University Marketing Management Report: Tesla Motors Case Study

This report provides a comprehensive analysis of Tesla Motors' marketing management, examining its mission and vision statements, leadership style, and organizational structure. It delves into the innovative leadership approach adopted by Tesla, highlighting its characteristics and the strategies employed to enhance its effectiveness. The report further assesses Tesla's organizational structure, categorizing it as a functional or U-form organization, and evaluates its capability for strategic decision-making. A key focus is on how Tesla maintains its competitive advantage in the rapidly evolving technological landscape, particularly through software, AI, and battery technology. The analysis incorporates insights into Tesla's strategic decisions and its ability to adapt to the dynamic preferences of its customers, ultimately offering a detailed overview of Tesla's marketing and operational strategies.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Table of Contents
Answer to Question 1.................................................................................................................2
Mission and Vision Statement...............................................................................................2
Leadership Style Adopted by Tesla Motors...........................................................................2
Strategies Adopted to Make Leadership Style Effective.......................................................3
Answer to Question 2.................................................................................................................3
Organizational structure: Tesla..................................................................................................3
Capability of strategic decision making.....................................................................................5
Technological innovation to gain competitive advantage..........................................................5
References..................................................................................................................................7

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Answer to Question 1
Mission and Vision Statement
The mission of Tesla Motors is trying to accelerate the world’s transition towards the
sustainable usage of the energy in an effective manner. The main and central focus of the
organization is to prove that the electric cars can be better option than the gasoline powered
ones. Tesla Motors believes that the world should stop relying on the usage of the fossil fuels
and this will help them in moving towards the zero-emission future (Tesla.com 2018).
On the other hand, the vision of Tesla Motors is to reduce the overall cost of the
lithium-ion which will help and assist the organization in achieving the economies of the
scale along with the negative impact on the overall environment. Furthermore, the other goal
and vision of the organization is to build the first real car and help the company in achieving
the different aspects in an effective manner (Tesla.com 2018).
Leadership Style Adopted by Tesla Motors
The leadership style which has been adopted by the management of Tesla Motors is
inclusive of the Innovative Leadership which is effective in nature. The different
characteristics which are encompassed in this respective style of leadership are as follows:
Firstly, the innovative strategic leaders help in displaying excellent strategic vision as
they are the ones who help in analysing the vision for the company in the future (Chang
2016).
Secondly, they have strong customer focus which helps them in managing the
different activities and they understand the needs and wants of the customers.

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Thirdly, they help in creating a climate of the reciprocal trust among the different
customers which is helpful in managing the different activities in an efficient manner (Hill,
Jones and Schilling 2014)
These are the major characteristics of the innovative leaders of the tesla Motors which
helps them in managing the different activities in an appropriate and efficient manner. These
kinds of leaders are persuasive in nature and are candid in the entire process of the
communication.
Strategies Adopted to Make Leadership Style Effective
There are different strategies which are being adopted in order to make the leadership
style effective in the organization in an efficient manner.
Firstly, the initial strategy was to build high performance sports car and gain
competitive advantage in the market. However, after the bankruptcy, the company tried in
adopting the different new strategies which has helped them in becoming more efficient in
performing the different activities (Lasserre 2017).
With the help of the entrepreneurship strategy, this strategy has helped them in
building strong and efficient operations. There was design of the new products and services
through proper quality management aspects which is helpful in managing their efficiency.
The adequacy of the different resources has helped in managing their competitiveness in the
overall competitive industry and this has helped them in gaining competitive advantage as
well. Through the analysis of PESTEL and the other strategies, this has assisted them in
becoming more efficient in their operations (Rothaermel 2015).

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Answer to Question 2
Organizational structure: Tesla
Tesla, Inc. possesses an organisational structure, which supports the idea of consistent
business growth. Tesla has been designed as a functional or u-form organisation. According
to Tran and Tian (2013), this design defines the different patterns of interactions among
various mechanisms of business. U-form organisational structure is considered the most
traditional one where company operates limited global functions with high intensity of
managerial control. Enhancement of the organisational capability to implement and manage
new strategies organisational structure is essential. The entire management system of
operation is dependable on how effective the organisational structure is and whether it is
supportive towards transformation and new strategic implementations. In order to satisfy
above-mentioned objectives, the structure has few characteristics, which are as follows.
 Function-based hierarchy to comply with responsibilities of its global organizations
are one of the characteristics of Tesla’s organisational structure. It is entirely
traditional, works with teams or centres both in national and international locations.
The management wants to operate limited functions yet ensures strict managerial
observation and control. The hierarchy involves departments of finance, technology,
international sales and services, technical and legal executives. As described in
Plugge, Bouwman and Molina-Castillo (2013), in order to supervise them chairman
and CEO are on the leading position.
 In spite of having several managerial units, the power of management remains
centralized and supreme authority takes most of the decisions.

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 The organizational structure is well categorized according to geographical areas and
apart from function-based hierarchy, there are corporate divisions between
Automotive and energy production unit.
The company receives beneficial results as the managerial controls are strict and it
helps to enhance the performance yet at the same time, it restricts the company from
adjusting with the changed business environment, as they have to depend on highest authority
to decide something important as per the situational needs. However, as per Kortmann et al.
(2014), practically it has been observed a flexible organisational structure is more competent
in terms of achieving the competitive edge.
Capability of strategic decision making
Strategic decisions are taken keeping the central motive in mind that is organisational
benefit. Operation managers consistently seek for innovating their products and services to
grow the business globally and to align with the dynamic preferences of customers. Besides,
managing the quality by keeping continuous update of customers’ feedback and improve
accordingly. Recruiting efficient human resources, designing quality management
programme, selection of location, supply chain, inventory and all over management processes
are needed to control by the central of operation management team.
Technological innovation to gain competitive advantage
As mentioned before, because of its centralised organisational structure the entire
responsibility of final decision-making is under the control of Tesla headquarters. This is the
central reason why the company is not capable of exploring opportunities of gaining
competitive advantage in the market. As described in Camisón and Villar-López (2014),
being traditional not complying with the contemporary trends of business is what leads a

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business towards stagnant state. Therefore, concentrating on the modern technological aids to
increase competitive edge will be appropriate.
With such a traditional setting, Tesla faces MIS planning regarding issues, such as,
allocation of development resources and delivery of projects within the scheduled time.
Being traditional, functional structure needs to maintain several formalities. Therefore,
technological innovation within information system will make the process faster from where
competitive edge can be achieved. In case, Tesla is incapable of arranging necessary MIS
management it will further fails to complete projects on time, which is regarded as extreme
turn down in terms of market competition.

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References
Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of
technological innovation capabilities and firm performance. Journal of business
research, 67(1), pp.2891-2902.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Kortmann, S., Gelhard, C., Zimmermann, C. and Piller, F.T., 2014. Linking strategic
flexibility and operational efficiency: The mediating role of ambidextrous operational
capabilities. Journal of Operations Management, 32(7-8), pp.475-490.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Plugge, A., Bouwman, H. and Molina-Castillo, F.J., 2013. Outsourcing capabilities,
organizational structure and performance quality monitoring: Toward a fit
model. Information & Management, 50(6), pp.275-284.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Tesla.com. 2018. Tesla.com Electric Cars, Solar Panels & Clean Energy Storage | Tesla.
[online] Available at: https://www.tesla.com/ [Accessed 14 Nov. 2018].
Tran, Q. and Tian, Y., 2013. Organizational structure: Influencing factors and impact on a
firm. American Journal of Industrial and Business Management, 3(2), p.229.