Contemporary Developments in Business and Management Assessment

This document discusses the impact of Management Information System (MIS) on Tesla motors and its relevance to the business. It explores the influence of MIS on policies and decision-making of Tesla. The document also evaluates the effectiveness of Tesla's response. The subject is Contemporary Developments in Business and Management Assessment.

Contemporary Developments
in Business and Management
Assessment
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1........................................................................................................................................3
TASK 2........................................................................................................................................6
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Tesla motors is the company which has been founded in years 2003 with intended to
makes the electric car which has been surpassed with current gasoline’s powered cars which is
working more in style a performance for development of major level of sustainable energy
development. The company have the various level of environment which is directly or indirectly
impact the business with view of developing the various level of growth and strategy. The
company have tended to makes the various levels of initiatives in way of providing the level of
stability by reduction emission level along with development of advanced technology.
Management information system helps the Tesla motors to take appropriate action for the
expansion of their business in global market. Company analyse the current scenario of the
market and gather the relevant information which help them to make new decisions and policies.
Report discusses the impact of the MIS on the Tesla motors. Further it has some
recommendations for the betterment of company. It consists how they can improve in the
production and manufacturing ways.
MAIN BODY
Tesla motors is the company which has been founded in years 2003 with the important
mission to have acceleration the word to more level of transitions with ore uses of sustainable
energy development. The company has been intended to makes the electric car which has been
surpassed with current gasolines powered cars which is working more in style a performance for
development of major level of sustainable energy development. The company have actually
experienced the level of abundant growth and success with starting year of development with its
major realise of the Tesla roadster. The company has been fuel by electricity and have major
requirement of high investment (Reinhardt and et.al 2017). The company has been refined itself
as the one of developed automotive industry which is being recently overtaken by geranial
motors by the way of market capitalization as most valuable car manufactures of United States of
America.
TASK 1
PESTLE ANALSYIS
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Political factor the company has been identified as the one of most successive automotive
industry as the factor of development and prosperity. The government has taken various level of
initiatives in way of providing the level of stability by reduction emission level along with
development of advanced technology. Tesla motors has been granted as the federals level of
bank loans and tax rebate in order to have support the heavy level of investment required in
major research and development as well as production (Rothaermel, 2017). On the further level,
the government has tries to make the several level of development of electrics which is being
produced but company by way of heavy promotion and advertising which directly and indirectly
impacts Tesla in more effective and efferent level.
Economic factor the increased level of economy development has led to make the mote
purchasing of Tesla motors. The sales of electric cars in global economy has made the level of
development as it has increased the growth by 3.78% in year 2017 (Birk, 2015). The company
have increased level of sales in many more constants such as Asia and Europe to more of electric
development the sales of electric cars which has been jumped over the 30% in between 2016 and
2017. As for the automotive industry itself, “worldwide sales reached a record 88 million autos
in 2016, up 4.8 percent from a year earlier, and profit margins for suppliers and auto makers…
are at a 10-year high” The prices of materials is casually have the major declinations for Tesla as
particularly the lowering cost of battery which increasing a better level of impacts to become the
public lowering the prices to have drop. As Tesla has recognized, and will continue to recognize,
it will be difficult to earn returns on the capital vested into research and development.
Social factor people have love the idea of electric cars especially one who has the eco
friendliness in their mind. The electric helps in eliminating the need of much fuel as the same in
case of traditional vehicles. The traditional car tends to be more hasher as compare to electric
car. The company has been considered as more environmental stable as few levels of cars has
beat the economy with their power and luxury as same as Tesla does. The company has done the
amazing job in order to main stage of there place in the mind of potential customer as there
electric car development in more respective way of development.
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Technological factor is considered as both to friend ad enemy to Tesla. As the friend it helps
the company to gains the level of competitive advantage and development in ways to have
stability and suability. The company has developed as varsity of new technology not like the
traditional automotive industry development in more effective and efficiency way. On the other
hand, as foe the technology is considered to obesely with per time development. There is
constant advancement in technology in more ways of effective development at constants
caressing, developing and advancing rates (Sharma, 2016). Since he company have both major
positive and negative impacts in the point of technology which of impacting its business in way.
Environmental factor Tesla has been identified as the one of company which is having the level
of significant image which is consider to be the biggest strengthen of commons. The cars od
company is considered as the environmentally friendly as it has the maximum level of usage of
electricity than cars. The company have abdications of the many of environmental regulation
along with barley impacts of carbon emission as compared to the tridiagonal cars which is being
tossed by potential customer. The traditional car has major impacts as the contribution in
increase level of carbon mission. The company’s is trading to have the major focus of
development of environment which is mailing the company as brand images as compare t the
others Tesla’s electric cars have zero carbon emissions and do not contribute to the carbon
footprint, unlike other electric, hybrids, or gasoline cars
Legal factor the company have also pays more and more updating in way to grab here
international patents as it is more impacts at time of expansion. The company can be majorly
been intercepted with h legality issues in developing countries as per the rules and regularisation
with consideration of legal market, the company is trying to have its expansion in more ways to
effectiveness in varsity of country (Kauerhof, 2017). The different countries have the various
level of rules and regulation which is needed to be kept in mind while the company is contents to
be developed for having expansion in better way of understanding. it is considered to company to
have fazing the various level of laws and regulation in which there is discussion vertically to
have integration of sales and services instead rather than selling of authorized dealer. The
company also faced the level of strategic challenged in regards to their showroom which is
majorly offering the sales and services development in more effective and efficient ways.
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TASK 2
Management Information System (MIS)
Information and management both work together to manage the business activities, it helps
companies in various senses like they get knowledge about the things which are important for
them. As the analysis of the external and internal factors which influence the business, so
management information system gives appropriate data about relative condition of the business
and other forces which regulates the work (Butler and Martin, 2016). Right information is
needed at the time of business activities so that the management can take the right decisions in
terms of the planning, managing, controlling the operational functions, so that it may carried out
in a efficient way. As the management information system is used in the organisation it gives the
varieties of possible solutions for example if the data about the raw material is already gathered
at the production unit it helps them how to operate the manufacturing and production of the
products. It included proper execution for the operation as it gives the idea about the things
which may takes place during the business activities (Bruijl, 2017). It helps the organisation to
make right policies and take right decisions on time. Information is basic criteria to reach any
conclusion. So discussing the management information system in terms of Tesla motors will give
the proper evaluation about the business terms and policies.
Relevance of MIS to Tesla
Tesla is the leading name in the electronic automotive industry. According to the
products of thee Tesla motors, it builds the unique innovation electric cars which are the best
suited to the people in terms of budget and environmental friendly. Company produce the first
model S car in 2014, it has happened due to the knowledge of the CEO, as Elon Musk support
the innovative ideas. MIS help the company to analyse the market situation and identify the
potential risk. It has great advantage for them to consider the issues which may takes place in
future. As company is taking the initiative to serve the society with electronic cars as they have
mission to provide the “computer on wheel”. It impacts the Tesla for production of the cars
(Parisi Fernández, Lobos Robles and Asencio Vilches, 2018). According to some sources as the
prior versions of the electronic motor cars failed to serve the customer properly and due to inner
engine combustion it caught the fire. As the automotive car had an accident on the trial which
leads the death of the person. This issue was very serious so at that time, information sources and
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innovation in technology helped the Elon Musk to continue the business (Hardman, 2016). They
gain the support from the investors and other stakeholder which appreciate their ideas and
motivates them. MIS helped the business to know the societal concern as well as in making new
strategies for their business. Company has a mission for production of the 500000 electronic
automatic cars which needs lots of resources and operations to perform for completion of this
mission. This gives the relevance in terms to analyse the needs and requirement of the raw
material which are used for the production, like they need the batteries and energy sources. So
they gather the data about the consumption of the energy and how it can be minimised. As the
outcome result was that they do the collaboration with Panasonic to produce the batteries by
establishing the “Giga-factory” in 2014. So now company become eligible to sourcing their own
batteries which costs them minimum (Housseini, Okou and Beguenane, 2017). It gives them
benefits in various senses like it help them to prepare the strategies, budgeting, employees
motivations- by analysing their performance, their working criteria, marketing and sales etc. All
these assessments give them knowledge what actions are needed to take for further growth.
Influence of MIS on policies and decision-making of Tesla
Tesla is being innovative from its initial stage, as they invent the cheapest electric motors
cars in minimum budget. It gains the attention and popularity in public and market. The
competitors are influenced by their new technique it created a revolution in this industry. As MIS
helped the companies in their strategic planning, similarly Tesla used the IS for preparing new
policies which provide strength to their business. They make policies in favour of the employees
of their organisation which can help them to motivate their workers. Similarly, their technical
policies are changed as they consider the society and environment it helps them, if there would
be any accident happened due to technical disturbance in their cars, they would be paying the
compensation to the family. As company don’t want that their products mistakes would represent
bad image in front of public and their fame will be lowered, so they can take initiation in this
direction (Lyyra and Koskinen, 2016). As they have made appropriate changes in their legal
terms and policies MIS leads them in right direction to think again for their taken decisions
because this guide them to know where they have made mistakes, which are their wrong
decisions and most importantly the changes they need to implement in practice. On their ground
basis it helps them to remove obstacles in policies and decision making. As company took the
decision for establishment of Giga-factory in collaboration with Panasonic which produce the
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batteries, also they planned to open charging stations in the market for solving the issue in
charging of the electric cars, next they also make decision for implementing new technology
which improves their production and make it efficient (Hardman, Shiu and Steinberger-
Wilckens, 2015). Elon Musk was suffered from allegation that they have done false promises
with the market that they have strong investment and financial sources, which proved wrong but
CEO convinced they actually have real investors and shareholders who help them in the
business. MIS helped them to create base and overcome from the controversies. Company
conduct the regular meetings with their employees and consider their views which give them
suggestion about changes. As they continue face the real situations and deals with the issues in
daily operations, so the top management get help in improving the situations (Koskinen and
et.al., 2019). MIS created new opportunities for the Tesla motors as the people are concerned
about the environment and with fuel prices which are rising enormously. Company collect the
relevant information about the societal issues wand governmental issues in this regard, as fuel
emission creates the pollution, electric cars are free from it and help to prevent the environment.
Electric automatic cars give the comfort to the driver and would be self diving car but to
convince the people about the risks of accidents company have to take the strong action. In such
way MIS influence he Tesla to make the new policies and decision for the betterment of their
business.
Evaluation of Effectiveness of the Tesla’s Response
Tesla considered the MIS for making the new strategies and planning for their business,
as this gives the accurate evaluation of the situation about the market. It impacts them in positive
ways. Company made the decisions for the betterment of business and sustaining their future in
market. They analyse the competitors who are working in the same direction and preparing the
same products like the Tesla motors does. Ford motors, Toyota, Honda, General motors, Tata
motors, Spartan motors etc are the multinational automobile brand which are trying to give tough
fight to Tesla motors. To gain competitive advantage in the international market they have to
make the new strategies of marketing and approaching the public in convenience way
(Niederman and et.al., 2017). So they get more potential buyer. Tesla motors openly shared their
patents of the electronic cars like model S, automatic cars which are operated by the computers.
It creates the revolution in the industry. Company’s competitors seen their technology and trying
to copy them but Tesla motors is far from their thinking as they have strong innovative ideas for
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the production of the electronic cars. So the imitation is next to impossible for others in long
term it might get possibility.
On the other hand Tesla motors had lowered the prices of the electric cars which are
starting 65000 USD on road price of the product. It grabs the attention of the public, as it does
not consume the fuel for operating the cars and it only uses the battery for the running at such
lower cost. It creates the fear in the competitors as they are losing their market share. Tesla
motors holding the large part in market share (Cheng and et.al., 2017). It happened due to their
right decision making like they share the patents which are most secret for any business, they set
the prices at cheapest level. All these steps are taken by the company which are really
appreciable.
Another point is company’s manufacturing and production unit. Tesla motors practices the
exchange strategies like Panasonic provide them interiors for their cars while they give them
batteries. So they made the decision to collaborate and opens a new battery plant which is huge
production unit of the batteries as this uses the solar panel for their energy sources. This
collaboration helps the company to save the costing for the production of the electric cars. This
proved to be beneficial for them as they don’t need to invest in it (Greenblatt, 2016). Also
company find out the various ways to cut the costing of the production like they use the
technology for the production which decreases the labour cost as well.
Company took the initiative to prevent the environment from the rising pollution due to
combustion of the fuel through motors. They introduced such technology for the public which
save the price of the fuel and they only need to charge the batteries of the car. As they follow the
environmental laws, to lower the CO2 level in the area and motivates the green revolution which
enhance their popularity among the youth and social communities for their concerns.
Government supports their actions and promotes the brand to continue their actions. As they get
reliability in taxes and transportation duties from the government, also they establish the plant of
the battery which depends on the solar panel for the energy sources (Weichselbraun and et.al.,
2017). Such innovative steps are taken by the company to build their image in the society and
country.
Company made the decision to change their legal policies, terms & conditions, as their
product automatic robotic car done the accident on the trial of the car, which took the life of the
person. It created the bad reputation in the public, they deny accepting the products, and they
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have to face the restrictions from the government to stop production of the automatic car. All
such consequences give the loss in terms of inventory and further marketing of the products.
Company tries to resolve the issue by accepting its mistake and promised to improve their
technology. As they faced the media and take the social responsibilities which help the company
to improve their image and they convince the people (Hardman and Tal, 2016). Tesla made the
things possible by using the information and communication technology which let them to know
their weaknesses. Management of the company consider these weaknesses and issues, to mitigate
from these things Tesla take the necessary action son time due to the proper utilization of the
MIS in their business. Production and marketing criteria developed as they continuously
approaching the innovations in technology so that they gain the competitive advantage (Akgun
and et.al., 2017). Now Tesla is working for building their prestige in market and society.
Recommendations
 Tesla has increased the demands of the consumers so they have to think for international
expansion. Company has covered the market in UK and US, but they are considering for
expansion in other countries, as they focus on Chinese market. Electric vehicles are more
demanded in this country, according to the reports China is suffering from the pollution,
to mitigate from this problem they are ready to acquire such innovative products which
minimise the pollution. Tesla motors have the opportunity as it is demanded high in
global market.
 Company tried to improve their network of the supply chain which helps them to increase
the production. But they can think to reduce the price of the electric cars as they are
getting the raw materials in low prices. Tesla motors have established the battery plant in
collaboration with Panasonic; this reduces the cost of production and saves a lot of
amount of energy. So this impact the company in costing, it reduces $30 million
production cost of vehicles. Company can lower the prices for the consumers which
creates the potential buyers.
 Tesla had invented the supercharging station for the electric vehicles, it enhances the
selling point for the company. People prefer such cars for the availability of charging
stations. But the drawback of the product is that it can’t run for more than 244 miles so
company have to think about this issue, they have to increase the battery usage time. As
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the charging sockets are two or three available on the charging station, but the charging
time is long so the company have to resolve this problem. It increases the efficiency of
the Tesla vehicles.
 Sales of the Tesla motors increased and become in profit. But company have to consider
for the efficient production and improve according to the demands of the consumers.
 Company enter in the market with introducing model S and Roadster. They invested in
the research and development at huge level to build the midsized cars and being able to
produce the hi-tech cars in market. Tesla has introduced these midsized cars in 2017 to
get the extra share in market by pricing it $35000. So company is playing safe, they have
higher the prices of the Roadster model and producing the high volume of the midsized
card model, which helps them to equal the balance. Consumers appreciated its reliability,
design and prices of their new model but they have to lower the prices of other models as
well.
 Company has overcome from the fixed prices of the vehicles, as they have invested a lot
in research and development to sustain their future in international market. It helps them
to take the competitive advantage in the market. Tesla has also invested in the Chinese
market for the expansion they have to establish the supercharging network in the country.
So it gives the benefits to ad success in the investment.
 Company have to consider the hybrid cars as well as they are focusing the electric
vehicles. It may decrease the potential risks from the expensive batteries they are invested
on. People like more hybrid cars, as they run on the fossil fuels. It decreases the cost up
to 25% of the vehicles. So it can be proved beneficial for the company.
 Tesla motors getting high attention in the consumers so they have reached in increment of
the sales of the electric vehicles, so they have to consider for establishing more
manufacturing plants in the country. Also, this will increase the efficiency of the
production.
 Company have to invest on the employees training and development which gives them
extra benefits, it increase the working efficiency of the workers. They will be able to use
the technology better and more utilize it effectively to perform the business operation
perfectly.
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 The probability of the new entrants in this industry is possible so they have to prepare
themselves for securing their future. They have to plan according the potential risks
which may arise due to their carelessness.
 Company have to consider the issues and keep improving according to the demands of
the consumer so that brand loyalty among public will be maintained.
CONCLUSION
According to the report Tesla motors gone through lots of fluctuation in their business
journey, but they are fighting with against worst conditions. They are continuously evolving with
their innovative ideas and new business strategies. Company had effected from the external
factors which influence their image in market. Social, environmental, political, technological
factors mainly considered by the company, as they have concern for the prevention of the
environment. They invent the electric cars to reduce the pollution and reduce the carbon quantity
in atmosphere, they are leading due to the technological innovation in the products by improving
the techniques for manufacture. This enhances the efficiency of the production. Management
information system helps the Tesla motors for sustaining their future in market for long terms.
Company analyse the market condition and consumers demands so this helps them to improve
the quality of their products. Production of the electric cars needs huge investments, one of the
most necessary part is batteries for the electric cars, it costs higher. MIS help them to take
important actions on time so that they establish the own battery plant which help them to
minimise the production cost. Tesla made policies and decisions in favour of their business
which help them to take the competitive advantage in the market and builds their prestige.
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