MBA501: Tesla Motors Stakeholder Analysis and Strategy Development

This report provides a comprehensive stakeholder analysis and strategy development plan for Tesla Motors Inc. It begins with an introduction to the company, including its vision, mission, recent developments, and industry trends. The report identifies key stakeholder groups, such as owners, managers, employees, suppliers, customers, investors, government, and the community, using a stakeholder view model. It then analyzes these stakeholders, focusing on employees, customers, communities, and shareholders, and recommends strategic programs, prioritizing corporate social responsibility (CSR). The report emphasizes enhancing business sustainability through community-based stakeholder support, investing in community programs, and maintaining good relations with customers through information sharing. The goal is to ensure Tesla's long-term growth, responsible profitability, and positive perception among stakeholders.

Running head: STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
Stakeholder Analysis and Strategy Development Report
Name of the Student
Name of the University
Author note

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Executive Summary
The operations, profitability and sustainability depend on the stakeholders who engage or
influence the company, so this stakeholder's analysis process is extremely important to enable the
company to develop its strategy to deal with its stakeholders. This objective was to review Tesla
Motors Inc's current stakeholders and their needs to recommend better strategic stakeholder
programs to the company. The report includes Tesla Motors Inc's organizations to examine their
positions on their players and to analyse the participants ' views on the model of their
stakeholders. Corporate Social Responsibility Strategy was found to be a priority as Tesla
Motors ' main stakeholder program.

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Table of Content
Introduction:....................................................................................................................................4
Introduction to Tesla Motors...........................................................................................................5
Stakeholder View of Tesla...............................................................................................................6
Stakeholder category identification and generic strategic programs:..............................................8
Recommended Strategic Program.................................................................................................11
Conclusion:....................................................................................................................................12
References:....................................................................................................................................14

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Introduction:
The word stakeholder of a company refers to all the associated employees in the company
who are either highly influential or highly interested in the business. Stakeholders are the pillars
of any firm on which any company can rely. Since the business process is dependent on the
stakeholders who participate or influence this stakeholder's analysis process, profitability and
sustainability are crucial in allowing the company to develop its strategy to address their players
(Caniato et al. 2014). The automotive industry needs different groups of stakeholders to run its
business like any other industry. The stakeholder analysis for selected company Tesla Motors
Inc. is carried out in this report.
The report will include Tesla Motors Inc. in its corporate background, examining its
opinions on its parties and analysing all of the players with regard to the stakeholder's vision
model, both internally and externally. Tesla will then analyse the strategic programs of its
stakeholders and recommend a better solution for efficient and strategic stakeholder
management. In order to recommend better strategic stakeholder programmes, Tesla Motors Inc's
current stakeholders and their needs are reviewed. Tesla Motors is able to increase its
stakeholder relations, CSR (Corporate Social Responsibility) business and brand name, as well
as its profitability through recommended programs for its stakeholders.

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Introduction to Tesla Motors
The American Car and Energy Company based in Palo Alto, California Tesla Motors.
Tesla Motors, along with other equipment related to BEVs, such as battery chargers and power
train technology, is a pioneer in designing, manufacturing and selling Electric Battery (EBV)
vehicles. The founding members Marc Tarpenning and Martin Eberhard created Tesla Motors in
San Carla, California in 2003. As soon as ElonMusk acquired a company with a $ 7.6 million
investment, TeslaMotors is entirely different to traditional automobile manufacturers, since their
cars have state-of- the-art highly integrated technology with a completely battery-based electric
car, which can produce 0 percent toxic emissions and efficiently deliver minimum energy
consumption (TeslaMotors.com, 2017).
Tesla Motors is located in Fremont, California, at its first production facility. This facilities were
purchased from the 370 acre Toyota Motors. In Tilburg, the company expanding its tentacles
opened the second assembly facility, capable of supplying its products throughout Europe
(TeslaMotors.com, 2017). Now the company is planning to launch its first Gigafactory that will
have the capacity to produce over 500,000 vehicles and enough battery packs that can meet the
demand of its electric cars per year by 2020 (Business Insider, 2017a). Tesla Motors relies on the
functional organizational structure in which its respective operating heads and vice-presidents
head the divisions of the firm. However, the management hierarchy is based on the other forms
of organizational structures. Also known as a centralized hierarchical structure, the functional
structure is able from the central point of all department heads to monitor the control and control
of the entire company (Bohnsack, Pinkse and Kolk 2014). Although Tesla Motors is the most
innovative company, it continues to struggle to enter the market with a view to changing the

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concept of external players by avoiding the use of conventional gasoline car and starting to use a
new fully electric vehicle. The market is however enormous and the product continues to grow.
Tesla Motors ' product life cycle is still in the initial growth stage but has passed through the
initial phase. The company has, however, reached a growth stage and is still not earning the
desired profit, which is an alarming situation for management of Tesla Motors. Tesla Motors
aims at manufacturing 500,000 cars each year within 2020 (Stringham, Miller and Clark 2015).
In that case, the company should take further steps with Stakeholder Management strategies and
result-oriented Stakeholder Handling Programs that can help in achieving the desired target.
Stakeholder View of Tesla
The Tesla Motors company is interested in different stakeholders both internally and externally.
Stakeholders directly and indirectly affect the business environment and operate the company.
This covers communities, clients, workers, investors and governments (Missonier and Loufrani-
Fedida 2014). The stakeholder groups of Tesla engines can be easily identified from the
following Stakeholder View Model.

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Tesla Motors Inc. OwnersEmployees
Managers
Suppliers
ShareholdersCustomers
Government Community
External Stakeholders
Internal Stakeholders
Primary Stakeholder Secondary Stakeholder Tertiary Stakeholder
Figure1: Stakeholder View Model of Tesla Motors
Source: (Created by author)
Hence, from the stakeholder view of the Tesla Motors it can be said that the major
stakeholder of Tesla Motors is:

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 Owners: Founders and core owners of Tesla Motors
 Managers: Management level members, how controls employees and operations
 Employees: All kinds of departmental staffs or workers
 Suppliers: Companies who supply the raw machinery to the manufacturing plant of Tesla
 Customers: Who makes the business successful by purchasing cars from Tesla
 Investors/Shareholders: Business partners who invest money in business and hold shares
from the total benefit
 Government: Governing authority or ruling body
 Community: Local, regional, national level community and social groups
Among the above stakeholders, the four major stakeholders are employees, Customers,
Community, and Shareholder; because these stakeholder groups cannot be controlled directly,
rather strategic programs are needed.
Stakeholder category identification and generic strategic programs:
The categories of stakeholders can be identified in a stakeholder matrix, which measures
the stakeholder participation through analysis of the stakeholder's power or influence on the
interest or dependency of the company and the stakeholder. For Tesla Motors, employees,
customers, communities and shareholders were chosen for four major stakeholder groups. To
reduce the damage caused to the company's performance (Lashley 2017). The interested parties '
theory suggests that organizations will survive longer, and perform better, than organizations that
neglect their relations with stakeholders. Consumers Tesla contacted the driver involved in the'
Model S' directly and the engineering team of Tesla was doing so.
General program for Communities

9STAKEHOLDER ANALYSIS AND STRATEGY DEVELOPMENT REPORT
Tesla Motors, Inc. is an automotive business, which is heavily influenced by
communities, because they actually designate corporate image. One of the main interests of the
communities as a significant stakeholder is protecting the environment. Tesla's electric cars
perfectly address such concerns, so we can see that communities are pretty satisfied with Tesla's
ecologically clean and zero-emission products. Further, Tesla tries to satisfy the interests of
communities in the use of advanced and new technologies by society. In 2014, for example, CEO
Elon Musk said Tesla would allow other parties and organizations to use company patents in
order to produce more and more products using the latest technology (Bohnsack, Pinkse and
Kolk 2014). This CSR Strategy complements Tesla's mission and vision, directly benefiting
communities interested in or looking for new tech or products.
General program for Investors/Shareholders
In the early years of Tesla, the stakeholder group such as Investor was highly dependent.
They are essential for the capitalization and cash flow of the company. Profitability and business
growth are the major concerns for investors and shareholders. Tesla's CSR attempts, using long-
term strategies to transform the car industry, to meet these needs (Taghian, D’Souza and
Polonsky 2015). For example, the decision to allow other Tesla patents to be used can increase
the amount of electricity-using brands and products, and can increase demand for these product,
which can help Tesla develop more and more, in line with the interests of investors.
General program for Employees
Tesla Motors identifies its employees as a key factor in making the company's CSR
strategy. The performance and productivity as a firm is directly affected by employees. This is
why it is essential for Tesla, which includes a competitive wage and the ability for professional

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growth, to address the concerns of its employees. Tesla seeks to meet these concerns with a
competitive compensation strategy and special HR programs that are designed to enhance the
professional skills of Tesla employees. Moreover, the CSR strategy of the company offers
special formation programmes, which enable employees to meet new challenges and broaden
their global perspectives and thus address employees ' interests as a stakeholder group, to the
partners of Tesla around the world.
General program for Customers
Customers are concerned about the revenue of Tesla and product quality and the price
level that is justified. To meet this demand company, the overall price of the finished product is
being reduced by the battery cost in the car. Therefore, Tesla tries to establish production of its
own batteries, rather than buy batteries from Panasonic, to make the car more affordable for
people (Stringham, Miller and Clark 2015). Furthermore, one of the company's main objectives
today is to extend the global network of charging stations, thus improving overall customer
satisfaction and service quality. As a stakeholder group, Tesla will therefore meet customer
concerns.
Recommended Strategic Program
As major stakeholder strategic program for Tesla Motors, corporate social responsibility
should be priorities. Tesla needs to enhance its business sustainability to ensure that the company
provides good community-based stakeholder support. The CSR could focus on some of the key
interests of the stakeholders in the automotive and energy solutions business. The strengthening
of relations with the community could also benefit from investing in community CSR corporate
citizenship and other parts of stakeholder management (Tarhini et al. 2015). As a case in point in

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the current situation, the company affects community stakeholders by investment in community-
based programs or social programs or charitable activities that will enable the community to
understand the nature, design and eco-friendliness of its electric vehicles and batteries and solar
panels.
As we pointed out before, Tesla's concerns regarding the ecological side of the company
address community interests. I can also help investors because if their image is positive, they can
grow and stay focused on new products or increase their quality so that they can sell more cars
and increase their profits in a stable manner, satisfying the investor and shareholder group. Tesla
has a social responsibility strategy based on the business format. Tesla's electronic vehicles, for
example, are often regarded as an antipode to traditional cars with combustion engines and can
affect the environment negatively. Tesla's The appropriate action taken by Tesla in this incident
was crucial to the company since its sales would be adversely affected without the correct
intervention by the potentially negative perception by the potential customers of Tesla and the
CRM of the company. According to Millon shareholders (2013)' Enlightened shareholder value'
(ESV) is' the idea that states corporations should pursue shareholder wealth with a long-term
focus on sustainable growth and responsible profitability.
In establishing good relations with customers, a proper Information Sharing Strategy is
essential for the firm in order to ensure the efforts made by Tesla Motors to make an affordable,
eco-friendly car with less carbon footprint are realized by all existing and potential customers.
Tesla, Inc. has significant opportunities, with its strong international brand, to show the world
what major globally operating companies could not do to bring happiness to every customer
segment and to achieve balanced price and utility production. The promotional strategy may also
be an excellent option when all the digital technologies such as social media promotion, mouth-

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word promotion, sponsorship and other strategies are considered. The Tesla Motors efforts can
meet customers ' interests as key stakeholders and broaden the path of potential profits in the
future.
Conclusion:
It can be said from the above discussion that since the operation, profitability and
sustainability depend on those involved in the analysis of this stakeholder and their impact on the
analysis process, it is very important that the business develops its strategy for managing its
stakeholder. The aim was to review Tesla Motors Inc's current stakeholders and their needs to
recommend better strategic stakeholder programs for the company. Based on the history of Tesla
Motors, Tesla Motors has been shown to still try to penetrate the market, to change the concept
of external players by preventing the use of a conventional petrol engine and by starting with the
use of a new fully-electric vehicle. It is found from the Tesla Motors stakeholder analysis that
Tesla Motors ' main stakeholders are owners, officers, employees, suppliers, clients, investors /
shareholders, government, and the community. Among the above stakeholders, the four major
stakeholders are employees, Customers, Community, and Shareholder
Tesla Motors ' current stakeholder strategies show that Tesla is trying to satisfy the
interests of communities in the use of new and advanced technology by society. On the other
hand, Tesla attempts to manufacture its own batteries to make the car more affordable to the
public. Tesla Motors enables the employees to meet new opportunities and broaden their world
view through special training programs, with Tesla's partners all over the world. In order to
ensure the good community-oriented stakeholder support the company, it has been found that

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corporate social responsibility as the key stakeholder strategic agenda for Tesla Motors should be
priority strategies. The promotional strategy may also meet the interests of clients as a major
player while broadening the path to potential future profitability.

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References:
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Bohnsack, R., Pinkse, J., and Kolk, A., 2014. Business models for sustainable technologies:
Exploring business model evolution in the case of electric vehicles. Research Policy, 43(2),
pp.284-300.
Business Insider. 2015. Tesla has 2 major problems, and they have nothing to do with its cars.
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stakeholder analysis to help evaluate infectious waste management: A step towards a holistic
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pass-them-all/articleshow/56280023.cms[Accessed 30 Apr. 2019].
Lashley, B.C., 2017. Communicating Community at Tesla Motors: Maintaining Corporate
Values in Blogging Communities (Doctoral dissertation, Virginia Tech).

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Missonier, S. and Loufrani-Fedida, S., 2014. Stakeholder analysis and engagement in projects:
From stakeholder relational perspective to stakeholder relational ontology. International Journal
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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.
Taghian, M., D’Souza, C. and Polonsky, M., 2015. A stakeholder approach to corporate social
responsibility, reputation and business performance. Social Responsibility Journal, 11(2),
pp.340-363.
Tarhini, A., Ammar, H., Tarhini, T. and Masa’deh, R.E., 2015. Analysis of the critical success
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