Strategic Management Tools for Tesla: An Analysis

This report analyzes the use of various strategic management tools for Tesla, including Ansoff Matrix, Mckinsey Matrix, BCG Matrix, Bowman’s Strategy Clock, Generic Strategy, Roger Model, and SAFE Model. It examines how these tools can help the organization address challenges and improve corporate performance. The report also recommends that Tesla use these tools proactively and become more competitive in the market.

Assignment 2
Case Study

Table of Contents
Executive Summary.........................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Ansoff Matrix.........................................................................................................................1
Mckinsey Matrix....................................................................................................................2
BCG Matrix............................................................................................................................7
Bowman’s Strategy Clock......................................................................................................7
Generic Strategy.....................................................................................................................8
Roger Model...........................................................................................................................9
SAFE Model.........................................................................................................................10
CONCLUSION..............................................................................................................................11
Recommendations..........................................................................................................................11
REFERENCES..............................................................................................................................13

Executive Summary
In this report, it basically focuses on the proper synthesis of the various tolls and the use of
various tools for the purpose to address the challenges. The report involves the analysis of the
tools and its application. Therefore, this report comprises of the different strategic management
tools which comprises of safe model, Ansoff Matrix, Bowman Strategy, Mckinsey Matrix, Roger
model, Generic Strategy and various other tools.
INTRODUCTION
Strategic Management basically involves the organisational resources and its management in
the organisation in a effective manner for the purpose to achieve the goals and the objectives.
The strategic management tools helps in ensuring the business seeks growth in a successful
manner and the organisation is able to meet its need in a effective and efficient manner possible.
In this report the organisation chosen is Tesla which is basically an American Automotive energy
organisation. The organisation was founded in the United Kingdom by San Carlos. This report
will be based on the use of the internal and external analysis tools for the purpose to address the
challenge with the use of tools in order to address these challenges( Hobbs, 2021). According to
the findings, the use of the strategic management techniques and tools plays a very important
role and it is highly recommended to the organisation to use and apply these tools for the purpose
to improve corporate performance. Moreover, it is recommended to the organisation to use the
strategic management tools in the most effective manner and also focusing on becoming
proactive rather than reactive and to make it analyse the actions of the competitors and carrying
out essential steps for the purpose to compete in the market rather than becoming spectators.
MAIN BODY
Analysis by applying tools and theory into practice
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Ansoff Matrix
In context to Tesla, this strategic tool is basically is considered to be marketing model
which is used by the vehicles manufacturer for the purpose of carrying out strategic decisions.
In context to this tool , it basically comprises of the four different strategy options which are
basically available for the businesses. It comprises of the market development, market
penetration, product development and the diversification. In context to Tesla, the organisation
uses four growth strategies in a integrated way as follows:
Market Penetration: In context to this strategy, it basically comprises of the strategy which
basically aims at selling existing products into the existing markets. In context to Tesla, the
organisation uses market penetration strategy for the purpose to work in a extensive manner. In
context to organisation, the company is focusing on selling its MODEL S, MODEL 3 electric
vehicles, model X and other products such as Inverters, solar panels, monitoring devices,
electrical hardware and much more( Mongkol, 2021).
Product Development: In context to this strategy, it basically depicts development of the fresh
commodities for the purpose to sold to its current market. In context to organisation, the
company engages in new product development in a infrequent manner. The reason is due to
excessive high cost of new product development in power storage sectors and the electric
vehicles (Pasquereau, 2021).
Market Development: In context to this strategy, it basically comprises of searching for methods
in relation to the current commodities. In context to Tesla, the organisation is evaluating various
new markets for the purpose to enter which also comprises of countries like INDIA.
Diversification: In context to this strategy, while following the diversification strategy, the
organisation develops new products for the purpose to introduce them in the new markets. In
context to TESLA, the organisation has used diversification strategy in the last few years. The
organisation was started only as electric vehicles manufacture in the year 2003 and after that
changed their name from TESLA Motors Inc.
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Mckinsey Matrix
In context to Model, it is basically a framework and the strategy tool that helps the business
in assessing their performance. In context to Mckinsey model, it basically involves the 7 key
elements of the company which need to be aligned and the focuses for the purpose to successful
change management process and also involves regular performance enhancements. In context to
Tesla Motors, it uses the McKinsey 7s model for the purpose to enhance the performance and
implementing successful change management process. In context to Tesla Motors, it basically
uses the Mckinsey 7s model for the purpose to regularly improve the performance and ensuring
that the performance levels in a consistent maintained and improved for the offerings.
Hard Elements : In context to Hard Elements, it basically comprises of the systems, strategy,
structure and much more. In reference to the hard elements, these are very easy to identify,
directly controlled, more tangible in nature and are influenced by the management and the
leadership of the company (Agnihotri and Bhattacharya, 2022).
Strategy: In context to overall business strategy and the strategy direction for the company are
communicated and defined in a clear manner for all the stakeholders and the employees. In
supports the company in order to guide actions, manage performance and devise the various
tactics which are usually aligned with the different strategies. In context to the business strategy
and communication.
Guiding behaviour for goal attainment: In context to organisation, the strategic direction plays a
very important role in helping the stakeholder behaviour and business guide employee and staff
for the purpose to achieve objectives and goals. In context to SMART goals, these are set with
the long and short term deadlines in relation to the business strategy. The business strategy helps
the employees in deciding behaviours and tactics for the purpose to attain the targets and goals
for the purpose to support the business to grow (Maamoun, 2021).
Competitive pressures: In context to organisation, the company’s strategy also takes into
consideration for the activities of the competitors and the competitive pressures. With the help of
the strategy addresses these competitive pressures through the actions and measures for the
purpose to address the competition.
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Changing Consumer Demands: In context to the organisation, the company takes into
consideration the changing demands and the consumer demands as well as evolving the
consumption behaviour and consumer market patterns. In reference to the organisation, it plays
a very significant role in the company and it allows the company to remain to relevant and the
competitive to the target consumer groups and also allows the organisation to identify the
demand gaps (GS and LS, 2020).
Structure
Organizational Hierarchy: In context to TESLA motors, the company has a flatter organizational
hierarchy which is supported by the progressive and learning companies. With the help of the
flatter hierarchy, it helps the companies in quick decision making process and also helps in
increasing the company’s commitment in the employees.
Inter Departmental Coordination: In context to the organisation, the company has maintained
high coordination among the various departments and also all the coordination among the
various departments is highly organized and effective. In context to TESLA, the organisation
follows a systematic process for the purpose to monitor and initiate the coordination among
various departments for the purpose to ensure the smooth process and operations (Tonelli and
Cristoni, 2018).
Communication: In context to organisation, the company has developed a system that establishes
coordination among the managerial levels and the employees. In context to organisation, it helps
in improving the structure of the company.
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Systems: In context to organisation, the company has defined a well drafted system for the
purpose to ensure that the operations of the company are managed in a effective manner possible
and there is no chances of the disputes and the conflicts (Valentin, 2019).
Soft Systems: In context to the Mckinsey model, the soft elements basically comprises of the
strategy, shared values, skills and the staff. In reference to these elements, these are less tangible
and are highly impacted by the culture of the company.
Core Values: In context to core values, the company core values are communicated and defined
for the purpose to foster the supportive and the creative organisational structure that allows the
employees to enhance their motivation and commitment of the organisation. In reference to the
core values of the company it comprises of the honesty, creativity, heritage, accountability,
transparency and much more (Hoeft, 2021).
In context to organisation, it basically ensures that all the job roles and tasks are usually assigned
in relation to the values of the organisation. In reference to the company, it comprises of strategic
tactics, activities and tactics which are basically employed in the organisation and the company
focuses on ensuring improved image and reputation of the organisation. In reference to the
organizational change, the organisation focuses on ensuring that the methods and process related
to the change management incorporates the basic values for the (Cooke, 2021).
Style
In context to Tesla Motors, the company follows a participative style of leadership. In reference
to the organisation, the company allows their employees to take part in the decision making
process and carrying out various decisions related to the organisation. In addition to that, it
allows the leader to have interaction with the various managerial groups and employees for the
purpose to identify the solutions for resolving conflicts. With the help and support of the
participative style of leadership, the company is able to increase and boost the commitment of
the employees and helps in boosting the motivation of the employees in a effective time.
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In context to such type of leadership, it plays a very important role in achieving the objectives
and goals of the company. In context to the employees of the organisation, they feel highly
involved and active members of the company who are basically valued for the input, suggestions
and feedback. With the support of the participative leadership, the organisation is able to identify
the potential conflicts and can easily resolve them in a effective manner ( Kancherla and Daim,
2018).
Staff
Business Goals vs Employee skill level: In context to Tesla, the organisation has a sufficient
number of employees and employees for the positions and job roles are hired externally as well
as internally. In reference to organisation, the company has employees who are highly skilled
according to the position or the job roles requirements.
Number of employees: In context to organisation, the company has employed large number of
the employees. In reference to the company, the employees varies from the country to country
according to the operations and needs of the company (Philip, 2021).
Gaps in the capacities and the required capabilities
In context to organisation, the company has a well define system for the purpose to identify the
capacities and capabilities of the company. In context to the human resource function of the
organisation, it has a systematic process for the purpose to identify the skill gaps and vacancies.
Skills
Employee skills : It context to the organisation, the company has a commendable workforce,
with the capacities and high skills. In reference to organisation, the employees are recruited
based on the qualifications and merit.
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Employee skills vs task requirements
In context to organisation, the company has defined job roles and task and also ensures that the
employees have the sufficient skills for the purpose to perform the various activities according to
the strategy and goals of the company.
BCG Matrix
In context to Tesla, the Boston’s Consulting Group’s product portfolio matrix is basically
designed for the purpose to support the long term strategic planning which helps the company in
better understanding of the organisation’s strategic choices.
Matrix Explanation
Star Products: In context to Tesla, the star products are the constant innovations in terms of the
electric vehicles and also comprises of the cleaner energy. In context to the organisation, the
company is a indeed leader when it comes to sustainability industry and the star products of the
company basically represents a growing market (Hess and Andiola, 2018).
Cash Cows: In context to the Cash Cows, these are basically the products that continue to be
profitable even in the low growth market.
Question marks: In context to questions marks, it basically involves the dilemmas faced by the
organisation which comprises of the solar power, miscellaneous accessories and energy storage.
In context to the Tesla, the competition is really high and it becomes really difficult to
differentiate yourself over the long term.
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Dogs: In context to the TESLA, the deadweight is considered to be a very important and
important part when it comes to highlighting the manufacturing complication of the certain
models( Badolato, 2022).
Bowman’s Strategy Clock
In context to Bowman’s strategy clock, it is basically a marketing model with which the
organisation could easily analyse its position in relation to the competitors. In reference to the
strategy, it was basically developed by the David Faulkner and Cliff Bowman. In context to the
strategy, it basically represents different position in the market where the consumers have
different requirements in the terms of the value for the money. In context to TESLA, the
organisation has focus of the differentiation strategy and basically concentrates on the small
group of individuals who the more environmental conscious and are rich which are basically
attracted by the beautiful and stylish looks of the cars. In reference to TESLA, the company
cannot adopt the hybrid or low cost strategies as the company does not have the production, scale
or capital capacity for the purpose to compete on the cost basis. Within the Bowman’s Strategy
Clock, it is highly recommended to shift the company strategy from the focus differentiation to
the differentiation and offering various benefits which are usually different from those of the
widely valued by the customers or rivals at the same prices (Masschelein, 2018).
Generic Strategy
In context to the organisation, the company basically applies its generic strategy for the
purpose to achieve its competitive advantage against the other organisation running in the
automotive industry. In reference to the Michael Porter’s model, the generic strategy basically
represents the approach of the company to competing in the market. In context to the generic
strategy, it basically reflects the focus of the company on using the advanced technologies in
their electric vehicles and other range of products. In context to the Tesla’s generic strategy, it
basically allows the company to maintain the competitive advantage.
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Intensive Growth Strategies
Market penetration : In context to the organisation, the company uses its market penetration as its
primary intensive growth strategy. With the help of intensive strategy, it helps in enabling
business growth through increasing the sales revenues in the current markets.
Product development: In context to organisation, the product development is basically the
secondary intensive growth strategy. In reference to the company, the organisation basically
applies this strategy through developing the new products and advanced technologies for the
purpose of minimal environmental impact. With the help of intensive strategy, it basically
supports the organisation’s differentiation generic competitive strategy through focusing on
unique high technology automobiles and attracting the target customers.
Market development: In context to the company, the organisation uses market development as
the tertiary intensive growth strategy. In context to this strategy, it basically involves entering
new markets for the purpose to generate the sales and growing the global business. With the help
of this strategy, it basically supports the organisation’s vision and mission statements.
Diversification: In context to the organisation, the company applies diversification and this
intensive strategy supports and helps the growing the organisation through a new business
creation. In context to the organisation, the company put more focus on the product development
and market penetration for the purpose to grow its energy and automotive solutions for the
business. The organisation can apply the differentiation generic competitive strategy for the
purpose to increase the likelihood of the success in using this intensive growth strategy,
Roger Model
In context to Roger Model, this theory basically describes the 5 step innovation decision
process. In reference to the potential adopters of the innovation it basically passes through 5
stages which comprises of the persuasion, knowledge, decision, confirmation and
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implementation. In reference to Tesla, the process of adopting new innovations has been studied
for over 30 years. In context to the roger model, it is one of the most popular adoption model. In
reference to the Rogers’ diffusion of the innovation theory is the most appropriate manner for the
purpose to investigate the adoption of the technology and educational environments. In context
to Tesla, the innovation adoption curve of Rogers is basically a model that basically classifies
adopters of the innovation into various categories based on the perception that the certain
individuals are highly inevitable and more open to adaptation as compared to others. In reference
to the Diffusion of Innovations theory and Multi step flow theory. It comprises of the innovators
which comprises of the brave people, pulling the change. Innovators are considered to very
important when it comes to communication.
In context to Early Adopters, it basically comprises of the opinion leaders, respectable people
and also trying out new ideas in a very careful manner. In context to early majority, it comprises
of the thoughtful people. In reference to the late majority, it involves the skeptic individuals and
laggards involves traditional individuals. In context to TESLA, the diffusion of the innovations
curve of the Rogers is highly useful for the purpose to remember that trying to massively and
quickly convince the mass of the new controversial ideas.
SAFE Model
In context to Safe model, it basically stands for the Scaled Agile Framework which is basically a
set of the workflow and organizational patterns for the purpose to implement agile practices at an
enterprise scale. In reference to this framework, it is a body of knowledge that comprises of the
structure guidance on the responsibilities and the roles, how to plan and manage the work and the
values to uphold. In context to the safe model, it basically promotes the collaboration, alignment
and the delivery across the large numbers of the agile teams. It was basically formed around
three primary bodies of the knowledge which comprises of the three primary bodies of
knowledge which involves the agile software development and much more.
Core values and Principles
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Core Values: In context to the SAF core values, it basically describes the culture that leadership
need to foster and how individuals should behave within that culture for the purpose to
effectively use the framework (Henry, 2021).
Alignment : In reference to SAFe, it requires that companies put reflection cadences and
planning in place at all levels of the company. With the help of these in place, every one
understands the current state of the goals and how everyone should move together for the
purpose to achieve those goals.
Built in quality: In context to the SAFE framework, the agility should never come at the cost of
quality. In context to the SAFE, it requires teams at all the levels to define what done means for
each project or task.
CONCLUSION
From the above report, it can be concluded that Strategic management tools plays a very
important role in the overall success of the organisation. In any organisation , to remain
competitive and enter into an industry it is very important to use the strategic management tools
for the purpose to deal with the various challenges and surviving in a competitive environment.
In addition to that it helps in understanding and having deep knowledge about the various
strategic management tools which comprises of the Ansoff matrix, Mckinsey Matrix, BCG
Matrix, Bowman strategy clock, Generic Strategies, Roger model and safe model. In addition to
that, the report helps in deep understanding of the various factors which could impact the
organisation and plays a very important role in the failure and success of the organisation.
Therefore, it is very important for every organisation to remain updated and regularly implement
challenges and applying these strategic management tools in the company and its operations for
the purpose to run the business in a effective and efficient manner.
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Recommendations
In context to organisation, environmental changes are considered to be the most important
concepts and it is very important for the organisation to adapt these changes for the purpose to
make the leaders and managers of the company to have a deep understanding. In reference to the
strategic management, it is considered to be the emerging areas of the expertise in the
management science and with the application of the strategic management tools it supports the
managers in providing the efficient tools for the purpose to deal with the increasingly complex
environment (Henry, 2021). In context to the techniques and the strategic management tools,
these are constantly being developed. In context to the use of these techniques and tools, these
are not the same among the various companies and these have different ownership and different
sizes. In context to these, they have their own vies on these techniques. According to the
findings, the use of the strategic management techniques and tools plays a very important role
and it is highly recommended to the organisation to use and apply these tools for the purpose to
improve corporate performance. Moreover, it is recommended to the organisation to use the
strategic management tools in the most effective manner and also focusing on becoming
proactive rather than reactive and to make it analyse the actions of the competitors and carrying
out essential steps for the purpose to compete in the market rather than becoming spectators. In
reference to the organisation, it basically acts as a foundation for all the key decisions of the
company. Moreover, with the help of strategic management, it plays an essential role as it helps
the firms to rationalize the change and actualize the change and also focusing on communicating
the need to change for the betterment of the employees. In addition to that, it helps in bringing
discipline and order to the activities of the company in its both the external activities and internal
processes.
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REFERENCES
Books and Journals
Agnihotri, A. and Bhattacharya, S., 2022. Tesla Innovation and Growth at the Cost of Quality?.
SAGE Publications: SAGE Business Cases Originals.
Badolato, P., 2022. Understanding Corporate Income Tax Reporting: Tesla’s Electrifying Ride to
Profitability. SAGE Publications: SAGE Business Cases Originals.
Cooke, P., 2021. From the machine learning region to the deep learning region: Tesla, DarkTrace
and DeepMind as internationalized local to global cluster firms. In The Globalization of
Regional Clusters. Edward Elgar Publishing.
GS, G. and LS, R., 2020. Customer perception towards tesla electric car’s innovative
features. Journal of Contemporary Issues in Business & Government, 26(2).
Henry, A., 2021. Understanding strategic management. Oxford University Press.
Hess, M.F. and Andiola, L.M., 2018. Fraud risk brainstorming at tesla motors. Issues in
Accounting Education, 33(2), pp.19-34.
Hobbs, A., 2021. Analyzing the Tesla–Bitcoin Investment: What’s Next for Cryptocurrencies?.
SAGE Publications: SAGE Business Cases Originals.
Hoeft, F., 2021. Auto makers and radical innovation: culture, capital and talent form road
blocks. Journal of Business Strategy.
Jing, N., 2020, December. Research on Tesla’s Customer Care Innovation. In 2020 Management
Science Informatization and Economic Innovation Development Conference (MSIEID) (pp. 469-
478). IEEE.
Kancherla, Y.D. and Daim, T.U., 2018. Technology Roadmap: A Roadmap for Tesla.
In Infrastructure and Technology Management (pp. 347-366). Springer, Cham.
Maamoun, A., 2021. Elon Musk and Tesla: An Electrifying Love Affair. SAGE Publications:
SAGE Business Cases Originals.
Masschelein, S., 2018. ACCT3323: Strategic Management Accounting. Available at SSRN
3126609.
Mongkol, K., 2021. Strategic Management Practices in Thailand. Academy of Strategic
Management Journal, 20(4), pp.1-11.
Pasquereau, M., 2021. 10 Tesla. Business Management Case Studies: Pran-RFL, Netflix, Mc
Donalds, Google, Tesco, Apple, COCA COLA, PSA Group, Mercedes, Tesla, Toyota, Beximco,
KFC, LBC Lao Brewery Company, p.167.
Philip, J., 2021. Viewing digital transformation through the lens of transformational
leadership. Journal of Organizational Computing and Electronic Commerce, 31(2), pp.114-129.
Tonelli, M. and Cristoni, N., 2018. Strategic management and the circular economy. Routledge.
Valentin, M., 2019. The Tesla Way: The disruptive strategies and models of Teslism. Kogan
Page Publishers.
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