Stakeholder Analysis and Strategy Development Report

TESLA MOTORS
Stakeholder Analysis and Strategy Development Report
System04104
4/25/2019

Executive Summary
Tesla Motors is an electric automobile company that focuses on renewal energy vehicles in
the automobile industry. Tesla is known for its electric cars and its different models like
Model 3 and Model X etc. Tesla Motors applies the premium-pricing strategy on its products
that target high-income group of customers. Tesla Motors is a company based on corporate
responsibility that gives high priority to its community stakeholders. It focuses on producing
electric cars that are emission-free and not using any fossil gas or oil. However, the electronic
cars of Tesla Motors are so expensive but the company is continuously working on reducing
the price of its products by various cost optimisation strategies such as manufacturing of car
batteries as an alternative of buying it from Panasonic. Company is also trying to increase its
sale every year so it can give maximum profit to its investors and shareholders. However,
Tesla should work on to reduce its product prices if the company wants to expand its market.
It can only be possible if Tesla Motors minimise its operational and manufacturing cost. A
quality training and effective human resource program that enhances the competency and
skills of its employees also helps the company to increase its productivity and lowering the
operational cost.

Table of Contents
Executive Summary...................................................................................................................1
A. Introduction to Tesla Motors..............................................................................................3
B. Stakeholders View of Tesla................................................................................................3
C. Stakeholder Analysis..........................................................................................................5
1. Communities (Key stakeholder).....................................................................................5
2. Customers........................................................................................................................5
3. Employees.......................................................................................................................6
4. Investors/Shareholders....................................................................................................6
D. Generic Strategic programs for each of the four stakeholders............................................7
E. Recommended strategic program for each selected stakeholders......................................8
Recommended Strategic Program for Communities..............................................................8
Recommended Strategic Program for Customers..................................................................8
Recommended Strategic Program for Employees..................................................................9
Recommended Strategic Program for Investors/Shareholders...............................................9
F. Conclusion..........................................................................................................................9
References................................................................................................................................11

A. Introduction to Tesla Motors
Tesla Motors Inc. was founded in 2003 by a group of engineers. The young group of
engineers were so enthusiastic to make the world's first electric car that is emission-free and
does not require fossil fuel consumption or any gasoline. Tesla Motors is known as a leading
electric car manufacturing company and developing related technology. The founder and
present CEO of Tesla Motors, Elon Musk shared a strategy that Tesla Motors wants to enter
the high end of the car market and target all those premium customers. The strategy behind
this thought is to inter in the market with premium price cars and then lowering the price of
every car with each successive model.
The mission statement of Tesla Motors reflects the strategy of company and its approach
towards its stakeholders. The mission and vision statement of Tesla Motors reflect its
intention towards the sustainable energy consumption and manufacturing electric vehicles
that does not affect the global environment. Tesla vision statement is “To create the most
compelling car company of the 21st century by driving the world’s transition to electric
vehicles” (Chen, and Perez, 2018). Tesla' mission statement shows its commitment to
manufacturing easy drive electric cars, which motivate the world towards sustainable energy.
The mission statement of Tesla was "To accelerate the world's transition to sustainable
transport" in its initial days. However, in 2016, Elon musk changed its mission statement and
replaced the old one with “To accelerate the world’s transition to sustainable energy”
(Akakpo, Gyasi, Oduro, and Akpabot, 2019).
B. Stakeholders View of Tesla
Tesla focuses on social responsibility strategy and its major stakeholders are shown in the
diagram. Tesla has four specific stakeholders group. These are General Ecosystem
Stakeholders, Internal Stakeholders, Industry level Stakeholders, and potential new
stakeholders.
General Ecosystem Stakeholders: These stakeholders include press, communities, the
public at large, interest groups etc. Tesla gives the highest priority to these stakeholders
because the business strategy of Tesla is influenced by Ecosystem and sustainable energy.