MBA501: Stakeholder Analysis and Strategy Development for Tesla

This report presents a comprehensive stakeholder analysis and strategy development for Tesla Motors. It begins with an introduction to Tesla, outlining its vision, mission, recent developments, organizational challenges, and industry trends. The report then utilizes the stakeholder view model to identify key stakeholder groups, including customers, employees, investors, and societies/communities. For each of these four selected stakeholder groups, the analysis delves into their behaviors, motivations, and factors influencing their engagement with Tesla. Furthermore, the report identifies the stakeholder category for each group and suggests generic strategic programs for effective management. The report concludes by recommending specific strategic programs for each stakeholder group, providing justifications for each recommendation, and discusses how the company can improve its stakeholder management. The report provides insights into how Tesla Motors can enhance its relationships with stakeholders and drive sustainable growth, utilizing the stakeholder view model and other business strategies.

Running head:STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT
REPORT
Stakeholder Analysis and Strategy Development Report
Name of the Student
Name of the University
Author Note

1STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
Executive Summary:
Tesla Motors is an American automotive and Energy Company based in California. Some of
the top models of cars produced by Tesla Motors include the model S, model X and model 3.
The company was formed in 2003 and was later joined by Elon Musk as the chairman of the
company. Tesla motors has utilized various breakthroughs in the field of electric motors,
batteries and artificial intelligence to create products that are technology driven and equipped
to propagate the mission of the organization through the product design. The aim of the study
is to understand how the stakeholders view and engage with Tesla Motors through the
stakeholder view model and identify specific stakeholders within each group and the
programs that can be used to engage each stakeholder group. It discusses the Stakeholder
view model is an approach through which three values namely the normative, instrumental
and descriptive values that influence the stakeholders can be outlined and represented in
relation to the stakeholders. The key stakeholder groups include employees, management,
owners (among the internal stakeholder) and suppliers, society, Government, creditors,
shareholders and customer (among the external stakeholders). Four stakeholder groups that
are of key importance for Tesla Motors that has been selected for the analyses of the paper
which are the customers, the employees, investors and societies/communities.

2STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
Contents
Executive Summary:..................................................................................................................1
Introduction to Tesla Motors:.....................................................................................................3
-Introduction to Tesla Motors................................................................................................3
-Vision and mission of the company......................................................................................3
-Recent developments............................................................................................................3
-Organizational challenges.....................................................................................................4
-Industry trends affecting Tesla Motor..................................................................................4
-Aim of the study...................................................................................................................4
Tesla Stakeholder View of the Organization.............................................................................4
-The stakeholder view model.................................................................................................5
-Specific stakeholders within each stakeholder group...........................................................5
Stakeholder Analysis for four selected stakeholder groups (behavior and motives).................6
-Stakeholder group 1- Customers...........................................................................................7
-Stakeholder group 2- Employees..........................................................................................7
-Stakeholder group 3- Investors.............................................................................................8
-Stakeholder group 4- Societies/Communities.......................................................................8
Stakeholder category identification and generic strategic programs for each of the four
selected stakeholders..................................................................................................................9
-Identification of the stakeholder category for each stakeholder group (1-4)........................9
- Generic strategic programs available for managing each stakeholder.................................9
Customers:..........................................................................................................................9

3STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
Employees:.......................................................................................................................10
Investors:..........................................................................................................................11
Society/Community:........................................................................................................11
Recommended strategic program for each of the four selected stakeholder groups including
reasons for recommendations...................................................................................................12
Customer:.............................................................................................................................12
Employee:............................................................................................................................13
Investor:................................................................................................................................13
Society/community:.............................................................................................................13
Conclusion:..............................................................................................................................14

4STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
Introduction to Tesla Motors:
-Introduction to Tesla Motors
Tesla Motors is an American automotive and Energy Company based in California. The
company has a specialization in manufacturing of electric cars and solar panels and owns
several plants that specialize in assembly and production such as the Giga Factory (inNevada)
and the Vehicle Manufacturing unit in California. Some of the top models of cars produced
by Tesla Motors include the model S, model X and model 3. Some of the newer models
launched by the company includes model Y, semi and roadster 20-20. Apart from
automobiles Tesla also specializes in power packs, solar packs, solar panels, solar roof tiles
and power walls. The company was formed in 2003 and was later joined by Elon Musk as the
chairman of the company (Dibble 2018).
-Vision and mission of the company
The mission statement of Tesla Motors is “to accelerate the World’s transition to sustainable
energy.” This includes three important components namely, accelerating, transition of the
world and sustainable energy implying the focus of the company on mind-full
entrepreneurship through which it aims to create goodwill in the market.
The vision statement of the company is “to create the most compelling car company of the
21st century by driving world’s transition to electric vehicles”. This vision is related to the
company’s goals towards renewable energy.
-Recent developments
Tesla motors has utilized various breakthroughs in the field of electric motors, batteries and
artificial intelligence to create products that are technology driven and equipped to propagate
the mission of the organization through the product design. Models such as model x and

5STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
model 3 are some of the most recent product lines of Tesla Moors and its Giga Factories
attest to the focus of Tesla Motors towards sustainable energy. The company also faces
several challenges in the form of engagement with stakeholders and a loss of trust among
customers caused due to recent product failures.
-Organizational challenges
Some of the key challenges that the organization faces includes:
 Reestablishing trust with the stakeholders
 Increasing its funding source
 Maintaining a market position in media
 Developing a strong organizational culture
 Diversification of products
-Industry trends affecting Tesla Motor
Some of the key industry trends that affect Tesla Motors include:
 Disruptive technologies
 Market competition
 Increased focus on sustainable energy
 Stakeholder Engagement
-Aim of the study
The aim of the study is to understand how the stakeholders view and engage with Tesla
Motors through the stakeholder view model and identify specific stakeholders within each
group and the programs that can be used to engage each stakeholder group.
Tesla Stakeholder View of the Organization

6STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
-The stakeholder view model
The Stakeholder view model is an approach through which three values namely the
normative, instrumental and descriptive values that influence the stakeholders can be outlined
and represented in relation to the stakeholders (Davis 2018).
Descriptive value: This focuses on sustainable development of Tesla Motors
Instrumental Value: the organization utilizes innovation and technological advances to
achieve the descriptive value
Normative value: this aspect focuses on the preservation of the stakeholders within the
organization which includes maintaining their profitability.
Fig 1: The stakeholder Model. Source: Davis 2018
The model further helps to connect the stakeholders with the company in a diagrammatic
manner showing the relationship of the company with each stakeholder. It helps to identify
the key stakeholder groups including both internal and external stakeholders. The key

7STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
stakeholder groups include employees, management, owners (among the internal stakeholder)
and suppliers, society, Government, creditors, shareholders and customer (among the external
stakeholders). This model helps to understand how stakeholders can be better engaged
through a development of a visualization of how the stakeholders interact with the
organization (Sands and Darch 2016).
Fig 2: Stakeholder View Model. Source: Sands and Darch 2016
-Specific stakeholders within each stakeholder group
Outlines below are a brief list of the specific stakeholders within each stakeholder group
identified in the stakeholder view model above:
 Employees: these are internal stakeholders which can include employees from all the
divisions and businesses processes of Tesla.
 Manager: /this involves all the levels of management across all the divisions who are
managing the organization.

8STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
 Owner: this includes the Chairman, Elon Musk and the Board of Directors.
 Suppliers: Key suppliers for Tesla motors includes AGC Automotive windshields,
Brembo, Inteva Products, Sika, Fisher Dynamics, Modine Manufacturing & Co., ZF
Lenksysteme, Stabilus. Other suppliers of Tesla Motors are ABC Group, Angell-
Demmel, ADAC, Gentex, Argent, Hitachi Cabel America, Harada, Magna
International, Hope Global, Methode Ekectronics, MacLean-Fogg, Plastomer,
Multimatic, PSM International, Panasonic and Riviera.
 Society: society includes the various communities and cultures within which Tesla
operates and the target market groups.
 Government: The various Governments of Nations where Tesla is operating which
could be centralized or state divided.
 Creditors: Various credit sources such as donors, funders, banks, lenders and credit
institutions.
 Shareholders: Tesla has multiple shareholders which includes its CEO, Elon Musk
and Baillie Gifford who is the largest external shareholder of Tesla stock.
 Customers:customers of Tesla Motors are individual buyers, automobile engineers
and other car retail companies.
(Garcia et al. 2016; Bourne 2016)
Stakeholder Analysis for four selected stakeholder groups (behavior and motives)
Four stakeholder groups that are of key importance for Tesla Motors that has been selected
for the analyses below are the customers, the employees, investors and
societies/communities.
-Stakeholder group 1- Customers

9STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
Some of the key factors that influences the behavior of this stakeholder group includes
customer satisfaction and experience, customer retention, performance and efficiency of the
products, innovation and research done of the products, performance and sustainability and
product quality (Andriof and Waddock 2017).
The motives that drives the engagement with the stakeholder group is t hocus of the
organization to make the customers an integral part of the organization by understanding their
needs and identifying opportunities for the company to improve product quality and
performance by implementing feedbacks of the customers and developing talent pipelines.
The customers form a key stakeholder group that influences the performance of the
organization in terms of its profitability and market share which are also the key motives for
the organization to engage with this stakeholder group (Nartey et al. 2018; Barrett et al.
2016)).
-Stakeholder group 2- Employees
Some of the factors that influences the behavior of this stakeholder group (employees)
towards the organization (Tesla Motors) includes the reputation of the organization, programs
on employee development and employee engagement, employee retention, talent pipelines,
options for career growth, maintenance of safety and health in the working environment, and
organizational cultures that is diverse and inclusive. The behavior of the stakeholder group 2
is integrally related to the performance of the organization and thereby its success in the
market. The behavior is aligned to the organizational values and objectives which in case of
Tesla s that of sustainability and product excellence (Payne and Calton 2017).
The motives that drive engagement with this stakeholder group is to develop a work culture
that is diverse, inclusive and safe from hazards. The aim is to develop a positive working

10STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
culture where innovation and excellence in performance are the key benchmarks that allows
the employees to reach their optimum professional competence (Harrison et al. 2019).
-Stakeholder group 3- Investors
The factors that influence the engagement of Tesla Motors with its investors includes
financial performance of the organization, profitability, economic impacts, organizational
governance, operational transparency, sustainable performance, responsible procurement and
research and innovation. Factors such as organizational performance and profitability are key
influencers of the stakeholder engagement as it directly affects the profitability of investors
(Herremans et al. 2016).
The motives of the investors is to ensure profits through commitment of their money with the
businesses as well as sheltering tax liabilities by investing in interesting projects that has
social importance. Investors of Tesla are the key supporters of its innovation movements that
focuses on sustainable development through usage of sustainable and renewable energy as
well as allowing the organization to delve into its Corporate Social Responsibilities. The
motives of the investors allowing the organization in these activities can be understood
therefore, as the one to participate in social development through Corporate Social
Citizenship (Forsythe et al. 2016).
-Stakeholder group 4- Societies/Communities
The factors that influence the behavior of his stakeholder group includes the local impacts of
the operations of the organization on the communities, involvement of the organization in
community development, the future talent pipelines within the organizational culture , safety
and health culture within the organization and code of ethics of the organization. The

11STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
behavior of this group are focused on how the organization interacts with them and shows
responsiveness towards the needs and expectations (Sierra‐García et al. 2015).
The motives of engaging with this stakeholder group is to develop a positive relation with
them creating a harmonious relation within the communities in which the organization
operates, develop collaborations with the societies and communities through it can support a
sustainable development and increase the outreach of the organization within the
communities. The motives that drive the behavior of the communities includes its overall
development and wellbeing (Forsythe et al. 2016).
Stakeholder category identification and generic strategic programs for each of the four
selected stakeholders
-Identification of the stakeholder category for each stakeholdergroup (1-4)
Stakeholder Group Stakeholder Category
Customers External
Employees Internal
Investors Internal/external
Society/Community External
- Generic strategic programs available for managing each stakeholder
Customers:
Some of the generic strategies and programs for managing customers includes programs on
customer relationship development and management, surveys a scores on customer
satisfaction, levels of participation in organizational events and industry forums, annual
reports and accounts, partnerships and customer training programs.