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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
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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.
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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.
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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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