Comprehensive Analysis of Tesla's Business Policy and Strategy Report

This report provides a comprehensive analysis of Tesla Motors' business policy and strategy. It begins with an overview of the company, its mission and vision statements, and its focus on sustainable energy and electric vehicles. The report examines Tesla's objectives, including market share growth and brand awareness, and highlights its workplace safety policies. A micro-analysis emphasizes the company's sustainability efforts. The report also explores Tesla's stakeholders, environmental concerns, and marketing strategies, including segmentation, targeting, and positioning. It includes a SWOT analysis, a review of Tesla's generic strategies, and an examination of its market penetration and product development strategies. The report references several academic sources to support its findings, providing insights into Tesla's operations, technology, and market position.

Running head: BUSINESS POLICY AND STRATEGY REPORT
BUSINESS POLICY AND STRATEGY REPORT
Name of the Student
Name of the University
Author Note

1BUSINESS POLICY AND STRATEGY REPORT
1. Tesla is a multinational American electric vehicles company which is popularly known
for selling all types of electric vehicles as well as sales power wall, power pack and mega
pack batteries. Apart from the model is model x and model 3 cars the company has also
entered into making a cyber-truck and semi vehicles. It is also popular in making solar
panels solar roof tiles and some related products. The company was founded in the year
2003 by American entrepreneurs Martin Eberhard and Marc opening. In 2005 Tesla
motors was formed in order to develop and electric sports car.
2. Regarding the mission statement of the company it can be said that they have a mission in
order to accelerate the world’s translation into sustainable energy by manufacturing
various types of electrical vehicle which will get its power from the sustainable energy is
like electric driving. the company has been building few of the most affordable electric
cars yet and this continue making products which are accessible and affordable to more
and more people which is ultimately accelerating the advent of clean transport and clean
energy production. According to the author Endsley (2017) the company is heading
towards sustainability by focusing directly on reusable sources of energy like the use of
electricity in every products
3. According to the author Afonso, (2018) Tesla vision statement is to create the most
compelling car company for the 21st century in order to drive was transition to electric
vehicle. They have properly work on the vision statement in order to make vehicles
which have renewable energy over the non-renewable sources of energy like gasoline.
Regarding the question that what they did or what they do in order to prove their vision
statement is that the company has come up to an error where they are only focusing in

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making cars with renewable energy electric energy so that it can facilitate to create a
green earth.
FIGURE 1: Represents Testla Vehicle Deliveries and Autopilot Hardware
4. Primary objective is to generate demand and drive sales up for Tesla motors electric car
and build a long-term brand awareness as well as manage corporate reputation.
Secondary objective of the company is to increase the market share from 3 % to 5% by
2020.
Overrating objective of the company is to educate inspire as well as empower the target
market of the company so that they can reach a much bigger customer base.
5. The company has rolled out few policies in order to create a safer place for its worker in
the factories. It was reported previously that employees held describe long hours of work
and injuries which came from uncomfortable, repetitive moments of work. Therefore the
company has said it will be coming up with new policies to better care for the workers
who are insured on their job.

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6. Speaking about the company’s micro analysis it can be said that the company is
emphasizing much more in order to grow into an extensive one. Therefore sustainability
is the only factor which can help the company to improve its business performance,
management structure and help it to achieve the strategic growth. Stakeholders of the
company include various types of communities, customers, employees, investors and as
well as the government itself. The company is looking into concern searches admission in
order to protect and conserve the environment for better future (Smith, Podgorski and
Hendrickso 2018).
7. Talking about the natural environment of Tesla Motors it can be said that the company is
aimed at reducing the environmental impacts of transportation, electricity production and
energy which are used by various types of business companies, homes as well as in
general people.
8. Regarding few of the workplace safety policy introduced by the company are
 Increase in training and medical support as well as preventive care around workplace
 Ensuring that the facilities and equipment provided meet requirements for safety
 Supervising the workers working in the workplace
 properly using the equipment and material supplied by company
 Promptly reporting unsafe conditions hazards and injuries can be eliminated
 Use of good judgment in carrying out work assignment
 Participating in mandated safety training and drilling training.

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Figure 2: Represents the Testla’s revenue from FY 2008 to FY2018 (in million U.S
dollars)
9. First of all the company was into making various types of products which will use
electric sustainable energy to perform the action. Later on the company was having a goal
of manufacturing electric vehicles which will use electrical energy to perform on the
road. With extensive use of updated technologies and innovation the company has built a
few of the fastest and safety test electric vehicles in the present date with the rule of their
new CEO Elon Musk who acts as a transformational leader in bringing and adopting
changes accordingly (Alkim, Gutoski and Pawlega 2017)

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Figure 3: Represents planned 2020 Gigafactory Production Exceeds 2013 Global Production
10. Regarding marketing strategies Tesla is known for using segmentation targeting and
positioning strategy in terms of marketing. Segmenting the market Tesla segments the
market by offering most full conscious which has enabled the company to build long term
and innovative modular vehicle. The company is known for targeting the millennial and
young customers who understands there sustainability projects.

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Figure 4: Represents Tesla Vehicle Sales
11. Speaking about the research and development lab of the company it can be said that it is
one of the finest and best equipped research lab ever found in a car manufacturing
company. According to the author ******** Tesla with innovative strategies is still
continuing to increase its spending on research and development, which almost reached
1.5 billion US dollars in 2018. The company also has opened up a research and
development center in Japan this year.
12. Tesla according to author Smith, Podgorski and Hendrickso (2018) uses Operations man
agent and logistics best strategies in order to maximize the productivity while minimizing
cost. Therefore this optimal decision-making area is open which provides the company to
sell its product at a reasonable price making one of the best strategies used by Tesla.

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13. SWOT Analysis
Strength
 Cutting edge technology and
innovative strategies used.
 Political support from the
government.
 Monopoly Business in electric and
alternate energy cars.
Weakness
 Poor liquidity from the
competitors
 Capacity issues that is less amount
of manufacturing plants in
different countries
 Poor customer awareness
Opportunities
 Preferences for various types of
new technologies.
 Building various types of electric
driven cars which has self-driving
or autonomous driving.
Threats
 Competition in the market.
 Extensive powerful car
manufacturers in the present
market targeting Tesla.
14. Regarding the review of mission and vision statement of Tesla it can be said that its
mission is to accelerate the world transition to sustainable energy. It also shares a vision
that the world will stop relying on the fossil fuels and is moving towards the zero
emission future.
15. Tesla Generic Strategy used by the company is that it has shifted to broad differentiation
from manufacturing to electric cars to various other products. The market penetration

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strategy used by the company is advantageous to the company as because it helps the
company to focus on the growth of the business (Kancherla and Daim 2018).
The Product development strategy used by the company is used by the company to grow
through new business creation. However it is used to acquire other firms or enter into a
joint venture to develop more new products in the business.
The Market Development strategy is known for supporting the company mission and
vision statement, which indirectly highlights the global leadership in the automotive
industry.

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References
Endsley, M. R. (2017). Autonomous driving systems: A preliminary naturalistic study of the
Tesla Model S. Journal of Cognitive Engineering and Decision Making, 11(3), 225-238.
Aaij, R., Amato, S., Anderlini, L., Benson, S., Cattaneo, M., Clemencic, M., ... & Jones, C.
(2016). Tesla: an application for real-time data analysis in High Energy Physics. Computer
Physics Communications, 208, 35-42.
Ertürk, M. A., Wu, X., Eryaman, Y., Van de Moortele, P. F., Auerbach, E. J., Lagore, R. L., ... &
Metzger, G. J. (2017). Toward imaging the body at 10.5 tesla. Magnetic resonance in
medicine, 77(1), 434-443.
Alkim, E., Bindel, N., Buchmann, J., Dagdelen, Ö., Eaton, E., Gutoski, G., ... & Pawlega, F.
(2017, June). Revisiting TESLA in the quantum random oracle model. In International
Workshop on Post-Quantum Cryptography (pp. 143-162). Springer, Cham.
Wu, X., Auerbach, E. J., Vu, A. T., Moeller, S., Van de Moortele, P. F., Yacoub, E., & Uğurbil,
K. (2019). Human connectome project-style resting-state functional MRI at 7 Tesla using
radiofrequency parallel transmission. Neuroimage, 184, 396-408.
Stier, A. V., McCreary, K. M., Jonker, B. T., Kono, J., & Crooker, S. A. (2016). Exciton
diamagnetic shifts and valley Zeeman effects in monolayer WS 2 and MoS 2 to 65 Tesla. Nature
communications, 7(1), 1-8.
Smith, D. F., Podgorski, D. C., Rodgers, R. P., Blakney, G. T., & Hendrickson, C. L. (2018). 21
tesla FT-ICR mass spectrometer for ultrahigh-resolution analysis of complex organic
mixtures. Analytical chemistry, 90(3), 2041-2047.

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Afonso, N. A. (2018). Project of the implementation of driverless technology in vehicles of Tesla
company (Doctoral dissertation, Instytut Organizacji Systemów Produkcyjnych).
Kancherla, Y. D., & Daim, T. U. (2018). Technology Roadmap: A Roadmap for Tesla.
In Infrastructure and Technology Management (pp. 347-366). Springer, Cham.
Nobile, L. (2019). Hype factor, and DCF aveluation: Tesla Inc. case study.