Global Supply Chain Management: PDF

Report
on
Tesla

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
a) Identify and critically analyse two internal and two external business environment factors
affecting Tesla's future in China.............................................................................................1
b) Recommendation................................................................................................................2
TASK 2............................................................................................................................................3
a) Tesla's approach to global supply chain management........................................................3
b) Strengths or weaknesses of Tesla's global SCM and its contribution towards competitive
advantage or disadvantage of the business.............................................................................4
TASK 3............................................................................................................................................5
a) Tesla's international activities and plans in CSR areas and their effectiveness or
ineffectiveness........................................................................................................................5
b) Impact of Tesla CSR policies and activities on stakeholders groups.................................6
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................9

INTRODUCTION
Market is define as a place where both buyer and seller interact with each other to collect
complete information about a particular products as well as services. At this place one can
compare price of offerings or products in effective manner because at respective place there are
various sellers who are offer same products (Raal and et.al., 2015). Organization taken in this
report is Tesla which is operating its business in automotive and energy storage industry. It is
founded by Martin Eberhard, Marc Tarpenning, Elon Musk, J.B. Straubel and Ian Wright in year
2003 (A brief history of Tesla Motors, 2019). Its headquarter is in California, United State and it
is offering its products at worldwide level. Topics included in this report are factors which affect
respective company future, its supply chain and how it will contribute to competitive
advancement. Along with this it will also include CSR activities which are conducted by
respective company in order to attract more customers and shareholders.
TASK 1
a) Identify and critically analyse two internal and two external business environment factors
affecting Tesla's future in China
There are various factors which are directly and indirectly impact on an organisation
operations and function. These factors can be from internal or external environment (Mangram,
2012). In respect of Tesla there are several internal and external environmental factors which
impact respective company future in china, from which some major factors are given below:-
Internal environmental factors:-
 Strength of employees: Tesla is a well-known organisation in which so many employees
work with productive outcomes. Organisation always overlook for enthusiastic, skilled
and capable employees who can derive in achieving desired target objectives in effective
manner. In China, individuals are very dedicated towards working practices in relation to
technology and electrical. Thus, it can be a positive aspect for Tesla while conducting
their business operations in China of getting productive and desired outcomes easily.
 Investors: Investors and shareholder at China are more likely to invest in those products
and services which are highly based on technology (Krishnan, Romanin and Maharbiz,
2013). In respect of auto-mobiles sector they are more attracted toward vehicle company
who adopt advance technology on regular basis as well as continuously come up with
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new and attractive innovation. In respect of Tesla their products are based on highly
advanced technology which attract customers and investors. They also developed
products which based on saving energy and environment. So this will affect respective
company in positive manner because they effectively able to attract investors. This leads
to attract investors toward vehicles manufactured by respective organisation whose sales
is high. Therefore, this makes them to focus on sales for their consumers.
External environment factors:-
 Political factor: Political environment of China is stable which help company in
operating their business in effective manner. In respective country, Governments also
trying to enhance investment for social welfare which is not much effective therefore
governmental bodies are trying to adopt factors which help them in improving their
situation (Pest Analysis in China, 2019). Therefore, it can be considerable aspect for
Tesla to pay their maximum attention towards such governmental practices in order to
build positive relation with political bodies.
 Technological: China is considering as one of most technology friendly country and it is
come at number 2 position in the list of country spending on research activities as well as
there are numbers of trademarks are registered by respective country in the world (Pest
Analysis in China, 2019). In respect of Tesla it is effective for them to operate their
business at respective country because people of China are more attracted and likely
toward advance technology and respective company also develop their vehicle on same
basis. That will help company in operating their business in effective manner.
These internal and external environment factors impact on operation and function of
Tesla while analysing its future in china (Krasny, Krasny and Prescher, 2012). Through this it
can analysis that the respective company can operate its business at respective place in effective
manner because peoples at respective place are highly aware about advance technology and
electrical cars.
b) Recommendation
By analysing above internal and external factors which impact on Tesla future at China
there are several recommendations for respective company which will help them in conducting
their business in effective manner. In order to build political stability, Tesla requires to pay their
maximum attention toward tax policies and foreign investment preferences. Through this firm
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can take possible initiatives that assist them in creating stability in their business developments
practices in china. Another considerable factor is trade policy of china governments that has a
direct influence on foreign trading practices thus, while conducting business operations in china,
Tesla requires to implement flexible trade policy in order to make possible changes in it as per
the required situation. Tesla also needs to pay their maximum attention toward social welfare
which is a major factor comparatively others for which china government take a specific
initiative and create several investment policies to improve its situation. Tesla can grab
maximum benefits from the advance technological features that are available in china as well as
there already has skilled and capable individual who assist them in implementing desired
strategies in its business operations effectively.
TASK 2
a) Tesla's approach to global supply chain management
Supply chain management is the management of goods and services flow which involve
all the processes that transform raw material in final goods. In simple term, SCM is regarded an
activity which need to plan, control and execute products flow, acquiring of raw material as well
as production through distribution to their final customer (Shi and et.al., 2012). Each relies on
the others to provide a seamless path from plan to completion as affordably as possible. There
are several elements of global supply chain management out of these explanation of two in
relation of Tesla are as follows: -
 Energy Storage – This element of supply chain management ensures that in Tesla there
should be each and everything which required for production purpose such as proper
storage of energy, material, supplies, tools and equipment so that all function will
conduct in proper way (Annual report, 2017). Thus, it ensures that before required
anything it will be in hand for performing daily basis operations in effective manner.
Energy supply storage products of respective company is manufactured at Giga factory 1.
They generally leverage or adopt similar supply chain management process and
infrastructure as they use their own vehicle. There are several battery architecture and
other components which are used for their energy storage products are almost similar to
battery pack of their vehicles that help them in gaining advantage related to
manufacturing as well as supply chain of economies of scale. Along with this respective
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company power electronics and inverters are manufactured at same factory that is Giga
Factory 1. These are generally for power wall as well as power pack system. Through
respective place they able to supply their products effectively and directly to the
customers.
 Solar Energy System – Currently Tesla purchase their major components like inverters
and solar panels from several manufactures. They generally buy solar panel as well as
inverters when they required it for conducting proper supply chain process in effective
manner. In year 2016 the respective company tie up with Panasonic in order to
manufacture photovoltaic cell as well a modules. This was manufacture at Giga factor 2
at Buffalo, New York (Annual report, 2017). Along with this in recent time they started
producing or manufacturing solar panels at same factory with collaboration along with
Panasonic. Tesla use various type of raw material such as aluminium, cobalt, steel,
nickel, lithium and copper. Moreover price of these raw material get fluctuate due to
which respective company need to change or improve their supply chain process.
Thus, above mention both element of supply chain management have positive as well as
negative impact on the working of Tesla. But their positive impact is wide as compare to
negative so implementation of these two will be beneficial for working of respective business
firm.
b) Strengths or weaknesses of Tesla's global SCM and its contribution towards competitive
advantage or disadvantage of the business.
Supply chain management is the flow of goods and services by transforming the raw
materials into finished products and services to deliver the ultimate consumer base (Kuchcinski
and et.al., 2015). Tesla uses vertically integrated supply chain management which is self-
sufficient as so that their “ factory of the future” can develop as well as deliver upon whole the
promises (Tesla Supply Chain Management, 2019). Moreover, as per latest supply chain
matters, Tesla Motors production as well as supply chain management face the issue like
developing criminal probe regarding Model 3 product Their retailer, manufacturers and whole
sellers are part of their supply chain and with their contribution products reaches at their ultimate
consumer base. Some strengths and weaknesses of Tesla' s supply chain management are:
Energy storage practices of Tesla assist in managing higher competitive advantages as on
the basis of such things that requires additional consumption of energy in material, supplies,
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tools and equipment. As in the manufacturing plan of Tesla, a major requirement occurs of
energy in which production practices done through stored energy. As the feature of Tesla are also
designed in a way that store maximum energy from different sources in order to provide a range
of service easily. This unique feature is required for an effective management of supply chain in
which all the practices assure to be done on the basis of desired strategic planning. Energy
supply storage products of respective company is manufactured at Giga factory 1. Thus the
major advantage of supply chain management is for leverage that can be adopt through similar
supply chain management process and infrastructure as that firm can use in their own vehicle. On
the other hand, decision of purchasing solar energy system of Tesla assist them in managing
manufacturing and production practices effectively. Thus, the supply chain management of Tesla
can be take them on favourable path for getting positive outcomes.
From moving towards downside to vertical supply chain integration some problems and
risk they have to face. Tesla's issues are a caution tale when this comes to this particular model
and potential risk are enhanced costs, minimise into product design flexibility and problems of
balancing. This increases the costs because of lack of competition. When suppliers try to
complete with other business it leads downward costs in case of choose single supplier, cost
enhances and more bureaucratic costs too. Moreover, flexibility may be constrained as well as
modifying models or designs can be complex if this will have considered various new
improvement. Implementation of energy storage and solar energy system requires a proper
analysis at which extent firm needs to keep them. Thus, the proper analysis at desired level can
be a negative aspect in which additional cost requires to be implemented by firm.
TASK 3
a) Tesla's international activities and plans in CSR areas and their effectiveness or
ineffectiveness.
Corporate social responsibility is considered as the self- regulating model of business
which aids firm to be socially responsible for themselves, their people as well as stakeholders
(Krishnan, Romanin and Maharbiz, 2013). Tesla's have CSR strategy which concentrates upon
business nature as well as their products. Such as firm's electric auto-mobiles are broadly
considered as negative effects of cars which usages internal combustion engines. The areas of
CSR that are followed by Tesla's are mentioned below:
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 Communities: The automotive business of Tesla directly satisfies the communities
concerns. Communities are stakeholders which ascertain the brand reputation by its
important lobbying activities as well as responses to enterprises. One of the interest of its
stakeholder group is to assure that natural surroundings get protected. The firm's electric
auto-mobiles, solar panels as well as batteries shows this interests. Such as communities
get satisfied with friendliness surrounding of that goods. Respective company, strategy of
corporate citizenship also satisfies their groups of stakeholders interests that get benefited
from advanced technology. Tesla's international activities and plans is to formed a
creative battery recycling system which will processed both end life of battery as well as
manufacturing scrap (Tesla, Inc.’s Corporate Social Responsibility & Citizenship,
Stakeholders. 2018).
 Staff Treatment: In every organisation, staff are to be treated in effective manner (Luntz
and McCloskey, 2014). In Tesla's, workers are considered as the success factor in their
automotive as well as energy solution enterprises. If staff are treated effectively then this
influences performance and productivity of their business. Its corporate social
responsibilities involves high compensation as well as important opportunities of career
(Thompson and et.al., 2014). Corporate responsibility of Tesla satisfies these interests by
competitive compensation strategy. Moreover, respective firm international CSR strategy
provides the learning experiences by coordinated schemes with partner organisation.
Also, their employees are facilitates safety by effective safety groups as well as
transparent incidents reporting. As per the firm's survey in 2018, 88% of are those who
responded towards it, 83% consider that respective company cares about its safety and
protection (Tesla annual report. 2017). These programs satisfy the staff interests that
enhances the productivity and profitability of the organisation.
Therefore, all these are effective for Tesla's as it help them to be committed towards
manufacturing materials. Moreover, they are also committed to developing work condition into
their supply chain safe as well as humane. Also, assuring that staff are treated with dignity and
regards in order enhance their performance.
b) Impact of Tesla CSR policies and activities on stakeholders groups
The main aims and objectives of the company is to earn profitability. Tesla's CSR
policies as well as activities such as recycling the battery. As per the Tesla's websites, it is stated
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that minimising the actual time tailpipe emissions from historical cumulative miles leads through
international Tesla vehicle fleet. For example: In 2018, around 3,64 million tons of carbon
dioxide are to be protected through their vehicles. It have limited CSR activities to possible
emission minimisation with the usages of electric vehicles as well as categorising various
technology enhancement as open sources. All these activities and policies of corporate social
responsibilities impact the stakeholders group such as employees, communities and much more.
Impact of CSR policies as well as activities upon communities, employees, environment and etc
(Haeusler and et.al., 2013).
Community: The accountability that it has towards community as a whole can not be
ignored. This enhances the awareness about the company’s products and image among society.
Moreover, this maximises the staff relationship, enhanced the behaviours of the organisational
communities as stake holders. Workers feel socially accountable, as they experience a huge
sense of identity with enterprises they perform for. Along with this, corporate social
responsibilities policies and activities of Tesla maximise the staff intention to be with its present
owners as well as its whole commitment is towards firm.
Employees: These policies effects in positive manner through it staff are no more
concentrated towards perks mostly focused on social responsibility (Tesla impact report. 2019).
The CSR policies of Tesla has impacted different stakeholders such as consumer and employees.
In case of consumer, it helps in increasing brand loyalty towards products and services that they
are eco-friendly in nature. Similarly, in context of employees, it assist in enhancing motivation to
give their best at organisation for achievement of goal and objectives.
CONCLUSION
From above discussed point it can be analysis and summarised that there are various
environment factors which impact on an organisation when they are operating in a particular
industry. These can be internal or external factors such as technology, suppliers, economical
condition, employees and many more. For which it is essential for them to develop strategies so
that they deal with these factors in effective manner. Along with this for every organization there
suppliers chain management plays an essential role because through it they able to serve their
products and services in effective manner from one place to another. This will also help them in
gaining competitive advancement in effective manner. In order to enhance goodwill at potential
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marketplace an organisation need to conduct CSR activities so that they attract more and more
customers as well as stakeholder.
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REFRENCES
Books and Journals
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hypercholesterolaemia (TESLA Part B): a randomised, double-blind, placebo-controlled
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analysis. Journal of Strategic Marketing. 20(4). pp.289-312.
Krasny, A., Krasny, N. and Prescher, A., 2012. Anatomic variations of neural canal structures of
the mandible observed by 3-tesla magnetic resonance imaging. Journal of computer
assisted tomography. 36(1). pp.150-153.
Shi, M. and et.al., 2012. Wingspan stenting of symptomatic middle cerebral artery stenosis and
perioperative evaluation using high-resolution 3 Tesla MRI. Journal of clinical
neuroscience. 19(6). pp.912-914.
Verloh, N. and et. al., 2013. Impact of liver cirrhosis on liver enhancement at Gd-EOB-DTPA
enhanced MRI at 3 Tesla. European journal of radiology. 82(10). pp.1710-1715.
Kuchcinski, G. and et. al., 2015. Three-tesla functional MR language mapping: comparison with
direct cortical stimulation in gliomas. Neurology. 84(6). pp.560-568.
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1379.
Krishnan, V. G., Romanin, V. and Maharbiz, M. M., 2013. Design and scaling of microscale
Tesla turbines. Journal of Micromechanics and Microengineering. 23(12). p.125001.
Thompson, S. M. and et.al., 2014. Numerical investigation of multistaged tesla valves. Journal
of Fluids Engineering. 136(8). p.081102.
Haeusler, K. G. and et.al., 2013. 3 Tesla MRI‐detected brain lesions after pulmonary vein
isolation for atrial fibrillation: Results of the MACPAF study. Journal of cardiovascular
electrophysiology. 24(1). pp.14-21.
Luntz, A. C. and McCloskey, B. D., 2014. Nonaqueous Li–air batteries: a status report. Chemical
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