Creativity and Innovation Management | Tesla Case Study

Running head: MANAGEMENT
Creativity and innovation management: A case study of Tesla
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Executive summary
CIM processes are vital for an organization like Tesla in terms of imbibing innovation in the
products and services. This approach has particularly acted assistance in increasing the sales
revenue and profit margin. Reference can be cites of the sustainable production practices,
which has expanded the triple bottom line approach, enhancing the corporate social
responsibility. Participative management and leadership style has proved beneficial for Tesla
to alter the standards and quality of the business. The major strengths of Tesla include its
effective leadership skills and also ability to influence employees to share ideas, opinions and
individuals behaviours so as to facilitate the decision making process and ensure innovation
and creativity all throughout. The success of Tesla lies in the fact that it has introduced the
electric cars, which is new in the market and has driven consumer behaviours largely so as to
attain a good market share within the competitive business environment. The formation of a
good corporate culture that fostered collaborative workforce and built a friendly working
environment also contributed to the management of innovation and creativity all
throughout.Major drive behind this is the continuous improvement strategies and total quality
management models. Strategic planning is one of the pillars, which removes the barriers in
implementation of the models. Feedbacks from the stakeholders and shareholders prove to be
effective for Tesla in terms of assessing the feasibility of the plans and actions.

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Table of contents
Introduction to the organisation and CIM overview..................................................................3
Current CIM processes in the organisation................................................................................4
Analytical tools for identifying potential creative and innovation management ideas..............5
Vision and mission of the organisation......................................................................................9
Critical analysis of the creative management ideas.................................................................10
Stakeholders: An asset for the organisation.............................................................................12
Steps for collection of feedbacks from the various stakeholders.............................................14
Barriers to implementation of CIM ideas and change models.................................................14
Strategy plan.............................................................................................................................16
Proposing recommendations through concluding notes..........................................................17
References................................................................................................................................19

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Introduction to the organisation and CIM overview
Tesla, Inc. is a major electric vehicle manufacturing and Production Company based
in California and has revolutionized the automobile or vehicle industry. The company has
been specialised in the production of good quality electric vehicles along with the
manufacturing of battery energy storage from the home to grid scale so as to enable a power
source with the use of solar power or energy along with use of solar panels, solar city and
solar roof tiles too (Tesla.com 2020). Moreover, the company also has been associated with
the assembly and production of plants and machineries, all of which, are manufactured at the
Tesla factory and the company, at present, sells the Model S, Model X and Model 3 cars and
also solar powered batteries , solar panels, roof tiles and other related products and services
too. The company was founded in the year 2003 and the company has been serving
worldwide under the CEO Elon Musk. The production output is 367500, as recorded in the
year 2019 and the revenue generated is over US$24.57 billion and the employees working for
the company are over 48000. The company has aimed at delivering electrical vehicle and
foster the development of a healthy environment through sustainable energy consumption
(Tesla.com 2020). The e-car market segment has been dominated since then and Tesla has
been performing exceptionally well at present.
Because of the introduction of electric vehicles in the marketplace, Tesla has been
inspired by creativity and innovation, which also focuses on the development of future
technologies. The entry into the highly competitive auto market has also gained the interests
of the different types of stakeholders, which also can be helpful for Tesla to grow and
flourish, furthermore, put enormous commitment and ideas to innovate the products and
services (Tesla.com 2020).

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Current CIM processes in the organisation
The creativity and innovation management processes has not only helped Tesla to
build a long sustainable future, but also has taught people about sustainable consumption of
energy so as to produce new products in the market other than the electric vehicles. The other
products include solar panels, electric batteries, etc., which represent some premium value
offered to the clients and at the same time, serve both commercial as well as domestic
purposes. All these products are run by solar energy that generate electricity and power used
to run the vehicles while on the other hand, due to these innovative products, all of these have
been marketed as innovative high technology products to meet the premium needs of people
(Buckley, Burton and Mirza 2016). The creative and innovation processes have also allowed
Tesla to upmarket the product with the integration of innovative design features that ensured
product differentiation required to increase the market share and also to attain competitive
edge over its competitors.
Another major creativity and innovation process adopted by Tesla could be the
disruptive innovation, which could allow the company to bring change management and
introduce new ideas required to adapt with the shift in pattern of competition within the
current marketplace. The fuel engines were disrupted by the company and Tesla made sure to
prioritise on the protection of environment through use and consumption of sustainable
energy sources. According to Marri et al. (2017), the electrical energy seemed to be more
economical and the solar powered energy sources somewhat enabled innovative processes
that are radical in nature.
The innovation processes have been further fuelled by the involvement of
management team where each and every members were allowed to provide their useful ideas,
views and opinions that are required to make effective decisions in business. Thus, the

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management structure improved the internal creativity and fostered innovation that are
required to enhance the overall firm performance. Tesla’s leadership also helped in keeping
the management team and employees of the organisation motivated and encouraged to
perform to their potential and maintain the growth trajectory consistent while trying to evolve
with time. The research and development activities further promoted innovation and
increased the supply of sustainable products that are god for the environment (Suratno et al.
2018). With the clean and renewable sources of energy, the running of electric vehicles was
managed, which could also help Tesla to meet the demands in the market and at the same
time, remain socially responsible towards the environment and community. To ensure
continuity of stable services, all the organizational members have contributed their ideas as
part of the decision making process whereas the focus on consistent innovation and creativity
remain aligned with the needs and preferences of the customers that are to be fulfilled.
Therefore, Franceschini, Galetto and Maisano (2019) states that this is what the creativity and
innovation processes at Tesla are like and all these are necessary for the growth and
development of a sustainable future too.
Analytical tools for identifying potential creative and innovation
management ideas
The innovation at Tesla occurred with the implementation of a proper corporate strategy,
which ensured multiple steps including the introduction of a high technological car and sell it
with a premium price. To keep its rarity, the company made sure to bring out only limited
cards in the market and Roadster was such an example. After this step, the company needed
to launch a car that can be affordable for the middle class segment. Thus, Roy (2018) opines
that both luxury and premium along with rarity indicated how the company has differentiated
itself from the competitors by bringing out something new. Constant innovation is always a