Analysis of Elon Musk's Entrepreneurial Qualities and Challenges

This project report provides a comprehensive analysis of Elon Musk's entrepreneurial journey, examining his personal qualities, the challenges he faced, particularly in the SpaceX venture, and his overall entrepreneurial performance. The report begins with an introduction to the concept of innovation and entrepreneurship, highlighting how entrepreneurs leverage innovation to create opportunities. It then delves into a critical analysis of Elon Musk's personal qualities, such as his positive attitude, risk-taking ability, and strong work ethic, which have contributed to his success. The report further investigates the challenges Musk encountered in SpaceX, including capital requirements, market access, and profitability issues. Finally, the report researches and evaluates Musk's entrepreneurial performance, focusing on innovative approaches like process improvement and product design, and their impact on his ventures. The report uses the provided assignment solution to provide a detailed overview of the content.

Innovation and
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Critical analysation of personal qualities of Elon Musk as entrepreneur....................................1
TASK 2............................................................................................................................................2
Critical analysation of challenges faced by Elon Musk in SpaceX venture ...............................2
TASK 3............................................................................................................................................4
Research to investigate Elon Musk's entrepreneurial performance on the project......................4
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Innovation refers to a tool for entrepreneur which helps them to create opportunity in
different type of business and services (Horng, Tsai and Chung, 2018). It helps business in
making them capable for leaning, discipline and practice. To create innovation an organisation
need to do research which helps to identify opportunity in market. Entrepreneur is the person
who brings innovative idea in organisation with intention of earning profit. This project report
include study of Elon Musk as a entrepreneur who is CEO and industrial designer of SpaceX.
The entrepreneur has born in South Africa in June 28, 1971. This project include assessment of
quality of entrepreneur and challenges faced by them in market. It also include research and
investigation in performance of entrepreneur.
TASK 1
Critical analysation of personal qualities of Elon Musk as entrepreneur
Entrepreneur refers to a person who introduced new idea in business and is ready to bear
all risk of organisation (Spinuzzi, 2017). They are person which alone bear risk and enjoying
reward by earning profit from business. They bring innovative idea in business and attract
customer in market towards their product. Quality of entrepreneur refers to those characteristics
which make them unique from other person. Innovation they bring is in form of good, service,
idea, technology that make them unique as it relatively new in market. Elon Musk is a
entrepreneur who has introduced with inn0ovative idea in market which helps them to make
successful. Entrepreneur has born in South Africa in year 1971. Entrepreneur has completed their
graduation in US and has career in Zip2 which is a software company and fun from angel
investors. In 1999, entrepreneur become co-founder of X.com ad PayPal which is a financial
service company. In 2001, Entrepreneur has founded SpaceX which include mission of going to
Mars. Entrepreneur has also involved in Tesla Inc. which is founded by Martin Ebrhard with
Marc Tarpenning. The possess various qualities which are as follows:
Positive Attitude: Elon Musk is a self motivated personality which has positive attitude
and has never give up attitude. Business tycoon has shown their determination in business and
moving forward for success (Doerr, 2021). This can be seen when entrepreneur has made three
attempts after failure in launch of rocket. As after failure of SpaceX project and Tesla motors,
stakeholder has denied to give finds for their project but entrepreneur has not give up instead find
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another investor who can fund their project which helps them in success of their project.
Entrepreneur has clear vision of what they want in life and putting efforts in that direction make
him successful. Entrepreneur has made efforts in overcoming of challenges which make hum
unique from other businessman. Their never giving up attitude pushing them towards growth and
make them stick to success (Bitka, Pietrasieński and Rokosz, 2018).
Aim for bigger picture with risk taking: Elon Musk is always targeting at challenging
projects which include high degree of risk. The entrepreneur has targeted at three area which are
space, internet and clean energy (Amorós, Poblete, and Mandakovic, 2019). Business tycoon
wants to to create different in thee filed for which they are ready to bear risk without short term
profit. In beginning no one believed on entrepreneur as it seems like impossible task. But
entrepreneur has strong believe themself and instead of loosing spirit, they focused on improving
themselves. In upcoming project, entrepreneur is targeting to take man to Mars. Entrepreneur has
set legendary goal and put their efforts for achieving those goals. Business personality wants to
solve problem of world in order to improve living style of humans.
Following work ethics: Elon Musk is a person who is working hardcore to achieve their
goals and is not adopting shortcut in getting success. Business person has work very hard around
hundred hours a week to achieve their goals. Entrepreneur is most hard working person in their
organisation and set achievable standard for their team to keep business in direction of success
(Popov, Veretennikova and Kozinskaya, 2019). Business tycoon is different from other
businessman as Elon Musk has put more time and efforts from other to gain success.
Entrepreneur is focused on increasing productivity of organisation by working continuously
without taking break. Elon musk is always ready to work even at home as when entrepreneur has
entered in industry of space and astronauts, competitors take them as a person who wants to
invest their money but entrepreneur make them wrong. As businessman entered in industry with
preparation and set goals. This strategy proved competitors wrong and entrepreneur has set new
standard of success in industry.
TASK 2
Critical analysation of challenges faced by Elon Musk in SpaceX venture
Elon must has various qualities which make them successful in market in compare to
their competitors. As entrepreneur is new in industry of space but with helps their qualities,
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entrepreneur ensure their survival in market (Fellnhofer, 2017). But entrepreneur is facing
various challenges in their venture of SpaceX which are as follows:
Oversize capital requirement: Reaching to Mars is costlier affair as it require different
types of equipment which does not exist. SpaceX are planning to take funds from Air force for
their heavy Starship which has capability to lift around 100 people at once but this plan is failed
due to increase competition with military launch, so company need to raise funds internally and
from outsider source of organisation. The venture need to depends on plan of launch 7500 small
satellites which is capable of providing internet service on any area of earth. That can create
opportunity for organisation but it require lot of investment funding (Churchill, 2017). It is quite
difficult to avoid risk as other companies does not get this idea. To complete project, company
need resources of other company as it helps them to bear burden of finance as company alone
cannot complete this project as their capacity of raising finance is getting low.
Military market access: Air force of US is managing national security in space program
and got awarded program of development of launching vehicles. There are four competitors
involved in this industry and SpaceX did not getting any ward which make Elon Musk
disappointed as entrepreneur has making efforts for getting certificate for their Falcon 9 rocket.
This shows that plan of entrepreneur is failed to impress military (Letaifa and Goglio-Primard,
2016). SpaceX is in second stage of program but government of US is not providing them funds
for development of vehicle as well as rocket in SpaceX. Name of SpaceX is previously known as
Big Falcon Rocket which is linked with future plan of entrepreneur. The entrepreneur has
changes its name with Super Heavy Starship that will be biggest rocket with capacity to take 100
astronauts and is suitable for their mission of Mars.
Commercial market segmentation and Weak Enterprise Profitability: The Market
of space launch is not big as there are many competitors in market. SpaceX is offering their
product in market at relatively low price for communication satellites in orbit that is above from
surface of earth with travelling thousands miles per hour as they need to match rotation of planet
(Van der Have and Rubalcaba, 2016). The venture is claimed that they has covered half of
market of that industry as demand of geo satcom has increased. Demand of their technique is
increase in the year 2016 . Due to increase demand, company has launched eight sate lights in
three years. Media coverage of SpaceX has revealed that company has earned profit of around
2.5 billion annually. It is later revealed that company is including prepayment of customer in
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their calculation of earning and is not included expenses related to research. It is also revealed
that with making those adjustment, company has getting huge loss. It is so because strategy of
SpaceX is failed to dominate market by offering relatively lower prices than competitors. Cutting
off price result in low profitability of enterprise. Even company has failed in getting extra profit
in peak time even they has launched around 20 in year 2019. Elon must justifying their situation
by making statement as they are focusing on going to Mars project which also create challenge
for company as well as entrepreneur (Wei, Chao and Mengran, 2017).
TASK 3
Research to investigate Elon Musk's entrepreneurial performance on the project
The term entrepreneurial performance is defined as the ability of individual in an
organisation which help them to attain better results in order to gain success and growth of
business (Angus, 2019). There are many factors which affect entrepreneurial performance
whether good or bad way that includes to update the lifestyle in market, work culture, personal as
well as professional network. It is the opportunities for every company for development of
business venture. Entrepreneurial Performance of Elon Musk's is to grow their company to take
the competitive advantage and success in market. Elon Musk is an American entrepreneur who
developed his business by launching new products and services in marketplace in order to
increase profitability and productivity in business. He founded online payment organisation
which is PayPal, SpaceX as well as Hyperloop and Tesla to develop their business operations
and activities. The main aim of Elon Musk is to expand their transport system by using electric
vehicles and software.
Tesla Motors Inc. is an American company which operate their business in automotive,
energy storage and production. This organisation is established in year 2003 and CEO of this
enterprise is Elon Musk in order to gain higher profit. They sell their products such as batteries
which is manufactured by their own venture, electric automotive as well as solar panels
(Audretsch and Link, 2019). Currently, Tesla Inc. has 70757 employees working in their entity.
Current total assets of company is US $52.148 billion. On the other hand, net income and equity
are US $721 million and US $22.225 billion.
Innovative approaches states that developing of new products and services by giving
innovative ideas and methods which lead to increase profit and success of business. The
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innovation is the process by which organisation attract customers in order to maximize sales and
revenue. The idea of Elon Musk is to make the world full of innovation. He proposed Tesla for
the users satisfaction and the strategy of Elon Musk is to adapt the modern technology to remain
in competitive market (Gao. and et.al., 2018). Therefore, Tesla invest in electric motors and
batteries to fulfil the needs and wants of ultimate users so that they retain users for long term. It
is the technique by which management develop business opportunities in order to achieve the
better outcome. In business, there are different innovative approaches of company which are
explained below:
Process improvement: It signifies the activities to identify and understand as well as
improve the existing products or services within company in order to improve the business
process. This help organisation to develop along with implementation to meet the requirement of
end users. Management of Tesla Inc. produce electric car to expand Apriso deployment which
lead to offer their cars in affordable prices. However, selected enterprise has improved their
quality in their model 3 as to increase sales in order to accomplish business goals (Jiang and
et.al., 2018).
Improve product design: Product design is essential element to gain competitive
advantage. Designing or implementing new goods and services using different process by
solving the issues to improve the design and quality to attract and retain new as well as existing
users. It emphasis on creating and changing products that helps them to handle issues in
marketplace. Professional of Tesla use various methods such as feedback, surveys and so on.
Thus, this assist them to develop new design in order to build reputation and maximize sales
(Kraus and et.al., 2018).
Update business strategy: The term business strategy is defined as to plan the strategy
in organisation which help them to make business decisions for achievement of company goals
and objectives. The importance to make strategy is to analyse the long term planning to take
competitive advantages. The essential strategy of Tesla Inc is to innovate new technology, design
and development of new models in vehicles. The benefit of strategy to make day to day activities
towards attaining goals (Dressler, 2020).
Use of new technology: Technology is defined as to produces and launch new products
and services in relation to attain higher profits and revenues of business. However, it helps to
maximize the share price and sales of venture. In context to Tesla, administration make new
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features electric cars, solar panel and high range sensors which is ultrasonic around car. Elon
Musk innovate new ideas and things to remain competitive in market as to attract new customers
in company. To bring new ideas and opinions which helps them to make business decision about
the electric motors (McKenny and et.al., 2018).
However, the target market of Tesla in current is to retain users which helps them to
attract with the new design and technology in market. Thus, management of Tesla attracts males
to buy attractive and luxury premium cars that which are at high prices. They expand their
business opportunities in order to increase sales as well as revenue in business. The future plans
of Elon Musk in Tesla to send a SpaceX rockets to Mars by 2022. On the other hand, innovate
more cargo in year 2024 (Riviezzo and et.al., 2019). Tesla, develop and build more single motors
version rolls to increase the business operations and activities. The purpose of the organisation is
to develop sustainable energy.
CONCLUSION
From the above report, it is concluded that the personal qualities to make a great
entrepreneur is positive attitude, aim for bigger picture with risk taking and following work
ethics which help Elon Musk to expand their business as well as growth. All these skills makes
entrepreneur different from other business person and helps Elon Musk successful in market as
well as industry in which they are conducting their operations. On the other way, there are
various entrepreneurial challenges that entrepreneur face challenges in SpaceX venture such as
oversize capital requirement, military market access and commercial market segmentation as
there are many ways to overcome this challenges such as by implementing new design and
technology. But entrepreneur has not giving up on these type of challenge instead focusing on
attaining their goals. Entrepreneur never ending attitude make them capable of facing challenges
in market and allow them to generate high level of profit. Entrepreneurial performance is to
achieve the business goals and objectives. However, this makes Elon Musk a great entrepreneur
to develop organisation and build more operations in their SpaceX venture.
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