Organizational Structure on Tesla Assignment

Tesla Inc.’s Organizational Structure & Its
Characteristics (Analysis)UPDATED ONUPDATED ON SEPTEMBER 8, 2018 BY PAULINE MEYER
A Tesla Model S
sedan. Tesla Inc.’s (formerly Tesla Motors, Inc.) organizational structure and its
characteristics facilitate centralized management of the global automotive and
energy solutions business. (Photo: Public Domain)
Tesla, Inc. (formerly Tesla Motors, Inc.) has an organizational structure that supports
continuous business growth. A company’s organizational or corporate structure is
the design and system that defines the patterns of interactions among the company’s
components. In this business analysis case of Tesla, the organizational structure
takes a traditional form, considering the company’s managerial focus and control,
along with limited operational expansion in the global market. For example, as a
manufacturer of electric automobiles, batteries, solar panels, and related
transportation and energy solutions, Tesla Inc. uses its corporate structure to
facilitate extensive control of the organization. Elon Musk’s leadership effectiveness
depends on the corporate structure’s ability to disseminate and support the
implementation of new strategies for business growth and improvement. The
company maximizes its ability to implement new strategies and manage its
operational activities and objectives through its organizational structure. Tesla’s
operations management is dependent on the effectiveness of the business structure
in supporting strategic changes and implementations.
Tesla Inc.’s organizational structure creates capabilities that enable strong
managerial control of the business despite its growing international operations.
Growth increases complexity and challenges. For example, global expansion
requires a broader set of considerations to succeed in implementing Tesla’s generic
strategy for competitive advantage and intensive strategies for growth. The
corporation’s structural characteristics help maximize top-level managers’
information regarding these challenges, empowering them to respond accordingly.
Thus, this corporate structure supports Tesla’s corporate mission and vision
statements, which emphasize global leadership in the automotive and energy
solutions markets.