Strategic Assessment of Tesla

Business Case Title
Tesla
Department Title: ___
STRATEGIC ASSESSMENT

Contents
Executive summary 1
1. Problem 2
1.1 Background............................................................................................................2
1.2 Definition of the problem......................................................................................2
1.3 Evidence of the problem........................................................................................2
1.4 Timing considerations............................................................................................3
1.5 Consideration of the broader context....................................................................3
2. Part 2 Benefits 4
2.1 Benefits to be delivered.........................................................................................4
2.2 Evidence of benefit delivery...................................................................................4
2.3 Interdependencies.................................................................................................4
3. Part 3 Strategic response 5
3.1 Method and criteria...............................................................................................5
3.2 Strategic options....................................................................................................5
3.3 Recommended strategic option.............................................................................5
4. Part 4 Project options analysis 6
4.1 Project options considered....................................................................................6
4.2 Stakeholder identification and consultation..........................................................6
4.3 Social impacts........................................................................................................6
4.4 Environmental impacts..........................................................................................6
4.5 Economic impacts..................................................................................................6
4.6 Overall evaluation of socio-economic and environmental impacts.......................7
4.7 Financial analysis....................................................................................................7
4.8 Risk comparison.....................................................................................................7
5. Part 5: Deliverability of recommended solution 8
5.1 Details of recommended solution..........................................................................8
5.2 Implementation.....................................................................................................8
5.3 Management..........................................................................................................8
5.4 Delivery8
Appendix A: Benefit Management Plan 9
6. References:11

Executive summary
This report has been prepared for investigating and recommending the current
position and situation of Tesla Motors and for its future business market. It has shed
light on the issue of increased demand of Electric vehicles among the customers
today. However, although this is a symptom that showcase that people have
become more environmental conscious and are opting for means to improve their
surroundings. However, Tesla was once regarded as the best players in the industry
and market of electric vehicles but the growing competitors and competition in the
market is preventing the sales and impacting the overall business profitability.
Hence, strategic recommendations have been made for improving the situation.
Business Case Title
Tesla 1

1. Problem
1.2 Background
The automotive market is facing a profound technology-driven transformation in the
recent years and some of the major implications lies in terms of marketing
(Karvonen et al., 2016). Anything in the modern market is a sign of complete
opposition and customers today actually link the brands and the glossy advertising
that are spend with shortage of innovation. As the focus of the current customers
has been shifted to experiences from advertisements, marketers need to understand
where they should place their bets on. Reputational risk is the risk of failure to fulfil
the expectations of the stakeholders of the company in terms of behaviour and
performance.
1.3 Definition of the problem
Electric cars have always been a topic of discussion for almost a decade. Tesla, being
able to supply these cars rapidly grown to become the most valuable US automaker
in terms of market capitalisation and beating out its three major competitors- Fiat
Chrysler, General Motors and Ford. However, Tesla is not the only game in town
now in the field of electric vehicle market.
1.4 Evidence of the problem
As it can be seen from figure 1. there is a growing demand for electric cars in the
present world. There is high demand for higher-end models from Mercedes and
Porsche coming to the market by the end of 2019. At the same time, at the lower
end market, Volkswagen is releasing a new electric model that is starting from the
price range of 27,000$. While there is no Tesla killer who might emerge from the
group, the abilities of the rivalries of Tesla for producing the electric cars at the scale
could chip into the chunk of Tesla of the electric vehicle market (Liu, Roberts &
Sioshansi, 2017). It is also to mention that the well-established automakers present
all around the globe have all jumped onto the electric vehicle bandwagon and there
are many with more enthusiasm than the others. Many of the established players in
the industry like Audi and Mercedes are proceeding with good deal of caution.
2 Department Title: ___