Stakeholder Analysis of Tesla Motors

This report analyses and evaluates the functional level strategies and business level strategies in the view of stakeholder's analysis in the context of Tesla Motors. The report has the overview of the company and challenges confronted by Tesla while innovation process has been undertaken.

ENTREPRENEURSHIP

Contents
Executive summary....................................................................................................................2
Tesla Motor`s Introduction........................................................................................................3
Tesla`s stakeholders...................................................................................................................3
Director of Tesla.....................................................................................................................4
Manager of the company........................................................................................................4
Employees..............................................................................................................................5
Customer perception...............................................................................................................5
Supplier’s perception..............................................................................................................5
Shareholder`s perception........................................................................................................6
Creditors.................................................................................................................................6
Government perception..........................................................................................................6
Society` perception.................................................................................................................6
Tesla and its four-behaviour model............................................................................................7
Recommendation........................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

Executive summary
This report analyses and evaluate the functional level strategies and business level strategies
in the view of stakeholder`s analysis in the context of tesla motors. Tesla is one of the leading
automobile companies in the industry, which has been headquartered in America. The report
has the overview of the company and challenges confronted by tesla while innovation process
has been undertaken. Further, the report will layout its recent developments in a succinct
manner. This discussion is conducted in order to analyse the views of the stakeholders with
the help of diagrams. The debate continues on stakeholder`s matrix with the consideration of
their contribution laid down from the production and strategies of Tesla Motors. This report
will elaborate several strategic programs with its reasoning so that it can justify the
organisation. The list of stakeholders will include both internal and external stakeholders.

Introduction to Tesla Motors
Tesla Motors is renowned as a leading automobile vehicle company, which has been
designed and invented in 2003 by the assistance of artistic, innovative, and intelligent
engineers (Tesla Motors, 2017). The crucial fulfilment of the tesla`s motors is to pace up the
progressing through sustainable development by producing high level of performing green
automotive of around 50, 00, 00 til the time of 2020. Whereas, the main vision is to invent the
forceful cars in current century with the help of empowering the invention of the electric cars
(Tesla Motors, 2017). It has been observed that infrastructures have collaged so that it can
charge some stations that remain challenging jobs. Further, regulatory resolutions are needed
to support several challenges and the by complying with these regulatory decisions, the
company overcome the challenge in the generation of revenue (Tesla Motors, 2017). It has
been reported that the company suffer severely from the technical uncertainties as per the
demand and supply of battery chain. It is associated with the risks to the products with the
high cost of the market. As per the company`s vision (long term goal) and mission, the
organisation has succeeded by innovating the products (Tesla Motors, 2017). For instance- in
2012, it launched Model SS, in 2015; it launched Model X and the inexpensive vision in
2017. The management of the organisation has managed to comply with the business model
(Tesla Motors, 2017).
Tesla Stakeholder View of the Organisation
Several stakeholders are closely associated with the operation of the company. A stakeholder
is a person, group, and a regulatory association who has stake in the company and hold a
great impact in its operating organisation, its crucial strategy, and the implementation. It has
been reported that automobile holds a great economic strength in America (Tesla Motors,
2017). The company has several stakeholders, which affect the business level strategies of the
company. Below is the overview of the stakeholders-Stakeholder affects and are being

affected by the organisation performance (Tesla Motors, 2017). Stakeholders are mainly two
types; it can be either external or internal stakeholders. Internal stakeholders operate within
the organisation and they are the primary stakeholders and also the key operating partners.
Whereas, the external stakeholders are secondary stakeholders, who has a vital role in
availing the resources or directing the company, in which it will start working. Internal
stakeholders comprise of owner, employee, management team, and managers (Tesla Motors,
2017).
Director of Tesla
As stated by the BBC evaluation report, it is seen that directors of Tesla have laid down blue
ocean strategy, the innovation strategy in order to have great version of higher competence
and the lower cost at which it is highly competent so that it can grab great market share
(Tesla Motors, 2017). As per the CEO of Tesla Motors, it is importantly beneficial to the
organisation during the process of manufacturing the electric cars, which do not emit several
harmful gases such as nitrous oxide, and CO2 (Tesla Motors, 2017). The director and CEO of
the company aims to manufacture such cars, which can the trait of zero emission model of the
automobiles (Tesla Motors, 2017).
Manager of the company
This stakeholder reflects the successful background of the operations of Tesla. This includes
VP manager in the sales and communication, product manager, senior software engineers and
line managers (Tesla Motors, 2017). For example- human resources are closely related to
process system of products. Above all these activities, it is considered that managers have a
vital role in which it allocates various resources which has been allocated within the defined
task and at the final stage, it is distributed among employees so that they can implement and
regulate the procedure. As per the activities of each manager, it is seen that all of them are
recruited under the influence of mission and vision of the company. Although, there are some

of the disagreements in worrying situations so that it can acquire the required resources. Line
manager often have shared their viewpoints to maintain the cost of hiring the subordinates,
which has become challenge (Tesla Motors, 2017).
Employees
Subordinates of the company have mixed suggestion in regards to the business level strategy
and related industry trends. The situation is undertaken due to impressive variations and other
innovation decision as undertaken by the CEO (Brem, and Viardot, 2015). Employees often
have agreed to consider the challenges and the related decision of Elton. On the same time,
employees often work in the huge factories, which are perceived as negative where the
working of the employees is gruelling but at the same time, it is rewarding and challenging in
the end (Tesla Motors, 2017). External stakeholders are creditors, suppliers, government,
society, and the customers (Brem, and Viardot, 2015). In consideration to tesla, the
subordinates of the business have the productivity of the company to which they are actually
responsible (Brem, and Viardot, 2015). For instance- the company strives to avail some
important career opportunities, competitive compensation, and the leadership development
that are mandatory to hold, lower rate of problems, and warrant them at the same time to deal
with the dangerous operations (Brem, and Viardot, 2015).
Customer perception
It has been seen that customers of the organisation deal with many reviews, which are based
on affordability, and a class, which have invented by the company. On the other hand,
customers are quite satisfied while considering the production especially which is occurring
without harmful emissions (Brem, and Viardot, 2015).
Supplier’s perception
Suppliers deliver several resources to manufacture in the market and further exports from
place to place. Suppliers of Tesla have negative views in the starting years of business

operation while valuing the cost of the goods of the batteries in the starting years starting
from 2008 to 2012 (Brem, and Viardot, 2015).
Shareholder`s perception
Several shareholding partners who are alliancing with tesla are huge in number and
population. The initial shareholders are closely associated with the AG Daimler 2009 that
brought highly remarkable change in electric technology and also its market value of
product`s price (Dean, Gamez, Punjaisri, and Pich, 2016).
Creditors
It has seen that from the laid down Annual reports of the company, creditors have shared
further positive views in production model that is C, 3, and X through which each model have
a highly competitive enforcements at marketplace in order to consider greater revenues in
return. Investors often share the perception of low cost model while comparing to the low
generating revenues of the company.
Government perception
It has been said that government have shared miscellaneous and necessary regarding creation
of electric cars. It is seen that the organisation has integrated through collaborating with the
production of the battery. German government has promised to share positive potential value
as guided through the first year prior. SECs have entered between as it is found that Tesla`s
CEO with $20 million followed a series of tweeting being posted by the Elton Musk when
talking about the Tesla`s claiming as when secured the funding system of the as fraud and
misrepresentation.
Society` perception
It is important to consider the community shares the recent cost of the cars without incurring
huge emissions of gases. Community undertakes the proper pricing of the cars of Tesla as

affordable as per the standards while comparing to the previous models with high price and
high level of harmful emissions.
Stakeholder Analysis for four selected stakeholder groups
Tesla and its four-behaviour model
(Source: Dean, Gamez, Punjaisri, and Pich, 2016)
Offensive- these stakeholders are considered to have greater cooperative potential with less
competent threat. The category helped the company to accomplish the goals of the
organisation. Whereas, at the same time, offensive stakeholders signify that this is a big
menace in the business level strategy (Leonidou, Christodoulides, Kyrgidou, and
Palihawadana, 2017). These stakeholders enforce the company to create clue strategy, which
is very useful to consider these stakeholders while making the decisions. Main consideration
is to alter the previous belief whether the organisation will try to regulate the positions of the
stakeholders (Leonidou, Christodoulides, Kyrgidou, and Palihawadana, 2017).
Tesla`s audience is mostly the high-income people, who are well-known for the costly
vehicles. Customers prefer to buy these cars, as they believe that the company manufactures

environment friendly and provide them with the secure cars (Leonidou, Christodoulides,
Kyrgidou, and Palihawadana, 2017). Stakeholders considers to repair and demand for timely
high quality goods and services even when the conditions of the cars is very well. It is seen
that these stakeholders spend huge interest and money in the company such as customers and
the high stake shareholders. These stakeholders have high control so that they can fulfil needs
and wants so that the company will modify and alter the strategies (Kazadi, Lievens, and
Mahr, 2016).
Swing- stakeholders have the characteristic of imposing of high competiveness and the power
to have high potential to cooperate. It signifies that stakeholders in this category have the
influence over the operations of the company in such a way that circumstances of the
situations occur inside the company at any time. The three crucial clues on which the
company has to work in regards to satisfy the stakeholders (Leonidou, Christodoulides,
Kyrgidou, and Palihawadana, 2017). For the first thing, the company has to change the code
of conduct with the help of laws. The second clue is the changes in the decision-making
forum. At last, the organisation will have to initiate so that it can undertake other types of
decisions, which will differ from the given ones. In this category, it is seen that SECs and
government agencies are under the swing stakeholders. In this regards, it is seen that SECs
charge fine and other penalties on CEO for the misleading and false representation that has
enforced the board to deal with them so that they can reach on the agreement of the two
parties (Fitzgerald, and Cunningham, 2016).
Hold- these stakeholders have low competency of the imposing power with low potential to
cooperate. It is easy to understand that the organisation to handle the stakeholders in order to
keep these stakeholders and seek for least damage to the organisation. They will lead to
become satisfied to the strategy when regulating the company`s operations (Fitzgerald, and
Cunningham, 2016). Three crucial strategies that can be influential to the existence to these

stakeholders is to reinforce the believe system for the organisation the other thought can be to
prevent these stakeholders by considering every change in company (Fitzgerald, and
Cunningham, 2016). The last is to stay with the same strategy rather than building the new
one. For example- suppliers are under this category. SolarCity is the provider of the batteries
of the tesla in which the organisation have the same values such as maintenance of cost, and
the common purpose of the beliefs according to the same strategy. Solarcity is a business
group with the business partners (Fitzgerald, and Cunningham, 2016).
Stakeholder category identification and generic strategic programs for each of the four
selected stakeholders
Defensive- these stakeholders have the traits of the highly competitiveness with the low
potential to cooperate (Foster, and Kirk, 2016). Defensive stakeholders do not make value
addition for the company. Otherwise, in this regard the company can take their own decisions
so that they can achieve the objectives (Gualandris, Klassen, Vachon, and Kalchschmidt,
2015). It is quite useful to prevent competitive menace in organisation (Zientara, 2017).
Three crucial strategies can be to manage the stakeholders which reinforce actual beliefs in
the company and also keeping the company`s outcomes so that it could maintain the existing
programs and manage the transactional process (Foster, and Kirk, 2016). Investors are called
as the defensive stakeholders. As the investors are always interested in profitability and
increased annual dividends for which they actually seek for the reports to alter the strategies
of the company if it is mandatory to become more productive (Zheng, Le, Chan, Hu, and Li,
2016).
Recommended strategic program for each of the four selected stakeholder groups including
reasons for recommendations
From the analysis above made, it is perceived that while considering the achievements in
regards to the expected results. Therefore, it is recommended that the organisation can create

the permanent strategy in order to manage the suppliers and the customers inclusive of main
permanent strategies. The company has been improving the self and getting stronger day by
day (Foster, and Kirk, 2016). CEO has strong visionary in regards to manage the attitude,
which is not for everyone only applicable to the special ones who has invested huge money
and patience in order to incur great profits. Tesla has reformed their thinking through the
strategies, which already work perfect for the Amazon (Voinov, Kolagani, McCall, Glynn,
Kragt, Ostermann, Pierce, and Ramu, 2016).
Since 1997, the company have started with the books store to sell the books with the internet
as CEO has recently published the shareholder concerns by clearly stating the visionary every
year with the help of projected profits. He has personally contacted to the shareholders to
understand, encourage, and finally convince the defensive shareholders so that they will keep
calm rather than pressuring the organisation (Tesla Motors, 2014). In order to achieve and
fasten the positive outcomes, it is seen that Tesla has started producing massive affordable
cars in regards to the number of people worldwide. With its existing business strategies, the
company has to use several tools important problems (Foster, and Kirk, 2016). For instance-
with the effective business solvency, it is seen that Tesla is among the invested companies
that has great position in the and often raise a lot of equity. On the other side, it is seen that
shareholders often ask for greater profitability to, which the company react positively (Tesla
Motors, 2013).
It is recommended that the company should consider conducting mass production to reduce
the costing and finally develop competitive strategy in order to widen the global market. The
organisation will have to position itself as a strong brand with the help of effective marketing
strategy and improving the effectiveness so as to improve the satisfying the consumers,
enhance the sales services, pace up the efforts and finally open new shops. The organisation

targets to expand the business by the assistance of joint venture policy with the energy
stations with objective to widen other brands in the same situations (Tesla Motors, 2013).
Conclusion
From the discussion given above, it is seen that the company has the potential to celebrations,
as it is very much able to answer and revert to the negative effect of the petrol cars. It further
carries that electric cars could be very much better in regards to all the pressures that must be
considered when comparing it with the traditional ones. It can be very much better and
opened as per the policies so that it finally pace the several and dynamic process that can
finally let other several brands to use the same brand name.

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