Strategic Analysis and Implementation of Tesla's Business Strategy

This report presents a strategic analysis of Tesla, examining its operations within the electric vehicle and sustainable energy sectors. It begins with an introduction to Tesla and its mission, followed by a macro-environmental analysis using the PESTLE framework. The report then outlines Tesla's strategic capabilities, including its mission and vision statements, and discusses potential strategies based on Porter's generic model. The core of the report focuses on strategy implementation, detailing the stages involved, such as strategic development support, mapping, alignment, and refinement. Challenges faced during implementation, particularly those related to human resources and employee skills, are addressed, along with proposed solutions. Furthermore, the report identifies potential risks, including financial and production risks, and suggests risk management strategies like Key Performance Indicators (KPI) and Total Quality Management (TQM). The report concludes with recommendations for Tesla's management and emphasizes the importance of monitoring competitors, mitigating risks, and controlling employee actions.

STRATEGIC ANALYSIS
AND IMPLEMENTATION

TABLE OF CONTENT
 Introduction
 Summation of assignment 1
 Strategy implementation
 Challenges faced in implementation and solution
 Possible risk
 Risk management strategies
 Recommendation
 Conclusion
 References

INTRODUCTION
Strategic analysis is defined as the procedure for conducting
research on an organisation along with its operations
environment with the aim of formulating strategy.
Similarly, strategic implementation is said to the
procedure of putting chosen strategy into action. The
presentation is all about Tesla which is electric vehicle
addition to clean Energy Company that operates multiple
productions in automobile sector.

INTRODUCTION OF COMPANY
Tesla is electronic vehicle
manufacturer which was its
headquarters at Palo Alto, U.S.
since 2003. It operates various
production addition to assembly
plants at multiple nations
including China, New York and
many more.

MACRO ENVIRONMENTAL ANALYSIS
 PESTLE analysis
is one of framework that
us used by Tesla for
macro environmental
analysis in order to
identify the external
factors that impacts the
business at huge manner.

STRATEGIC CAPABILITIES
 Mission statement of Tesla is to accelerate world’s
transition towards sustainable energy.
 Tesla has vision for creating most compelling car entity
through driving transition of globe into electric vehicle.

STRATEGIES INITIATIVES
The possible strategies that can be
followed by the Tesla for
defending core business include
the strategies defined in Porter’s
generic model.
The company is focusing to use
internal commercialisation
strategy.

IMPLEMENTATION OF STRATEGY
Strategy implementation is all about
translation of effectively devised
strategy into organisational action
with the objective of attaining
strategic objectives. It helps
companies to use structured
procedure for implementing
devised strategy in integrated
manner.

CONTINUE…
The managers of Tesla intend to deploy strategy with the
following stages:
 Strategic development support: In this stage, support is
provided to acquire revenant addition to meaningful
external and information data or information for facilitating
strategy development.
 Strategic mapping: Herein, strategic goals and objectives
are pursued or developed nu management team.

CONTINUE…
 Strategy alignment: By using corporate roadmap, Tesla
managers work with individual business units and departments.
In this context, organisational managers will align the strategy
with all the business units in the application.
 Strategy cascade: In this stage, organisational managers engages
entire organisation to implement the devised corporate strategy.
Aligned corporate strategy with all units of business makes
things necessary in cascading or roll –out other organisational
level.

CONTINUE…
 Personal and process alignment: Success implementation
needs focused attention. In this stage, it is crucial for managers
of Tesla to ensure individual goals are aligned effectively with
corporate objectives and in line with current performance
systems.
 Strategy refinement: When the working in above stages is
implemented effectively then the next is for refining strategy. It
is important as new as well as major external changes needs
require review against the strategy and necessary incorporation.

CHALLENGES FACED IN IMPLEMENTATION
AND SOLUTION
The challenges faced by managers of TESLA in
achieving goals and objectives are as follows:-
 The managers of TESLA are adversely affected
by human resource issues which increase
conflicts, lacks in employee relations that create
delay in goal accomplishment.
 TESLA managers are negatively impacted by
ineffective skills of workers as they are not
able to deal with technological equipments
that affect the stability of business.

SOLUTIONS
The solutions applicable for business to reduce the
challenges faced in implementation of various
strategies.
 It is most important for managers of TESLA to
restrict issues of human resource by building
good employee relations that increase the ability
of engagement and involvement among its
workers. The company must take strict actions for
solving conflicts as to achieve success.
 Managers of TESLA develop effective skills of
workers by providing them training and
development programs to perform their
activities with specialisation by proper use of
technology.

POSSIBLE RISK
There are various risk which are controllable and
uncontrollable in an organisation that affects the stability
of enterprise in perfect competition market. Some of them
are mentioned as under:-
 Financial Risk:- It refers as the lack in management of
cash flow by expensing more money through bad debts,
promotional activities, etc.
 Production Risk:- This is described as inability of
managers for manufacturing qualitative products to meet
the requirements of potential customers.

RISK MANAGEMENT STRATEGIES
The managers of TESLA further take
corrective measures to solve these risks
for competing with their rivalries to
sustain in global market. These risk
management strategies are as follows:-
 Key Performance Indicator (KPI):-
Managers of TESLA aims to manage their
financial risk with this strategic tool for
restricting their cash outflow and
increasing cash inflow to ascertain high
profits.
 Total Quality Management (TQM):-
The managers of TESLA focus on
manufacturing goods and services with
total quality management as to meet the
requirements of customers by providing
them high level of satisfaction.

RECOMMENDATION
The managers of TESLA are recommended to
analyse the various challenges and risks that
can adversely impact the business operations.
The managers of TESLA are suggested to take
corrective measures such as provide training
and development programs to its workers for
improving their skills, knowledge and behaviour.
It is also essential to manufacture goods and
services with qualitative management for
restricting financial and productivity risks.

CONCLUSION
From the above discussion it have been concluded that
managers of an organisation must be aware of strategies
being adopted by its competitors. It is essential for
company to be careful by taking precautionary steps for
minimising the controllable and uncontrollable risk of
environmental analysis. This is most important for
managers to monitor and control the actions of workers
for restricting errors through corrective measures.

REFERENCES
 Fu, Y., Zhang, Y. and Yu, X., 2016. An advanced sense and
collision avoidance strategy for unmanned aerial vehicles in
landing phase. IEEE Aerospace and Electronic Systems
Magazine, 31(9), pp.40-52.
 Cook, E.D., 2016. Performance funding in Louisiana: A policy
analysis of the Granting Resources and autonomies for
Diplomas Act of 2010. University of Louisiana at Lafayette.

Thank You