MGT498 Phoenix Wk 3 Strategy Implementation Evaluation & Control Assigment

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MGT498

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Purpose of Assignment

Weeks 3, 4 and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is part three of the three part Strategic Management Plan addressing strategy implementation, evaluation and control. The purpose of the Week 5 individual assignment is to allow the student to discuss and explain how the strategies discussed in prior weeks are converted into implementation activities both domestically and internationally, in alignment with legal, social and ethical considerations. Furthermore, the student has an opportunity to explain and discuss how the strategic plan and implementation activities will be monitored.

Weeks 3, 4, and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is Part 3 of the three part Strategic Management Plan.

Assignment Steps

Write a 1,050-word report on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:

  • Strategy Implementation
    • Discuss International Strategy.
    • Discuss Strategic Implementation.
    • Explain the influence of Governance and Ethics.
    • Discuss the Company Social Value.
    • Discuss Innovation and Diversification.
    • Discuss Legal limitations.
  • Evaluation and Control
    • Explain Strategic Metrics.
    • Discuss Key Financial Ratios.

Cite at least 3 scholarly references.

Format your paper consistent with APA guidelines.

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1 Tesla Strategic Management Plan Laura Ashley Roberts MGT/498 04/15/2019 John Olmstead 2 Tesla Strategic Management Plan Evaluation of the Internal and External Environments Tesla is the best known electric car manufacturing company globally and assessing its environment shows that there is a potential for the growth of the company further. When conducting an environmental scan of the external environment such as the technology being used Tesla looks to be at par, if not ahead, with other manufacturing companies. This is because the current trend in the automotive industry is the increased need of automation in the assembly process, to cut down on manufacturing costs allowing companies to produce more for less. It is for this reason that Tesla, since its inception, has strived to create a close to fully automated assembly line especially during the Tesla model 3 production. However, the ambition to create such an assembly line has been met with various challenges, making the assembly line almost inoperable and forcing the company to build the Model 3s by hand (Sherman, 2018). The company has come a long way, and in 2017 was able to build 5000 vehicles in 7 days. It was even expected that the company would now be able to manufacture 200,000 vehicles in the yar 2018. Secondly, car automakers are expected to deliver their cars after production to dealers, and most car brands have been able to do this with the advantage of having been around for several decades. This is another challenge that Tesla has had to deal with of delivery logistics where most times the company has found it difficult to deliver their cars to customers. This challenge is mostly attributed to Teslas decision to own its dealerships where most other companies prefer to leave the job to franchised dealers. Fro this reason, any unsold inventory in any of their dealerships is a burden that Tesl alone contends with. The United States differing 3 state laws also seem to pose a challenge for Tesla’s dealership capability. Some states limit Tesla’s ability to put up many dealerships with the states of North Carolina and Colorado only allowing for one (Sherman, 2018). However, Tesla has also assessed that the process of buying and selling products and services has gone online and have tried to capitalize on this. To manage the challenges faced on delivery, Tesla’s customer are given a chance to go through the delivery awaiting process online on Tesla’s web page. They do this by uploading required documents. Tesla is also concerned with electric vehicles, and for this reason, the company has created its unique niche market. The company realized that the adoption of electric vehicles has been slow in the past because the technology has always been viewed as inferior and cumbersome by the majority. Cumbersome because electric vehicles require charge which often takes a long time and charging stations are usually limited when compared to oil stations. To correct this, the company has created a network of charging stations which allow for customers to fully charge their vehicles in about half an hour (Zucchi, 2018). However, the company still faces the challenges of mass adoption because currently the charging stations are mostly set up in countries such as the UntiedStates with the company promising to increase them in Europe and Asia. Competitive Advantage Analyzed To remain competitive for most companies, those within the automotive industry and those without, companies have been forced to expand their business model. Companies such as General Motors have branched out to not only selling vehicles but now also offer financial services. This is a trend that Tesla has also followed, and it now offers standard loans and leases. 4 The decision to fully focus on electric vehicles is the major competitive advantage the company has. Though the company is facing the challenge of changing customers perception of electric cars, it is a leader in the electric market scene. However, the company is not alone in the electric markets with other electric cars such as the Rivian. However, their competition fails as no other company has a fully working assembly line dedicated to the production of electric vehicles. Similarly, the company also has the advantage that the vast amount of charging stations also gives it an advantage over any other electric manufacturing company. The company is also a leader in battery technology. This has been mostly driven by projects such as the Gigafactory 1 in Nevada, a project that was started in 2014. The company decide to open the factory as the largest battery concerned company which would allow for the company to increase production and adoption of battery-related technology and in turn help reduced the high costs of electric vehicles. Currently, the factory is 30 percent complete, and Tesla is hopeful that the factory can also help reduce the per kilowatt-hour cost of their batteries b the same percentage. This is encouraging as the company also reports that demand for their battery sales is way over what they are currently able to supply (Korosec, 2019) Evaluation Strategies Tesla uses to Create Value and Gain Competitive Advantage Tesla creates value for themselves by firstly focusing on key areas that help it penetrate the market. Firstly, to change the perception of people that electric cars are inferior to petrol and diesel ones with their inability to perform better or have great design, Tesla has tackled both issues. Rather than build many cars at different price ranges, Tesla realized that battery technology was still far off from being cheap. For this reason, the company has mostly focused 5 on building high end expensive electric car models. Currently, their cheapest vehicle the Tesla Model 3 is going for $39000. To also create value, the company has also made promising acquisitions such as that of Maxwell Technologies, a company that is concerned with ultracapacitors and battery manufacturing. Maxwell technologies is said to have a dry electrode technology that can be used for Tesla’s batteries and has also had an ultracapacitor business that brought them around $90 million in 2018 (Lambert, 2019). The dry electrode technology is expected to reduce the weight of Tesla battery while also increasing range with claims that the technology allows for an energy density of around 500 Wh/Kg soon (Lambert, 2019) Measurement Guidelines Tesla Uses to Verify Strategic Effectiveness. Tesla has different measurement guidelines to assess the effectiveness of its strategic plan. The first guideline is assessing the uptake of electric vehicles and also the public opinion about electric cars. To this end, the company’s plan has been effective as currently, surveys indicate that more and more people are considering adopting electric vehicles than before. In the United Kingdom, a survey concluded that half of the millions would want to have an electric cars and a quarter of parents also were up for adopting electric vehicles (Harrabin, 2019). It has also been reported that electric vehicles are slowly moving from being viewed as products of a niche market with more people willing to purchase them (Gillies, 2018). In the United States, an anxiety over the range of electric vehicles has also fallen because of the vast network of supercharger network, and this has also increased the appeal of Tesla electric vehicles. The second measurement guideline the company used is its business model of focusing on expensive high-end cars and then raising enough capital to produce cheaper electric vehicle car models. 6 The vision seems to be working with the inception of the Model 3, but the company still faces a challenge of reducing the costs as battery technology is still expensive. Effectiveness of the Measurement Guidelines Looking at the measurement guidelines the Tesla company has put for itself, it could be said that they can effectively assess whether their strategies are working. Firstly since the company was set up, electric vehicle hype has risen considerably, and this has been mostly because of the company. Most people associate electric vehicles with the Tesla company at it is hard for consumers to name other electric vehicle car options. Secondly the company’s strategy of raising capital can also be used to measure the success of the company as currently, the company has still not been able to fully deliver on an affordable car for the masses, but there is hope that with increased efficiency and with more effort, the company can still deliver on its promise in coming years. 7 References Gillies, T. (December 23, 2018). How electric cars are slowly moving from niche to something ‘people want to buy’. Retrieved from https://www.cnbc.com/2018/12/23/electric-carsare-moving-from-niche-to-something-people-want-to-buy.html Harrabin, R. (July 12, 2018). Survey: Half of young people want electric cars. Retrieved from https://www.bbc.com/news/science-environment-44798135 Korosec, K. (April 11, 2019). Tesla, Panasonic modify expansion plans for gigafactory. Retrieved from https://techcrunch.com/2019/04/11/tesla-panasonic-modify-expansionplans-for-gigafactory/ Lambart, F. (February 4, 2019). Tesla acquires ultracapacitor and battery manufacturer for over $200 million. Retrieved from https://electrek.co/2019/02/04/tesla-acquires-ultracapacitorbattery-manufacturer/ Sherman. L. (December 20, 2018). Tesla Survived Manufacturing Hell--Now Comes The Hard Part. Retrieved from https://www.forbes.com/sites/lensherman/2018/12/20/teslasurvived-manufacturing-hell-now-comes-the-hard-part/#3b7b3d7efae2 Zucchi, K. (October 27, 2018). What Makes Tesla's Business Model Different? Retrieved from https://www.investopedia.com/articles/active-trading/072115/what-makes-teslasbusiness-model-different.asp Strategy Implementation, Evaluation and Control Grading Guide MGT/498 Version 4 Strategic Management Copyright Copyright © 2016 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. Strategy Implementation, Evaluation and Control Grading Guide MGT/498 Version 4 Individual Assignment: Strategy Implementation, Evaluation and Control Purpose of Assignment Week 3, 4 and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is part three of the three part Strategic Management Plan addressing strategy implementation, evaluation and control. The Purpose of the Week 5 individual assignment is to allow the student to discuss and explain how the strategies discussed in prior weeks are converted into implementation activities both domestically and internationally, in alignment with legal, social and ethical considerations. Furthermore, the student has an opportunity to explain and discuss how the strategic plan and implementation activities will be monitored. Resources Required Textbook Chapters 9, 10, 12, 13 and 14 Grading Guide Content Met Partially Met Not Met Total Available Total Earned 6 #/6 Comments: Student addresses the following regarding strategy implementation: a. Discuss International Strategy. b. Discuss Strategic Implementation. c. Explain the influence of Governance and Ethics. d. Discuss the Company Social Value. e. Discuss Innovation and Diversification. f. Discuss Legal limitations. Student addresses the following regarding evaluation and control: a. Explain Strategic Metrics. b. Discuss Key Financial Ratios. The paper is 1,050 words in length. Writing Guidelines The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Met Partially Met Not Met Comments: 2 Strategy Implementation, Evaluation and Control Grading Guide MGT/498 Version 4 Writing Guidelines Met Partially Met Not Met Total Available Total Earned 3 #/3 9 #/9 Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Additional comments: # Comments: 3
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Explanation & Answer

Attached.

Running head: STRATEGY IMPLEMENTATION, EVALUATION, AND CONTROL

Strategy Implementation, Evaluation, and Control
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Institutional Affiliation

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STRATEGY IMPLEMENTATION, EVALUATION, AND CONTROL

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Strategy Implementation, Evaluation, and Control
Introduction
The environmental scan concepts remains important for any company and industry as it
influences long and short-term operations of a firm. The different tools presented by this concept
also help an organization to monitor, scan, analyze, as well as predict its internal and external
environment. Besides, scanning also presents a vital tool that offers managers and stakeholders
an accurate assessment of their business. Tesla may also utilize the environmental scanning to
obtain business intelligence through methodically tracking its customers and ways in which its
products are used. It would be an important part as it could enable the company to make quality
adjustments, especially in relation to its marketing techniques. Therefore, Tesla’s quality goods,
unique marketing tactics, as well as advanced technological progress would ensure that its
products are in high demand while maintaining a superior supplier power in the market.

Strategy Implementation
International Strategy
Whereas Tesla manufactures its automobile products in North America, the company has
continued with its international strategy, which aims at serving new markets that are outside the
American region. The company employs a transnational strategy, helping it to continuously
obtain low costs using economies of scale, learning advantages, in addition to position
economies. Using this strategy the company has been able to differentiate its vehicles across the
world markets. Specifically, the firm targets three major transnational consumer markets,
including high-end sports vehicles, luxury sedan and SUV cars, as well as mainstream car

STRATEGY IMPLEMENTATION, EVALUATION, AND CONTROL

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consumer market. The homogeneity in strategy in these segments suggest that the company
experiences decreased forces for local receptiveness and that it can provide consist...


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