Stakeholder Analysis and Strategy Development for Tesla Motors Report

This report presents a stakeholder analysis and strategy development for Tesla Motors. It begins with an executive summary and table of contents, followed by an introduction that outlines Tesla's vision, mission, recent developments, challenges, and industry trends. A stakeholder view model is created, and specific stakeholders within each group (Communities, Customers, Employees, Shareholders/Investors, and Governments) are identified and described. The report then delves into a detailed analysis of these stakeholders, their behaviors, and motivations. Recommendations are provided for strategic programs tailored to each stakeholder group, aiming to enhance awareness, address customer needs, support employee interests, and align with government regulations. The report emphasizes the importance of innovation, sustainable energy, and the impact of stakeholder relationships on Tesla's overall success.

Running head: STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
Stakeholder Analysis and Strategy Development for Tesla
Name of the Student
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1STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
Executive Summary
The discussion within this report focuses over the business scenario of Tesla and the various kind
of changes that are brought in within the industry based on the several forms of innovations that
are brought in within the industry. The discussion also focuses over the stakeholders and their
view over the organisation. A stakeholder view model is also provided based on which the value
of each stakeholders would also be improved. The four stakeholder groups are also defined
within the report. Based on the views and importance of the stakeholders, there would be a
recommendation for the stakeholders, which could be consistently followed based on bringing in
changes for the organisation.

2STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
Table of Contents
1. Introduction and the Stakeholder View.......................................................................................3
2. Stakeholder Analysis...................................................................................................................5
2.1 Stakeholder View Model.......................................................................................................5
2.2 Identification of specific Stakeholders within each Stakeholder Group...............................6
3. Category Identification and Generic Strategy Programs.............................................................7
4. Recommendations........................................................................................................................9
References......................................................................................................................................12

3STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
1. Introduction and the Stakeholder View
Tesla was founded in the year 2003 by a certain group of engineers who had the need of
proving that the people would not compromise in driving towards the way of Electric Cars. The
use of electric vehicles could be quicker, better and thus would help in providing more facilities
than the gasoline based cars. In the recent times, Tesla is in the way of providing much more
than just electric vehicles that would help in generating clean energy and engaging more storage
products (Tesla.com 2019). The primary vision and concept of Tesla is to build the best form of
cars so that the entire world would stop the usage of fossil fuels and thus move towards the path
of zero-emission based cars.
The mission of the company is based on bringing in innovation within the company with
the creation of many kind of innovative pieces that would fit together into a single unit. This kind
of strategy could be defined as “complex coordination” of the different kind of process that
would be involved within the organisation (Bilbeisi and Kesse 2017). The automotive strategy
that would be implemented by Tesla would be able to emulate the typical technology based
product life cycles. The main motive of the company is to target the most affluent buyers. They
also moved towards the lower priced markets by bringing in products at a much lower price.
The entire range of vehicles that are produced within the factory at Telstra would be
produced at their factory in Fremont in California. The majority of their produced vehicles and
the various components would also be designed at their factory. In order to achieve their goals of
having the safest factories in all parts of the world, the company would also be taking a high
proactive approach towards implementing safety features for their employees (Singla et al.
2015). With the factors of implementing safety within their various operations, the employees

4STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
would need to participate in various forms of multi-day training program. Tesla also continues in
providing a wide range of tracking performance factors and on-the-job training that would be
helpful in bringing in improvements on a quicker basis. The primary result that would be
displayed at the organisation would be based on improving the production ramps of Model 3.
In order to create a much higher sustainable energy based ecosystem, the company is also
responsible for manufacturing a wide range of unique business solutions such as Powerpack,
Powerwall and Solar Roof. These kind of innovative products would also enable different
businesses, homeowners and other utilities for managing the generation of renewable energy.
They would also bring in consumption and storage within the factory. With the bringing in
innovation within their products, the company would also help in the manufacturing of batteries
at higher volumes (Strebkov 2014). Based on the factors of bringing in innovation within their
services, the company is also striving for meeting the production goals while also creating the
focus for creation of thousands of jobs for the people of the country.
In the beginning of their career based on the production of new kind of innovative
vehicles for the organisation, Tesla would also be in the line of bringing in innovative strategies
for the employees. Tesla is also in the process of bringing in innovative strategies in order to
develop their products in an affordable and accessible manner to a wide range of people. With
the bringing in of innovative range of products, the company would also be able to make
different accessible products. Tesla has also brought in innovation with their products based on
accelerating the advent of the concept of clean and green transport and production of clean
energy (). The different model of electric cars, generation of renewable energy, batteries and
storage would already exist independently but with the combination of all of them into a single

5STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
source would generally be able to provide many kind of benefits for the future of sustainable
energy.

6STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
2. Stakeholder Analysis
2.1 Stakeholder View Model
(Figure 1: Stakeholder View Model of the Stakeholder Groups)
(Source: Created by author)

7STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
2.2 Identification of specific Stakeholders within each Stakeholder Group
Stakeholder Group Specific Stakeholders in each Stakeholder Group
Communities There are many communities of people who help in the contribution
towards innovating the sector. The company is also dedicated
towards the creation of a community based on low cost innovators
who would help in producing more kind of innovation than the other
paid staffs (Acker and Beaton 2016). These communities could also
involve several people who might not be directly linked to the
industry but could be able to bring in innovative ideas for the whole
sector of the automotive sector.
Customers The market segmentation produced by Tesla includes several factors
such as demographic, psychographic, behavioural and geographic
segmentation. These also include multiple variables such as region,
age, density, gender, life-cycle stage, loyalty, occupation, social class
and lifestyle.
The company employs an anticipatory type of positioning of market
strategies within the entire business process (Hardman, Shiu and
Steinberger-Wilckens 2015). The customers who would make an
approach towards clean society would mainly move towards
purchasing products developed by Tesla.
Employees The employees employed within the stakeholders include the
different employees who would be a major part of the organisation.
These employees include the CEO, managers, administrative
sections, technical service providers, technical experts, business
experts, subject matter experts, testing team, quality analysts,
automobile manufacturers and many others (Perkins and Murmann
2018). These employees would strive hard in bringing in innovation
within the sector and also improve the quality of their products.
Shareholders or
Investors
Different institutions are responsible for putting in investments at
Tesla in order to bring in better form of innovation within their
products and services. These shareholders would mostly invest
within the company do not have a major concern for sharp
movements in pricing strategies (Hughes et al. 2018). Thus they have
a relatively lower stake in the company.
On the other hand, the investors who would mostly invest within the
company would invest mainly for the reason of bringing in
innovation within their products. These investors mainly understand

8STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
the customer demands and thus help in improving their quality of
their various services. They also understand the demands from the
global market and thus provide huge investments towards the
benefits of the company.
Governments The government at U.S would be able to understand the valued
services offered by the company in bringing innovative products and
services towards the industry. They would set some standards for the
automobile industry (Topcu and Mesmer 2015). Such kind of
concerns from the government would impose some form of
requirements for the automobile organisation that would enhance the
tactics of the organisation.
3. Category Identification and Generic Strategy Programs
Some of the four stakeholders and the analysis of their behaviours and motives are:
Communities – The communities could be defined as the stakeholders would be able to
determine the image of the brand with their activities and responses created towards the business.
The user communities within Tesla would be satisfied based on the friendliness of the
several products. Some of the corporate strategy of citizenship would also be able to satisfy the
interest of the concerned stakeholder groups based on benefiting from such advanced
technologies. Based on focusing on the community groups, Elon Musk had announced that the
company would be able to provide organizations and individuals to make use of their patents.
Customers – The revenues generated by Tesla would be based on the increase in the
quality of their products and fixing a reasonable pricing. The company also provides a significant
priority to their stakeholders in their various programs of corporate social responsibility.
The CSR approach based on manufacturing their own products would be able to help in
satisfying the increasing demands of the customers. Based on this approach, Tesla has shifted to
manufacture their own batteries in collaboration with Panasonic.

9STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
Employees – Tesla has always believed that the employees are an important stakeholders
within the organisation. They can also been considered as a critical factor of success for the
organisation. These dedicated employees would build different energy and automotive solutions
based within the business. As they are considered as an important stakeholder, the employees
would help in influencing the performance factors and productivity issues within the company.
The CSR approach used by Tesla would be able to satisfy the interest of stakeholders
based on a competitive compensation strategy. The strategy offered by CSR would be able to
offer several learning experiences through the help of collaborative programs based within the
partner firms. The organizational structure of Tesla would also help in the improvement of the
morale of employees and thus minimizing the issues faced within the workforce.
Shareholders or Investors – The CSR approach approved by stakeholders would
address the interests through the use of addressing the interests through the use of long-term
strategies. These would be able to transform the transportation or automotive and energy market.
As a result of focusing on bringing in innovation within the world market, the technology
patents would allow for the increase of market demand based on electric vehicles and their
related products (Guo 2019). The increase in the demand of such sustainable vehicles would be
able to create opportunities and growth within the business.
Governments - The government can be considered as the important stakeholder who
would present various requirements, opportunities and limits for the business (Lin and Liu 2018).
The interests of the stakeholder groups would be based on legal compliance along with the
contribution towards the business that would be based on economic growth.

10STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
With the plans based on expanding in the highly competitive market, the government
would impose different important requirements, which would also put an impact over the
operational tactics by the organisation.
4. Recommendations
The recommendation for the strategic program for each of the identified stakeholders are:
Communities – The Company should also be able to design such kind of programs that
might raise the awareness of the communities who would be considered as the important
stakeholders of the organisation (Westergard 2016). Public awareness should also be spread for
supporting the activities based on corporate citizenship.
Customers – The customers are also considered as an important stakeholder for the
organisation. Hence, they would be highly recommended to provide various kind of suggestions
to the company based on providing ideas based on innovation. Tesla provides a unique platform
for the customers to bring in innovation within the services (Falát and Holubčík 2017). The
company should also listen to the concerns of the customers and thus should try to achieve the
set targets for the benefit of customers. The company should follow the policy of customer
retention and loyalty for the purpose of ensuring that the customers would come back to the
company and also refer new customers to the company (Ejsmont 2017). A proper form of
customer relationship policy should be defined by Tesla in order to win the minds of the
customers. Tesla should be able to win the approval of the customers and loyalty (Bruijl 2017).
The company should also administer over the demands of the customers that would be brought
before them. The customers should also be satisfied with their queries and hence they should get
a feeling that they are being valued and understood by the company.

11STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT FOR TESLA
Employees – Based on understanding the concerns for the employees, it could be
recommended that a proper form of communication strategy should be put in proper place for
communicating with each of the concerned stakeholders (Aybaly et al. 2017). This can include
the fact that in the time of crisis communication, the response time should be faster and should
be across many channels. The employees should also be provided the opportunity to express
their views regarding the various exploration that would be made within the company. There
would also be many kind of futuristic goals that should be set by the top management for the
employees. This would in turn provide a sense of encouragement for the employees as they
would be able to highly focus over the implementation of such high-end design stabilisation for
the company (Gill-Simmen et al. 2018). After the development of such kind of products, the
company would be able to showcase their products to the customers based on influencing them
for purchasing their products.
The organisation should also employ performance management policies for the
organisation. This would also ensure that the organisation would be able to meet with the
prescribed goals and targets. The employees within the company should also measure the
manufacturing processes that are set by the company. This would be based on the number of cars
that would be manufactured in a year (Jovanović and Božilović 2017). In addition to this, Tesla
would also establish Key Performance Indicators (KPIs) that would be able to monitor the
inventory, production and also access the goals of the company within the predetermined
duration.
Shareholders or Investors – The investors within the company should understand the
current business position and financial position of the company. Hence they should prepare a
financial plan that would be based on a 5 year or 10 year plan. Based on preparing the financial