Innovation and Entrepreneurship: Personal Qualities, Challenges, and Performance of Elon Musk

This document discusses the personal qualities, challenges, and entrepreneurial performance of Elon Musk in the field of innovation and entrepreneurship. It explores his vision, risk-taking abilities, passion for innovation, and strategic direction. The document also analyzes the challenges faced by Musk in his SpaceX business venture, such as weak enterprise profitability, oversized capital requirements, and military market access issues. Additionally, it evaluates Musk's entrepreneurial performance in projects like Tesla Inc and highlights his innovative approaches, including process improvement, product design, updating business models, and the use of new technologies.

Innovation and
Entrepreneurship

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Determine three main personal qualities of Elon Musk to grasp business opportunities............1
TASK 2............................................................................................................................................3
Analyse the entrepreneurial challenges that faced by Elon Musk in SpaceX business venture.. 3
TASK 3 ..........................................................................................................................................5
Research to evaluate the Elon Musk's entrepreneurial performance on the projects...................5
CONCLUSION................................................................................................................................8
REFERENCE...................................................................................................................................9

INTRODUCTION
Innovation refers to the process and idea by which goods or services is recommence and
make changes to launch new method as well as establish new thoughts in market which lead to
increase in profits and success in company (Bagheri, 2018). Business strategy states to set the
proper objectives in order to gain competitive advantages. Entrepreneur use business strategy
to remain in competitive marketing by launching and bring new ideas for the development of
new products and services. On the other hand, entrepreneurship is defined as method to create
new business to generate profit and bear own risks along with the challenges which result in
developing productivity and operations in business. Innovation is essential in entrepreneurship
as to remain in competitive market to provide customers distinct products and services from its
rivals. Elon Musk is considered in this report who is entrepreneur of rocket company SpaceX.
Its venture follows the electricity and Tesla electric car. This reports covers personal qualities
for opportunities in company, entrepreneurial challenges of Elon Mask's SpaceX venture which
recently launched and evaluation of Elon Musk performance.
TASK 1
Determine three main personal qualities of Elon Musk to grasp business opportunities.
Entrepreneur is a person who innovate new business to gain profit, bear risks and create
new ideas to launch products and services in marketplace (Goryushkina and et.al., 2019). It
improves the lifestyle of people with the implementation in the changing business
environment. Elon Musk is a founder of SpaceX and product architect of Tesla Inc as well as
PayPal. The three main personal qualities of Elon Musk to become a great entrepreneur which
is mentioned below:
Entrepreneurial spirit: It signifies the vision and risk taking for the success of
entrepreneur, to overcome with the problems along with the challenges faced by entrepreneur
(Hensel and Visser, 2018). This is main quality of Elon Musk because he had many challenges
which is the ability to overcome with the issues. He faced such as he failed in innovating his
SpaceX. Musk never get back from his failure as he outlook this as an experiments and he step
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forward for doing more better work in order to develop business opportunities (Papagiannis,
2018).
Passion of innovation: This states that it is launching of new things to increase sales and
revenue in enterprise. These helps entrepreneur to innovate new goods and services to remain
competitive in market using different approaches and methods for improvement which lead to
grab more outcomes. Elon musk has this quality as he is good entrepreneur. He innovate many
things such as space technology as well as electric cars ion marketplace. Musk find innovation
to overcome with the challenges as an chances to proceed in business. Thus, this make him
great and successful entrepreneur.
Strategic direction: It refers to strategy which is require to implement the changes in
company to success that lead to accomplish business objectives and goals with the teamwork.
Elon Musk use scientific method to develop teamwork which helps him to determine the skills
and expertise in their work in order to initiate their work process (Sidrat and Frikha, 2018).
Importance of entrepreneurial theories.
Innovation theory: It refers to innovating new ideas, products or services, supply of
inventory with the higher quality which result in attracting and attracting new customers. This
focuses on creating new thoughts as it gives the development of goods or services. Elon Musk
admires to do something innovative to increase profitability in business. Musk main innovation
is electric car, SpaceX, Hperloop and Electric Jet for the success and to take competitive
advantages.
Importance: The importance of this theory is to create more employment opportunities and
innovation which help them to improve performance and business operations. It is essential to
stay in competitive market from their rivals. This develops the business growth which lead to
maximize profitability and productivity in the business.
Leadership theory: It is defined as theory to develop the skills and abilities of the team
members to perform the work effectively in defined manner to attain the business goals. The
entrepreneur have the ability to manage and control their group in an effective manner.
Leadership is the process to influence people towards goals. It motivate team members to
focus on common goals. This theory explains to direct, supervise and inspire peoples to focus
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on organisational objectives. Elon Musk is an entrepreneur who is creative, innovative and
motivate them to achieve the purpose of business (Sumathi, Ahamed, and Karthikeyan, 2018).
Importance: It plays essential part in entrepreneurship as leaders set a standard to develop the
individual members skills and knowledge as well as build strong relationship with them which
helps them to build confident to complete tasks in an defined manner. This leadership theory
emphasis on the skills and ability of team leader within enterprise to direct and supervise the
individuals to fulfil the business objectives and goals.
TASK 2
Analyse the entrepreneurial challenges that faced by Elon Musk in SpaceX business venture.
Elon Musk SpaceX Starship is a system which is launched heavy lift vehicle which is
under the manufacture of SpaceX (Bagheri and Chitsazan, 2018). This rocket is reusable system
which outline to carry cargo as well as crew to anywhere such as moon and earth. The purpose
of this SpaceX Starship is to offer the payload that helps to carry passengers to earth and
planetary destinations. There are challenges which is faced by Elon Musk in SpaceX business
venture which are explained below:
Weak enterprise profitability: According to the survey, Elon has faced problems related
to their earning calculations SpaceX as Musk has included the payment which is give by
customers initially which is excluded in expenses. Thus, company has sustain a loss in the
business. Elon Musk strategy in SpaceX is to launch market by giving minimum price from its
rivals. Enterprise can not generate margin from its strategy in which it occurred loss during its
peak time. However, this decreases the profitability in business due to improper calculations
and strategy. However, this impacts entrepreneur profitability and production in the
enterprises (Bui, Kuan and Chu, 2018).
Oversized capital requirement: SpaceX require lots of capital for launching its super
heavy Starship. Then, they were expected that Airforce will help them to innovate its Starship
but this result to create more funds and resources internally as well as externally. SpaceX
initiate to launch Falcon 9 vehicle to innovate this they need lots of cost and investments to
proceed further. Therefore, the investment strategy of Elon Musk in Startship demand huge
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capital to succeed in innovation of their plans. However, this impacts the overall performance
and business operations to achieve the desired goals (Dinnar and Susskind, 2018).
Military market access: In this type of challenges, SpaceX faced issues in military market
access as there was one program conducted by national security which is for the awarding the
launch vehicles. In this program SpaceX couldn't get award for their innovation and other
competitors awarded this prize. Thus, it was shocked for Elon Musk as he struggle for the
certification of SpaceX. But he again done efforts for this to succeed from their rivals. However,
this affect the overall strategy and ideas of the Elon Musk in order to develop overall goals
(Kuratko and Neubert, 2018).
To overcome these challenges
Elon Musk overcome with this challenges by applying different strategy which help them
to develop more plans and implement the changes required in project. Another way of
overcoming this challenge as he innovate new products and services to acquire and retain
customers to achieve organisational objectives and goals. Therefore, Elon Musk use various
methods to upgrade their projects and invest more capital as well as borrow funds to proceed
to perform the tasks effectively (Puerta-Sierra, Montalvo and Angeles, 2021). Elon Musk
motivate the young generation of engineers to inspire them towards goals. He owns many
organisations such as Tesla which assist him to develop business opportunities and growth of
business. Thus, this help them to generate assets in the workplace in order to increase
profitability and productivity. Therefore, it take competitive advantages in the marketplace by
launching new services from its rivals so that he got success in overall growth in enterprise. Elon
Musk view these challenges as the opportunities to proceed for better work and process in an
efficient manner (Rajagopal, 2021).
TASK 3
Research to evaluate the Elon Musk's entrepreneurial performance on the projects.
Entrepreneurial performance refers to individual skills and knowledge which helps
them to attain better results in order to achieve success in business. Elon Musk entrepreneurial
performance as he has different skills for the achievement in various fields such as software and
electric cars that provide him to develop business opportunities and growth of business. Elon
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Musks has owned Tesla, SpaceX, PayPal and Hyperloop as this earn more profits in an
organisation. Tesla Motors Inc (Audretsch, D. B. and Link, A. N., 2019).
Elon musk is the CEO of Tesla Inc which is incorporated in year 2003. Tesla is an
American automotive that offers their products and services such as electric vehicle, energy
storage along with energy production which is situated in California (Farinha, L. and et.al.,
2020). The objectives of this enterprise is to help expedite the energy as well as transport
system which acquire through solar power and electric vehicles.
Tesla is the largest growing company across the world and organizing electric vehicles in
the market. Currently, Tesla offer vehicle and the production output of the vehicles is 510000
units in year 2020. On the other hand 3022 Mwh batteries and 205MW solars in the year 2020.
However, the assets and equity of Tesla Inc is $721 million and $22.25 billion in year 2021 (Gao,
Y. and et.al., 2018). Business strategy of Tesla is to allow rivals to licensed their technology
which signifies that the aim of enterprise is for further sustainable energy.
(Source: Enterprise Performance Management)
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Entrepreneurial performance
Enterprise Performance ManagementEnterprise Performance ManagementEnterprise Performance Management

Innovative approaches refers to update the new technologies in the marketplace to
attract and retain new customers as well as existing customers which lead to increase sales and
revenue in business. Elon launch various products and services for customer satisfaction and
brings quickly innovation to take competitive edge along with the distinct goods from its
competitors (Jiang, W. and et.al., 2018). However, Tesla invested in batteries to offer them in
large scale in different forms. Tesla plans is to system level and update the changes for the
demand and wants of customers to make purchasing decisions for the brands. Thus, it helps
them to look forward for the achievement in order for better outcomes. There are various
innovative approaches in business which are mentioned below:
Process improvement: It signifies the improvement of process, goods or services on
continuous process. However, this focus on improving the existing process in order to increase
productivity and performance in business. The improvement in process and procedure gives
better customer satisfactions which turn to gain business opportunities. Tesla improved the
Model 3 quality significantly as it helps them to maximize sales and revenue in business in order
to achieve organisational goals (McGee, J. E. and Peterson, M., 2019).
Improve product design: Improvement in design of goods attract end users to purchase
more. Thus, it helps management of Tesla to innovate new design of cars which retain more
customers in marketplace which lead to achieve business objectives and goals. When product
design is different and attractive from other companies then it makes end users for buying the
products from that brands (McKenny, A. F. and et.al., 2018). Administration of Tesla take
feedback from its users to launch prioritize design as per them as it influence consumers which
builds brand image as well as reputation which help them to increase sales in the business.
Update business model: Business model refers to the plan to gain profit in enterprise.
This involves data such as products along with the services the strategy to produce, target
market and the expenditure. It is essential to update business model because it develops
organisation to retain investments, hire talented and expertise employees and inspire
professional as well as workers. Business model of Tesla according to direct sales and services.
This entity focuses on changing and implementations of the business plans. However, Tesla
mission is to accelerate the transition to sustainable energy. Tesla use different business model
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for various goods and services which lead to increase business operations and performance of
the enterprise.
Using of new technologies: Technology is essential part of business which impacts the
operation of company. When there is no new technology the organisation cannot survive in the
competitive market. Advance tools and techniques develops the raw material management,
production, financial record as it build strong relationship with customers. Manager of Tesla
innovate new technology that is battery which decrease the price of electric cars.
Characteristics of battery states that it is tabless design as the company focuses on providing
more energy in battery as compared to previous battery power (O’Connor, A. and et.al., 2018).
Current target market of Tesla is that to attract customers as they are buying the Model
S vehicle. The target strategy of management of Tesla as it focuses and attract males to
purchase electric cars and other transport vehicle as it helps them to increase sales and
revenue which assist them to expand their business. Future target of Elon Musk of Tesla is to
announce the business plans to produce 20 million cars before the year 2030 and to target
people to buy more electric cars (Riviezzo, A. and et.al, 2019).
CONCLUSION
From the above analysis it is concluded that the main personal qualities of Elon Musk to
be a great entrepreneur is entrepreneurial spirit, passion of innovation and strategic directions
which them to grasp business opportunities. On the other hand there are various challenges
which is faced by Elon Musk in their new launch which is SpaceX Starship such as weak
enterprise profitability, oversized capital requirement and military market access as it was
obstacles to launch SpaceX Starship new business venture. There are overcoming techniques as
to innovate, update strategy and invest more resources which lead to increase sales and
revenue. Entrepreneurial performance on Tesla having better assets for the development of
business in order to achieve business goals as well as objectives. Therefore there are innovative
approaches which assist and inspire them to build brand image and retain customers such as
Therefore, it helps them to develop the process improvement, improve product design, update
business model, using of new technologies. Elon Musk is an entrepreneur, industrial designer as
well as engineer which owns different brands such as SpaceX, Tesla Inc, Neuralink and OpenAI.
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Therefore, it increase business operations and profitability of organisation in order to achieve
objectives and goals of company.
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