Impact of Environmental Forces on Innovative Response - Tesla

BUS705

Impact of Environmental Forces
on Innovative Response
The blog brings out a discussion on corporate social responsibility and sustainability of Tesla.
To prevent environment impact created by the Tesla products, Tesla applies their ideas and
other creative and innovative solution to resolve Environmental issues (Ellingsen, Singh, and
Strømman, 2016). Tesla is an American electric company which is engaged in the facilitation
of clean energy company based in California. The company was founded in 2003 in energy
storage, energy production, and automotive sector. The organisation specialises in the
production of electric vehicle and battery-based storage from grid scale and energy storage
through the SolarCity subsidiaries, solar roof tile, and solar panel. Tesla sells Model X,
Model S, and deals in powerpack, Powerwall, megapack, and solar roof tiles. In 2018, the
company has the employee base of 45000 people (Tesla, 2018). Tesla is considered as one of
the innovative companies that focuses upon tackling of climate change and have made the
sustainable practices through the safety and innovation. Lithium-ion batteries are the
innovative energy saving product of the company which is innovative and environmentally
sustainable (MWS, 2018).
Corporate social responsibility and industry challenge of Tesla
CSR is self-regulating business model, which helps the organisation to become accountably
responsible towards the stakeholders and public. It refers to the integration of environmental
and social objectives in business operations. Common role of CSR will include assisting
control costs, enhancement of the organisational brand, and attraction that will facilitate long-
term success of the company. It is true that majority of the environmental impact comes from
automobile sector (nearly 80-90 percent) due to fuel consumption and Co2 emissions of the
greenhouse gases and air pollution driving global warming. Although, according to USA

today, 2018, it is seen that Tesla is among the top 10 automobile organisations, which operate
on the basis of eco-friendly feature (MWS, 2018).
Recently, Tesla has started manufacturing electric cars, which relies on electricity as being
generated through Fossil energy generating pollution and nuclear power. The adoption rate of
cleaner renewable electricity further has increased since 2007, which has continued to drop.
Possible increasing emissions caused with the fact that most of the electric cars do have
heavy battery. Recently, the company was penalised due to its excessive emissions, which
means electric vehicle contributing to environment issue. 99.8 percent of the chemicals are
now contaminated with the toxic chemicals. Manufacturing of the electric vehicles generates
maximum carbon rather than creating conventional cars (Ellingsen, Singh, and Strømman,
2016).
Source of ideas affecting the development of creative/innovative solution
The major source of ideas, which induces in the development of innovative solution covers
industrial and market change. Further, there is a governmental upsurge of needs of companies
to maintain and accomplish appropriate environment. Increasing pollution and other
environmental issues from the automobile industry. Widespread adoption of electric cars
indicates that E-waste is more hazardous as compared to general waste, which is not recycled.
Tesla is quite inefficient in using raw materials where 40 percent of the raw materials is being
scrapped. From the media releases, it is seen that the Tesla sacrifices the safety concern of its
workers in name of production speed. On the other hand, the concern of tesla is in working
on infrastructure such as charging stations, better roads for the autonomous vehicles,
renewable energy grids, sustainable in regards to the capacity, widespread car sharing, battery
recycling networks (Hawkins, Gausen, and Strømman, 2012). The company will have to use
disruptive method of innovation strategy so that it can change the strategies and implement
new strategies to improve the performance of Tesla in relation to sustainability.

These above projects suggest that these projects will need millions of dollars to execute and
they will not recognise it as sustainable (Ellingsen, Singh, and Strømman, 2016). Tesla
urgently needs to focus on EPA (environment Protection Act) and its regulations to be
complied. Furthermore, Tesla will have to focus on developing campaigns so that it can focus
on improving environment rather than focusing on establishing electric socket to avail cars to
charge it. To change and develop several models in reaching sustainability, so that it can
apply and change its approach to become more sustainable rather than only becoming
profitable. It is seen that with new manufacturing procedure, Tesla has been facing high scrap
rates. The cost management department perceives that Model 3 increases after the costs begin
to fall from the elevated scrap. For the last four years, it is seen that it has suffered from
expensive robots and halted production. These losses have shaken shareholders base.
Application of strategic innovative model
Strategic innovation approach is a systematic approach through which the organization can
reach sustainability. It is an approach, which will lead to discontinuation of innovations that
are already applied, innovating new product and applying a strategic approach through
environmental campaigns. The company generates a portfolio of activities through which it
can lead to business growth opportunities by using a creative procedure. The company will
have to apply waste management techniques because the company throws 40 percent of the
raw material scrap as waste. Business insider has reported that Tesla scrap (40 percent) is not
at all appropriate by manufacturing 1 lakh cars. The company has to gather insights with
ideas from organisations and represent through organisation suppliers, advertising, packaging
partners, and branding agency (Frey, 2018). The technique used by the Tesla is waste
management technique, through which the company will be able to improve its method of
production and also enhance the work life of the employees by considering their safety
issues.