Tesla's Growth Challenges: Strategies for Sustainable Business

This report provides a comprehensive analysis of Tesla's contemporary growth challenges, examining the organization's current state through five key dimensions: leadership, strategy, financing, communication and positioning, and acquisition or merger. It evaluates Tesla's leadership style, strategic approaches to market penetration, financing sources, communication strategies, and acquisition activities, including the acquisition of SolarCity and Twitter. The report also explores sustainable business models, emphasizing the importance of resource utilization, giving back to the society, and integrating sustainable practices into business operations. Furthermore, it identifies three clear goals and interventions for Tesla to secure its viability: long-term resource utilization, giving back to the society, and adopting a cyclical-borrow-use-return model. The analysis includes growth opportunities, risks, costs, technology, innovation and leadership. The report concludes with recommendations for improving Tesla's sustainability and ensuring its long-term success in the evolving business landscape.

Contemporary
Growth Challenges
for Business

Executive Summary
The overall report is about contemporary growth and challenges for the business as well.
The report will cover discussion about the current state of organisation with support of five
dimensions which basically include leadership, strategy, financing, communication and
positioning and acquisition or merger as well. The report will also cover analysis and
recommendations through which organisation can improve and ensure their sustainability as
well.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Current state of organisation..................................................................................................1
Sustainable business models good practice............................................................................4
3 clear goals and interventions for your chosen business to secure its viability....................5
Financial and environmental sustainability in the medium and long term.............................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
A contemporary economy basically refers to the conduct research on economic problems
which has been faced at the global level from both theoretical and empirical perspectives as well.
The main objective is to generate suggestions from economic policies and for reforms of the
economic system which will help in terms of resolving these problems. In the present report,
Tesla organisation is taken into consideration (Axelsson., 2018). Tesla is basically an American
clean and automotive company which is headquartered in Austin, Texas. It is the company which
basically manufactures and designs electric vehicles, solar panels, battery energy storage from
home to grid scale and related products and services as well. The present report will cover
discussion about the current state of organisation with support of five dimensions which basically
include leadership, strategy, financing, communication and positioning and acquisition or merger
as well. In addition to this, the report will cover an analysis about the recommendations through
which organisation can improve and ensure their sustainability as well.
MAIN BODY
Current state of organisation
There are basically five dimensions on which growth of an organisation has been
analysed into positive manner. These dimensions basically include leadership, strategy,
financing, communication and positioning and acquisition or merger and these are defined into
the following manner:
 Leadership: It basically refers to the ability of a group or an individual in order to
influence and guide followers or other members of an organisation. In context to Tesla
company, as Elon Musk is the founder and chief engineer of the company and also he is a
very confident, analytical and ambitious person as well. As the company has followed the
transformational leadership style which is very necessary for the growth of an
organisation. He thinks in such a manner that there is always a better way to do things
into appropriate manner and also sets his sights on the constant improvement (Choon-
Yin., 2017). For defining the leadership into context of organisation it is important to
implement transformational leadership style. This is a kind of leadership approach which
causes change in social systems and individuals as well. It basically creates positive
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change and valuable in the followers with the end goal of developing followers into
leaders.
 Strategy: It basically refers to an action which managers take to attain one or more of the
organisational goals. It is a kind of general direction which has been set for the company
and its various components in order to achieve a desired state in the future. In context to
Tesla company, their strategy is to enter at the high end of market where customers are
prepared to pay a premium price and then drive down the market as fast as possible for
higher unit volume and lower prices with each successive model (Jones and et.al., 2015).
The main development strategy of Tesla is to come up with two new categories which
include headline grabbing moves like launching the cyber stuck. Road star 2.0 the
company also claims that it accelerates faster than any production car ever made and big
bets are being made on its vehicles. Tesla is the company who uses the market
penetration as their current primary intensive growth strategy. This is the intensive
strategy which enables the business growth through increasing sales revenue in current
markets. For instance, with support of aggressive marketing the company aims to roll out
and sell most of the electric cars in United States.
 Financing: It is basically the process of raising capital or funds for any kind of
expenditure. It is the process of channelling different funds in the form of loans, credit or
invested capital to those economic entities which most of them need. In context to Tesla
company, funding for the company was obtained from the variety of sources specially
from Pay pal who basically contributed more than $ 30 million to the new venture and
also served as the chairman of the company.
 Communication and positioning: It is basically about how a person thinks about the
brand which is relative to their lifestyle and what a user of the brand basically represents
outwardly to others and in which manner the brand fits into context of different use of
situations (Sabri ed., 2015). In context to Tesla Company, at the organisational level it
has been observed that Elon Musk told to the employees that they are always free to talk
to him and he is also not stranger in terms of tackling with challenges. Tesla is a
company who has basically used mono-segment positioning.
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The alternative fuel vehicles manufacturer targets individuals which are concerned with
negative environmental implications of gas and oil consumption. It is important to consider STP
analysis into appropriate manner so that this analysis can help in terms of further segmenting,
targeting and positioning of market as well. At the organisational level, they can use STP
analysis, in order to implement into effective manner (Staiculescu and et.al., 2017). In context to
Tesla Company, they have used psycho graphic and behavioural segmentation as their part of
strategy. They have also targeted ambitious and determined middle and upper class consumers
which seek the status and the perception of being environment friendly and also the auto mobile's
long term effectiveness. From the point of view of positioning, they have not only sells cars but
also sell the technology as well. Their positioning statement was “the only stylish car which can
go from 0 to 100 in three seconds without a drop of oil.
Acquisition or merger: Acquisition refers to the act of receiving or getting something or
the item that was received. Acquisition occurs when one company purchases another one into
positive manner which is called acquiring company and the company which has been bought is
the acquired or target company. In context to TESLA Company, they have done seven
acquisitions and two investments as well. The company has also spent over $ 2.82 billion for the
acquisition (Subramanian.,2018). The company also has invested into various sectors such as
energy storage tech, autonomous vehicles etc. According to the latest report, Tesla company who
is known for the business magnate and also offered to purchase American social media company
which is named as Twitter which has been bought for $43 billion and previously it has acquired
9.1% of the stock of company for $ 2.64 billion which becomes the largest shareholder as well.
According to the report, it has been find out that Tesla has acquired Solar city which is in
all stock $ 2.6 billion deal and also entered into the market of photovoltaic s. In this manner, the
latest acquisition of Twitter has changed the situation of the company and act as boom into
market as well(Terziev and Arabska., 2015).So in the overall manner, it has been observed that
these dimensions help in terms of positive growth of an organisation and it’s not necessary that
these dimensions can be consistent with over a changing period of time. There are certain
changes which can't be favourable in terms of these dimensions so it’s very important that to
consider the growth into positive outcome. As different organisations have their own strategies,
so it’s important to implement these strategies according to requirement of the organisation.
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Sustainable business models good practice
Sustainable business model is one of the frameworks that is designed to create positive
values for everyone including the society, environment and economy. Sustainable business
model helps the business to grow sustainability in its practices by considering the needs of
stakeholders, assessing and addressing environmental impacts and developing transparency
through its reporting. When the strategic ambitions of Tesla are understood it is very clearly
visible that the organisation wants to develop best sustainable practices through its business. The
organisation tends to comply with the pursuing growth opportunities as well as improving its
sustainability ideas for developing healthier natural growth (Comin and et. al., 2019). The
sustainable development of the businesses around the world is a fast moving concept due to the
need for sustainable business practices as a result of poor environmental conditions and rising
catastrophic conditions across the globe.
 Growth opportunities: The Company can detect sustainable company infection aspects
and disruptions for supporting new investment opportunities and creating better
enterprise operating models. The company like Tesla utilises product innovations to
deliver sustainable benefits to the customers, stakeholders and society along with a high
level of organisational growth. The digitalisation activities of the organisation can also
drive the organisation towards sustainability performance and improve the opportunities
for growth. In this context it can be said the wise utilisation of digital technology is an
accessible option but it can also impact sustainability. A strategic business plan is very
important to successfully wind up Tesla with digitalisation.
 Risks and costs: Assessing monitoring and managing the internal and external risks
related with the sustainable development of the business is important for Tesla. The
business investment towards sustainable development of the organisation is mainly
simulated by the opportunity but it also involves risks and costs that may affect the
overall sustainability practices of the organisation. Increasing the regulations and the
investors who create focus on financial, legal and reputational risk associated with
sustainable business strategies (Buffa, Franch and Rizio, 2018).
 Technology and innovation: Monitoring prioritising and application of the new
technology and improvement of the outdated technology to enable business development
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in a sustainable manner is necessary for Tesla. In order to fulfil the sustainable business
goals and commitments Tesla will require innovation of technology such as digital
technology, artificial intelligence, Internet of Things, augmented reality, block-chain and
others for enhancing sustainable growth.
 Leadership: It is important that the roles of the executive leaders throughout the
organisation are strategically planned, cultured and have talent to improve the business
capability and sustainable growth of the organisation. The sustainability strategy of the
organisation cannot grow without a proper purpose driven authentic leadership and
governance (Singh and et. al., 2022).. The leadership of Tesla is in the hands of Elon
Musk who is a visionary leader and has expertise to handle all the activities of the
organisation and he can bring new approaches, talents, skills and competencies to achieve
sustainable growth.
3 clear goals and interventions for your chosen business to secure its viability
In order to be successful the organisation has certain clear goals and interventions that can
help it to secure its viability for achieving sustainable performance are as follows:
 Resource utilisation for long term: Without using sustainable resources there is no
mode to switch towards a sustainable business model. The organisations are limited by
finite resources and it is important for Tesla that it should utilise those resources that are
naturally infinite and help the organisation to be environment friendly and retain its
sustainability. The company can utilize solar energy, wind energy and thermal energy for
producing electricity for its vehicles. It is a highly infinite resource that can provide
success to its sustainable strategy.
 Giving back as much as it takes: There is a theory that defines a sustainable business
model as the business or an organisation that gives as much as it takes. This concept is
also elaborated as a cyclical-borrow-use-return model in which the organisation takes
resources from the society and returns the same amount to the society (Collins and Saliba,
2020). Tesla needs to think on this strategy for improving its sustainability action and
contribute towards the growth of society. The organisation must not take from the earth
and borrow resources in the quantity that it can replenish as early as possible.
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 Commercial profitability: The business cannot get success and growth without proper
support of the customers. In order to achieve the support of the customers Tesla needs to
fulfil their requirements and provide high quality products as per their promise. The
products of the organisation must be made in such a manner that is much more accessible
to the customers from all demographics.
Financial and environmental sustainability in the medium and long term
Environmental issues can have a materialistic impact on the performance of the organisation
and its stability of the finances in a broader manner. Environmental catastrophes can lead to
devastating effects on the organisations that may be incurable even for the organisations that
have millennium profit. Climate changes affect the overall sustainability of finance and includes
physical risk including damages from weather related events and catastrophic climatic changes
for Tesco. The financial risks from climate change are difficult to quantify but most studies state
that financial losses due to the environmental impacts are very high and may incur losses for the
organisation. Instances of losses from climate related natural disasters such as wildfire, drought,
floods, etc. are commonly visible around the world. It is recommended to Tesco that it should
recognise these risks and should prepare strategies that can be helpful to provide advancement of
sustainable growth. In the medium term Tesla can rely on green bond insurance as well as short
term investments for getting security of payments even in the times of catastrophic events.
Sustainable investing can be helpful for the organisation to manage risks and create new
strategies that can help to enhance the long term sustainable financial performance of the
organisation.
CONCLUSION
The above stated report concludes that contemporary growth is necessary for further
development of an economy into positive manner. It has been concluded that there are certain
dimensions of a company which needs to be taken into consideration into serious manner. These
dimensions can be leadership, strategy, financing, communication and positioning and
acquisition or merger. It has been determined that these dimension help in terms of overall
growth and development of an organisation due to which they can perform into out of box
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manner. There are certain recommendations which act as advantageous factor in terms of
implementing changes into positive manner at the organisational level. So it’s very important to
consider these dimensions into positive manner so that further decisions for the company can be
taken through analysing each and every factor into positive manner.
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REFERENCES
Books and Journals
Axelsson, B., 2018. Contemporary Developments and Challenges in Sales Organizations: Some
Observations. In Organizing Marketing and Sales. Emerald Publishing Limited.
Buffa, F., Franch, M. and Rizio, D., 2018. Environmental management practices for sustainable
business models in small and medium sized hotel enterprises. Journal of Cleaner
Production, 194. pp.656-664.
Choon-Yin, S., 2017. Private Education in Singapore: Contemporary Issues and Challenges.
Collins, H. and Saliba, C., 2020. Connecting people to purpose builds a sustainable business
model at Bark House. Global Business and Organizational Excellence, 39(3), pp.29-37.
Comin, L.C. and et. al., 2019. Sustainable business models: a literature review. Benchmarking:
An International Journal.
Jones and et.al., 2015. Contemporary challenges and changes: principals' leadership practices in
Malaysia. Asia Pacific Journal of Education, 35(3), pp.353-365.
Sabri, E. ed., 2015. Optimization of supply chain management in contemporary organizations.
IGI Global.
Singh, R.K. and et. al., 2022. Integration of green and lean practices for sustainable business
management. Business Strategy and the Environment, 31(1). pp.353-370.
Staiculescu and et.al., 2017. EDUCATION AND CONTEMPORARY CHALLENGES-THE
DEVELOPMENT OF NEW LEARNING ENVIRONMENTS-CASE STUDY. In The
International Scientific Conference eLearning and Software for Education (Vol. 1, p.
238). " Carol I" National Defence University.
Subramanian, C., welcomed for its uniquely exhaustive and contemporary analysis of the crisis
in India, the complex transformations underway, their implications for the future and
related policy challenges.—Sukti Dasgupta, Chief, Employment, Labour Markets and
Youth Branch, International Labour Organization.
Terziev, V. K. and Arabska, E., 2015. Contemporary challenges of building competences
through lifelong learning in mountain regions. Система ценностей современного
общества, (39).
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