Management and Business Environment of Tesla

TESLA Electric Cars

Table of Contents
INTRODUCTION...........................................................................................................................3
Part A...............................................................................................................................................3
Management................................................................................................................................3
Mintzberg’s theory of management.............................................................................................3
Contribution of Critical thinking in effective performance of job of managers..........................5
Taking account of diverse interest of Stakeholders by managers................................................5
Part B...............................................................................................................................................5
PESTLE Analysis........................................................................................................................5
a. External forces that have most implications for the Tesla...................................................7
b. Extent to which Tesla’s policy take account for these forces..............................................8
c. How should managers decide which of the many factors identified in a PESTEL analysis
they should attend to? If they must be selective, what is the value of the PESTEL method?.8
Porter’s five forces.......................................................................................................................8
Part C.............................................................................................................................................10
Corporate Responsibility & National Culture...........................................................................10
a. Practices of Tesla...............................................................................................................11
b. Examples of corporate malpractice...................................................................................11
Hofstede’s dimensions of national culture................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Management can be defined as an activity in which all the efforts that are made by
different areas of organisation by teams and individuals of the organisations are coordinated and
directed towards achievement of organisational goals. This report will discuss about management
and business environment of the Tesla. In order to identify factors and analyse business
environment Pestle and Porter’s five forces model will be applied. Tesla is a American Electrical
vehicles and clean energy company. Tesla was founded in 2003 and operates under automotive,
energy storage, and energy production industry. The company is headquartered at Palo Alto,
California, U.S. products of the company are Electric vehicles, Tesla batteries, Solar Penal and
roofs. The company as of 2019 employs around 40000 employees and in 2020 Tesla reached a
market capitalization of US$206 billion and became world’s most valuable automaker by market
capitalization. This report later will also discuss about corporate social responsibility and
national culture in context of Tesla.
Part A
Management
Management is a set of principles that relates to function of planning organising directing
and controlling activities of organisation (Serrat, 2018). The activities are aimed at achieving
organisational objectives and application of management principle extends to all areas of
organisation. The areas that are covered in application of Management are financial resources,
human resources, information resources and physical resources. Management is basically based
on five primary principles that are planning organising staffing controlling and directing.
Mintzberg’s theory of management
Mintzberg theory of Management includes roles of managers. This theory provide 10
roles of managers based on three different aspects. The roles in mintzberg theory are-
Interpersonal Roles
The Figurehead

In this role managers require to perform ceremonial duties.
The Leader
In this role managers need to take responsibility of the employees. They need to motivate
and encourage employees to perform effectively.
The Liaison
This role requires making contacts with outside parties. In this role they also play role of
mediator between senior management and employees.
Informational Roles
The Monitor
This means that managers scans environment of business in order to collect information
that after business (Hidayat, 2020).
The disseminator
This means that distribute and pass information to subordinates which help them in
performing their duties.
The Spokesperson
This means sharing information with outside parties of the business. This also means that
they also represent organization in front of external parties.
Decisional Roles
The entrepreneur
This means that they seek to improve the organizational operations and initiate projects
within organization.
The Disturbance Handler