Stakeholder Analysis of Tesla: A Strategic Program for Sustainable Growth

This report analyzes the stakeholders of Tesla and recommends a strategic program for each stakeholder group to ensure sustainable growth. Stakeholder categories, such as customers, employees, communities, investors, and suppliers, are identified along with their interests and strategic drivers. The report also highlights the importance of government stakeholders and provides insights into managing swing stakeholders. Overall, this analysis aims to help Tesla maintain positive relationships with its stakeholders and achieve long-term success.

RUNNING HEAD: International Business 0
International business

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Executive summary
This report comprises the stakeholder analysis of Tesla. Tesla is having various kinds of
businesses from solar energy, designing and manufacturing rockets and spacecraft’s to the
designing of the electric vehicle. This report defines Tesla motors along with its history, mission
and vision. The stakeholders of the Tesla are viewed. Four selected stakeholder groups are
analyzed such as customer, employees, communities and investors. Further, stakeholder category
is identified along with the generic strategic drivers for each selected group. Finally the strategic
program is recommended for the particular stakeholder groups along with the explanations.

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Contents
Executive summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Stakeholder view of the organization..........................................................................................................3
Stakeholder analysis for selected stakeholder groups..................................................................................6
Stakeholder category identification and generic strategic programs for the stakeholders............................6
Recommended strategic program for each selected stakeholder group........................................................9
References.................................................................................................................................................11

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Introduction
Tesla was established in 2003 with the aim of manufacturing electric vehicles. The company
proved that electric vehicles can be superior and faster than the gasoline cars. Currently tesla is
producing not only electric vehicles but also building substantially scalable clean energy cohort
along with the loading products. The company relies in moving towards a zero emission future
for betterment. It is the mission of Tesla to hasten the globe’s evolution to defensible energy by
captivating high recital green cars to the market. The vision of Tesla serves an indicator of
company’s operational effectiveness along with the business development. Tesla faced
challenges when its Amazon web services were hacked to mine crypto currency. It drew
attention of Tesla towards cyber security startup RedLock. The company released its first
autopilot in 2015 to offer semi-autonomous technology in the commercial vehicle. Tesla even
brings electrification to prove it equally influential. The ability of the company to modernize
software of its vehicles with over the air updates is doubtless the one thing which makes the
industry highly exposed to outmodedness. The success of Tesla’s Model S and X along with the
stock valuation served a strong indication about the trend of the automotive industry. Tesla is
expanding its sales and manufacturing across the globe. The company has its massive battery
plant known as Giga factory which is an aspiring plan. This plant seeks to create more lithium
ion cells by 2020 than the globe’s combined output in 2013. Tesla ranks as number one in the
globe’s most inventive companies by Forbes 2015.
Stakeholder view of the organization
Tesla maintains consistent and effectual communication with the stakeholders. Tesla issues its
annual report on the website and discloses significant financial data along with the values,
strengths, probable risk factors, products, services, network, infrastructures and other relevant
information (Stringham, Miller & Clark, 2015). The stakeholders are also communicated by the
company through annual meetings, webcasts and factory tours. Tesla also manages blogs and
official pages on the social media websites comprising Facebook and Twitter to retain
stakeholders updated of the latest progresses and accomplishments.

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Communities: The communities are given highest priority by Tesla as stakeholders. The
company directly satisfies the concern of the communities. The community have role in
determining the brand image over the petitioning activities and reactions to the business (Sippel,
2015). The electric automobiles, batteries and solar panels address the interest of the stakeholder
group by ensuring protection of the natural environment. For instance, the communities are
contented with the environmental pleasantness of the company’s products (Topcu & Mesmer,
2018). The corporate citizenship strategy also contents the interest of the stakeholder group by
benefitting them with the advanced technologies. For instance, CEO of Tesla, Elon Musk
proclaimed that it will permit other persons and administrations to use patents. This strategy of
the company will directly benefit to the communities through the expansion projects comprising
such technologies. The ingenuities like sustainable energy solutions are the central of the
company’s mission and vision. The community interests assist to promote the public relations of
the company (Shapira, Ketchie & Nehe, 2017).
Customers: The customers influence to the income of Tesla along with the product quality and
defensible pricing level. In order to gratify the demand of the customers, the company is making
efforts to moderate the cost of batteries in order to condense the overall cost of the finished
product. Instead of obtaining batteries from other companies, Tesla is exasperating to create the
invention of its own batteries to make more affordable car. It is also the aim of the company to
extend the charging stations network through the globe. It would result in improving customer

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satisfaction along with the service quality. It certifies that Tesla satisfies concern of the
customers as a stakeholder group.
Employees: The employees are considered as decisive headway factor for the organization. The
employees have direct influence on the performance and efficiency of the company. It is
precarious for Tesla to lodge its employees concern comprising competitive salary and capability
for professional growth. Such concerns are satisfied by the company through offering
competitive compensation strategy and special HR programs (Tucker & Parker, 2015). The
professional skills of the employees are enriched with the special training programs. It allows
staff to meet new opportunities and extend their global outlook thereby addressing employees’
interests as a stakeholder group.
Investors/Shareholders: In the early years, Tesla was greatly reliant on the stakeholder group as
investors. The investors are decisive for the capitalization and cash flow of the company. The
investors and shareholders are more anxious about the profitability of the company and business
growth. The interests of the investors and shareholders are satisfied through the long term
strategies aiming to renovate the automotive industry. For instance, Tesla allowing other
companies to use its patent can broaden the number of the brands which uses electricity and can
enhance the demand of such products (Walker, Hills & Heere, 2017). It can assist company to
grow more and correspond with the interest of the investors. The company is concerned about
the biological side of the business which addresses interests of the communities.
Suppliers: It can be observed from the systems approach of Elon that the suppliers are key driver
of success of the company. The customary race to the bottom methodologies generally results in
the supply issues like stability, decreased quality and commoditization of the products and
services. The suppliers have helped Tesla in bringing better results. The suppliers create
opportunities for the company and actively listen to the concerns of the company (Shalender,
2018).
Government: The government is very imperative as it has the supremacy of law which means
that their decisions can distress in positive and negative way to Tesla. Though there is a specific
organization, Securities and Exchange Commission (SEC) as this organization fined Tesla’s
CEO Elon Musk because they deliberated that a sequence of tweets forwarded by Musk

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discussing about the company’s secretive and appealed that he had fortified funding where false
and deceptive.
Stakeholder analysis for selected stakeholder groups
Employees: The employees design CSR strategy of Tesla. The company considers that
employees are the vital achievement factor in the automotive business. As a part of the
stakeholders, the employees have gained capability of influencing the productivity and
performance (Scandelius & Cohen, 2016). The interests of the employees comprise high
compensation and substantial career opportunities. A compensation competitive strategy is used
by the company to satisfy employees.
Investors: The investors influence to the capital of the company. The profitability and growth of
the Tesla is influenced by the investors. The interest of the investors is addressed through the
long term strategies of the CSR (Conallin, et al. 2017). The sustainability and conservational
sociability ideals of Tesla are queued up with the existing sociocultural trends in order to support
business growth.
Customers: The customers are given highest priority as a part of CSR. The customers are those
who purchase products and decide the accomplishment of the company. Tesla is committed of
providing high quality products and gain customer’s loyalty. In order to sustain positive
relationship with the customers, Tesla manages consistent surveys to get feedback from the
customers. It helps in accepting their requirements and apprehensions (Panwar, et al. 2016).
Communities: The communities are satisfied by the company by giving them accessibility to the
advanced technologies. Elon Mask even ensured to give accessibility of its patents to the
individuals and organizations. The mission and vision of Tesla directs the benefits of the
communities. Protecting environment is one of the significant concerns addressed by the
company for the sake of the community. The electric cars effortlessly addresses to such concerns
as these are the clean and zero emission products of the company (Akakpo, et al. 2019).

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Stakeholder class identification and generic strategic platforms for the stakeholders
The stakeholder behavior model can be used to identify the stakeholder category. This model is
helpful in measuring the competitive threat of the stakeholders along with the cooperative
prospective. It denotes to the relative power of the stakeholders which is inside Tesla to produce
variations in their actions can distress in the positive or negative way to the organization
(Dessinger & Moseley, 2015). The behavior model classifies four categories of the stakeholders:
Offensive: The offensive category of the stakeholder has the features to be great compliant
potential and low competitive threat. It reflects that such kind of stakeholders can assist company
in attaining its aim. But these stakeholders signify a big threat for the organization strategy
(Powell, et al. 2017). Though here are some strategies which are useful to deal with the
stakeholders, out of which one is to transform their genuine beliefs about the company. Other
strategies try to modify their aims. On the other side, last strategy demonstrates that the company
should try to espouse the position of the stakeholders.
It is considered that the vehicles of Tesla are quite exclusive and are for the highest of the
market. The customers purchase products of Tesla as these ecofriendly, safe and more. The
customers spend a lot of money in the cars so they are very inimical to ask for the good quality
service and for the timings along with the delivery of the purchases. The customers are

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considered perfect for offensive type of stakeholder category. It does not matter whether the
company loses money or needed to transform their strategy (Moritz, et al. 2015).
Swing: These stakeholders have the characteristics to be high obliging probable and high
competitive menace. Such stakeholders have the power to sway the results of a situation inside
company in any instant. The government agencies are considered swing stakeholders usually and
SEC is mainly one of them (Bakker & Trip, 2015). When the government fined Elon Musk for
‘false and misleading’ then the government forced the board to convey with them until a contract
was signed between both parts. Lastly Elon Musk had to take initiative to down as a chairman for
3 years however he could halt as CEO of Tesla.
Here are three kinds of indications to deal with the swing stakeholders. Out of which, one is to
vary the rules by using law, 2nd is to transform the decision forum and the final one is to start
captivating other type of verdicts diverse from the ones they used to take.
Hold: This stakeholder category has the features to be low cooperative prospective and low
competitive threat. These stakeholders can be easily dealt and keeping such stakeholders can not
cause a big destruction to the company. These are even gratified with any plan running in the
company. The suppliers are generally regarded as hold stakeholders. In this specific case,
Solarcity is the battery provider of Tesla and Solarcity has parallel values of Tesla like trust and
belief as a common strategy for the common purpose. Solarcity is the part of Tesla business
group and both are partners in the production (Di Maddaloni & Davis, 2017).
There are three strategies to possess them at this stage. First one is to strengthen their beliefs
about the organization, second is to safeguard them by implementing some changes in the
organization. Whereas, the final one is to keep doing a follow up of the authentic strategy.
Defensive: The defensive category of the stakeholder has the characteristics to be low
cooperative probable and high competitive threat. Such type of stakeholders may not be very
significant in terms of offering added value to the company. Though, such stakeholders can take
decisions which can distress the attainment of the organization’s purposes. These are considered
useful to avert a competitive threat for the company. The investors are generally considered
defensive stakeholders. The investors expect for the early possible profits and for the annual

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dividends. So the investors ask for the reports to transform the strategy of the Tesla if required to
keep it productive (Miterev, Engwall & Jerbrant, 2016).
There are three foremost strategies to manage investors, strengthen their authentic beliefs about
the company, keep the outcomes of the company by sustaining current programs and let
shareholders to accomplish the transaction process (Chen & Perez, 2018). It is recognized that
Elon Musk is a visionary and trust in what is said. Elon has advanced millions of dollars in Tesla
and also CEO along with the part of the board of Tesla. Elon is liable of handling almost
everything and controlling in the organization. As a shareholder, Elon necessities to view the
company’s profits.
Recommended strategic program for every selected stakeholder group
As the anticipated results of the company are attained, it is recommended to implement a
everlasting strategy in order to achieve not only customers and suppliers but overall
shareholders. Tesla ensures its robust performance in the future. Elon Musk is a visionary leader
but the people who have invested millions of funds do not have patience to wait until good
results and profits are attained. So Tesla is required to start discerning a strategy which works
impeccable for Amazon.
Amazon started its functioning in 1997 by just marketing books over the internet. The CEO and
inventor of Amazon, Jeff Bezos started printing a shareholder letter annually. He always knew
that return for Amazon will arrive and with the passing years he used letters to explicate,
persuade and inspire defensive stakeholders to keep patience and comprehend that company’s
strategy and productivity is all about the future. The letter offered by Jeff explained everything
about the company in a proper and clear manner hence all of the stakeholders just started to faith
and let him work and waited for the future to see the return. Now days this letter is deliberated as
a must read by several business experts (Grant, 2016).
In order to hasten the moral results, it is recommended to Tesla to manufacture an enormous car
reasonable for the people in the domain. Consequently, the company can solve its foremost
issues, for instance, the business solvency, it has been realized that Tesla is the most advanced
companies in the globe and it has upraised a lot of money but also has a big debt. On the other

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side, shareholders ask enduringly regarding the profitability of the business. So the company
really cares for the stakeholders.
The bulk production will also assist Tesla to decrease costs and advance a competitive strategy to
onboard the international market. In order to position the brand, marketing strategy, improved
sales service, opening of the new shops and enhanced efforts are suggested to expand the
business. The company is required to make joint ventures with new energy stations so that it can
contend with other brands in the comparable circumstances (Maas, Schuster & Hartmann, 2018).

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