Tesla Motors Analysis

This report analyzes the connection of Tesla Motors with its stakeholders and discusses strategies to gain their trust and dependability.

Running head: TESLA MOTORS ANALYSIS
TESLA MOTORS ANALYSIS
Name of the Student:
Name of the University:
Author Note:

1
TESLA MOTORS ANALYSIS
Table of Contents
Introduction................................................................................................................................2
Introduction to Tesla Motors:.....................................................................................................2
Stakeholder Analysis for four selected stakeholder groups:......................................................7
Stakeholder generic strategic programs for each of the four selected stakeholders..................9
Recommended strategic program:............................................................................................11
Conclusion:..............................................................................................................................12
References:...............................................................................................................................13

2
TESLA MOTORS ANALYSIS
Introduction
The aims of this report is to discuss the connection of Tesla Motors with its
stakeholders. Through this stakeholder analysis and strategy development report the company
will find the strength and weaknesses of the products mentioned and transform those to attain
the trust and dependability of the stakeholders.
Introduction to Tesla Motors:
Tesla motor company was established in 2003 in the USA by Meeting Eberhard and
Marc Terpenning (Tesla.com 2019). It has been serving the customers all over the world as
one of the most reputed automobile company. It is a public sector organisation with annual
revenue of 21.4 billion USD stocks Tesla has been accelerating the transition of the world to
a sustainable energy Efficiency with its production of electric cars integrated renewable
energy solutions for personal and professional use and solar panels. In 2018 Tesla Motors
hydrant as one of the bestselling plug in Passenger car manufacturer in the world both as the
brand has wireless by the automotive group.
Vision:
The vision statement of Tesla motor is to create the most compelling car company of the 21st
Century by driving the world's transition to electric vehicles.
Mission
Tesla’s mission statement used to accelerate the world’s transition to sustainable energy. The
mission statement of Tesla reflects it’s into achievement of sustainable development in terms
of developing automobiles in such a way that can alter the Dynamics of the business
operations in the world. The mission of this company has been the generation of Sustainable
energy to enhance the quality and standard of cars produced by Tesla.

3
TESLA MOTORS ANALYSIS
Developments
The interview with Elon Musk the CEO of Tesla has pointed out that the company has
matched the expectation of the environmental changes in the world (Youtube.com 2019). The
recent trend of Leaning towards the sustainable development of the organisations and
acceptance of electric cars to reduce pollution contributed by the traditional fuelled cars. The
plan of this company therefore is to secure the future of this business through attaining long
term sustainability. the recent growth of demand of electric cars in in the developed countries
have also been discussed.
Challenges:
Tesla has a strong history of overcoming odd challenges but with changing Trend and,
petition the company has faced lots of odds which needs to be overcome.
Firstly Amazon Web Services account has been hacked to mine crypto currency.
Secondly the mechanical fault it affected power steering systems of model S sedans
and model X.
Thirdly the company faced problems with National transportation safety board from
which Tesla has removed itself.
Fourthly the workplace condition in the organisational setting in Tesla has become
questionable as positive working culture is losing its effectiveness.
Finally, Tesla's credit rating has been reduced due to Model 3 controversy which is
giving a debt concern to the company.
Industry trends:

4
TESLA MOTORS ANALYSIS
There are three emerging trends in the automobile industry which are transforming the
whole idea of driving cars.
Firstly the demand of autonomous driving has become the ruling. Starting from
minimising accident due to drowsiness and reducing inability of the driver II, this type of
Technology has been used in in the new cars.
Secondly, the smart Technologies are making their way into the automotive industry
where the connected vehicles will share the details about their driving conditions.
Thirdly, demand for sustainable growth has been seen in this industry.
A. Tesla Stakeholder View of the Organisation
The stakeholders are the most important assets of the organisations. The stakeholder
theory is related to Organisational Management and the business ethics which address the
moral and value of managing the organisation. These include the corporate social
responsibilities, social contract theory and market economy. the stakeholder view of the
strategy of organisations can integrate both the resource based view as well as market based
view along with socio-political strategic level (Peart and Knowles 2018). Stakeholder theory
mainly define specific stakeholders of the company and then examines the condition based on
which the managers can treat the people as stakeholders. in every field of business the
stakeholders theory can be challenging for the usual analysis frameworks which suggests that
the company must listen to their stakeholders and stand the needs of the stakeholders for
beginning any action (Bourne 2016).
In this case Carroll’s models can be applied to seek the insight into the approach of
Tesla for feeling the needs of the stakeholders and the requirements of these people
associated with the company. Carroll’s model can be referred that can help up the company to
maintain its position in this highly competitive world of business and fulfil its target properly.

5
TESLA MOTORS ANALYSIS
Figure 1. Stakeholder model
(Source: Created by author)
The stakeholder approaches undoubtedly create value for the business today the knowledge
for managing changes and delivering demanded projects have been supported by the
stakeholders for years stock according to carols theory there are three values of the
stakeholder model which enable the company to understand by the stakeholder approach has
been essential for the business as well as the society where the company has been working.
The three values of the stakeholder model are normative descriptive and instrumental
(Cooper 2017). The descriptive value provides a concept that describes corporations, the way
it works and the impacts on broader environment. The model defines the actual operations of
the company is a constellation of competitive and cooperative interests that possess intrinsic
value stalked this part is helpful for understanding and managing the organisations that is
why the language of the stakeholder theory can be used widely in the business. The
stakeholder model is also instrumental where the managing stakeholders must result for
achieve the business goals in addition to this they will help in increase profitability,
The
stakeholder
model
Descriptive
InstrumentalNormative

6
TESLA MOTORS ANALYSIS
sustainability and growth of the organisation. This model also allows to test the connection
between the business target and the managing stakeholders. The third aspect is the normative
value which assume that the stakeholders have inherent values. the stakeholder theory
actually accepts that the stakeholders have there are legitimate sticks in the activity of the
organisation based on their interests in the function of the corporation (Andriof and Waddock
2017). According to this theory there is a broad sense feed management of the stakeholders
because this is descriptive and enables the predictions which must be made by the managers.
For customer relationship management the company follows the methods of stakeholder
management techniques. the suggestion and feedback in relation to the innovations on the
basis of the production and maintenance of the electric cars is the evidence of such initiatives
in addition to this the risk assessment exercises which the company undergoes and focuses on
can help in gaining more knowledge about the related risks that can hamper the trust of the
stakeholders upon the company and its operations (Eden et al. 2016). In the case of the hybrid
cars spark plugs and oil cannot be used as there is a need for lower maintenance.

7
TESLA MOTORS ANALYSIS
Figure 2. Stakeholders Tesla
(Source: created by author)
Stakeholder Analysis for four selected stakeholder groups:
The behaviour and motives vary from stakeholder to stakeholder. The four
specific group of stakeholders are employees, customers, supply chain partners and the
shareholders.
The employees at the chief stakeholders and Assets of the companies. The
businesses which works to attain the social responsibility needs have also focus on the
employee interests in the business operations. Tesla treats the employees to be the most
important asset it helps promote a non-discriminative work environment so that the
employees can actively get involved the employees in the important decision making
process (Cuppen 2016). Through the engagement of the employees to influence the
Communities
Competititors
GovernmentSuppliers
Customers Employee
s
OwnersShareholder

8
TESLA MOTORS ANALYSIS
decision making process and actions of the company has been served as the stakeholder
influence. The employee retention and employee benefit programme at two most
important factors in Tesla based on which the company make decisions in the favour of
keeping interest of this stakeholder group. Any type of unethical behaviour in the
organisational setting is first pointed out by the employees and they protest through their
unions which keep the organisational performance in track.
The customers are the central influence Groups for Tesla. This is not because the
companies make profit on the satisfaction of the customers but also make a long term
relationship with the market and built a sustainable profit every time. Tesla uses the
customer relationship management process and data driven business marketing process
for collecting data on the customers for making the target groups more efficient and
effective for sales efforts.
The business partners are the most important stakeholders of Tesla. The business
partners mainly include the supply chain which is physically known as popular Logistic
management system emerged in the early 21st century that involves in the close
collaboration among the suppliers and the business buyers both of these work together for
delivering the best value to the end customers. In case the gets entangled in any type of
illegal import or export situation the suppliers can guide it to find a new way. this
collaboration becomes integral where the logistics as well as distribution of the
companies aims to trim costs and brings their focus on the customer values. In addition to
this the suppliers can improve the environmental preservation process by building
meaningful relationship with the company.
The business cannot operate without the shareholders of the investors who are
involved in the decision making process for expanding the scope and opportunities for the

9
TESLA MOTORS ANALYSIS
capital margin of the company. They provide access of the technological patents by
assisting and systematizing the dealings with the business operations in case of Offshore
marketing that help in in expanding the market for which the company needs financial
assistance from the investors and shareholders. This type of stakeholders regulate the
decision making process of the company by controlling the economy of the organisation
by enhancing the standard of quality of the sustainable reporting.
Stakeholder generic strategic programs for each of the four selected stakeholders
Employees
Tesla Motors always follows the ethical conduct in terms of managing the employees
and accepting their proposed changes in the development of positive work culture. As the
matter of fact that the problems of Tesla Motors include hiring the logging lawmakers for the
proper development of changes. It creates open forums for discussions by the employees and
they have their unions which operates globally. This acts assistance for understanding the
visibility of decisions for introducing electric cars in this changed competitive world and
changing customer preferences. This process is effective for unleashing the innovative skills
and the judgement capabilities of the employees. The strategic Alliance of the company with
the Federal Government of USA have given the scope for gaining insight into the ways buy
formulating strategies of health insurance and the employee safety policies . the employees
are given scopes for foreign exchange trading model that can enhance the customer
relationship management that helps the employees to allocate their duties as well as
responsibilities.
Customers
The existing strategy programs which were followed by Tesla have capable to attract
the customers till now. This particular approaches are helpful for the customers to understand

10
TESLA MOTORS ANALYSIS
the Expectations of the company. The customers are convinced with the proposed plant and
policies of the company and respond in the operative measures with Tesla. However in this
competitive world of automotive industry there are attempts for influencing the purchasing
power of the customers but the high quality products by Tesla Motors have created a loyal
base of customers. The Real Analysis has been conducted for assessing the approaches of the
clients towards the changed Strategies and plans of Tesla Motors which has assisted in
detecting the deviant behaviour that can hamper productivity of the firm.
Along with this Tesla has also maintained the contract management plans for
regulating the contracts, trades, deals and legislative requirements which has created a good
connection between the customers and the company. the organisational culture and the CSR
activities performed by the company has created a positive idea about the organisation in the
minds of the customers (Fombrun, Ponzi and Newburry 2015). Along with proficient
customer service Tesla Motors has shown its strong presence in the media where the
necessary information about the marketing strategies and new products and convert to the
customers. this conscious approach towards sustainable preservation has helped tesla to gain
trust of the customers.
Shareholders
Tesla Motors has conducted meetings with the investors as well as the shareholders to
discuss the positive and negatives of investments like GIC, RRSP and exchange traded funds.
Different programs have been conducted to share Expectations of the current trends in the
stock exchanges. Ideas relating to the mutual fund and experimenting with the results related
with the highest selling proportionate to the low purchase have created impact on the
shareholders. the financial Advisors have given assistance for effective management of the
instabilities which creates support mechanism from the investors.

11
TESLA MOTORS ANALYSIS
Suppliers
Tesla Motors have great connection with the supplier business partners there a strategic
programs like quality control and testing of the raw materials for manufacturing of the end
product step by understanding and respecting the laws the supply partners have been serving
the company therefore there is no issues regarding connection with the business partners.
Recommended strategic program:
 The company can arrange talk shows and conferences regarding the stock exchange,
mutual funds and other economic aspects in terms of disseminating all the important
financial information to the shareholders. Interactive session can be helpful for
reducing the doubts and concerns related to the investment to gain maximum profit. In
such meetings the financial Advisors can be invited for dealing with the instabilities
like high exchange rates, inflation and fluctuations of the prices of raw materials.
 Strategic program for the customers will include contests to gain the Insight about the
approaches of the customers for purchasing power. The awards and prizes offered to
the customers through special discounts schemes and offers a high sell revenue can be
achieved.
 For the employees the organisation can and over career enhancement plan that will be
in sharing their professional development step by arranging training programs and
giving access to the resources needed for the employees will be e effective for
development of innovative idea which will be contributed for the growth of the
company. In addition to this the health and safety in the workplace can also be
promoted which will earn the dependence of the employees.
 The supply business partners can be we invited for or contributing in the sustainable
development process. Whatever the change plan will be e, the business partners must

12
TESLA MOTORS ANALYSIS
be knowing every steps of the company. Thus the transparency of Tesla Motors will
be enhanced and the connection with the supply business partners will be
strengthened.
Conclusion:
Therefore, it can be concluded that Tesla Motors need to focus more on the
dependability of the customers regarding the electric cars as mentioned in the interview of the
CEO. Through this stakeholder analysis and strategy development report, the company will
gain an understanding about the expectations of the stakeholders.

13
TESLA MOTORS ANALYSIS
References:
Andriof, J. and Waddock, S., 2017. Unfolding stakeholder engagement. In Unfolding
stakeholder thinking (pp. 19-42). Routledge.
Bourne, L., 2016. Stakeholder relationship management: a maturity model for organisational
implementation. Routledge.
Cooper, S., 2017. Corporate social performance: A stakeholder approach. Routledge.
Cuppen, E., 2016. 15 Stakeholder Analysis. Foresight in Organizations: Methods and Tools,
p.208.
Eden, S., Megdal, S., Shamir, E., Chief, K. and Mott Lacroix, K., 2016. Opening the black
box: using a hydrological model to link stakeholder engagement with groundwater
management. Water, 8(5), p.216.
Fombrun, C.J., Ponzi, L.J. and Newburry, W., 2015. Stakeholder tracking and analysis: The
RepTrak® system for measuring corporate reputation. Corporate Reputation Review, 18(1),
pp.3-24.
Goodpaster, K.E., Maines, T.D. and Rovang, M.D., 2017. Stakeholder thinking: Beyond
paradox to practicality. In Unfolding Stakeholder Thinking (pp. 43-63). Routledge.
Peart, J. and Knowles, L., 2018. Applying the Stakeholder Model to Social Entrepreneurship–
A Practitioner Approach. Journal of Multidisciplinary Research, 10(1/2), pp.85-95.
Tesla.com 2019. About us. Available at- https://www.tesla.com/models (Accessed on 28rd
March 2019)
Youtube.com 2019. Elon Musk- The Driven Dreamer. Available at:
https://www.youtube.com/watch?v=0871VJfvD1c (Accessed on 28th April 2019)