Tesla Company Analysis: Management, Supply Chain, and Quality Report

This report provides a comprehensive analysis of Tesla, examining its management practices, supply chain operations, and quality management systems. The report begins with an executive summary and then delves into Tesla's organizational structure, including global hierarchy, centralization, and regional divisions. It explores Tesla's approach to managing people, highlighting its flat managerial structure and specialization of operations. The report also analyzes Tesla's supply chain, emphasizing its direct-to-consumer model, inventory management strategies, and commitment to customer satisfaction. Furthermore, the report discusses Tesla's quality management systems and its use of raw materials. The analysis is supported by insights into Tesla's data-driven approach to production and its efforts to optimize efficiency and reduce costs. Overall, the report offers a detailed overview of Tesla's business operations and strategies, providing valuable insights into its success in the electric vehicle and renewable energy industries.

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Tesla analysis
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Executive summary
Tesla is a leading company in the production of high quality electric-powered vehicles,
solar panels, and batteries, among other products. Tesla has a power production regime that
seems to outwit other related companies. Under this report, Tesla is analyzed based on two
perspectives, managing people, supply chain, and quality management. The management is done
with a deep expounding of the tesla management criterion. The company is also analyzed in
terms of raw materials acquisition and use, among other factors. Tesla has very many insights, as
discussed below.

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Contents
Executive summary.........................................................................................................................2
Tesla analysis...................................................................................................................................3
Tesla managing people in operation................................................................................................4
Global hierarchy..............................................................................................................................4
The global centralization.................................................................................................................5
Minimal regional divisions..............................................................................................................6
The Tesla motors supply chain........................................................................................................6
Raw materials..................................................................................................................................8
Sales and distribution.......................................................................................................................9
Tesla quality management...............................................................................................................9
Conclusion.....................................................................................................................................10

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Tesla analysis
Tesla Inc. company is a company in the United States of America. It is located in
California. It deals with the production of electric cars, solar panels, and batteries, among others.
The company has developed under empowerment if Elon musk. He is a focused CEO. Tesla has
an organizational structure that supports its growth. The company has some crucial sectors
which help the company in its value-adding operations. The company has quality management
systems. It also has sophisticated human resources. The company also has a chain of supply,
which is currently an indicator of its success. The Tesla company is known for its well-organized
activities, which are valued by its output. The inventions done by the company are peculiar, and
hence the company analysis can be portrayed as follows. Tesla company has its headquarters
located in California alongside the planned intermediaries. The company ownership is founded
by Tesla musk, who was born in 1972 at Pretoria South Africa. Tesla is known as a focused
businessman who became a millionaire after selling one of his first companies to a division of
Compaq computers. After selling the zip2 company, Elon musk proceeded to make an online
financial company known as X.com, which is currently known as PayPal company. Elon is an
innovative and critical thinker entrepreneur. Out of his financial position and critical thinking
capability, he managed to establish Tesla. This company is now threatening to lead the
production market in terms of technology and production rate. The following analysis of Tesla is

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based on two perspectives, which are management people in operation and supply chain. And
secondly, managing quality.
Tesla managing people in the operation
Tesla is led by the CEO, who is the Elon Musk. Leads over a flat managerial structure
with 29 officers reporting to him. Tesla has adopted the best management structure. The
company has a large production team that is based on its top technology. The company has
embraced a specialization kindly of operation where workers have improved experience in their
goods of the undertaking.
Tesla has taken two forms of management. It was initially a virtual organization structure. The
company has had the following structure. The organization has had three levels of the
organization. The organization levels were global hierarchy, global centralization, minimal
regional divisions. Tesla has a functional organizational structure. It has had the organizational
Global hierarchy
The essential characteristic of Tesla's construction is the global hierarchy. It involves
teams or offices that oversee the domestic and international operations. The systems ensure there
is a strict operational structure that has op ranking officer who is the chief executive officer. The
chief executive officer gives the first had orders which must be followed by all the offers under
him. The chief executive officers typically make new Innovative formulas of production, and
hence he can make any decision without consulting the lower rank officers. The company
chairman or chief executive officer has to involve the more inferior rank officers for effective
implementation of the changes. The company has to ensure all departments are aware of the
amendments and, therefore, should work to achieve the amended objectives.

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The immediate officer after the CEO is the chief financial officer. CEO before making any
decision, he has to consider the financial reports and cash inflows of the company. The chief
technology officer precedes the chief financial officer. The chief technology officer is in charge
of all the technological mater and innovations to be implemented in the system. The company
has a vice president who is in charge of vehicle engineering. There is also a vice president in
charge of power train operation. The vice president both American sales. Chief designer, the vice
president manufacturing, vice president in charge of Autopilot hardware engineering, vice
president worldwide services and deliveries, and general counsel. The vehicle engineering
company deals with the production of vehicle parts and assembling. The manufacturing and
assembling are done under a compelling technology. Which is ensuring there is reliable stock in
the market all the time. The global hierarchy is the system that has to provide the most critical
management system of the company. The company deals appropriately with the available
resources, and the management team usually is overseeing a massive number of employees who
serve to their best to achieve the company's objectives. The system has helped the company to
work under a dictatorship kind of platform. However, it is now turning to an extended network of
operations. The company has its sales representative officers, a vice president who is responsible
for the sales management at the top parts of the united states.
The global centralization
Tesla company uses this kind of organizational structure to control the entire organization
through decisions that the central group generates. It means that all decisions and views of all
members are highly valued in the company, and hence they are appropriately put into practice for
better performance of the company. Tesla headquarters makes most of the decisions typically,
and therefore it may not consider its overseas offices. The global centralization usually ensures

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all the offices abroad send their information to the headquarters. The headquarters of the
company is the central processing units of all the activities. And hence all decisions had to pass
through the office.
Minimal regional divisions
The minimum local division focus on the extent of divisions in the Tesla automotive
business. The divisions are used when implementing strategy and marketing campaigns. And it
also organizes financial records and reports. The following divisions are used by the Tesla
company to implement extended strategies and campaigns. They include the united states, China,
and Norway, among other centers. The company has millions of employees working under these
management system structures.
The Tesla motors supply chain
Despite the fast-growing speed of the production rate of the Tesla company, it is still the
smallest automotive company in the world. It means that the company does not enjoy my b of the
economies of scale. The company's supply chain management team decided to choose the supply
chain that they could call their own. The company has chosen to collaborate with most of the
experienced vehicle producer companies like Toyota, among other companies. The company has
established a system that would eliminate all the bridges between the producer and the consumer.
The tesla company has adopted a policy that has only two participants who are the producer and
the consumer. The company is dealing directly with customers.
Due to the challenges faced as the opposition’s are arising some from the United States of
America that Tesla should be closed down since it deals directly with the customers. However,
the system has minimal wastage of finances as there is no much cost of sales when eliminating

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brokers from the chain of supply. The company has ensured there no external beneficiaries who
make their product prices rise. The company, dealing directly with customers, is in a position to
get direct feedback from the customers and also the immediate implementation of the positive
feedback. Tesla has now shown its capability of enjoying economies of scale as they are going to
supply the mega number of goods to the consumers. The company has recorded significant
profits as all the benefits go to the company accounts without many overheads.
The company has decided to make a unique inventory management strategy. The new
policy is aimed at reducing the cost of inventory by keeping little or no interest. The company
has to reduce the supply chain inventory, keeping by selling directly to the customer. The
company ensures little or no inventory to reduce the costs of its products. The company has few
overheads, and hence it provides the benefit is shared between the company and the customers.
The company has also ensured no h warehousing. The storing inventory may mean that there are
delayed sales. The company has guaranteed no or fewer resources under store. It means that all
the funds should be on the use or under operation. The company, however, give the customers
an extended warranty by ensuring their cars have no oil residue and that it’s product is unique
The company has also chosen to be committed to products, even after-sales. The
commitments to its products have to make a great sacrifice with the company working hard to
ensure customers' satisfaction and the creation of the trust. The company has extended the car
warranty to 8 years. The company has also decided to establish several charging stations for its
customers to charge their cars for thirty minutes freely. The company has also allowed a three
year but back to the customers. The buyback period is creating a total trust for customers, and
hence there are more sales. The sales vice president has direct feedback from the customers, and
therefore they ensure there is customer satisfaction. The company has improved systems of

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production, which are believed to be two and half faster in production as compared with other
companies. Tesla company has ensured there is close supervision and improvement of its supply
chain under the horizontal or flat managerial system.
The company has been working and critically analyzing data. It has made the operation
and supply chain data a foundation. When the company data becomes the foundation, Tesla does
not drag down the legs to achieving the system. It has been ensuring before any data operation.
There are stipulated plans to ensure effectiveness in the production process. The company
component assignment under the bill of materials the company has been so Keen to ensure no
poor resource allocation. The second step sunder data is to produce actionable insights.
Actionable insights are made to provide innovation in production. The company has substantially
invested in the data, and hence no other company in the same field has ever spent in the
production data as it has. The final step has been completing the data loop. The data loop is
purposed to cover all the missing information, even if it requires manual analysis of the
information. After analyzing the production data, the company is now having the necessary
information on their fingertips. The company has systems of data analysis under technology vice
president. The data analysis is, therefore, analysis and the production resources tools are
implemented for production accuracy and convenience.
Raw materials
The supply chain has the origin of the products made under economical raw materials.
The car bodies are made of steel instead of aluminum. The steel has added advantage of the
lower cost of repair, the cost of repairing the steel is relatively small since it is cheaply available
in the local market. Tesla also uses rubber tires from the rubber tree. The rubber tree is readily
available and can be artificially planted. The lower chase of the vehicle is made up of the

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titanium to protect the car battery from injuries by external objects or forces. The company has
felt with all the challenges that seemed to threaten its performance. The company has identified a
super fast material source and us also seeking for more since the production is expected to
double annually. The company has a well-organized management team which is always updated
about the improved performance.
Sales and distribution
Tesla has a unique distribution strategy. Instead of locating their store in sparsely
populated areas, Tesla ensures its stores in densely populated areas. The stores are not much
concentrated on keep goods. However, they keep products for a short time due to high demand.
The company has more demand than its ability to supply. However, it is operating with much
effort to achieve its goal of being the fastest company. The company has its sales made directly
to the clients. It supplies goods to its direct clients hence reducing the cost of sales. Tesla has its
sales made online. Customers can buy and even check whether the products are available in the
store. Tesla can supply the required order within the shortest time possible. The company has
organized for fast supply of goods whenever the customer request. Tesla's marketing team
usually wins the customers through its ability to convince customers with powerful technology.
It was the first private company to send a powerful rocket in the space. Elon Musk has also
promised to launch around sixty satellites that will enable free internet to all the people.
Tesla quality management
For quality assurance, Tesla did not focus on making vehicles of low quality to compete
for mass production with its competitors. However, Tesla began by producing a sports car that
attracted the entire market. The built car was electric, and therefore the customers found more
advantages associated with it. Tesla locomotives are made of high quality, and consequently,

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they do not compete traditionally, but they do it in a modern and sophisticated way. Tesla is
focusing on the unique features of its products. The Tesla cars are electric-powered, and they,
therefore, do not require leaded or unleaded fuels such as petrol or diesel. Tesla has a quality
control plan that ensures all clients gets high quality products. The senior management officers
are responsible for ensuring only quality products are released from the company. The company
sources materials from trusted suppliers who only supply high quality raw materials. The
company has enhanced culture of impeccable customer service, decision-making fact base,
empowerment of workers, process improvement, efficient and timely delivery of services, and
products of high quality.
Tesla's quality control systems are susceptible to the operations that may result in
inadequate production, and the company culture has never advocated for insufficient quality
production. The company has ensured both customer and employee satisfaction by increasing
their hourly wages to motivate them. The company has a special appreciation for the devoted
workers. However, in case of challenges, the company has been reducing its high cost of
production. It is achieved by firing some of its experienced employees.
Conclusion
Tesla is a unique electronic car production company, among other products. It is known
for its unique ways of producing goods. The technology used by Tesla is quite impressive. The
company has a secret of selling direct to its clients without intermediaries. By using this
criterion, Tesla has been able to record a high profit margin as compared to other competing
companies.