Stakeholder Analysis and Strategy

This report analyzes the stakeholders of Tesla Motors and their impact on the organization's profitability. It focuses on customers, employees, government, and shareholders and provides recommendations for managing each stakeholder group. The report also provides an overview of Tesla Motors' operations and its mission and vision statements.

Running head: STAKEHOLDER ANALYSIS AND STRATEGY
STAKEHOLDER ANALYSIS AND STRATEGY
Name of the Student
Name of the University
Author Note

1STAKEHOLDER ANALYSIS AND STRATEGY
Executive Summary
The report is based on the analysis of an organization and the stakeholders who are able to
affect the levels of profitability. The organization which has been considered for this analysis
is Tesla Motors. The four major groups of stakeholders of Tesla Motors which have been
identified in the report mainly include, the customers, employees, government and
shareholders. The generic programs which can be implemented for the management of the
stakeholders have also been analysed in the report. The report has provided a detailed picture
of the operations of Tesla Motors and the effect of the stakeholders on its overall profitability.

2STAKEHOLDER ANALYSIS AND STRATEGY
Table of Contents
A. Introduction to Tesla Motors.....................................................................................3
B. Tesla Stakeholder View of the Organization.............................................................3
C. Stakeholders Analysis for four selected stakeholder groups.....................................6
D. Stakeholder category identification and generic strategic programs for each of the
four selected stakeholders..........................................................................................................8
E. Recommended strategic program for each of the four selected stakeholder groups
including reasons for recommendations...................................................................................10
References....................................................................................................................12

3STAKEHOLDER ANALYSIS AND STRATEGY
A. Introduction to Tesla Motors
Tesla Inc. or Tesla Motors is an American multinational organization that operates in
the automotive industry and has its base in Palo Alto California. The organization mainly
specializes in the production of electric cars and also manufactures solar panels with the help
of its Solar City subsidiary. The organization currently operates many manufacturing
facilities which include, Gigafactory 1 near Reno, Nevada and the facility located at the Tesla
factory in California (Tesla.com 2019). The organization thereby sells different types of
products like, Model S, Model 3, Model X. Other major products that are offered by the
organization include, solar roof tiles, solar panels. The organization by two engineers Marc
Tarpenning and Martin Eberhard in the year 2003. The name of the organization was derived
from the name of a major physicist named Nikola Tesla (Tesla.com 2019). Mission statement
– “To accelerate the world’s transition to sustainable transport”. Vision statement – “To
create the most compelling car company of the 21st century by driving the world’s transition
to electric vehicles”.
The report will be based on the analysis of stakeholders who are considered to be an
important part of the operations of Tesla Motors in the automobile industry. Currently, the
management of Tesla Motors is in the hands of Elon Musk, who was the earlier the chairman
of the same organization. The new CEO of Tesla Motors has thereby developed a vision of
operating the organization on an independent basis. The company is also aiming at
developing the products in such a manner so that it is within the reach of average customers.
B. Tesla Stakeholder View of the Organization
Tesla Motors
Government Customers
Employees Shareholders

4STAKEHOLDER ANALYSIS AND STRATEGY
Figure 1 - Source – Created by author
The stakeholders are specific individuals or groups who have a major level of interest
in success levels of the organization. The progress of the company is considered to be highly
important for the stakeholders as they are affected in a huge manner by the ways by which an
organization is able to perform in the industry. The stakeholders can further be divided into
two types which include, internal stakeholders and external stakeholders. The internal
stakeholders mainly include, investors, shareholders and silent partners (Belyaeva 2015).
On the other hand, the external group of stakeholders is based on the strategic
partners, community bodies and the neighbouring businesses. The role played by the
stakeholders depends on the organizations and levels up to which they are involved in the
operations. The four major stakeholder groups of Tesla Motors are the government, the
customers, the employees and the shareholders (Bonnafous-Boucher and Rendtorff 2016).
The different stakeholder groups of Tesla Motors can be analysed further,
Customers – The customers of Tesla Motors are able to affect the income that
is gained by the company and the quality of the products as well. The
organization thereby aims at fulfilling different demands of the customers with
the effective prices and quality of the products. The company is aiming at
reducing the cost of batteries that are used in the cars, which in turn is able to
affect the overall price levels of products. The organization is trying to
develop and manufacture its own batteries instead of sourcing them from other

5STAKEHOLDER ANALYSIS AND STRATEGY
organizations (Bourne 2016). Widening the network of charging based stations
in different parts of the world is also considered to be another step which is
taken by the company in order to satisfy the consumers. Tesla Motors has been
able to develop a loyal customer base in the highly competitive automobile
industry. The customer base of Tesla is mainly based on the premium segment
who expect high quality of products. The company has also started producing
effective products like Model Y which is considered to be the mass market
model (Bridoux and Stoelhorst 2016).
Employees – The employees are considered to be a major factor related to the
revenues and profitability levels of Tesla Motors. The performance of Tesla
Motors is affected directly by the productivity levels of the employees. The
accommodation of concerns that are depicted by the employees is considered
to be important for the organizational operations. The management of Tesla
Motors has aimed at providing effective opportunities to the employees along
with competitive levels of salaries as well (Cantrell, Kyriazis and Noble
2015). The Human Resource based programs that have been formed by the
organization are also considered to be important for the improvement of
professional skills which have been shown by the employees. The employee
base of Tesla Motors consists of around 45,000 members. The role which is
played by the employees in proper development of revenues of Tesla Motors
is important and the company is able to increase the levels of revenues as well.
The organization has not been able to reduce its employee base even after the
restructure based operations that have been conducted by the current CEO
Elon Musk (Dorobantu et al. 2018).

6STAKEHOLDER ANALYSIS AND STRATEGY
Shareholders – The operations of Tesla Motors are highly dependent on the
shareholders or the investors of the organization. The cash flow of the
organization is highly dependent on the proper growth of business operations
and effective profitability levels as well. The interests of shareholders are
provided with utmost levels of importance by the organization in order to
maintain its operations in the competitive industry (Eskerod, Huemann and
Ringhofer 2015). The growth of Tesla Motors is based on proper fulfilment of
the interests of shareholders and their needs as well. Five major shareholders
have control on greater than 50% of the total shares of Tesla Motors. Elon
Musk, the current CEO of Tesla Motors is first major shareholder of the
organization. FMR LLC, a Fidelity organization is the second biggest
shareholder of Tesla Motors in the automobile industry. The third largest
shareholder of the organization is Baillie Gifford & Co. that also owns major
portion of the shares of Tesla. T. Rowe Price Associates and Vanguard Group
are two other shareholders of Tesla Motors (Freeman 2015).
Government – The operating procedures of Tesla Motors are highly dependent
on the actions and policies of the government of different countries. This is a
major stakeholder based group of the organization which needs to be managed
in an effective way in order to improve the revenues and profitability of Tesla
Motors in the industry. The manufacturing processes of the organization need
to be effective and according to the policies which have been developed by the
government (Freeman et al. 2017). The government is also able to play a
crucial role in the financial operations of an organization like Tesla Motors
that operates in a highly competitive industry.

7STAKEHOLDER ANALYSIS AND STRATEGY
C. Stakeholders Analysis for four selected stakeholder groups
The customers, employees, government and shareholders are considered to be the four
major stakeholder based groups of Tesla Motors based on its operations in the industry. The
stakeholder groups and the members who are a part of these groups are able to affect the
profitability levels of the organization in a huge manner. The analysis of the four major
stakeholder groups will be based on a major part of the group that has the highest level of
effect on the organizational operations (Garriga and Werner 2018).
Customers – The premium group of customers are considered to be the most
important part of this stakeholder group of Tesla Motors. The organization has
been able to develop its position in the automobile industry with the help of its
electric cars. The premium customers are considered to be an important part of
revenues that have been gained by Tesla Motors in the industry. The
customers are able to affect the quality of the products that are offered by the
organization. The product base of Tesla Motors is thereby affected in a huge
manner by the premium group of consumers (Harrison, Freeman and Abreu
2015).
Employees – The employees of Tesla Motors who are a part of the factories
that are maintained by the organization are considered to be the most
important part of the operations and profitability of the organization. After the
implementation of an effective restructuring based process in Tesla Motors,
the organization has been able to gain a lot from the different factories which
operate in different parts of the country (Kumar, Boesso and Yao 2017). The
growth of the organization is totally based on the productivity of the
employees in the different factories. The rates of employee growth in different

8STAKEHOLDER ANALYSIS AND STRATEGY
factories of Tesla Motors are also quite high which is considered to be a major
contributor to the revenues (Minoja, Lionzo and Lassini 2015).
Government – The innovation based policy that has been implemented by the
US government has been able to affect the levels of profitability and revenues
of Tesla Motors. The tax policy of the country has a major level of effect on
the revenues which have been gained by the organization in the automobile
industry. The government has made huge levels of investment on the energy
and auto based industries with the aim to prevent innovation and research and
development (Mok and Shen 2017). The loans which have been provided by
the government have played a key role in the levels of effectiveness of the
organization and its overall growth as well. The tax based credits that are
provided by the government are important factors which can affect the ways
by which Tesla Motors is able to gain high levels of profit in the market
(Shahzad, Rutherford and Sharfman 2016).
Shareholders – The investors are considered to be the most important
shareholders of Tesla Motors in the automobile industry as they are
responsible for the cash flow which is provided to the organization. The
innovation based activities of Tesla Motors are supported effectively by the
investments which are made by the shareholders in different operational levels
of the organization. The investors are able to play a crucial part in the methods
by which Tesla Motors is able to rise the levels of profitability in the
automobile industry and further maintain its long term operations as well
(Statista.com 2019).

9STAKEHOLDER ANALYSIS AND STRATEGY
D. Stakeholder category identification and generic strategic programs for each of the
four selected stakeholders
The management of stakeholders in an effective manner is important for the proper
operations of an organization. The modern organizations and their profitability levels are
dependent on the proper levels of management of the stakeholders. Tesla Motors is also
dependent on the four identified group of stakeholders in order to increase the levels of
revenues and profitability. The strategies which can be implemented by the organization for
managing different stakeholder groups can be same or can be different as well. However, the
organization needs to implement the strategies effectively in order to manage the stakeholders
and their operations as well (Tantalo and Priem 2016). Customers – The customers are most important and primary levels of
stakeholders of Tesla Motors. The organization can thereby manage the
customers in an effective way with in order to increase the revenue levels and
to improve the relationships as well. Communication can be considered to be
the most effective method in order to maintain the relationship that has been
develop in the course of its operations in the industry. The communication
based process of Tesla Motors is highly effective and developed in nature
(Westermann-Behaylo, Van Buren and Berman 2015). This has been helpful
in the development of proper relationship of customers with the management
so that they are able to understand their demands and needs.
 Government – The relationship developed by the organization with the
government can be managed with the help of proper fulfilment of the
expectations that they have from the management and operations. Fulfilment
of expectations will be able to play a crucial part in the methods by which

10STAKEHOLDER ANALYSIS AND STRATEGY
Tesla Motors is able to increase the levels of investment provided by the
government (Westermann-Behaylo, Van Buren and Berman 2015).
 Shareholders – The development of interests of the shareholders and
maintaining the operations accordingly is a major strategy that can be
implemented by Tesla Motors in order to manage the stakeholders. The
organization will be able to gain the trust of shareholders if it is able to
develop the operations with respect to their interest. This can be major way
which will help the organization to manage the shareholders (Shahzad,
Rutherford and Sharfman 2016).
 Employees – The implementation of proper training and development and
change based programs can act as a strategy for managing the employees. The
human resources or employees are considered to be important stakeholders of
the organization. The profitable operations of Tesla Motors are based on the
levels of productivity of the employees (Forbes.com 2019).
E. Recommended strategic program for each of the four selected stakeholder groups
including reasons for recommendations
The strategic programs which have been suggested for different groups of
stakeholders of Tesla Motors can play a major role in the operations of the organization and
the levels of its profitability as well. The strategies will prove to be helpful for the successful
and profitable operations of the organization on a long term basis. Customers – The strategic program which has been selected for the proper
management of customers is based on increasing the communication levels.
The members of the organization will be able to understand the needs and
demands of the consumers with the help of proper communication. The

11STAKEHOLDER ANALYSIS AND STRATEGY
customers can also get effective information based on the products that are
offered to them by the organization. The different groups of customers will be
affected in a positive manner by the proper communication that is developed
with the management of Tesla Motors. Communication can be conducted
effectively with the help of the website of Tesla Motors and the links provided
to different social media based pages.
 Employees – The organization can manage the employees with the help of
training and development which will help them to improve their skills. The
training programs will also be helpful for increasing the productivity levels of
the employees which is most important for the profitable operations of the
organization in the competitive industry. The levels of loyalty of the
employees can also be increased with the help of proper training based
programs.
 Government – The proper fulfilment of the expectations of the government is
considered to be the most important part of the management of the important
stakeholder. The relationship with the government needs to be maintained by
the organization as it is important for the long term operations and revenues of
Tesla Motors. The support that is provided by the government is important for
the proper operations of Tesla Motors in the automobile industry.
 Shareholders – The organization needs to be develop the operations based on
interest levels of the investors in order to maintain their investment and
profitability levels as well. The interests of shareholders can need to be
fulfilled by Tesla Motors in order to gain the investments that are made by
them in different parts of the operations of the organization. The

12STAKEHOLDER ANALYSIS AND STRATEGY
recommendation is thereby based on the interest of Tesla Motors related to
effectiveness of the operations and cash flow as well.
Stakehold
er name
Impact Influenc
e
What is
important
to
stakeholde
r?
How
could
stakehold
er
contribute
to the
project?
How
could
stakehold
er block
the
project?
Strategy for
engaging
stakeholder.
Customers High High Prices of
products
Increasing
the levels
of
revenues
Not
purchasing
the
products
Communicati
on
Employees High High Training
and
developmen
t
Increasing
productivit
y
Not
working in
a proper
way
Training
Governme
nt
Mediu
m
High Contributio
n to the
economy
Providing
investment
Not
supporting
the
operations
Meetings
Shareholde
rs
High High Serving
according to
their
interests
Providing
effective
investment
Not
providing
investment
s
Meetings on
an annual
basis

13STAKEHOLDER ANALYSIS AND STRATEGY
References
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Bourne, L., 2016. Stakeholder relationship management: a maturity model for organisational
implementation. Routledge.
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behavioral theory of contributions to joint value creation. Academy of Management
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Cantrell, J.E., Kyriazis, E. and Noble, G., 2015. Developing CSR giving as a dynamic
capability for salient stakeholder management. Journal of Business Ethics, 130(2), pp.403-
421.
Dorobantu, S., Aguilera, R.V., Luo, J. and Milliken, F.J., 2018. Introduction: Contemplating
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15STAKEHOLDER ANALYSIS AND STRATEGY
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