Strategic Management Assignment | Answers

RUNNING HEAA: STRATEGIC MANAGEMENT
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Strategic Management

Strategic Management
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Assignment Answers
1. Briefly present your selected company (name, industry, nationality, location, size,
activities, and products)
Tesla Motors is a leading player in the automotive industry for its electric
vehicle designs and quality and also operates in energy production and storage. The
company operates in different segments such as solar energy, electric vehicles, and
cyber truck (Valentin,2019). Tesla has two main plants in America one is located in
Nevada and another one is in California and both plants have the capacity of
producing 800,000 cars in a year (Galpin,2019). In the US, the company covers 77%
of market share because of its electric vehicles such as Model X, Model 3 and Model
S. In 2019, the revenues of the company were US$.86 billion as sales of the company
increased by 50% from 2018 (Tesla, 2019). Tesla sold 367,849 units in 2019 (Kumar,
Sujit & Abdul,2019). Furthermore, “Tesla is the world’s first vertically integrated
sustainable company as it offers end to end clean energy products, including
generation, consumption, and storage”.
2. Determine the opportunities, threats, strengths, and weaknesses of your selected
company by completing the SWOT matrix in the answer sheet. (1 mark) 200
Opportunities Threats
- The shift of people towards eco-
friendly products due to that
demand for electric cars, energy
storage, etc. will increase in the
near future.
- Government support for reducing
the use of fossil fuel and the
reduction of taxes will help the
company to expand
- A trade war between the US and
China
- Limited suppliers of high
bargaining power of suppliers
(Tesla,2019).
- Fluctuation in the exchange rate
- Increasing competition from
Ford, General Motors and
Toyota.

Strategic Management
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Strengths Weaknesses
- Advantage of product
differentiation such as electric
power train technology
- Huge investment in Gigafactories
- Diversification in product portfolio
such as power pack applications
- Low-cost batteries manufacturing
plant (Tesla,2019)
- Strong marketing policies and
improving customer base
- Elon Musk leadership style
- Single source of suppliers
- Weak financial position
- Increasing debts and little
profitability
3. Does your selected company have a social responsibility? If yes, discuss its impact on
the competitive advantage of the corporation
Tesla is a sustainable organization that focuses on corporate social
responsibility with the motive of addressing some of the major stakeholder’s interests
in the energy business and automotive business (Musonera & Cagle,2019). Tesla's
highest priority is communities and then customers. The sustainable practices and
integration of this with organization gaols are a great imitative taken by the company.
Further, Tesla sold 550K electric vehicles in 2019 due to that $7 M metric ton of CO2
saved (Tesla,2019). Tesla's supercharging network is the fastest and delivered over
595 GWH of energy that resultant in saving over 75M gallons of gasoline
(Tesla,2019). The aim of reducing the use of fossil fuels for electricity generation and
transportation decreases the risk of respiratory disease and stroke. The use of solar