Stakeholder Analysis and Recommendations Report for Tesla Motors

This report presents a comprehensive stakeholder analysis of Tesla Motors, examining the company's key stakeholder groups including consumers, shareholders, employees, and the government. It utilizes a stakeholder view model to illustrate the relationships between Tesla and its stakeholders, followed by a detailed analysis of four selected stakeholder groups categorized as offensive, defensive, swing, and hold. The analysis assesses each stakeholder's cooperative potential, competitive threat, and actual behavior, along with their underlying motives. Furthermore, the report provides strategic recommendations for managing stakeholder relationships, particularly focusing on enhancing customer and supplier management, and addressing shareholder concerns. The report draws parallels with Amazon's approach to shareholder communication and emphasizes the importance of mass adoption and innovative manufacturing to maintain Tesla's competitive edge. It concludes with a call for Tesla to balance its innovative drive with financial prudence and strategic expansion.

Running Head: TESLA 0
Dynamic Strategy

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Organisational model view of Tesla motors with stakeholders groups
As per Cekic, Surlan and Kosic (2017) Stakeholders are the significant part of every
organisation that tends to reflect the interest of every company or organisation. Several
stakeholders are attached with the organisation such as managers, owners, government,
customers, employees, suppliers, and investors. All these stakeholders also affect the
organisation actions, policies, and objectives of the organisation. Besides this, all the
stakeholders consist of the various roles and responsibilities considering the inside and
outside of the organisation. Stakeholders are one of the essential aspects in every organisation
in recent time (Berdichevsky, Kelty, Straubel and Toomre, 2016).
Communities
This group of stakeholders tend to ascertain the brand value of organisation. It also helps the
organisation to position their brand by satisfying the needs and wants of the group. By
considering Tesla, it can include the group of people as well as individual that are concerned
toward the protection and conservation of the environment. It is also identified that the group
of stakeholder fully satisfy the ideology and notion of Tesla Motors. It is because Tesla
Motors enable the other organisation to practice the copyright for building the ocean strategy.
It is also seen that these stakeholders are also fully satisfied due to the efforts made by Tesla
for these stakeholders in order to help them effectively (Bhattacharya, Korschun and Sen,
2009).
Consumers
Consumers are considered to be the most significant stakeholder of Tesla as they tends to
provide the higher rate of profit by offering the quality product at the reasonable price. It is
also one such reason Tesla spends huge amount in the research and development. One such
example of Tesla is the strategy of Tesla to not buy the battery and rather than manufacturing
and developing in order to do collaboration with the company. In the recent time, it becomes
essential to satisfy the customers on huge basis. In the fiscal year 2018, Tesla has invested
around 1.46 billion US dollars as per Statistic report of 2019 (Weinstein, 2019).

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Shareholders/investors
Shareholders as well as investors of Tesla are responsible for the funding and capitalization
of Tesla. By ensuring the growth in the electronic transportation vehicle, demand also
increases and fulfils the interest of the shareholders. The other essential aspect is that it is the
part of major and essential “green movement.” It brings the high growth as well as maximum
profitability in Tesla. However, if proper and effective management will be done then it will
be able to earn huge amount of profit.
Employees
Employees in every organisation are considered the key stakeholder in the organisation.
These are responsible for the productivity and business performance. The organisation culture
of Tesla is also linked with opportunities and growth that directly helps the organisation in
achieving the strategic goal of the organisation. In the recent time, company has more than
45000 employees in its organisation.
Government
It is also one of the significant stakeholders for the business due to their decisions and
expectations by putting the major impact on the Tesla in both negative and positive way. By
considering this situation, there is Specific Corporation due to which Tesla fined with the $20
million dollar. It also includes the tweets that are posted by Musk. In this way, government is
doing several corporations in tesla by helping in several ways (Chen and Perez, 2018).
Four behaviour model and generic strategic program
For the exploration of this, the model of stakeholder behaviour is being used. In the
explanation given below, the cooperation potential as well as competitive threat has been
analysed in relation to the stakeholders. It means that power of capability of stakeholder
relative inside the organisation has been developed.
In this model, four categories of the stakeholder in being identified:
1. Offensive: this category of stakeholders included those who have the several attribute
related to the high competitive potential and the low competitive threat. It implies that these
kinds of stakeholders help the organisation in achieving their objectives. Several clue
approaches are also significant in order to deal with them. One approach is to change the

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objective. Another one is to change the actual belief. Organisation is also required to approve
the locus of its stakeholders. Tesla also sells its vehicle at the higher price due to its peak
position in the market. Several customers are attached with their product to its secure and
environment friendly product. Besides this, Tesla also spends high amount of money in order
to provide the best quality of products to the customers. In this way, it is being stated that
consumer perfectly fix in the extent of this stakeholders category where it does not matter
that organisation can loss or need money in order to change their tactic.
2. Swing: The attributes of these stakeholders reflects the high cooperative potential as
well as the high competitive threat. It also highlights that these investors tends to put impact
on the consequence of a condition in the organisation. In order to deal with such stakeholders,
3 clues are identified. The first clue states that it is significant to modify the new rules by
taking the assistance of law. As compare to this, the clue is concerned about the changes in
decision forum. The last clue is related to the prior sort of decision. Therefore, it is properly
matched with the government agencies. The above stated example is also related to this case
only. The example was related to the CEO Elon Musk that was fined for false and misleading
(Disparte, 2018).
3. Hold: in this group, the stakeholders have the attribute of less cooperative potential as
well as low competitive threat. Therefore, it is clear that the company can easily and properly
deal with such kind of stakeholders. Besides this, this kind of stakeholder also not causes the
big issue in the company. Three approaches can be used in order to keep them at this stage.
The first is to shield them at the time of bringing the change. The second thing is to enhance
their belief regarding the organisation. The last approach is to bring the strategy by
considering the actual strategy (Harrison and van, 2015).
In this way, suppliers can be perfectly matched with these kinds of stakeholders. In such a
case, Solar City is one of the batter providers of Tesla. It is also seen that this corporation has
some of the identical values such as Tesla includes the trust and belief in the integrated
strategy by considering the common purpose. Besides this, Tesla as well as Solar system is
also one such production allies.
4. Defensive: in this category, those stakeholders are included who have the low
cooperative potential and the high competitive threat. It highlights that these kinds of
stakeholders may not be essential to provide the extra value to the organisation. Three
strategies are included in order to manage these kinds of stakeholders. First, one is to enhance

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their real belief by ensuring that the outcomes of organisation are established in their on-
going plan. Shareholders as well as investors can some under the defensive stakeholders. In
this way, shareholders always try to get the maximum profit from the organisation. It also
includes the corporate strategy for ensuring the productivity. Elon Musk, the CEO of tesla is
also idealistic leader that has invested millions of money in its organisation. Each of part of
company is under its control that helps in earning the huge amount of profit.
Recommendations
By considering the current position of the organisation, it is suggested to initiate the develop
the effective strategy for managing the customers and suppliers as well as mainly
shareholders. Moreover, Elon Musk also have the clear visionary leadership attribute that
helps the Tesla positively in order to offer the good output as well as earning of huge profit.
In addition to this, company is also required to come up with several approaches as well as
strategies like Amazon. When Amazon brings its existence in 1977, it started selling several
kinds of books by taking the assistance of web. The founder of Amazon also started the
issuing of letter to the entire shareholders each year (Harrison, Bosse and Phillips, 2010). He
is also one such visionary leader that effectively knows how to increase the profit each year.
Therefore, the use of letter helps in great way in driving and explaining the defensive
shareholders as well as comprehends the approach of the company in relation to the long-
term perspective. In this letter, it also states each matter that is related to the company aims
and objectives. This also assisted it in developing the trust among stakeholders. In the recent
time also, this letters are required to be addressed by the several corporate professionals. In
order to brought the company at good position, it is also essential for Tesla to adopt the
massive and innovative car manufacturing approach that will help in providing the power to
company. In addition, it should also produce the vehicles for the millions of population across
the globe that will solve several kinds of issues such as business solvency. In the recent time,
Tesla is one of the most innovative companies across the globe that helps it in attracting large
number of shareholders easily. The negative side is that it also in high debt. Besides this,
shareholders tend to care about the profitability of the organisation (Mangram, 2012).
By adopting the trend of mass adoption, it can help the Tesla in saving the huge cost at the
various levels and build the competitive edge of Tesla in market. It will also assist the
company to expand its production in several other markets by enhancing the sales services,
promotional strategy, efforts to joint ventures with the building of new energy station. All

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these things will help the Tesla in order to compete effectively with several other brands
(Delmas and Toffel, 2014).

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