Tesla Business Plan

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Avngvyyre

Business Finance

Eastern Gateway Community College

Description

Financial Plan

A. Financial Projections

How will you fund the business?

What are your desired debt and equity position?

Who will provide capital debt funds?

What role will leasing play in your financial strategy?

Will you use outside investors for equity capital?

How will you manage the financial risks your business faces?

What operating procedures, such as developing cash flow budgets or spending limits, will you have to ensure adequate money for debt repayment?

What are the important assumptions that underlie your projections? These assumptions may be associated with both external or internal factors.

What financial aspects of your business (equity, asset growth, ROA, ROE, etc.) will you monitor?

What procedures will be used for monitoring overall business performance?

What level of performance will your business shoot for? These should be targets for next year and in five years. They should be financial performance standards used to monitor the overall business.

What yield and output levels could you attain? What efficiency levels will you reach?

B. Contingency Plan

What will you do if you can’t follow through with your primary plan?

How are you preparing for an emergency in your business?

How will the business function if something happens to one of the key members of the management team?


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1 Products and Services Tesla company develops, designs, manufactures, leases, and sells storage systems and energy generation, they also offer sustainable energy products, but they are primarily known for manufacturing and selling electric cars (Wirtz,2020). The company is divided into different segments: development, design, manufacturing, leasing, and sales of electric vehicles and other products and services. Some of the company's automotive products include Model S, Model X, Model Y, and Model 3. A four-door sedan is a Model 3 vehicle. Sportsdesigned cars fall into Model Y vehicles built on the Model 3 platform. SUV vehicles fall under model X. Tesla energy products include Megapack, Powerpack, and Powerwall. Globally, nations have developed rules and regulations on environmental safety that have called for technological advancement on vehicle emissions. Customer expectations have also changed with there being a rise in the market for environmentally-friendly vehicles. Tesla has played a significant step in realizing environmentally friendly cars. The company has come up with a unique business model that has become a dominant force in the market. Tesla, from the beginning, took a unique approach to establish itself in the market. In their first design of electric vehicles, they designed a compelling car that would arouse customer imagination on electric cars rather than creating a mass-produced vehicle that was pocket friendly to their customers. Once they could produce a unique product that established their brand name in making electric cars, the Tesla business model is founded on three operational approaches. Selling, servicing, and charging their electric cars. Unlike many automotive companies that sell their cars through franchised dealerships, Tesla sells their products directly to customers worldwide through their showrooms. Tesla staff can also deliver service to their customers at their homes, convenient to those who need their services. Their products 2 can also be serviced electronically by uploading data that is timely and convenient to customers. Tesla has a premium and market-oriented pricing strategy. Despite venturing into the market with unique but expensive cars that only a few customers could afford, the company started producing pocket-friendly cars in 2020 that are said to be the quickest cars on the market by their consumers. There are many advantages of using the Tesla electric car. Unlike gasoline cars, electric cars are powered by electricity. Thus they don't use petroleum products that emit harmful exhaust gases into the air. Electric cars are also said to be safer in their operation since they don't have explosive substances in them. Once you drive Tesla, there is no other vehicle you'll want to drive. Tesla or electric cars tend to be cheaper in their operation and maintenance cost, and this is due to electricity being so much more affordable as compared to fuel. Apart from the cars not emitting harmful gases, they also produce low noise compared to gasoline cars. Tesla electric cars Model S100D has high smoothness with a wide interval of change concerning the frequency of rotation of their shaft engine. One can recharge Tesla batteries when driving downhill or regenerative braking. Their batteries can also be recharged using solar energy, as in the case of Tesla 2019 cars, making them super convenient to their users. There are other numerous advantages of Tesla cars, making them the best cars in our generation. Market Assessment Examining the General Market A market refers to the association buyers and sellers have that can exist or could potentially happen. Their association determines the cost of a product and services and determines whether the business could survive. Many things determine a market structure. 3 They include the number of competitors in the market, uniqueness of a product, product and service price negotiation power, the brand name of a product and entry, and exit barriers in a particular market (Figenbaum,2020). All this determines the operational success of a company or a business operator. Some of the main market structures include; perfect competition: this is when producers and service providers offer identical products, have a small market share, producers and providers can't affect prices, freedom of entry and exit in the industry, and consumers are aware of products and prices competitors have. As opposed to perfect competition, Monopoly has only one seller who has absolute control of their products. Oligopoly, where there are a small number of sellers, where actions by one seller influence the other. Lastly, Monopsony, where there are many sellers but one buyer who has absolute control over the product pricing and quality. Tesla is categorized under Oligopoly where there are not many sellers and an act of one seller greatly influences the others. Market segmentation identifies various groups within the target audience to deliver products focusing on a specific group. There are four market segments including: demographic, geographic, psychographic, and behavioral. Businesses usually segment themselves in the market while focusing on their customers' age, lifestyle, and gender. Tesla automotive company can be categorized under psychographic segmentation. In Tesla company, our products are designed to match lifestyle changes with the needs of environmentally friendly products that uphold our society’s values and life goals of living in a non-polluted environment. Its geographic, demographic, and behavioral segments have also experienced a steady incline in past years. Porter's five forces model analyzes five competitive forces in an industry that determines the strength and weaknesses. Tesla has always been on top hand in the competitive sector by producing unique products. The potential of a new entrance constantly threatens the company's customer base. Power of suppliers, customer power, and the threat of 4 substitutes, in this case, gasoline cars, drive the operational performance of Tesla company. According to their Chief Executive Officer, Elon Musk, chip shortage and shipment delays are some of the company's main threats in maintaining its sales growth. The reliance on the electric car on this chip is enormous, and their shortage can cripple the industry significantly. Despite its demand due to the need for green environment trends, Tesla automotive company faces governmental investigation on the safety of its new self-driving feature. Customer Analysis Worldwide there has been a campaign on using environmentally friendly products to eliminate global warming that has had an advance negative effect on the world's climate change (Partos,2019). This led to the introduction of electric cars in an attempt to solve the problem. Despite not being the inventor of electric cars, Tesla brought in the element of luxury and elite status. The car also is designed to be safer than gasoline and reliable in its operation. The car is also super-fast settling well with customers who are sports car enthusiasts. Tesla has incredibly loyal customers, and 91 percent of their customers have pledged to buy or lease Tesla as their next car. Tesla brand has also set its foot in the marketplace, and customers are fanatic with the brand and patiently looking forward to the next car model. Tesla has also put time and resources into satisfying their customers and is always flexible in their manufacturing to come up with a product that meets consumer demands. Since they don't work with franchise companies, Tesla is directly involved with their customers and entirely dedicated to treating each person as an individual. Industry Analysis The company is the only vehicle manufacturing company that sells sports cars with zero carbon gas emissions. After their establishment in 2003, the company was involved in 5 the mass production of the first model Tesla roadster. The only sports car that utilizes electric technology worldwide (Milosheska,2013). After, the company has expanded its production to luxury sedan vehicles that are also sustainable and have zero emission. Some of the political analysis of the company is that the company risk was becoming sustainable due to the availability of worldwide coverage of charging stations. There is a need for the company to develop political incentives to lure private investors into venturing into their services. In economic business analysis, what drives the company operation price of electricity and gas. The expected increase in gas prices due to the limitation of natural resources like crude oil has made electric motor vehicles more appealing. Despite this, there has been a shift from atomic to renewable energy in recent years. This can affect electricity prices, and crude oil may become cheaper than electricity in years to come. Strategic Alternatives Despite its dominance in electric motor vehicles, the company has not been effective in capturing the entire world market; hence need to improvise their strategies alternatives. Due to different preferences by customers worldwide, the global centralization strategy has always been ineffective in capturing the international market (Wooldridge,2020). Model S and Model X failed to capture China market, indicating the need to come up with a differentiated regional strategy. The risk strategy employed by the company has harmed the operational expenses. The company also needs to set applicable contracts to suppliers to reduce their bargaining power and ensure timely delivery. The company administration should also increase their warehouses to increase the supply of raw materials. There has been a proposal by the company to change their board of directors to transform the company implementations. The pressure on companies managed to have a better organizational structure is essential for the company growth as it ensures the company 6 operates towards a common goal. Differentiated thinking among company stakeholders is crucial in boosting the evaluation and control of the management strategies and performance. All these alternative strategies are vital for the company's success. Strategic Implementation Production Tesla company was founded in Silicon Valley in the year 2003. The electric car company is a corporate enterprise. The company's primary purpose was to develop environmentally friendly cars with zero carbon emission, according to their founders, Martin Eberhard and Marc Tarpenning. The company has strategic planning and execution, just like many other business firms worldwide. The company has been using differentiation of car products in the marketplace. In the strategic implementation, the company administration, staff, organizational structure, and procedures influence their execution plan. Tesla needs to identify their organizational priorities that define its objectives at the operational level. The company needs to advance its marketing strategies globally using the regional differentiation strategy and work tirelessly in producing quality products that will be affordable to consumers. Since the world is transitioning to the use of free carbon emission cars, the company needs to accelerate in its production and bring a full range of increasingly affordable cars. Resource Needs Human Automotive manufacturing companies rely significantly on robots in their production. Despite these, humans are also needed for social interactions in the workplace, develop programs that run these robots, and identify problems and dynamic solutions that the 7 company cannot. While hiring human labor in Tesla, there is a need to employ individuals who can write graphic works and have interpersonal skills. There is also a need to develop training seminars that will train employees on the needed skills to manufacture electric cars. Financial Tesla's chief executive said they will be re-investing their revenue to produce more affordable cars in the market. Tesla wants to invest in its operations to stabilize its revenue generation that will gradually turn its negative income into positive ones in the future. This approach is risky but a bold one that shows the company is confident of its products and will be in the market for a long time to come. Physical Physical strategic implementations are the strategies and plans incorporated by a company to realize its strategic goals and objectives. Tesla is an international company that uses mono-segment positioning. Their products are considered to be expensive for an average consumer. Thus, their target market is wealthy individuals. However, the company may switch to multi-segment to produce affordable cars for their consumers in the foreseeable future. Sourcing/Procurement Strategy Tesla company shows the importance of supplier relations in supply chain management, as production and procurement departments are more likely to face challenges when a new partnership is designed. Tesla requires suppliers to demonstrate reliability and commitment before allocating their resources. Since the company location is in Silicon Valley, it placed them away from traditional suppliers. They had not established trust with many companies once their suppliers were willing to relocate. Now, the firm has a logistics park near Fremont in California and many suppliers in the area. Tesla’s current production of 8 100,000 is hardly high to satisfy the auto industry production (Wooldridge, 2020). This results in executives addressing the prevalent miscommunications between suppliers and buyers. According to Electrek reports, by July 2017, the company is actively recruiting suppliers to establish nearby plants to kick off their production (Lopez et al, 2017). Marketing Strategy The company’s marketing strategy is told as a zero-dollar marketing strategy, which is due to its avoidance of paying for advertising instead of using social media marketing. Company sales rely heavily on word of mouth since nothing is being spent on advertising and endorsements. Tesla 7ps marketing strategy focuses on place and product elements of the marketing mix than other elements. The company also uses product and place as their competitive advantage. Tesla electric cars are attractively designed and super-fast. Moreover, the company does not rely on dealerships and distributors to sell its vehicles, instead Tesla sells its cars directly to end-users. Tesla's target market segment represents people who are keen and concerned about the environment and are willing to use machines that don’t emit carbon gases to the environment. The company's marketing strategy is shaped by the following principles: marketing through customer experience, use of social media, and cross-promotional opportunities. The company has a referral program that enhances customer experience. They do this by offering a thousand-dollar credit as well as perks and additional accessories. The company's CEO has contributed to social media marketing success by engaging with customers directly that has attracted media attention. The company also uses crosspromotional opportunities as their Chief Executive, Elon Musk, runs other businesses in the country, such as Solar City and SpaceX. These have enabled the company to benefit from cross-promotional opportunities. For instance, in 2018, Space X launched Tesla Roadster 9 with a dummy driver named "Starman" into space; this attracted media attention on both Tesla and Space X brands. Hedging forward, pricing, options Through its chief executive, the company announced that the revenue gained from the sold sports car would be are used to manufacture affordable cars for the common consumer, thus ensuring they curb the risk of competitors who may offer their electric motor vehicles at a relatively lower price. Contracting Through its chief executive Elon Musk, Tesla said that there is a likelihood for the company to seek more capital from investors to help in hedging out risk as the company works tirelessly in building its anticipated model of Model 3 SEDAN. Tesla may take advantage of the recent hike in their share price to raise more money in the company. The company may also rely on capital expenditure to integrate lately acquired SolarCity or use the money to further expand its battery factory or expand its stationary power storage firm. Insurance Tesla insurance is a competitively priced insurance product that offers comprehensive claim and coverage for Tesla owners in Texas and California. However, they are planning to expand in the foreseeable future. Tesla exclusively understands their vehicles, technology used, as well as safety and repair costs. The company provides convenient monthly payments, and Tesla has safety and driver assistance features that are standard in all their vehicles purchased. Performance Standards 10 Tesla, among the luxury brands their position seems to be getting stronger by the day, and this is due to the demand for electronic vehicles. They top numerous traditional luxury cars in order in the U.S.. Due to their high pricing, they are slowly losing their market share in electronic vehicles in the country. China is the world's largest auto market, and it hosts a variety of global brands (Feng, 2017). Conclusion and Tesla have also realized significant success in recent years as their sales there are nearly half the size of the U.S. Tesla's fleet emission and low carbon vehicles are in line with world standards on the requirement of low carbon vehicles. The company uses internal combustion engines. The company's engine efficiency is not a relevant factor. However, the company has lacked transparency concerning climate governance and decarbonization strategy (Song, 2019). In their production, Tesla also tends to produce passenger vehicle ownership rather than efficient mobility services. 11 Reference List Figenbaum, E. (2020). undefined. World Electric Vehicle Journal, 11(2), 38. https://doi.org/10.3390/wevj11020038 Feng, Q. (2017). Chery auto, champion of national brands. Variety of Development, 115151. https://doi.org/10.1007/978-981-10-5912-4_4 Lopez, E., & McKevitt, J. (2017, January 18). How tesla worked with suppliers to scale production from hundreds to 50k. Retrieved November 19, 2021, from https://www.supplychaindive.com/news/Tesla-supply-chain-supplier-relationshipproduction/434152/ Milosheska, D. (2013). Tesla Motors, the reinvention of the luxury sports car industry. Global Luxury Trends, 209-223. https://doi.org/10.1057/9781137287397_16 Partos, R. (2019). No need for policy? The Making of the Conservative Party's Immigration Policy, 21-50. https://doi.org/10.4324/9781351010658-2 Song, C. H., & Aaldering, L. J. (2019). Strategic intentions to the diffusion of electric mobility paradigm: The case of internal combustion engine vehicle. Journal of Cleaner Production, 230, 898-909. https://doi.org/10.1016/j.jclepro.2019.05.126 Wirtz, B. W. (2020). E‐products und E‐services. Electronic Business, 673712. https://doi.org/10.1007/978-3-658-30712-7_23 Wooldridge, B., & Cowden, B. (2020). Strategic decision-making in business. Oxford Research Encyclopedia of Business and Management. https://doi.org/10.1093/acrefore/9780190224851.013.1 12 1 Vision/Mission Statement and Goals Vision Statement The company vision statement is “to establish the most advanced car firm of the current era through facilitation of the world towards the uses of electric vehicles” (Tesla, 2021). However, the visual emphasis is to promote the use of renewable energy in society. Therefore, the company considers the development of electric cars as one of the strategies towards the realization of renewable energy advancement, including market development. The vision statement implies that tesla aims to be competitive in the market through indulging excellent leadership business skills in technology integration into automobile production to produce electric cars and promote environmental conservation. The company’s mission statement is “to hasten the world's transformation towards application of sustainable energy and efficient transport” (Tesla, 2021). However, the mission statement creates insight into the company's recognition of new market opportunities based on renewable energy. Also, the firm understands the relevance of the existing energy storage equipment and aims to add some elements to the electric car to enhance its competitive advantage in the market. Sustainable energy and efficient transport indicate that the company is compatible with the current market demands of a different car since the product uses electricity rather than fossil energy which will be the main section of the business scope. Goals and Objectives The main goal and objective of the company in terms of financial performance include: increasing the company’s profit rate at the rate of 20 percent per three months which will be TESLA COMPANY BUSINESS PLAN 2 realized through the production of low-capacity cars consisting of luxury components. Also, the company will apply the capital generated from the first car that will be used in the production of a medium-capacity vehicle which is cheaper than the first car (Tesla, 2021). Therefore, the financial performance will be enhanced through continuous advancement of the automobile products until production of an affordable and high volume capacity is achieved. This will increase the number of market share meaning the company will experience increased profit-enhancing the financial performances. In terms of resource commitments, the company aims to initiate storage and generation of energy integration, including the advancement of the battery system. However, the company aims to produce 40GWH of cells and 60GWh packs per annum by mid-2022 to boost the use of renewable energy. Mass production of these battery cells will be sufficient in transforming the world towards the use of renewable energy. Second, the firm aims to incorporate all the available resources and indulge in all natures of ground transportation. Therefore, electric vehicles will include heavy commercial vehicles. Third, the company aims to establish vehicle autonomy and ensure safety is paramount at all times to create a positive brand reputation. The company aims to integrate Enterprise Risk Management to ensure the operations are more profitable than costly through evaluation of non-operational and operational company aspects. Also, the risk management contingency plan will address indirect and direct, external and internal risks that are viable to compromise the company performances. Also, one of the main objectives in risk management is to establish integral strategies to realize evidence-based behaviors which lead to risk-taking. The company aims to realize the set objective within one year which will progress the firm to the second phase. if the company achieves 75 percent of the set goals and TESLA COMPANY BUSINESS PLAN 3 objectives the company will realize increased market share which will lead to environmental conservation realization. Keys to Success Some of the required company keys to success include; technology, for the company to succeed sufficient technological innovations are essential to come up with products that can serve other car-producing companies, including battery packs. Second, the company development timing. The current population has a greater interest for cheaper electric vehicles than the use of fossil energy vehicles. Therefore, electric cars will gain increased demand in the market (Alghalith, 2018). Also, the world is experiencing a climate change crisis due to the use of non-renewable energy therefore most customers will embrace the electric car to reduce the severity of climate change impacts in the environment to reduce detrimental health and economic effects of climate change. Third, reduced competition. Currently, there exist reduced competitors in terms of the production of an electric vehicle since other companies, including Ford and Toyota, produce fossil gas-consuming vehicles. Therefore, due to reduced competition, the company will have quick sales advancement and increased brand popularity which equals increased company profit. Fourth, the company team. Highly skilled salesmen and engineers will be incorporated into the organization's operations to ensure product development, marketing, and sales are successful. Having enough experts ensures that the company will experience reduced risks of eruption. Fifth, distribution. The company will focus on a unique product distribution chain by ensuring the stores are available in most regions to enhance customer contact. Sixth, product durability. The company will focus on ensuring the products are durable to gain customer trust and TESLA COMPANY BUSINESS PLAN 4 increase customer retention and referrals. Seventh, the company secrets. The management will ensure the strategies are unique and difficult to imitate to avoid the presence of similar products in the market. Company Summary Company Background Tesla Company was established in 2003 by engineers Marc Tarpenning and Martin Eberhard intending to facilitate electric vehicles by creating awareness that electric vehicles were better than gasoline vehicles. In the current era, the company produces electric vehicles and clean energy storage equipment and products, including batteries, solar panels, and automobiles. The company was named after inventor Nicola Tesla. When the company launched in 2008, Tesla developed the world’s first electric car model S which was embraced due to its efficiency in class and category performance (Tesla, 2021). Also, due to the cars efficiency, performance, and safety, it increased worlds expectations in transforming from gasoline vehicles to electric cars. In 2012, the company stopped production of its Roadster model and focused on the production of the Model S sedan which consisted of three varying battery options supporting a distance of 240 to 310 miles. However, the model contained a high-performing battery offering an acceleration of 95 kilometers per hour which is a distance of up to 60 miles. Also, in early 2012 the company established a superchargers station in Europe and United States to provide electric car charging services at no cost to tesla model owners. Thereafter, the superchargers were replaced with a battery pack referred to as Model S. Tesla has also produced other models, including model X in 2015, model 3 in 2017, and model Y in 2020. Resources, Facilities, and Equipment TESLA COMPANY BUSINESS PLAN 5 Tesla uses an electric powertrain consisting of control software, power electronics, gearbox, motor, and battery pack, and intellectual property as the primary resources. However, the company relies on its engineering human power to design, manufacture, and develop its products at the same time involving experienced salesmen and efficient customer services which offer customer support. Tesla encompasses cost structures to ensure the provision of premium preposition via product and personal service enhancement (Hettich & Müller, 2017). One of the main cost drivers is variable expenses, including shipping cost, manufacturing, direct parts, and labor cost. The second driver is the revenues, including service revenues. Other drivers include fixed costs, research, and administration. Tesla operates under four operational facilities, one located in China and three in the United States. Giga Nevada is the first Gigafactory where the assembling and production are done. Second, Giga New York is the second Gigafactory that is focused on solar energy. Third, Giga Shanghai is the second facility that conducts assembling. Forth, Giga Berlin which conducts various model production including model Y. Tesla Company has more than 70,000 employees which are managed through frequent training programs. However, Tesla raises funds through equity sales and bank loans. Also, the business is financed through bond sales, stock offering, and sales income. The employees are rewarded through salaries while stock options are used to reward other resource providers. Marketing Methods In 2020 Tesla achieved $ 31.5 billion as the total revenue. However, the biggest sales percentage was from automotive sales which produced a total of $26 billion. Therefore, the company is the biggest electric vehicle selling brand globally. The total revenue resulted in sales of over 500,000 cars in 2020 with model Y and model 3 accounting for 90 percent of the total TESLA COMPANY BUSINESS PLAN 6 sales. The company has worked with other automobiles to ensure sufficient technological innovation to transform the product and market idea (Alghalith, 2018). Also, the company works with environmentalists through cooperative social responsibility to ensure reduced environmental pollution which boosts the company's reputation. Tesla uses forward contracts as the derivative instrument which are in the form of cash flow sections with 12 months maturity. However, the company agrees with the buyer to offer products at a later date and ensures the price setting is during the contract drawing up. Therefore, the contracts don’t have trading during the exchange. The company uses an average of $29, 000 for the production of one product unit, including labor, and material. The delivery cost of one unit is $1,000 to $ 1,200 in Canada and U.S although the price can vary when delivery is to other locations in different continents. Tesla Company is keen when it comes to contracting and it requires high-efficiency contractors and a prolonged positive reputation. Therefore, the company has reduced its dependency on contractors. Management and Organization The company's current management team consists of Elon musk as the CEO, chairman, spokesman, and product architect. Zachary Inkhorn is the CFO. Drew Baglino who heads energy engineering, powertrain, and SVP. Jerome Guillen is the president and head of heavy-duty trucking. Vaibhav Taneja is the chief accounting officer (Akakpo et al., 2019). Lars Moravia is the vice president and head of vehicle engineering. Franz Von Holzhausen as the senior design executive. Robyn Denholm, Antonio J. Gracias, Hiro Mizuno, James Murdoch, Kathleen Wilson Thompson, and Ira Ehrenpreis as the directors. Laura Woolford determines employees’ salaries and conducts performance reviews as the senior head of human resources. TESLA COMPANY BUSINESS PLAN 7 Tesla management encompasses experts from different fields, an aspect that creates a positive reputation of the management members within the society. Some of the qualities depicted by the company team include entrepreneurial commitment which eliminated disappointments. Second, positive energy motivates employees and customers. Third, increased innovation passion which increases the urge to incorporate technology in the business operations. Fourth, strategic strengths convert visions to entrepreneurial realities. Fifth, high integrity influences the team towards maintaining personal values. The management is required to ensure constant training to add and update the existing team knowledge. However, the source of advice should be from various business consultants outside the organizational premises. Chief Executive Officer Chief Financial officer Energy: 1 VPs and SVP Chief Technology Officer Production and Engineering: 9 VPs Chief Designer Communication and HR: 3 PVs and Chief People Officer Finance and legal: 4 VPs and General Counsel Sales: 2 VPs Software: 1VP and director of Artificial intelligence Ownership Structure TESLA COMPANY BUSINESS PLAN 8 Tesla's key stakeholders consists of directors, investors, partners, shareholders, suppliers, the public, financial institute, and the government. However, some of the legal forms include partnerships, including the Tesla and Panasonic partnership in the United States where the two companies run Gigafactory in Nevada (Almeida, 2017). The company requires permits and licenses to run for automobile manufacturing, sales, and state manufacturing. Besides, some environmental conservation permits are required to ensure the company organizations will not result in environmental pollution which is a major issue under control. Also, the company needs financial paperwork to ensure accountability in profit sharing among all the stakeholders. Therefore, the requirements entail both permits and licenses. Social Responsibility Tesla has robust cooperate social responsibilities since the company has impacts in the community through designing and production of ecologically friendly products, including solar panels, batteries, and vehicles. The major role of the management in the community is to show the world that through unity climate change prevention can be realized while at the same time satisfying the stakeholder’s interest. Therefore, the strategy and policies are based on the business products and nature to ensure reduced pollution. The company requires in-depth training concerning the connection between the business scope and environmental conservation. Internal Analysis Tesla’s company strengths consist of experienced CEOs with various records. Second, the company uses its stores instead of traditional distribution methods. Third, it is the first world company to produce an electric car. Forth, have increased young generation increasing its chances of technological innovations. Also, it is based on technology advancements which are rapid in the TESLA COMPANY BUSINESS PLAN 9 current era. Some of the weaknesses include inadequate infrastructure development (Alghalith, 2018). Second, the customer still fears the use of the electric vehicle. Price regulation is also a challenge. The major company core competencies consist of the unique design of the electric vehicle with the help of an innovative CEO. Also, the company maintains efficient customer connections via its customer service system. Some of the things to build up in the company are work, knowledge, and productivity. Focusing on work and knowledge will lead to the introduction of new products which increases productivity by expanding the number of sales. Also, the knowledge variation will produce a cheaper vehicle by maximizing the output and minimizing the input. The business unit to exit is energy storage and generation and focus on the automobile segments which have depicted increased return by forming the biggest percentage of the total revenues. Therefore, the automobile is the promising business segment of the company. TESLA COMPANY BUSINESS PLAN 10 References Akakpo, A., Gyasi, E. A., Oduro, B., & Akpabot, S. (2019). Foresight, organization policies and management strategies in electric vehicle technology advances at tesla. In Futures Thinking and Organizational Policy (pp. 57-69). Palgrave Macmillan, Cham. Alghalith, N. (2018). Tesla: innovation with information technology. International Journal of Business Research and Information Technology, 5(1), 37-51. Almeida, J. R. S. D. (2017). Tesla, Inc.: equity valuation (Doctoral dissertation). Hettich, E., & Müller-Stewens, G. (2017). Tesla Motors. Business Model Configuration. Tesla. (2021). Electric Cars, Solar & Clean Energy | Tesla. Tesla. Retrieved 5 November 2021, from https://www.tesla.com/.
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Tesla Business Plan

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Tesla Business Plan
Financial plan
The business operations are intended to be funded through re-investing the company’s
revenue to enable it to produce more affordable cars for the market. To do this, the company
prospects to increase its operational investments, to stabilize its revenue generation. Reports by
Tesla’s CEO outline a likelihood by the company to seek additional capital from investors. The
prospected debt and equity ratio for Tesla are estimated at 0.25, and as stipulated, the company
intends to get its capital debt funds from external and internal investors. Leasing will be integral
for Tesla’s financial strategy as it will constitute a part of an effective strategy that confers the
entity flexibility, convenience, and control of finances that provides instantaneous cash-flow
benefits that could be leveraged to fund its projects, hence integral in achieving its short and long
term goals. The company must leve...


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