Stakeholder Analysis of Tesla Motors and the Global Automobile Industry

This article provides a detailed and evidence-based evaluation of the stakeholder environment for Tesla and the US automobile industry. It identifies stakeholders and their importance through the use of certain stakeholder analysis tools. The article also discusses the importance of consumers and environment regulation authorities for Tesla and suggests two effective strategies for managing stakeholders legally and ethically.

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Stakeholder Analysis of Tesla Motors and the Global Automobile Industry
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1STAKEHOLDER ANAYSIS
Table of Contents
Question 1............................................................................................................................2
Question 2............................................................................................................................6
Question 3............................................................................................................................8
References..........................................................................................................................10

2STAKEHOLDER ANAYSIS
Question 1
A detailed and evidence based evaluation of stakeholder environment for Tesla and US
automobile industry is analyzed. Moreover, identifying stakeholders along with their importance
is also prioterised in this section through use of certain stakeholder analysis tool (Anton, 2015).
The stakeholder groups of Tesla along with the US automobile industry include general
ecosystem, industry level, internal stakeholders and potential new stakeholders (Anton, 2015).
Stakeholder Analysis
Stakeholders Expectation/ Interest Importance
General ecosystem stakeholders
that includes environment
regulation and political support
International concerns regarding
climate and pollution changes
has resulted in generation of
tough federal state level policies
in order to enhance air quality
and decreasing greenhouse gas
emission. This stakeholder group
promotes development of clean
renewable fuels and
improvement of environment
(Chowdhury, 2014).
5
This stakeholder group has its
relevance in enhancing Tesla
Company’s energy storage
competitiveness. This has further
facilitated the company to attain
advantage from the research and
development. The company is
attaining exceptional support
from the government in ensuring
its success and development
(Dockalikova & Klozikova,
2014).
Industry level stakeholders that The consumers of Tesla 4

3STAKEHOLDER ANAYSIS
includes consumers and potential
competitors
Company gives increased
importance to the maintenance of
corporate social responsibility.
Considering such expectation the
company has focused developing
new ways in decreasing the
battery costs. Major competitors
of Tesla such as Federal signal
increases the expectation of
maintaining high competitive
advantages (Grünig & Kühn,
2015).
Consumers and the competitors
are deemed to impact the
revenues of the company as they
are highly interested in
reasonable pricing and product
quality. Position of the
competitors is analyzed for
increasing the company’s efforts
in developing CSR activities that
can benefit its stakeholders
(Kotabe & Helsen, 2014).
Internal stakeholders such as the
employees
Being one of the major
stakeholders, employees’ impacts
business performance and
productivity. Satistifying such
expectations, Tesla Company has
developed a competitive
compensation strategy and HR
programs. This is in order to
generate skills development and
leadership development (Lamas
et al., 2017).
3
Employees of Tesla Company
are deemed to be the critical
success factor within the
automobile industry. This
stakeholder group is deemed to
be important for the company for
the reason that this group offers
the company to implement is
CSR strategies in a better manner
and increases business

4STAKEHOLDER ANAYSIS
productivity (Liu & Li, 2017)
Potential new stakeholders such
as new investors
Investors of the Tesla Company
have increased interest in
impacting the capitalization of
the organization. Investors along
with the stakeholders have
increased interests in the growth
and profitability of the company
(Porter & Millar, 1985).
3
This new potential stakeholder
group is deemed to be important
for Tesla Company for the reason
that sustainability and recent
socio cultural trends supports
business growth of the company.
This further encourages the
investors in investing more
within the company
(Rothaermel, 2015).
Stakeholder Map
Stakeholders interests/
expectations
Positive International concerns
regarding climate and
pollution changes
Increased importance in
the maintenance of
corporate social
responsibility.
Negative Tesla Company has
developed a competitive
compensation strategy
and HR programs.
developing new ways in
decreasing the battery
costs
Low High

5STAKEHOLDER ANAYSIS
Importance to success
Stakeholder Action Planning
Issues Actions Comments
Global pollution and climate
change
In addressing such concerns
Tesla Company has developed
green electric car in order to
promote the energy innovation
along with attaining goal to attain
the sustainable environment
(Rothaermel & Zimmer, 2014).
Electric cars developed by Tesla
Company are expected to have
decreased impact on international
CO2 levels. This initiative if the
company is increasing the living
standards of people through
offering energy efficient vehicles
Violation of national legislation Tesla Company has focused on
developing better
communications along with
public relations planning and
coordination. This also
encompass social media tracking
along with the senior
management training
Tesla Company attains
information along with training
sessions in order to promote
compliance with the national
legislation laws (Rowland,
2015).
Supply chain based concerns
such as environmental, social and
governance concerns such as late
delivery and recalls
To deal with the concerns
associated with its supply chain
the company is focusing on
developing its digital supply
chain. For decreasing the
The company dealt with the
rejection of its traditional
franchise dealer sales model. The
company focuses on dealing with
the social and governance

6STAKEHOLDER ANAYSIS
environment impact of its supply
chains, Tesla has developed
exceptional inventory
management strategy (Shah,
2016).
concerns has focused on
maintaining less inventory along
with considering production on
demand. Tesla has focused on
decreasing the capital and risk
associated with storing excess
inventory (Sippel, 2015).
Question 2
The stakeholder position analysis of Tesla Company revealed that the company has three
major competitors within the US automobile market namely Toyota and Honda (Rowland,
2015). From such analysis it is gathered that the company is dealing with issues related with
developing environment friendly vehicles and is struggling with the mass market manufacturing
of its few vehicles. Moreover, issues have also been discovered in the batteries of the vehicle.
From the stakeholder analysis, it has been gathered that increased importance must be given to
its two major stakeholder groups that includes environment regulation parties and its consumers.
Consumers are one of the major stakeholders of the company those are dealing with the quality
control issues. Increased complains were being received from its consumers regarding the
vehicles that are getting overblown (Dockalikova & Klozikova, 2014). Tesla Company is also
dealing with issues related with the consumers those complained that they had to wait for weeks
for repairs for their cars. Focusing greatly on the consumer service is the major consideration for
the company. Moreover, government clean air regulations imposed increased risks for Tesla
Company. Considering such concerns, the company must focus on abiding by the regulations

7STAKEHOLDER ANAYSIS
imposed by the environmental regulation authorize by giving them increased importance
(Dockalikova & Klozikova, 2014).
 Importance of Consumers- Tesla is dealing with issues that are impacting its ability to
offer vehicles to all its consumers on a timely basis and in an economical manner.
Increased complains were being received from its consumers regarding the vehicles that
are getting overblown. Tesla Company is also dealing with issues related with the
consumers those complained that they had to wait for weeks for repairs for their cars
(Grünig & Kühn, 2015). As consumers are important stakeholders of the company to
attain competitive advantage over its major business rivals, Tesla must carefully
considers their changing needs and expectations. In order to attain highest consumer
satisfaction score, the automobile company must consider the upstart of its electric cars
within the international market. Moreover, in order to attain better consumer satisfaction
in comparison to its competitors, Tesla must focus on maintaining emotional connection
with them. Generating sustainable energy solutions is deemed to be highly important as
huge number of its consumers these days are relying on the company’s efforts in maintain
quality (Grünig & Kühn, 2015).
 Importance of Environment Regulation Authorities- The Company is facing
environmental issues regarding the vehicles and its emissions control. The energy
independence and securities act is dealing with the energy policy of the United States.
Tesla made sure that it will maintain higher energy independence and security and will
increase the clean renewable fuels production (Kotabe & Helsen, 2014). This stakeholder
group must be given increased importance by the company for the reason that it is facing
tough competition from its major business rivals such as Toyota and General Motors in

8STAKEHOLDER ANAYSIS
developing the most environment friendly cars. This can facilitate the company in
attaining increased competitive advantages (Kotabe & Helsen, 2014). Moreover, attaining
support from the environment regulatory authorities can facilitate Tesla in production of
electric transportation technology. Through abiding by the “clean air act” Tesla can attain
huge funding from government environment regulations authority for advancing its
technology vehicles (Rowland, 2015).
Question 3
In consideration to the issues, Tesla Company has developed two most effective
strategies in order to manage its stakeholders legally as well as ethically for maintaining a
competitive advantage over all its major business rivals within the US automobile industry
(Dockalikova & Klozikova, 2014). In maintaining consumer satisfaction and for attaining
effective environment regulation Tesla has focused on developing strategies that integrates
shared value principles with ecosystem (Dockalikova & Klozikova, 2014). These two ethically
and legally maintained strategies and its useful implications are explained under:
 Manufacturing of environment friendly cars for meeting consumer needs-
Development of environment friendly vehicles in a sustainable manner is one of the big
initiatives taken by the company for running its business ethically (Dockalikova &
Klozikova, 2014). Elon Mask, the CEO of the company has developed an effective
strategy to develop clean energy vehicles for the international market. Tesla Company is
also focused on implementing eco-friendly technologies considers its impact on the
market niche (Dockalikova & Klozikova, 2014). Considering such strategy, the investors
of the company are interested to invest more in the company for Tesla is making great

9STAKEHOLDER ANAYSIS
attempts in changing the way power is used ethically by this automobile company
(Grünig & Kühn, 2015). Tesla has developed an effective ethical and sustainable
strategy of enhancing electric vehicles technology that is facilitating the company in
dealing with global warming. This also serves as an important aspect in decreasing the
individual’s footprint within the environment. This strategy will be helpful in making
sure that the regulations set by the environmental authorities are followed properly by
the company. This will also facilitate the company in maintaining its reputation among
conscious consumers within the international market (Grünig & Kühn, 2015).
 Developing highly aggressive and innovative strategies focused on environmental
regulation- To maintain the environmental standards in an ethical manner, Tesla
Company has developed a strategy of developing novel design of its vehicles along with
maintaining effective computerization and connectivity. The strategy has also focused n
developing strict emission standards in order to boost its bottom line (Dockalikova &
Klozikova, 2014). Abiding by the regulations developed by the environmental regulatory
authorities, the company will make sure that it attains competitive advantage over its
business rivals. This can be possible if the company is developing regulatory strategies
for maintaining unique sustainable position in the US automobile industry. Tesla has
employed emissions regulations strategy in order to attain effective financial advantage
(Dockalikova & Klozikova, 2014). Following this strategy, the company can attain high
environmentally sustainable company ratings from the regulatory authorities of the
nation. Considering the same, Tesla has made a proposal to California Air Resources
Board by a group of medium size automakers like Volvo. This strategy has satisfied the
requirements of selling plug-in hybrids than fuel-cell vehicles (Anton, 2015).

10STAKEHOLDER ANAYSIS
References
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