A Comprehensive Risk Analysis and Mitigation Plan for Tesla Motors

This report provides a comprehensive analysis of Tesla Motors, focusing on its risk profile and mitigation strategies. The introduction outlines Tesla's business, mission, vision, and objectives, along with recent challenges in the automotive industry, including over-promising, workforce issues, competition, and current trends like information-sharing cars, eco-friendly vehicles, and automated driving. Part A delves into the company's aims and objectives, while Part B explores stakeholder views, differentiating between internal (CEO, shareholders) and external stakeholders (government, communities). Part C offers a stakeholder analysis of key groups such as users, governance, and influencers, highlighting their motivations and impact on Tesla's operations. The report emphasizes the importance of corporate social responsibility and its influence on stakeholder relationships, providing a holistic view of Tesla's business environment and the challenges it faces.

Risk Analysis And
Mitigation Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Introduction to Tesla motors........................................................................................................1
PART B............................................................................................................................................4
Stakeholders view of the Tesla motors........................................................................................4
PART C............................................................................................................................................5
Stakeholder analysis of four selected stakeholder group.............................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Risk analysis and mitigation plan refers to set plan that helps a company in creating
numerous options and actions for the purpose of enhancing the future opportunities of business
and reduction of all the risks and threats of the project. Tesla motors is an American company
which was founded in the year 2003. it manufactures electric vehicles and battery products and
sales them in all over the world. The present study shows a brief analysis of overall business of
the Tesla motors along with its vision, mission and objectives. It also shows a descriptive view of
the stakeholders of the Tesla. In addition, the assignment also provides an analysis of four major
stakeholders of the company along with their behaviour and motives towards the business.
PART A
Introduction to Tesla motors
Tesla motors is a manufacturing concern that manufactures electric and battery products.
The company was formed for the purpose of developing electric sports cars (TESLA MOTORS.
2016). The company has two major segments i.e. automotive segment that concerns with
designing and producing electric vehicles. On the other hand, other segment i.e. energy
generation and storage segment of the company concerns with developing various energy storage
equipment for using in home and commercial purpose.
Aims of Tesla Motors
 To gain leadership in the market as a multinational automotive business.
 To design and launch the most attractive cars by using the latest technology.
 To achieve a leading position in the global automotive market.
Objectives of Tesla
 To generate and accelerate the demand of electric vehicles in market.
 To build brand equity and achieving higher positioning in the market as well.
 To create loyalty among the customers and sustain them with company for long term.
Mission and vision of Tesla
Tesla motor's mission statement “ To push up the demand of automotive products in the
market and gain a dominating positioning in all over the world.”
further, the vision statement of Tesla motors is “ To design and manufacture the most
attractive and unique cars by approaching the latest technology in the world”
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In this regard, it can be analysed that the Tesla motors is one of the strongest company in
the automotive industry (Seidel Loch and Chahil, 2015). The main objective of the company is to
gain the higher positioning in the competitive market. Further, the company building a strong
brand image and earn maximum profit from the company is also one of the major objective of
the company.
Moreover, the company has been formed with an aim to enhance the number of electric
vehicles in the whole global market and provide vehicles containing a range of the latest
technology.
Recent challenges
Although, with the effective processing of the business activities and developing effective
strategies as to achieve its set goals and objectives, company is performing in an effective
manner. In addition to it, company also needs to face numerous challenges in the competitive
market. The Major challenges faced by Tesla motors are as under:
 Tesla motors have a habit to over-promise to its customers regarding its products and
services. Therefore, it becomes a huge challenges for the company to fulfill those
promises.
 Some workers claimed that they have been violated and threatened within the premises
of company. Protecting workforce is the primary objective of each business organisation.
In this regard, solving this problem of employee and eliminate discrimination among
employees was also a major challenge for the business (Tesla faces five big challenges.
2016).
 Further, for the purpose of achieving its objectives of designing the latest technological
equipment, the company needs a range of skilled workers within its business operations.
Therefore, it was also a major challenge for the company.
 Tesla motors have a range of big competitors in the automotive industry. These
companies have ability to launch more electric products by using range of the latest
technologies. Therefore, competing with these companies are also a huge challenge for it
as it requires a range of technological capabilities of the company.
Current trends of automotive industry
In the automotive industry, following is the list of current trends:
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 Information sharing cars: Vehicles having a feature of taking details about speed, mode
of driving, weather, etc. and to be driven automatically as per the details entered can be
seen as the latest trend of this industry (MacNeill and Chanaron, 2015). These can be
seen as the basic model of future vehicles that would be able to communicate with each
other and would be driven automatically without any manual support.
 Eco friendly cars: Further, due to increase in understanding and sensibility about
environment, vehicles with eco friendly system are also in trend.
 Electric vehicles: Moreover, electric cars are also trend in the current time. Due to
drastic increase in the prices of petrol and diesels, these vehicles are considered as more
economical. Further, as owners of these vehicles do not need to expend much on the
energy consumption i.e. petrol, diesel, etc., these are more preferable in all over the
world. In this regard, electric vehicles are also included in the list of the latest trend in the
automotive industry (Khan and Kushler, 2018).
 Vehicles with safety features: Due to drastic increase in the traffic, number of accidents
have also been enhanced. For the prevention of accidental risk, Tesla motors has
designed electric vehicles with a range of safety features. These vehicles are preferred by
the customers at most. In this order, these are also in trend in the current market.
 Automated driving: Vehicles with automated driving feature are also one of the major
current trends. This can be seen as the future of automotive industry. These vehicles have
connection with the technological intelligence through which it becomes able to sense
various elements. The sensation feature of these cars leads in enhancing the efficiency of
the product in working automatically.
In this regard, it can be evaluated that, being a part of the most competitive industry, the
Tesla motors is needed to face a range of challenges while performing various business activities
and developing the capabilities of the business in achieving its major objectives and goals.
Further, there are various trends that are currently most preferable by the customers.
Tesla motors analyses and evaluate each of the current trends of the market and produce its new
products accordingly (Moritz and et.al., 2015). It helps the company in becoming more able to
achieve its business goals of selling maximum number of products and become a leader of the
overall automotive industry in the whole world.
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PART B
Stakeholders view of the Tesla motors
Tesla adopts corporate social responsibilities for fulfilling its objectives and
responsibilities towards the society and environment (Jazouli and Mitchell, 2017). Further, with
the help of these policies company also become able to attract the maximum number of
stakeholders towards it and build positive response towards its as well.
Tesla motors have a range of stakeholders with it. These stakeholders can be divided into
two major groups i.e. internal groups of stakeholders and external stakeholders. Each of these
groups of stakeholders contains there interest with the business of company. These stakeholders
of the Tesla group can be analysed as under:
Internal stakeholders
 CEO: Elon Musk is the CEO of the Tesla motors. CEO is the major stakeholder of the
business who concerns with leading the whole organisation and developing effective
plans for the company for the purpose of enhancing the efficiency of the overall business
organisation. They help the company in preparing effective policies for fulfillment of the
corporate social responsibilities of the company.
 Shareholders: Being a public company, Tesla motors have a range of shareholders that
have invested their funds into the company as to help it in smooth functioning of each
business activities without facing any insufficiency of funds. In this regard, these
stakeholders needs to analyze the company's performance as it would help them in
detecting the areas where their funds are being used by the Tesla.
External stakeholders
 Government: Tesla motors have a great influence of the government. They have ability
to limit the requirements and opportunities of the company by developing new strategies
and plans. These have interest in the business organisation as to get assurance about
compliance of each legal requirements and standards by the firm. Further, these
stakeholders also have interest in the growth of company as it would result in providing
more tax and duties fee to the government and enhance its earnings as well.
 Communities: Communities are those group of stakeholders that enhances the brand
image of the Tesla by providing positive response towards the company's products. These
stakeholders are concern with not only effectiveness of the product but also perceptive of
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the business towards the society and environment (Karamitsios, 2018). Further, there
interest towards the Tesla also gets affected through business operations and activities of
the company in order to protect the nature and environment.
In this regard, it can be analysed that there Tesla motors is surrounded by a range of
stakeholders. The company effectively attracts these stakeholders and maintain satisfies their
interest by through adoption of policies regarding corporate social responsibilities and successful
implementation of those policies as well.
PART C
Stakeholder analysis of four selected stakeholder group
Tesla is the leading company in the automotive industry. There are numerous
stakeholders of the company like employees, customers, communities, government, lenders,
investors, shareholder, etc. that have interest in its business operations (Seidel, Loch and Chahil,
2015). Adoption of effective policies in context with the corporate social responsibilities and
their effective implementation helps the company in providing satisfactory results to its
stakeholders.
Tesla motors has adopted corporate social responsibility. It has developed a range of
strategies and plans as to fulfill its social responsibility. Tesla motor has become able to attract a
range of stakeholders towards it through its plans towards corporate social responsibilities.
View of its key stakeholders can be analysed as under:
 Users: This category of stakeholders includes those group of stakeholders that uses
various information of the company like its financial performance, efficiency of working,
brand image, etc. these stakeholders keeps connected with the internal working and
performance of various functions of the company (Stringham, Miller and Clark, 2015).
Customers, employees etc. are some stakeholders that covers in the list of users of the
Tesla motors. They helps the Tesla motors in achieving its objectives of achieving a
leading positioning in the market and enhance the demand of its products as well.
 Governance: CEO, board of directors, etc are some stakeholders of the company that are
concerned with Governance category of the stakeholders. There key motive towards the
company of to enhance its efficiency and enhance its ability as to achieve its set
objectives and goals. These helps the Tesla by developing effective strategies and plans
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as to enhance the capabilities of the company and make the company in achieving its set
goals.
Governance stakeholders are the major part of a company as they are the key persons of the
company that enhances the sustainability of the company. This group of stakeholders can also
include owners, executive managers, community members, etc. These are the major reason
behind existence of the company (MacNeill and Chanaron, 2015). These stakeholders can be
sustained with the Tesla motors by enhancing the effectiveness of corporate social
responsibilities and reduce harming the natural environmental factors. Further, they can also
maintain them by showing them its effective market positioning.
 Influencers: influencers includes those type of stakeholders that contains an ability to
change the whole management, directions, and process of working of the Tesla motors.
There behaviour depends upon the quality of working and compliance of regulations and
standards applicable to the company. Further, positive response of these stakeholders can
lead in helping the company as to achieve its set goals and objectives. These are
considered as the key stakeholders of the company as their reviews towards the company
have a great ability to influence the brand equity of the firm in the competitive market.
Therefore, these stakeholders are known as the influencers.
Customers are the major source revenue of the Tesla. In this regard, these are taken in the list of
priority of influencers by the company. The company needs to perform its functions as per the
needs and requirement of them (Chen and Perez, 2018). As non fulfillment of their requirement
may lead in reducing the sales volume and profitability of the company. It would also lead in non
achievement of its set goals and objectives of gaining a leading position in the global market.
 Providers: As the name says it all, this category of stakeholders includes those who
provides various resources to it. Suppliers, shareholders, investors, creditors, lenders,
vendors etc. are covered under this category (Mangram, 2018). Further, business partners,
collaborating companies, etc. can also be covered under this category of the stakeholders.
There behaviour towards the company gets influenced by the performance of the
company and its financial capabilities as well. As the company's performance influences
the risk involved with the company in providing resources to the company.
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Managers are those that are concerned with developing effective strategies and procedure as to
help the company in achieving its business goals and objectives (Maynard, 2015). they are
covered under the list of providers as they provides their professional services for managing
various activities of the customers. They have interest in the performance of Tesla motors their
managerial functions depends upon the actual performance and functioning of the overall
company's business . Further, these stakeholders also helps the company in implementation of
each plans of the CEO in context with the CSR in the company. Employees can also treated as
providers of the company as they provide their services to the company as per their skills and
knowledge and help it in achieving its goals. are the major stakeholders of the Tesla as these are
the essential requirement of the company as to complete each performance in an effective way
(Karamitsios, 2018). These are the major factor of the business as to achieve its set goals and
responsibilities.
The major reason behind categorizing the stakeholders is to analyze the motive and
interest of each stakeholders of the business. Further, categorizing stakeholders also helps in
determining the need of stakeholders so that Tesla motors can become able to provide
appropriate information about the company as per the need of budget and enhance the attraction
of the company.
CONCLUSION
From the analysis of above case study of the Tesla motors, it can be concluded that it is
one of the most leading company in the automotive industry. The company has set a range of
aims, objectives, vision and mission with the help of which it would be able to achieve a
sustainable position in the market. Further, the study has also concluded that the business needs
to company needs to face numerous challenges while performing its business activities and also
needs to consider each current trend of the market for the purpose of maintaining the customer
loyalty. Moreover, there are various stakeholders, the company has to perform its business
activities for satisfying motives of the stakeholders as to maintain positive reviews towards the
company and sustain them with the business as well.
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REFERENCES
Books and Journals
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ascending arousal, autonomic, and motor systems by high spatial resolution 7-Tesla
fMRI. Magnetic Resonance Materials in Physics, Biology and Medicine. 29(3). pp.451-
462.
Chen, Y. and Perez, Y., 2018. Business model design: lessons learned from Tesla Motors.
In Towards a Sustainable Economy (pp. 53-69). Springer, Cham.
Jazouli, A. and Mitchell, B., 2017. THE RISE OF COMPLEXITY DUE TO STAKEHOLDERS
STRUCTURE ALONG THE LIFECYCLE IN PROJECT MANAGEMENT
ORGANIZATIONS. In Proceedings of the International Annual Conference of the
American Society for Engineering Management. (pp. 1-11). American Society for
Engineering Management (ASEM).
Karamitsios, A., 2018. Open innovation in EVs: A case study of Tesla Motors.
Khan, S. A. and Kushler, M., 2018, June. Plug-in electric vehicles: Challenges and opportunities.
American Council for an Energy-Efficient Economy.
MacNeill, S. and Chanaron, J. J, 2015. Trends and drivers of change in the European automotive
industry:(I) mapping the current situation. International journal of automotive technology
and management. 5(1). pp.83-106.
Mangram, M. E., 2018. The globalization of Tesla Motors: a strategic marketing plan
analysis. Journal of Strategic Marketing. 20(4). pp.289-312.
Maynard, A. D., 2015. Navigating the fourth industrial revolution. Nature
nanotechnology. 10(12). p.1005.
Moritz, M. and et.al., 2015, August. Tesla Motors, Inc.: Pioneer towards a new strategic
approach in the automobile industry along the open source movement?. In 2015 Portland
International Conference On Management Of Engineering And Technology (picmet) (pp.
85-92). IEEE.
Seidel, M., Loch, C. H. and Chahil, S., 2015. Quo vadis, automotive industry? A vision of
possible industry transformations. European Management Journal. 23(4). pp.439-449.
Stolze, E. D., 2014. A Billion Dollar Franchise Fee-Tesla Motors' Battle for Direct Sales: State
Dealer Franchise Law and Politics. Franchise LJ. 34. p.293.
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Stringham, E. P., Miller, J. K. and Clark, J. R., 2015. Overcoming barriers to entry in an
established industry: Tesla Motors. California Management Review. 57(4). pp.85-103.
Online
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<https://teslamotorsdeca.weebly.com/primary.html>
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<https://www.usatoday.com/story/money/cars/2016/04/10/tesla-faces-five-big-
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