MANAGEMENT1 Executive Summary: The aim of the report is to provide a detailed insight into Tesla Motors, an organization known for its advanced electric cars. The report sheds a light on the strategic goals of the company and the initiatives it undertakes in reaching. The report also focuses on corporate social responsibility (CSR) and the various initiatives undertaken by Tesla. There is also a discussion about the innovation that Tesla undertaken along with a mention of few of its products.
2MANAGEMENT Table of Contents 1. Introduction:................................................................................................................................3 2. Strategic Goal of Tesla Motor:....................................................................................................3 3. Corporate Social Responsibility (CSR).......................................................................................6 4. Innovation:...................................................................................................................................8 5.Conclusion:..................................................................................................................................9 References......................................................................................................................................11
3MANAGEMENT 1. Introduction: The report provides an overview of Tesla Motors. The company has been found in the year 2003 by Elon Musk, Marc Tapenning Martin Eberhard and had its headquarters in California. Tesla Motors has been the designer and manufacturer of advanced electric powered trains in the world (tesla.com, 2020). The company has never compromised on innovation, performance,appealnordiditevercompromiseitscommitmenttowardshiringand development. Tesla Motors preferred to work in smaller focused teams that are efficient and agile. The company has faster pace, a stimulating work ambience, innovative means and limited structure. Tesla Motors is also known for its production plants and multiple assembly. The year 2008 has been remarkable as the company launched Roadster which was a battery operated electric sports car. The Roadster has been the first electric car known for using Lithium ion battery and travelled over 200 miles. The year 2010 also holds some importance since it is the year when Tesla registered for IPO. It was also the year when the company bought the General Motor (GM) factory and signed a deal to cooperate in the development of electric vehicle. The report here focuses on identifying the strategic goals of Tesla Motors. The report also provided an insight into corporate social responsibility and the initiatives undertaken by Tesla. Further, the report also discusses the innovation aspect of Tesla by focusing on its various innovation in detail. 2. Strategic Goal of Tesla Motor: Tesla Motors looks forward to selling and designing super-efficient, high performance electric car (Bohnsack, Pinkse & Kolk, 2014). The cars produced not only represent style and acceleration but it remains integrated with advanced technologies that makes them one of the quickest as well as energy efficient car on planet. Tesla Motor has put across the best blend of
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4MANAGEMENT technology and automotive world on single platform. In fact the key technology of Tesla had been 100 percent electric powertrain (Teece, 2018). The company has tried to alter the perceptions of the electric vehicles and thereby make the electric cars a feasible alternative through production of a car that is exciting and beautiful to drive while being one of the effective production automobile on planet. The strategy of Tesla has been in entering the higher end market where the customers remain prepared in paying a premium followed by a drive down the market as quick as possible resulting in higher volume and lower price with every successive model (Teece, 2018).Strategic goalsthusrepresentedthegoalsthathavebeencreatedforidentificationofintended accomplishment of the business strategy (Perkins & Murmann, 2018). The long term strategic goal of Tesla lies in the creation of an affordable and mass market for the electric vehicles (EV). Tesla however already made an entry into the market with sporty roadster. The production of Roadster stopped after it introduced a sedan known as Model S. In the year 2015, Tesla started delivering the first SUV known as Model X. However, the deliveries of Model 3 began in year July 2017. The company has also been working on the newer and the supercharged model of Roadster that has been claimed as the fastest car in the world since it possess the capacity of travelling 60 miles in closer to 1.9 seconds(Saxton, 2013). This car has an expected release date of 2021. Nevertheless, the most remarkable moment of Tesla in the year 2017 has been unveiling of the completely electric Semi Truck whose features improved the autopilot and boasted of an energy consumption that has been lesser than 2kWh for every mile. Tesla Motors received pre- order bookings from the different delivery companies. The production of the Semi began in the year 2019.
5MANAGEMENT Thus,marketexpansionhasbeenoneofthecrucialrequirementforinitiatingfurther development of the Tesla Motors within automobile industry (Barmore, 2013). The targeted customers must be in their mid-20 and the early 40’s. The basic investment must be placed on the improvement of the existing service and the innovation of the new products through heavily emphasizing on the development and research thereby gaining competitive edge. Therefore, for achieving the goals, Tesla Motors will enhance the variety and the number of the electric vehicles that remain available to the mainstream consumers in the three following ways: Selling of the own vehicles: This can be done through either online or through the showrooms owned by the company. The initial models has been Roadster also known as Model S. The company is however expected to start selling Model X by the next year. Selling of Patented Electric Powertrain: This implies selling of components to the other auto manufacturer so that they are able to deliver their electric vehicles to the customers soon. Thus, the company went into a partnership with Mercedes and Toyota for supplying the charging system and batteries. Serving asthe Catalyst: This impliesserving as positiveexamplefor the other automakers thus portraying that there lay a pent up consumer demand for the vehicles which are not only efficient but high performing. Therefore, the strategic goal of Toyota is described via the following table Expansion PlansPartnership with Traditional Automakers Looking Forward to Newer Application of Tech. Reaching the production goal of achieving the 20k mark for Model S. Partnership with Mercedes and Toyota Expanding to all the automakers Electricmotorsandbattery technologyhadbroader potential for application
6MANAGEMENT Standardizing the Ev parts for effective manufacturing. 3. Corporate Social Responsibility (CSR) Corporate social responsibility (CSR) has been defined as self-regulatory business model that enables a company in remaining socially accountable not only to themselves but also to the stakeholders and public (Hoi, Wu & Zhang, 2018).Tesla Motor addresses the interest of the stakeholders through the strategy of corporate social responsibility which focuses on the aspect of sustainability and the environment friendliness of energy storage, automotive and products that generate energy. The CSR initiatives of Tesla includes: 1.Communities:Teslaremainedsociallyresponsiblethroughreducingthecar emissions. More recently, Tesla moved a step forward and decided in releasing valuable patents for the company. The purpose behind release of patents has been to reduce the greenhouse gas primarily produced by the cars powered by gasoline. Tesla realized that it will not be able to meet all the international demand for electric cars but what the company realized was that the protection of the planet has been vital compared to its profit. Tesla therefore wanted the big automotive company to start using its technology with the hope of making the electric cars increasingly affordable. 2. Customers: One of Tesla’s corporate social initiative has been the protection of the interestofthestakeholdersandthesharedvaluethroughgearingthecorporatesocial responsibilitytowardsenvironmentfriendlyandsustainableenergybasedautomotive production. The corporate social responsibility of Tesla has been enhanced to global level instead
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7MANAGEMENT of simply being a local one. Another notable sacrifice or contribution made for betterment of the global enrichment has been the release of the patents based on the corporate technology for the public. The mission of Tesla lies in accelerating the world towards the sustainable energy. Tesla thus tried to prove to the people that they did not have to compromise for driving the electric vehicle since electric cars are considered to be quicker, better and more fun in driving compared to the gasoline cars. 3.Employees:Thisstakeholdergrouphadinterestinequaltreatment,career development, higher wages and opportunities. They have been crucial as they has always had an impact on capacity of service and production in business. In order to classify the interest of employees, Tesla undertook various actions in relation to CSR which includes global warming, sustainable workforce and programs related to the global leadership. In order to protect the health, capabilities and the productivity of employees, the company has undertaken initiatives such as sustainable workforce. Besides this, the company has undertaken various development programs which involved monitoring of profits and performance of managers and employees in order to motivate them in achieving the organizational goals. The company has also put forward leadership programs for the managers of the middle level. These programs falls under activities of CSR and the dedication of firms in addressing interest of employees. 4. Investors/Shareholders:Shareholders have been the key stakeholder group in Tesla who has been really supportive in achieving the business objectives and goals. The prime interest of shareholders in Tesla has been in maximizing profit of the business within the market. They are vital since they seem to impact the company’s capital. Therefore, for addressing and understanding central interest of the shareholders, Tesla has been planning for the electric vehicles under approval and guidance of shareholders (Engels & Szabo, 2017) .The plan for the
8MANAGEMENT electric vehicles has been helping in reducing cost that is incurred by petroleum and fuel since electric cars will be comparatively cheaper. In present times, the shareholders have remained concerned about the adjacent environment so that the very concept of the electric vehicles enables the company in maximizing profit within the market. Providing the electric cars for reducing the harmful gases has been part of the corporate social responsibility for the Tesla Motors that will help performance improvement of the firm within the electriccar industry. 5. Government:Production of electricity and transportation has been two big sources of emissions of the greenhouse gas that makes up for over half the emissions occurring in the United States (tesla.com, 2020). The ecosystem of Tesla be it the solar aspect or batteries or the vehiclesallaimsatreducingenvironmentalimpactscausedbyelectricityproduction, transportation and the energy use by the homes, people, grid and the business. In the year 2006, prior to launch of Tesla Roadster, the company did not have any viable option for the electric vehicle. At present, there are closer to 3 million electric vehicles on roads on a global scale with the rate of production increasing on a day to day basis. In fact, the auto industry is gradually making a move towards electrification thereby providing respite to the government. This is because, in the recent time the government has recognized harmful effects of the vehicle emissions through its integratedcombustion engine and gradually started to take tangible steps towards having a future which is not only sustainable but environment friendly. 4. Innovation: Innovation has been defined as the creative thoughts, new ideas imaginations in the form of a method or a device (Cooper, 2018). Innovation is often viewed as application of the better solutions that are able to meet the newer requirements, market needs as well the unarticulated needs. Tesla Motors has been another name for innovation. Today, the company
9MANAGEMENT has not only built electric vehicles but has also stepped into the generation of infinitely scalable cleaner energy as well as storage products. The company believes in discarding the over reliance on the fossil fuel and initiate a move towards a better future with Zero emissions. The products of Tesla has been able to offer complete solution towards storage, usage and a sustainable generation by drawing its power from sun. The company believes in envisioning a world that is powered by the solar energy, run on the batteries and ensures transportation via electric cars. Tesla products are quite sustainable by design since they are being built in a sustainable manner. Some of the innovative products of Tesla include: Commodity cells:These are the cylindrical shaped lithium ion batteries that finds usage intheconsumerelectronics.Theyareproducedatminimumcostandtodayis manufactured in Japan, South Korea, China and Asia. Autopilot:The autopilot designed by Tesla represents a suite comprising of innovative driver assistance system which has adaptive cruise for control, self-parking facility, lane centering facility along with an ability of automatically changing the lanes (Ingle & Phute, 2016). It is also empowered to autonomously navigate on the freeways having limited access and the capability of summoning the car to and from the parking lot or garage. Solar Glass Roof Tiles:The solar roof helped in powering the homes through accumulating energy from sun and thereby converting it into electricity by using the roof tiles that seem to complement the architecture of the house (tesla.com, 2020). It is available with an integrated battery that collects energy during day and stores it in order to make it available anytime thereby turning the home into personal utility. These tiles comes with 100 year warranty and produce clean energy that adds value to the home.
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10MANAGEMENT 5. Conclusion: In conclusion, it can be said that, Tesla had been able to achieve a significant position when it comes to electric vehicles. Roadster had been its first electric vehicle introduced in the year 2008. The report provides a detailed insight into the strategic goal of the company and how it plans to achieve it in the long term. The corporate social responsibility shows how Tesla has undertaken various initiatives in moving towards sustainability. Another core aspect of Tesla is its innovation. The report shows how the company remains a step ahead in delivering innovative products.
11MANAGEMENT References: Barmore, C. (2013). Tesla Unplugged: Automobile Franchise Laws and the Threat to the Electric Vehicle Market.Va. JL & Tech.,18, 185. Bohnsack, R., Pinkse, J & Kolk, A., (2014). Business models for sustainable technologies: Exploringbusinessmodelevolutioninthecaseofelectricvehicles.Research Policy,43(2), 284-300. Cooper, C. (2018).The Truth about Tesla: The Myth of the Lone Genius in the History of Innovation. Race Point Publishing. Engels, J. L., & Szabo, K. (2017). Shareholders’ reaction to Corporate Social Responsibility issues: An event-study of CSR announcements on stock prices. Hoi, C. K., Wu, Q., & Zhang, H. (2018). Community social capital and corporate social responsibility.Journal of Business Ethics,152(3), 647-665. Ingle, S., & Phute, M. (2016). Tesla autopilot: semi-autonomous driving, an uptick for future autonomy.International Research Journal of Engineering and Technology,3(9). Perkins, G., & Murmann, J. P. (2018). What does the success of Tesla mean for the future dynamicsintheglobalautomobilesector?.ManagementandOrganization Review,14(3), 471-480. Saxton, T. (2013).Plug in America’s tesla roadster battery study. Technical Report. Teece,D.J.(2018).TeslaandtheReshapingoftheAutoIndustry.Managementand Organization Review,14(3), 501-512.
12MANAGEMENT tesla.com, (2020). [Online]. Retrieved from https://www.tesla.com/about tesla.com,(2020).[Online].Retrievedfromhttps://www.tesla.com/ns_videos/tesla-impact- report-2019.pdf tesla.com, (2020). [Online]. Retrieved from https://www.tesla.com/en_AE/solarroof