, 2017).
The company dreams of reaching the market of $700 billion by the year 2025 and there is as
such no doubt in the fact that the 12 year old automotive company and it marketing strategies
which would disrupt the automotive industry. In order to compete as against Tesla, the various
automotive manufacturers were preparing their own produce when it came to their own line
ups of the electric vehicles for the mass consumption along with the restructuring of the various
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retail business strategies. The next decade would make a shift in the entire automotive industry.
There would be a movement to the forefront and then the company would become the global
leader. Elon Musk has shaken the foundation of the entire industry and that has accelerated the
world into a sustainable personalised transportation and would become much faster than he
would have ever thought (NBC news, 2017).
Human resource management practices:
The company is the company which is based in Silicon Valley and designs, manufactures and
sells the electric vehicles and also the various components of the various electronic vehicles
powertrain. It is the only builder of the automobiles which sells the 0 emission sports cars in
the serial production. The company is very deep when it comes to the engineering and the
development of the production of the 0 emission premium sedan which is the model S and
which would be built in Fremont, California. The company sells its electric powertrain
components to the other makers of the automobiles and this includes the Dailmer and Toyota.
These are the models that are used in the day to day businesses and the same have been
theorized and also formulated by many of the academicians. Further, it would be apt to state
that the soft model is being practiced by these industries within this sector whereas the
manufacturing sector uses the Michigan model of the human resource management for the
purposes of ensuring the increased amount of production.
This industry uses the increased production human resource practice and also innovates new
products. There is a labour intensive hospitality and also the tourism industry which helps the
international companies or the other multinational companies mainly due to the reason that the
industry relies heavily on the different services that are provided. There is a need for providing
the apt human resource management model that would help in the formulation of the various
human resource management that must be aligned with the different objectives of the company
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(Management paradise, 2017).
Role of international business:
The international business helps the company in the national economy. This is in the following
sense:
• It is very much important to meet the various import needs of the industry.
• This means grating of the loan and also for the development of the industry.
• There is a rapid growth of the economy.
• There is also a profitable use of the various natural resources.
• In order to face the competition successfully, there is a better quality of the production
of the goods that have some lower or the moderate prices. For the purposes of
improving the image of the producer and of the country in the minds of the foreign
customers.
• It leads to an increase in the employment opportunities.
• It helps in increasing the national income.
• It helps in improving the standard of living of the people (Economics discussion, 2017).
Role of technology management:
In the relation with the business, the technology has had a major effect on the management. It
helps in the following:
• There is a reduction in the costs of the operations.
• There is an introduction of the new product along with the creation of the new market.
• There is an adaptation of the various different changes in the scale and I the format. In
the initial part of the twenty first century, there were many companies that went on to
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address the way in which the small devices such as the cell phones along with the
personal digital assistants and the MP3 players could practically become one and the
way each one of the product would support the different services and the functions.
• There would be an improved customer services. There would be a sophisticated
package tracking system that would help the company in locating the shipment without
even talking to the federal express employee (Reference for business, 2017).
• Growth of the Firm: the process of the management of the technology includes the
organising, coordinating and the management of the various activities. In case, the
technology has been managed, then the organisation would improve the operations and
also reduce the operational costs of the organisation. The technical staff would also be
challenging for the analysis of the way the customers need and specify the way in which
the different technologies are supposed to be implemented along with the spot ones that
are required to be stopped. After the process of this analysis, the organisation and its
customers would both benefit from the lead growth of the organisation.
• It also helps in eliminating duplication: in case, the technology is well managed, then
that would automate the flow of the information inside the organisation. The technical
team would go in to set up the system of the management information that would
provide the periodic, predetermined and the ad hoc reporting capabilities. In the
majority of the cases, there would be a summary of the information that would go on to
support the tasks pertaining to the process of decision making. Hence, the management
information systems would be the systems that would have the information processing
of the responsibilities that would go on to include the information through the online
analytical processing and also convey in the information to whoever needs the same.
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For the smaller organization, the process would be expensive and hence, the people
would charge more when it comes to the calculation of the return on the investment.
This would also include the generation of the periodic reports, exception report, ad hoc reports,
summarised reports and the comparative reports (Use of technology, 2017).
Analysis of entrepreneurship and innovation:
There are some of the high end disruptors that would go on to produce the innovations that are
leapfrog in the nature and this is something that would make it difficult to imitate the same
rapidly. That would also outperform the various existing products on the critical attributes on
the debut and also that would sell the products at a premium price rather than the discount and
that would be profitable for the customers. This would go for the most discriminating and
would also be least sensitive for the buyers before they spread in the mainstream. When one
looks at the larger companies, then the iPod played out the Sony Walkman, Starbucks coffee
and the atmosphere drowned the local coffee shops. The people that were in the office never
reacted fast and hence, the high end disruptors took over the market (Forbes, 2017).
Tesla went on to build the company in and around this idea only. The models S and X were
followed in the year 2017 by a cheaper model 3, a $35,000 Tesla for the different masses in
case all the plan goes well. And Tesla went on to abandon its forecast of turning the profit and
so, the investors could not get enough. Musk went on to raise the $5.3 billion in the equity and
also in debt for Tesla since the year 2010. This was increasingly oversubscribed by the various
investors and this went on to include the $650 million which included the secondary offering
in the middle of the august. This was partly for the completion of the Gigafactory in the Nevada
desert. There was a willingness in the markets for supporting the company with the various
financing structures that led to believe that each and everything would be okay and also
assumed the models to be viable. There was availability in the moment that would come across
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in and around the year 2017 when Tesla was expected to show the first major signs of the free
cash flows or the operating income after the capital expenditures. This also crossed the mark
of $5.5 billion this year with an increase by 54% during the year 2014. The shares soared a 15
fold since the company launched its 2010 $33 billion market capitalisation (Got entrepreneurs,
2017).
Future strategies management:
In the respect of the future management of the strategies, there was a strategic posture, the
current mission of the company along with its various objectives, strategies and the policies
were very much stated clearly and could be seen from its performance. The company is in the
business of electric automobile business and its main aim is the development of the alternative
energy vehicles that love to drive. This would be an apt statement for the company since its
EV’s are very much stylish and also provide the high end performance for the purposes of
driving its enthusiasts.
The objectives of the company is to achieve the growth in the sales and in the profits, provide
the technological leadership in the field of the electric vehicles and also help in fostering in the
sustainability and also the social responsibility. These are the objectives that are in line with
the strategic postures. The strategies of the company is the achievement of growth through
innovation and also an increased offerings of the product along with the development and the
sale of the model S which helps in the creation of a higher demand and revenue. There is an
expansion through the various strategic alliances form the various partnership with Toyota and
the Daimler for supplying the electric power trains that could use the design of the electric
vehicles. There would be a sustainability and the social responsibility efforts through the
development of the various non-petroleum products that would produce very limited amount
of the carbon emissions. There is a product differentiation that would focus on the high priced,
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high performance electric vehicles that would also go on to compete as against the traditional
performance of the various cars. There would be a highly integrated marketing, sales and the
distribution of the efforts through the stores of the company and this would also lead to an
increase in the international share of the market through the international expansion. These are
the strategies that are in line with the various strategic postures. There are many of the policies
that concentrates on the utilisation of the green energy and technology and also o the production
of the various luxurious, high performing EV. The company has had an extensive portfolio of
the intellectual properties from the various different proprietary technologies and also the soft
wares that are used for the management of efficiency safety and the controls.
These strategic postures reflect the various plans of expansion. The company does have some
of the international operations and all of its operations are based in the headquarters in Palo
Alto, California. This is the way of opening of a different number of the stores all across the
world that would increase in the knowledge of the consumers of the company’s EV.
Conclusion:
The current practices that are being followed by the company would go on to meet the
collaborative work environment that would emphasize on the creativity (Top ten MBA, 2017).
i. The main strategy is the transformation of the collaborative than the vehicle
manufacturer. Under this strategy, there are many of the different manufacturers that
would build in the co-brand with the company for the production of a long range, high
performance models of their cars. This is the strategy that would go on to reduce the
costs to the company and the company would help in recognising the same scale of the
profits that would serve as a feasible alternative.
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ii. Then the company must also work towards the cost leadership that would help in the
implementation of the high costs that are associated with the improvement of the
various EV technologies. The company also must have a functional strategy that would
fit in well with the current business and the corporate level strategies and that would
make the company a technological leader of the strategy of research and development
(Tesla, 2017).
iii. The company pursues the differentiation business level strategy. This strategy would
help the company in achieving more than its competitors and that would help in the
creation of a very high quality product at a premium price. The growth strategy of the
company suits in well with the company and also there is an alternative fuel cars
throughout the world and all across the globe and in case, the company decides to
capture an increased portion of this market, then the company would be able to achieve
in the same (HBR, 2017).
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