Understanding and Leading Change: Tesla's Business Strategy Report

This report provides a comprehensive analysis of change management, focusing on Tesla's strategies for organizational success. It begins with an introduction to change management and its significance, followed by a comparison of the impact of change on organizational operations and strategy, contrasting Tesla and General Motors. The report then delves into internal and external drivers of change, examining their effects on team, individual, and leadership behaviors. It also explores measures to minimize the negative impact of change on organizational behavior, barriers to change and their influence on leadership and decision-making, and different leadership approaches to deal with change in various organizational contexts. The report concludes with a summary of key findings and recommendations for effective change management, emphasizing the importance of adaptability, strategic planning, and employee engagement in achieving organizational goals.

Understanding and leading
change

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
P1 Compare different organizational and impact of change on organization's operations &
strategy. ................................................................................................................................3
LO2 .................................................................................................................................................6
P2 Internal & external drivers of change and its effect on Team, individual and leadership
behaviours. .............................................................................................................................6
External drivers .....................................................................................................................7
P3 Take measures while minimizing negative impact of changes on organizational behaviour.
................................................................................................................................................9
LO3 ...............................................................................................................................................11
P4 Barriers to change and their influence on leadership and decision making of business. 11
LO4 ...............................................................................................................................................12
P5 Different approaches of leadership to deal with change in a range of organizational
context. ................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Change management is basically discipline which guides organization as how they need
to prepare, support & respond in order to successfully adopt the changes for driving
organizational success and for achieving long-run goals and objectives.
Tesla is predominately the American automotive as well as energy organization being
established in 2003 by Martin Eberhard and headquartered in California, U.S. This company
mainly deals in manufacturing of the electric cars, solar panels etc and thus has its presence
across various countries. It currently operates in more than 15 countries. The main aim of report
is to study the concept of change & Tesla respond to wide variety of changes for gaining
organizational success.
This report gives a brief overview of comparison of impact of change in organizations,
internal as well as external drivers in affecting leadership and team behavior, measures for
reducing impact of change, barriers to the change and their impact on decision-making and
leadership approaches.
LO1
P1 Compare different organizational and impact of change on organization's operations &
strategy.
Changes in an organization effects overall working of business. Changes have a huge
impact on employees as well as customers of company. Tesla and General motors both are
working effectively for raising their brand presence in market. Changes in their technology and
organizational structure effects their business working. Below discussion help to analyze overall
impact of those changes on both companies.
Changes Tesla General motors
Technological changes Changes in working of
organization effects overall
development of
company(Espedal, 2017).
Tesla is one of the leasing
General motors is an American
multinational company. Due to
changes in their generative
design software technology
which uses AI algorithms help

company in automobile sector.
Specialized in manufacturing
electric cars. Due to their
unique features and technology
plays an important role in
development of strategies for
companies production process.
Use of new high performance
batteries help company to
reduce their operating costs
which help to increase overall
profitability of Tesla.
Development in software like
autopilot mode in their
vehicles and improved security
features help to attract
customers easily. Innovation
of electric trucks help to
reduce pollution, it help to
prepare strategy on ultra
efficient and powerful
vehicles. Changes in batteries
help to improve ability to drive
500 miles on per charge.
Driver less vehicles innovation
help to improve their
navigation technology.
to improve and provide
security to vehicles. Help in
development of strategy for
advancement in geometric
design it help GM to improve
production process and
increase strength of their
vehicles. Technology help GM
to introduce their lightweight
vehicles which help company
to reduce cost of their vehicles.
GM increases use of virtual
tools which help them to
prepare strategies to lower cost
of vehicles(Rossi, 2019).
Transformation in working of
organization due to technology
changes increase need of
employees with right skills for
development of product for
which GM require to develop
strategy to hire employees with
required skills.
Structural changes Tesla organizational structure
aim for continuous growth. It
help to use all available
Organizational structure of
General motors help them in
proper arrangements of

resources of company to
improve effectiveness of their
vehicles(Yrjölä and
et.al.,2019). Company focus
on their managerial abilities
help them to prepare strategy
to expand business at a global
level. Tesla focus on
improvement of their
leadership skills that help to
implement strategies for future
development and growth of
business. Tesla maximizes
their abilities to improve their
operational activities like
manufacturing new and
effective batteries for electric
vehicles. Tesla implement
centralization in their
organizational structure it help
to take important decision and
control working of
organization. Employees take
time to adjust with rapid
changes in organizations
structure.
components in business.
Changes in managerial team
help them to prepare strategy
to reduce cost of their products
to attract more customers.
Changes in structure help to
develop strategy to improve
capabilities and performance in
international market. General
motors business division
strategy help company to
maintain every department and
work according to requirement
of every department in
business(Nelson‐Brantley and
Ford, 2017). Organizational
structure of GM divisional
structure help to improve
flexibility and development in
regional market.
M1
Due to development in Technology organization need to change working and to improve
potential of their products & services. Due to increase in pollution from vehicles run with fossil
fuels make Tesla to develop electric vehicle technology and improve their high performance

batteries. Tesla and GM both require changes in their organizational structure to maintain
effectiveness of organization and to achieve their objectives easily.
LO2
P2 Internal & external drivers of change and its effect on Team, individual and leadership
behaviours.
Internal changes
Internal changes are factors that happens inside organization and effects overall running
of a business. Some of the internal changes an its effect on company are discussed below.
Strengths
1. Technology Leader in market place.
2. Innovative technical Pioneer
3. Effective business models.
Weaknesses
1. Single source supplier.
2. Higher product cost
Opportunities
1. Growing demand of Electrical cars.
2. Political support for Electrical car
manufacturer.
Threats
1. High competition in market.
2. Failure of products.
3. Safety risk in use of Lithium ion
batteries.
Changes in organization strategy
Changes in organization strategy is required for overall expansion of business. Strategy to
establish business in a new market or introduction of new product. Leaders prepare plan
according to requirement of new strategy. Need to analyze different ways to motivate employees
to work effectively(Bohman, 2019). Changes effect overall employee efficiency because they are
working on different product with set strategy, sudden changes in manufacturing strategy make
them ineffective to cope up with changes they are unable to work in a team due to rise conflicts
between members.
Changes in staff
Whenever a organization hire new staff for development of their business or for
production of new product. Leader need to change their strategy because they motivate each and

every employee according to their wants and for that leader need to understand behavior of
employees for smooth working of business. Whenever a organization hire a new employee it
takes time for an employee to cope up with companies rules and regulation. If effects overall
teamwork in organization, other members in team unable to cope up with new member and due
to conflicts decision making become tough for development of company.
Introduction of new equipment
New equipment help company to reduce efforts of employees & help in expansion of
business. Leaders require to understand working of a new equipment and machinery. Leaders
train employees to work with new technology and equipment. Employees face problem while
understanding features of a new equipment. They are unable to work with full of their efficiency.
Employees take time to understand and work with new equipment.
Employee attitudes.
Growth of company largely depends on capabilities of their employees. Changes in
employees attitude like if they are demotivated towards organizations rules. Leader understand
employees attitude and use it in a positive way for development of company. Due to changes
attitude of some employees in business effect all other employees in organization(Iles, 2017).
Playing nasty politics in a team reduces efficiency of team to work together or any employee in a
team work on their own set of rules it affects overall coordination between team.
Workload
Increase in workload due to demand of products and services in market effects working
of employees. Leaders face problems to manage employees and make them understand work.
Due to increase in workload employees in an team are not able to work effectively on their job
and unable to attain goals & objectives of company.
Changes in employee expectation
Employees work according to requirement of organization. If employees expect high
from organization they are unable to cope up with organization success. Employees want
increase in their sales then it becomes tough for leaders to engage employees with with objective
of organization.
External drivers
External drivers are factors outside organization that effect overall working of
organization. Some of external factors are discussed below.

Political Factors
Government interference play a major role in running of a business. Changes in rules and
regulations by government on working of organization(Gaspar, 2017). Due to increase in tax
rates and interest rates by government organization need to change their working for
manufacturing products. Changes in production effect leadership in organization leaders need to
develop plans according to requirement of organization. Manage work and motivate employees
according to changes. Government interference effect overall employees working they are unable
to work with new rules and regulations. Each and every member have their own opinion on rules
which increase problem in a team to work together.
Economic Factor
Changes in economy affects working of organization. Rise in income of customers help
to increase sales of company. Instability in economy effects working leader need to analyze
requirement of production changes and use those changes in development of new products &
services. Due to changes in working condition employees are unable to cope up with those
changes. Effects overall teamwork between employees they need to work on different rules and
regulations.
Social Factors
Companies success largely depends on satisfaction level of customers. Organization need
to analyze their customers preference. Due to changes in customers choices organization need to
develop new products according to requirement(Doppelt, 2017). Production of new product
effect overall working of employees in organization. Leader prepare new policies and schedule
for working of employees, arrange employees according to their skills for new product. It effect
employees because due to change in work environment effect overall working of employees.
They are unable to work in a team due to dissatisfaction towards organizations working.
Competitor moves
Increase in competition affect overall success of organization. Changes in competitors
prices and product. Organization need to develop new plans for their development due to
changes in competitors working. New plans need to be capable and help organization to achieve
goals & objectives. Employees work according to requirement and changes in business and to
improve their potential and abilities(Abernethy, 2017). Team need to work according to
requirement and changes in competitors moves for development of organization.

Technological Factor
Changing fashion in market require changes and business need to implement those
changes for overall growth of business and to Improve their abilities. Leader train employees to
work according new fashion and develop products according to market requirement. Employees
face problem while managing those changes because there are working on a different product
and services in market. It effects team work as each and every employees work on their own
rules and regulations in an organization.
Environmental Factors
The operations of organization are based on concept of low carbon foot print production.
This thing is helping organization to maintain their business environmentally sustainable. Due to
the sustainable operations, organization is getting benefits of policies that are made by
government to promote environment sustainability in automotive industry. Zero emission is also
can promote their business on global level.
Legal Factors
Some legal regulation and standards are preventing the organization to implement some
changes in their products for better cost effectiveness. The employment laws are preventing the
Tesla Motors to Implement some policies in organization culture for better production.
M2
Internal and external drivers effects overall success of organization. Company need to
analyze competency of their products and improve their firm according to requirement of those
changes. Changes inside organizational environment effects performance of employees and
leaders. Outside environment effects overall working in each and every department of company.
P3 Take measures while minimizing negative impact of changes on organizational behaviour.
Negative impact of change effect overall working of organization(Peters, 2019).
Companies develop plans to overcome problems that effect overall success of business and
implement strategies according to requirement. Measures that organization can use to minimize
negative impacts on organization are as follows.
Define change and align it to organizations goals

Company need to analyze need for a changes. After analysis of those changes
organization need to make their employees understand requirement of those changes. Need to
train employees to face those changes in organization to improve their abilities to cope up
problems arise in future. Company need to align those changes that need to be achieved with
goals of organization.
Leadership
Managing changes in a organization is one of the tough task. Companies require effective
leaders to bring changes in working of their business. Leaders help to implement plans for a new
product and motivate employees to work according to organization requirement. Leaders know
their employees need and use those needs to make them work effectively for achievement of
organizations goals.
Set timelines
Company set timeline to implement changes in a firm. Setting timeline help them to
achieve goals & objectives(Alavi and Gill, 2017). Company analyze their resources and current
working environment of business that help them to implement changes. Set timeline help
employees to make their work smooth and effective for growth of company at extreme level.
Provide training
Organization need to train their employees to improve their abilities that help them in
expansion of organization at a leading level. Train employees to cope up with changes need to
make employees understand to work with a new technology or plan. Train according to skills and
abilities required in an individual for success of organization. Set training methods that help to
train employees smoothly in an organization. Training to understand working with a new
equipment and technology.
Develop communication
Communication help to develop a strong relation between employee and organization for
their success. Communication help to implement strategies and improve potential of organization
at a leading level.(Dudar, Scott and Scott, 2017). Communication help to make employees
understand working for development of organization. Good communication help to reduce
burden over organization.
Engage employees in decision making

Whenever organization going to implement changes they need to understand their
employees abilities to know they are able to match up with changes. Increase participation of
employees in decision making process of company which help them in overall success of
business. It help company to familiarize employees with firms working and they are able to
provide their concern and opinion towards effectiveness of organization.
Develop positive environment
Company need to develop a positive environment for success of business. Positive
attitude of employees help to expand and improve potential of organizations goals & objectives.
Need to arrange improve efforts of employees. Organization need to look for an opportunity that
help them to expand business and help in improvement of organization to achieve their vision.
LO3
P4 Barriers to change and their influence on leadership and decision making of business.
Changes help organization to develop and implement new technologies for overall
success of organization(Wong and et.al.,2019). But large number of barriers effects overall
working of organization and become a problem for success of organization. Barriers that effect
success of organization are explained below.
Lack of employee involvement
Employees help in overall success of organization their participation in each and every
activity for development of business is important in growth of business at a leading level.
Employees in organization fear changes they resist change because they are already working
effectively with their current process. If employees are unable to involve with organization
working then it effects their overall success at a leading level. Organization need effective leader
to motivate employees to increase participation in success of company. Organization need to
motivate employees to achieve their personal goals and match them with organization goal.
Lack of communication
Communication is one of the most important tool to establish relation with employees. If
Tesla is unable to maintain good relation with their employees, they feel unfamiliar. Ineffective

communication in company make employees feel they are not important for organization. If
company is unable to send their message to their employees properly it effects overall decision
making in a company. To reduce barrier of communication Tesla need to increase participation
of employees in decision making process of business. Share plans with employees of
organization which help them in overall success of organization.
Organization complexity
When organization planning become complex it effects all department or company.
Leaders of Tesla are unable to understand plan and need of change that organization require for
overall development. It become complex for employees to implement plan to produce a new
product. When employees are unable to understand process it become tough to implement plan
for success of organization. Employees are unable to understand new system or equipment's that
effects overall growth of business. Tesla need to set clear and simple plan that leaders are able to
understand and employees work effectively on basis of plan for success of organization at a
leading level.
Resistance to change
Employees in firm are not ready to implement changes in organization. If employees are
unable to cope up with changes in an company(Kroll, Kelly and Rates, 2019). Tesla develop plan
after analysis of their customers that help to engage them effectively towards success of
business.
Insufficient leadership
Leaders help organization to manage employees and work effectively for success of
business. If leader are unable to understand changes or unable to cope up with new techniques
for development of business then it effects working of organization at a dominant level. If
leaders are unable to cope up with changes then employees are not able to work adequately for
success of organization. Tesla need to train leaders to work with new changes so that they are
able to motivate employees to accomplish goals & objectives of organization. Leaders help to
increase loyalty of employees towards growth of company.
M3
Whenever companies implement changes in their working large number of barriers occur
which effect overall working of business at a large scale. Force field analysis is a powerful