Portfolio Management Plan: Tesla's Strategic Capacity and Processes

This report provides a comprehensive analysis of Tesla's portfolio management plan. It begins by examining the organization's strategic plan, emphasizing the importance of innovation and benchmarking against competitors. The report then delves into the strategic capacity plan, highlighting the significance of human, financial, information, and material resources. The portfolio management process, project selection criteria, and program management plan are discussed, emphasizing the need for market analysis, resource availability, and governance. Furthermore, the report addresses plans to identify and resolve potential conflicts, including the adoption of negotiation techniques and risk mitigation strategies. The change management plan emphasizes the importance of employee training and gradual implementation of changes. Finally, the resource utilization plan focuses on matching resources to appropriate tasks to maximize efficiency and achieve organizational goals. The report concludes with a list of references supporting the analysis.

Running head: PORTFOLIO MANAGEMENT PLAN
Portfolio Management Plan
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Table of contents
Organisation’s strategic plan......................................................................................................2
Organisation’s strategic capacity plan.......................................................................................2
Portfolio management process...................................................................................................2
Project selection criteria.............................................................................................................3
Program management plan.........................................................................................................3
Plan to identify and resolve possible areas................................................................................3
Change management plan..........................................................................................................4
Resource utilization plan............................................................................................................4
Reference....................................................................................................................................5

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Organisation’s strategic plan
Strategic planning is important for every organisation in order to gain an advantage
over the rivals. These plans are made keeping in mind the advantages and the disadvantages
that an organisation has. In the case of Tesla, the strategic plan of the company is to ensure
that the best innovative technologies are used. Innovation is one of the characteristics that
define Tesla. Tesla needs to ensure that these plans are formulated keeping by analysing the
strategies of other companies. To perform this, the company provides a benchmark for the
employees. This helps the employees to understand the quality of work they need to beat in
order to gain a competitive advantage in the market.
Organisation’s strategic capacity plan
The number of resources possessed determines a capacity of an organisation. These
resources can be human resource, financial resource, information resource and material
resource. The plan, in this case, is to maintain these resources and apply it to strengthen the
position of an organisation (Wolf & Floyd, 2017). Tesla maintains the strategic capacity plan
in a way that it helps in identifying the resources that are required. For example, in order to
increase the human resource, the company provides advertisement detailing the job
description as well as the expected role to be played. This can help the company to attract
talented employees to the organisation.
Portfolio management process
The portfolio management process helps an investor to achieve his investment goals.
The goals of an investor are to ensure that the amount of money spent on a particular project
can be used for good effect. In this case, it is required to conduct a proper analysis of the
market and the pros and cons of investing in the market or project. The aim of Tesco is for

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the innovation of its products by assembling small parts from other vehicles. Hence, a proper
process for managing portfolio needs to be created by providing a strong statement such as
the cause of innovation. Developing an investment strategy by such as investment in the
expansion of the company to remote areas requires proper monitoring of the areas around the
target place.
Project selection criteria
A project needs to be selected based on the availability of resources and capabilities
of an organisation (Cassidy, 2016). The criteria for selecting a project need to involve the
time required for its completion as well as the cost of proceeding with the project. Tesla
needs to consider these factors before selecting a project. This is important in the case of
Tesla as it faces stiff competition from other automotive industries such as Toyota.
Program management plan
Program management plan is the overall governance of the program undertaken by an
organisation. Tesla adopts the plan of development of products in an innovative manner. The
management plan normally includes benefits, procedures, timelines and the method used for
formulating the plans. These factors are analysed by Tesla after a project is selected by the
organisation. Every factor is important as it involves clear planning of resources.
Plan to identify and resolve possible areas
In the case of conflict within the organisations, the managers of Tesla adopt the
negotiation technique. This technique can help the employees and the employers to come to a
mutual understanding as per the demands made. Other areas that need resolving include the
cost required for completing a project. In this matter, Tesla can identify the possible quality
that may be obtained. For example, using cheap materials for manufacturing may cause the

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company to develop a cheap final product (Tesla.com, 2018). Hence, this can be mitigated by
monitoring the process in a program and taking risk-free decisions.
Change management plan
Most employees do not welcome changes in an organisation due to the fear that may
lose the job. This is mainly because of the lack of knowledge and technical skills. However,
with the implementation of the innovative programme, Tesla needs to ensure that the changes
can be managed by providing sufficient training and motivation to the employees. The plans
that can be developed by Tesla include implementing changes by taking small steps.
Implementation of a vast change policy may get employees to revolt; however, small changes
can provide time for the employees to adjust to the changes.
Resource utilization plan
As stated by Channon & Jalland (2016) organisations need to analyse the resources it
possesses and ensure that it is utilised to its full capacity. The plan for doing so in the case of
Tesla is by providing the right job for the right resource. For example, a person specialised in
marketing analysis can be asked to research the business factors that affect the market. This
can be useful to maintain the aim of the company and ensure that full capacity of resources is
utilised for achieving the goals.

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Reference
Cassidy, A. (2016). A practical guide to information systems strategic planning. CRC press.
Channon, D. F., & Jalland, M. (2016). Multinational strategic planning. Springer.
Tesla.com (2018). Tesla.com. Retrieved 10 January 2018, from https://www.tesla.com/
Wolf, C., & Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven
agenda. Journal of Management, 43(6), 1754-1788.