Operations and Management Report: Tesla Company Analysis and Strategy

This report provides a comprehensive analysis of Tesla's operations and management strategies. It begins with an overview of the Tesla organization, highlighting its key activities and its position in the automotive and energy sectors. The report then delves into the value chain design, examining primary activities such as inbound and outbound logistics, operations, and marketing and sales. It explores the advantages of value chain analysis and identifies challenges faced by Tesla, including issues with fulfillment, employee management, and operational inefficiencies. The report also applies Hill's strategy development framework to assess Tesla's operations strategy and proposes recommendations for improvement. The analysis covers the scope of business performance measurement and suggests ways to enhance Tesla's operational efficiency and customer satisfaction. The report also provides valuable insights into the company's marketing and sales strategies, emphasizing the need for improved brand awareness and customer engagement. Finally, it assesses the implications of the analysis and suggests how to improve the company's business performance.

Running head: OPERATION MANAGEMENT
OPERATION MANAGEMENT- Telsa Company
Name of the Student
Name of the University
Author Note

Table of Contents
About the Tesla Organization..........................................................................................................3
Value chain design for organization................................................................................................4
Primary activities associated with Tesla......................................................................................4
Operations associated with Tesla.................................................................................................4
Outbound logistic associated with Tesla.....................................................................................5
Tesla marketing and sales............................................................................................................5
Advantages offered with value chain analysis.............................................................................6
Challenges faced with the Tesla operations strategy.......................................................................7
Hill’s Strategy development framework..........................................................................................8
Scope of business performance measurement...............................................................................10
References......................................................................................................................................11

About the Tesla Organization
The aim of the paper is to design and operation and management report that will focus on
identifying the key operations that are carried within the selected Tesla Company. The
assignment will focus on explaining the key activities that are associated with the company and
will focus on recommending an improved business operation that will be capable of meeting the
needs of the customers. With the help of recommended the business operation it is expected that
the overall profit margin for the organization will also increase. The report will focus on
critically examining the importance of value chain design and the way it can improve the
performance of the organization. Lastly with the help of a recommendation it will become easy
to identify the impact that will be created on within the organization.
Tesla is an automotive a producer. This is an American electric vehicle and energy
service company. The main function of the organization is to manufacture electric vehicle,
battery energy storage from home to grid scale and also provide the acquisition for solar city and
the solar panel. Tesla has become one of the biggest automotive industries in the world. This was
found in early 2003. Tesla has grown its branches widely and currently operates in every
country. The organization focuses on producing huge number of automotive services for the
purpose of providing better future towards the customers (Teece, 2018). The main technologies
that are manufactured by Tesla are batteries, motors, artificial intelligence, glasses and sensors.
In the year 2020 tesla has modeled around four new cars that are model S, model 3, model X and
model why cars. Tesla is focusing on selling the cars and is gaining huge profit from the cars.
Apart from these Tesla also sells power wall, mega pack batteries, power pack and some related
products. Hence it can be stated that, Tesla has gained huge market value and is capable of

managing the business performance. Tesla focuses on developing better results for the purpose of
meeting the needs of the customers. However it has been observed that the organization does not
have proper advertising media for creating brand awareness. This impacts the business
performance.
Value chain design for organization
Value chain analysis for Tesla plays a crucial role as this provides an analytical
framework. This offers better way of assisting and identifying the key business activities that
helps in gaining better advantage in the electric automaker (Ponte & Sturgeon, 2014).
Primary activities associated with Tesla
The organization significant approach is for managing the inbound logistics. With the
help of this approach it becomes easy to enhance the efficiency of the organization. Tesla
Inbound logistics: This involves managing the receipt and storage associated with the raw
materials. These materials are further used for the purpose of building electric vehicles, solar
panels and energy storage. Beside this, Tesla also focuses on using scarce amount materials for
the purpose of developing the products efficiently. This typically includes cobalt, nickel, lithium
and copper. However it can be stated that the organization does not have any sophisticated
inbound logic practices at present (Miletić, et al., 2015). In order to enhance the business
performance, it is important for Tesla to implement long term strategic relationship with the key
suppliers so that it becomes easy to manage the performance.
Operations associated with Tesla
Tesla operates from northern California that offers automated features with computerized
robots. The engineers associated with the organization are employed in such a way that it can

offer better functional design and durability requirements towards the products. It can be stated
that with an efficient budget and frame it becomes easy to develop a proper quality level within
the organization. The key operations associated with Tesla are divided into two different
segments that are automotive and energy generation and storage. The automotive segment
focuses on designing, developing, sales and manufacturing of the electric vehicles. On the other
hand energy generation and storage segment focuses on installing and managing the solar energy
systems for the customers (Carlson, 2015). The organization has integrated the robots within the
manufacturing process so that it becomes easy to achieve the target of the business.
Outbound logistic associated with Tesla
The outbound logistic of Tesla involves distribution of the products and managing the
storage system associated with the company. This also involves managing the warehouse
associated with the business. Majority of the customers aims at selecting customized services for
ordering products. It has been observed that the organization does not want to focus on investing
on traditional marketing all on add company. They focus on selling the products on online
platform. The firm has achieved a huge network; however it does not have proper brand
awareness (Love et al., 2014). There is a need to implement proper measures that will be capable
of attracting customers on a huge basis. Tesla focuses on providing cars and other vehicles
through their online stores. They also offer loans for vehicles in North America, Asia and
Europe.
Tesla marketing and sales
Tesla marketing and sales practices do not focuses on conventional method and this
hampers the business performance. The organization lacks attracting extensive media coverage
and this can lead to decrease in awareness in the global scale. It becomes essential for the

organization to focus on managing sales through the use of proper advertisement. In order to
enhance the sales and the marketing department it is important for the organization to select an
appropriate channel. This includes selecting celebrities for the purpose of influencing the
products associated with the Tesla. Apart from these in order to gain better market value the
organization focuses on displaying and demonstrating the products in several events. It can be
stated that with the help of proper strategy it becomes easy to gain customers attention (Thelken
& de Jong, 2017). Presently it has been observed that the marketing strategy of tesla focuses
entirely on media coverage, word of mouth and industry trade shoes for promoting their brand
value.
Advantages offered with value chain analysis
There are several benefits that are likely to be offered with the use of value chain analysis in
the Tesla Company. This are discussed below:
 With the use of value chain analysis it becomes easy to ensure that all the activities are
managed efficiently so that it becomes easy to achieve better costs.
 The value chain analysis will provide proper insight for the purpose of gaining better
competitive edge and will also help in boosting the profit ratio. It is important for the
company to increase the overall profit with the use of efficient value chain.

Challenges faced with the Tesla operations strategy
Tesla is considered as one of the most efficient automotive industry that offers huge
facility towards the customers. These have all the essential characteristics for becoming the best
among the world. However it has been observed that the organization is having certain issues in
order to fulfill the needs of the customers (Lim, Yeap & Low, 2014). The major issues that are
seized with the organization are discussed below:
Issues with the full feeling needs
The organization does not offer this service for the purpose of managing the orders. It has
been observed that that Tesla has over promise that things towards their customers. However
they do not have provided any proper service towards the customers. The major issues are that
Tesla does not focus on keeping their words and this is hampering the productivity ratio.
Tesla does not have a better management:
Tesla does not provide a better service to words the employs. It has been observed that
the employees are being exposed to violence, and racist comments. This has impacted their
workforce performance and also led to hampering the overall profit (Fjeldstad & Snow, 2018).
Thus in order to become one of the most efficient organizations in the market it is important to
have proper control and proper support towards the workforce.
Lack of proper processing
Tesla does not have any proper way of managing their expectations and services. Thus it
becomes very difficult to provide proper services towards the customers. Moreover it has been

observed that due to improper management strategy it becomes very difficult for the organization
to meet the key objectives associated (Brettel et al., 2014).
The organization needs to implement advanced technology so that it can enhance the
business performance. In addition to this it is also equally important for Tesla to implement
proper marketing strategy that will be capable of attracting better customer base. It is expected
that with the use of industry 4.0 advance technology development it will become easy for the
organization to mitigate the challenges (Kuang et al., 2018). In addition to this every technology
must be implemented with proper flow that the overall performance can be enhanced. The new
technology needs to enhance the business performance and the issues that are faced with the
employs. With an advance the technology it is expected that the services offered will also
enhance and this will also be capable of innovating new technologies in future. Does in order to
become one of the best organizing companies in future it is important to have advanced
technology incorporated.
Hill’s Strategy development framework
Hill’s strategy development framework is discussed in this section so that it becomes
easy to managing the operations. This framework focuses entirely on managing the objectives,
managing the marketing strategy, enhancing the operations strategy within the company. This
focuses on establishing the way operations are associated with an organization (Kenney &
O'Mahony, 2015). There is a need to design better services that will be capable of meeting the
better competitive advantages. Tesla needs to have proper strategy development so that it
becomes easy to enhance the overall operation.

Operation strategy is referred to the way data needs to be managed within the Tesla
organization. There is a need to manage the overall operations so that it becomes easy to enhance
the business performance. The company focuses on making discussion that are associated with
market and intended to attract more customers. However that Tesla does not have any proper link
up with the advertisement company. These hamper the brand awareness process. Operation
strategy mainly includes operational design of choice and infrastructure. Organization focuses on
carrying out all the functions through online process. However there is a lack of offline processes
and also the operation associated with the organization is weak. Thus there is a need to
implement proper operational management that will be capable of meeting the needs of the
organization.
Limitations
The key limitations that are associated with the organization are:
 Lack of appropriate management process
 Lack of brand awareness
 Improper services towards the customers
 Overflow me sing services
 Inefficient facilities provided towards the employees
Implications within Tesla
In order to enhance the business performance of tesla it is important to select appropriate
operation design that will be capable of providing better service. It is important to provide proper
inventory, supply chain integration and proper support towards the employees so that they can

provide their full efforts for meeting the business target. With the help of efficient staff and
better marketing strategy it is estimated that the business profit ratio will increase.
Scope of business performance measurement
As an OM manager it becomes very essential to identify the key issues that are
hampering the overall performance of the Tesla. The main objective is to design an efficient
approach that will be capable of meeting the needs of the customers. The performance needs to
be enhanced effectively so that it can achieve the overall profit margin in the market. The key
issue that is associated with the organizations is the lack of brand awareness among the
customers, lack of services in time, commitment issue, and problem with managing the
employees. These are the key issues that are needed to be managed within the system. The
system needs to implement proper monitoring facilities within the organization. In addition to
this, it is expected that with the use of proper technologies the performance can be enhanced
within the organization. It is important to ensure that proper services are offered towards the
customers and also they are managed with efficient services. The motive is to ensure that en
effective approach is maintained so that the overall service can be enhanced.

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