Stakeholder Analysis and Strategy Development Report for Tesla Motors

This report presents a comprehensive stakeholder analysis of Tesla Motors, examining the interests, behaviors, and strategic implications for key stakeholder groups including customers, employees, shareholders, and government entities. The report provides an introduction to Tesla Motors, outlining its mission, vision, and recent developments, along with an overview of the company's stakeholder view. It identifies and analyzes four specific stakeholder groups, detailing their motivations and behaviors. Furthermore, the report categorizes these stakeholders and proposes generic strategic programs tailored to each group, offering recommendations for implementation. The analysis considers the impact of stakeholder relationships on Tesla's business operations and decision-making processes, providing valuable insights for strategic management and business development. This assignment is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

Stakeholder Analysis and
Strategy Development
Report

EXECUTIVE SUMMARY
Stakeholders are those who is impacted by the outcomes or the business activities of an
organisation. They have an interest in the growth, success and other activities of a firm thus, they
play a most important role in a firm. As this report is basically help in identifying stakeholders
analysis on the basis of their impact on the decision making of firm. These kind of practices
assist in determining view point and opinion of different stakeholders towards a specific project
of firm. They can have some strategies as specific and generic through which management of
the stakeholders would be easier.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
A. Introduction to Tesla Motors.......................................................................................................4
B. Tesla Stakeholder View of the Organization..............................................................................5
C. Stakeholder analysis for four selected stakeholder group...........................................................7
D. Stakeholder category identification and generic strategic programs for each of the four
selected stakeholders. ......................................................................................................................8
E. Recommendation of the strategic program for each of the four selected stakeholder group
including reason...............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Stakeholders are the person, individual and organization which are interacted directly or
indirectly to the business. The person have their concern about the succession and failure of the
new project developed within business. These includes employees, suppliers, distributors,
shareholders etc. In this report, the organization included is Tesla motors (Aras, 2016). This is an
American automotive motor agency which mainly deals in electric motor vehicles, solar panel
manufacturing and preserving the electricity based batteries. This report includes the introduction
to the organization with recent developments and challenges. An stakeholder view is also
presented with stakeholder view model. Analysing the behaviour and motives of specific
stakeholders of Tesla is also done. In the end, stakeholder identification and generic strategic
program is launched for the specific stakeholders.
A. Introduction to Tesla Motors
Tesla Motors is one of the leading manufacturer of the electric car industry. The company
is dealing in proving the world with the new advanced technology in which the cars are running
with electricity. The will not only save the environment but also help in protecting the traditional
natural resources valuable in the lap of earth such as crude oil, natural gas etc. The company was
established in the year 2003 by a few of the entrepreneurs such as Martin Eberhard, Marc
Tarpenning, Elon Musk and J.B Straubel. In today's condition the company is running by Elon
Musk with 21.9% sharing in the business. The company has its headquarter in Palo Alto,
California, US. As per the manufacturing of the company, they are looking with a wide range of
mission and vision statement. The mission statement of the company was “To accelerate the
world's transition to sustainable transport”. In 2016, with the leadership of Elon Musk, the
incorporated new mission statement “To accelerate the world's transition to sustainable energy.”
With the help of this mission statement, the company is looking forward to provide the world
with a new way of transporting. This transportation will be energy efficient and provide a neat
breath to the world also. They are focusing on making the world rely on sustainable energy. The
vision statement of the company is “To create the most compelling car company of the 21st
century by driving the world's transition to electric vehicles (Mission and Vision statement of
Tesla, 2019).” According to this vision statement the company is looking to provide the world
with new fuel consumptive car segment. They have a clear vision of providing electric vehicles

to the world and putting themselves in this industry on the driver seat. Both of these mission and
vision statement have made the organization to provide clear overview of its perception to its
stakeholders.
Tesla is leading the way of making its popularity in the car segment. The model S of
Tesla is gaining a good feedback from its customers. Due to its success, the new entrants should
match at least the track on which Tesla is running. The company has sold 13200 units of model S
in the end of seven months of 2015 (Recent developments, 2015). The other segment of the car
making companies were left behind with this achievement such as Nissan sold only 10990 units
and apart from that, there is no single manufacturer who sold the units more than 10000. This
provides strong evidence to the EV manufacturer of getting success in this industry. The
company is also looking forward to manufacture the batteries which have high performance,
quick charging etc. All of these statistics will lead the organization to achieve their mission and
vision statement easily. Tesla has faced many challenges within the year 2018 (Powell and et. al.,
2017). The company has faced concerns overs its finances, ability to build cars at scales and the
public comment attributed to Musk and Tesla. This has given a big challenge for the organization
to sustain their product in the market. Apart from that, organization also recall largest of its cars
in the history. The company has recalled its most favoured model S in a bulk quantity of 123000
sedans (Challenges of Tesla Motors, 2018). The issue company has found to recall the cars that
there have some of the bolts which could have been corrode, break or come loose which has
resulted in the issue in power steering. Tesla has a lot of competitors in the market which are
running over manufacturing common car segment such as Ford, BMW etc. The trend of this
industry always looks to set new trends and technology. Tesla has done the same, they are
looking to make the world more energy sustainable which has resulted to a huge growth of
company in the latest years.
B. Tesla Stakeholder View of the Organization
Stakeholders are the person, group of organization which have interest in the functioning
and are directly or indirectly related to the organization (Cooper, 2017). Tesla is a renowned
brand in the world. Its stakeholders are also an important asset for the company. As per the CSR
strategy of Tesla, the prioritized stakeholders of Tesla are shown below:

Community
This is the stakeholder which has been put on the highest priority by Tesla. Communities
are the person who has been impacted directly by the manufacturing of company. Tesla is
looking to provide the world an era of electric vehicles. This evolution is satisfying the
community to perceive from the pollution or harmful gases. In order to satisfy this community,
The CEO of Tesla, Elon Musk also announced in 2014 that other car manufacturing companies
can also sue the patent products of Tesla so that more and effective research can be done in this
field. Thus satisfying the needs and demands of community is done by Tesla effectively.
Customer
These are the stakeholders which have been affected the most with the functioning of
Tesla. The biggest concern of this stakeholder group is that they want reliable and economic
products from Tesla in terms of technology (Grant, 2016). This has motivated the company to
produce its own battery manufacturing rather than importing it from Panasonic or other
companies. This will result in manufacturing the more reliable batteries of cars and reducing the
overall cost of car also. Apart from that, the company is also looking to build charging points in
the world so that any type of hurdle cannot be bothered by the customers. Thus, Tesla is ensuring
the satisfaction f such stakeholders group.
Employees

While making the CSR strategy of the company, Tesla has indicated its employees as a
crucial headway for its business. In order to satisfy the needs and demands of its employees, they
are providing effective programs of training and development all over the globe. They also have
partnered to various companies to provide effective training to its employees. The company is
also looking to provide effective professional growth and competitive salary for its employees in
order to satisfy the interest of this stakeholder group.
Shareholders
These stakeholders of Tesla are also benefited with the companies CSR polices. The
company have highest dependencies over such stakeholders in its early age. These shareholders
are more concerned about the profitability and business growth of company (Herremans, 2016).
In order to satisfy these stakeholders, the company has suggests the other organizations to use
their patent products. This will help the company to gain maximum profit. Apart from that,
positive image of the company also allow it to increase its business in various fields. Thus
protecting the rights of such stakeholders also.
Government
This is the stakeholders which has been impacted more with the actions of Tesla. The
government has formulated some of the legislations and policies in order to perform the business
activities (Higgins and Coffey, 2016). In addition to this, Tesla is more concerned about the legal
actions and compliance of the business. Apart from that, they are also looking forwards to
provide contribution to the development of state economic growth. The record of Tesla and its
strategies are also satisfying these stakeholders perfectly.
C. Stakeholder analysis for four selected stakeholder group
There are different stakeholders within a company which owns some of the interest
within it. Following are the four stakeholders of the company, of which motives and behaviours
are as follows:
Customers
Among these stakeholders, the customers who are targetted by the company are included.
The target customers of Tesla includes the North Americans, Asians and Europeans. In the
psycho-graphic segmentation, the customers who are middle to upper class are the target
customers of company. These customers have the main motive of purchasing a vehicles which is
having status, having environment friendly and long term cost effective. These customers wants

a long saving of energy efficient cars. The behaviour of such target customers not only motivates
the company to do more research on such energy efficient products but also save the
environment.
Employees
These are the stakeholders which have affected directly over the functioning of Tesla. In
this stakeholder type, Managing Director of the company is included. The MD of the company
has a huge responsibility on its shoulders (Hopkins, 2017). Therefore, the main motive of such
employee is to manage the revenue, performance and other aspects of the company. It has the
most senior role in the organization. It has the responsibility of reporting to the chairman and
leading the board of director of company. The behaviour of MD should be quite and adorable, so
that every stakeholder will listen to its plan.
Shareholders
These are the stakeholders which have interest in the company by providing funds
through purchasing the shares. Elon Musk, is also the founder of Tesla is the biggest shareholder
of the company. It has 21.9% sharing in the organization. The main motive of this shareholder is
to take the world to an era where the society will be based on electric vehicles in transportation.
In order to fulfil this motive, it is providing continuous development in such industry from the
past years. The behaviour of Elon Musk is also based on its motive. It is looking to prepare an
organization with a good working environment. In order to do this, it is also looking forward to
provide effective salaries to its employees.
Government
This stakeholder is also influenced by the operations of organization. In US federal
system is working, therefore every state has its own set of constitution and legislations (Maas,
2016). Tesla is working in California, therefore it has done all the CSR activities which are
beneficial for the society of California as well. Apart from that, the company is also looking
forward to satisfy the government by fulfilling all the legals bounds.
D. Stakeholder category identification and generic strategic programs for
each of the four selected stakeholders.
There are four types of stakeholders available in this report which are important for the
organization. Following is the category identification and generic strategic program for each of
the four selected stakeholders.

Customers
These are the stakeholders which have been influenced directly with the functioning of
the firm. The target customers which have been identified in the previous question are based in
this category. In order to manage these stakeholders, the organization is looking to satisfy their
needs (Meixell, 2015). They are providing technological advanced vehicles with the use of
Artificial Intelligence. The customers will be attracted by the company with the help of such
services. These proceeding for this stakeholder will assist Tesla to manage them easily.
Employees
In this type of stakeholder category, managing director has been included. The MD of
Tesla has the highest responsibility on its shoulders. It is responsible in heading the board of
director's meeting. In order to manage the employee, Tesla should listen to the innovative ides of
MD so that it can be motivated. This will help the organization to gain an employee's perception
which is always looking forward to take the organization on top.
Shareholders
The shareholder category is made by imposing the CEO of Tesla Elon Musk. It has the
biggest shares in the company therefore it is well known that how to manage the shareholders
within company (Noe and et. al., 2017). These stakeholders requires to have new development,
profitability and business growth of the company. The company can manage these stakeholders
with the help of satisfying them with the new ways of business growth. Apart from that,
profitability of the company is also shown to them so that they will be ready for the future
investments.
Governments
The federal system of US allows the state governments to follow their constitutional
aspects. The organization which are running in California also have to follow these aspects.
Tesla is running its organization by following all the laws and legislations set by the government.
Apart from that, it has involved in all of the CSR activities within the society. This is enough to
manage such stakeholder.
E. Recommendation of the strategic program for each of the four selected
stakeholder group including reason
Following are the group of stakeholders to which specific strategic programs are shown:
Customers

In order to satisfy these target customers, Tesla should provide new and advanced
technology such as AI, self driving cars etc. Apart from that, the electric vehicle capacity should
also be increased so that the vehicle can run to a long way. This will increase the capacity of the
vehicle and satisfy them also. The pricing of the Tesla vehicles is also for the middle to high
range customers. The company should manufacture all the parts of the cars and cut the cost of
vehicles. This will help the organization to increase its customer base and lead the customers to
feel another smart experience.
Employees
In order to manage these stakeholders, the organizations should respect the new ideas
and perception given by the employee. Although, the ideas requires some changes but still that
can be beneficial for Tesla. Apart from that, the organization should reward them on the basis of
their performance. This will help the employee to feel important for the organization and work
harder for future needs. This is the specific way through which employees within Tesla can be
managed.
Shareholders
In order to manage the shareholders, Tesla should always look forward for developing
new ideas and discovering in other fields. This allows a positivity among the shareholders to
keep in touch with the organization. Apart from that, business growth also help the management
to handle them easily.
Government
The government can be managed with the help of following the laws and legislation of
conducting the business. Apart from that, management of wastages of solar batteries and other
harmful chemicals will also help Tesla to manage the government easily. This will help the
government to recognise Tesla positively.
CONCLUSION
In this report, it can be concluded that stakeholders are one of the important asset for an
organization. The company is looking forward to satisfy the different stakeholders such as
Employees, customers, shareholders, community and government. In order to satisfy them,
generic strategy program and specific strategy program are discussed above. That help the
company in improving relations with various stakeholders.

REFERENCES
Books and Journals
Aras, G. and Crowther, D., 2016. The durable corporation: Strategies for sustainable
development. Routledge.
Cooper, S., 2017. Corporate social performance: A stakeholder approach. Routledge.
Grant, R. M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Herremans, I. M., Nazari, J. A. and Mahmoudian, F., 2016. Stakeholder relationships,
engagement, and sustainability reporting. Journal of Business Ethics. 138(3). pp.417-
435.
Higgins, C. and Coffey, B., 2016. Improving how sustainability reports drive change: a critical
discourse analysis. Journal of cleaner production. 136. pp.18-29.
Hopkins, M., 2017. CSR and international development. In CSR and Sustainability (pp. 88-108).
Routledge.
Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability assessment,
management accounting, control, and reporting. Journal of Cleaner Production. 136.
pp.237-248.
Meixell, M. J. and Luoma, P., 2015. Stakeholder pressure in sustainable supply chain
management: a systematic review. International Journal of Physical Distribution &
Logistics Management. 45(1/2). pp.69-89.
Noe and et. al., 2017. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education.
Powell and et. al., 2017. Methods to improve the selection and tailoring of implementation
strategies. The journal of behavioral health services & research. 44(2). pp.177-194.
Online
Challenges of Tesla Motors. 2018. [Online]. Available
through:<https://www.businessinsider.in/Teslas-problems-are-mounting-heres-
everything-that-has-gone-wrong-so-far-this-year/articleshow/63848170.cms>
Recent developments. 2015. [Online]. Available
through:<http://www.investorguide.com/article/17034/tesla-motors-taking-look-recent-
developments/>
Mission and Vision statement of Tesla. 2019. [Online]. Available
through:<http://panmore.com/tesla-motors-inc-vision-statement-mission-statement-
analysis>.