Stakeholder Management Analysis and Solutions for Tesla Motors

This report examines the financial problems facing Tesla Motors, focusing on stakeholder management. It identifies key stakeholders (customers, suppliers, investors, and government) and the gaps between them and the company. The report proposes solutions for organizational success, including measuring performance, communicating effectively with stakeholders, managing risks, improving quality, and enhancing financial performance. It also explores strategies for improving customer and employee relations, and for retaining investors and satisfying government interests. Finally, the report provides specific strategies for engaging each stakeholder group, aiming for long-term organizational success and financial stability.

Running head: ORGANISATIONAL STAKEHOLDER MANAGEMENT
Organisational Stakeholder Management
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EXECUTIVE SUMMARY
The primary aim of this paper is to analyse the financial problem that exists in the working
structure of Tesla Motors. In this connection, the report concentrates on examining the
significant stakeholders and the gaps that lie between the stakeholders and the company
concerning its activities and working plans and procedures. Moreover, the study also analyzes
the critical solutions that would help the company to gain effective organisational success in
the business environment of the automotive industry. Finally, the study concludes with
investigating the strategies that the concerned company under discussion can undertake for
retaining its potential stakeholders in the long term.

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Table of Contents
Introduction................................................................................................................................3
Stakeholder and Gaps.................................................................................................................3
Key Solutions to Organisational Success...................................................................................4
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
Tesla Motor Industry is recognised as an American automotive industry that deals
with the manufacturing of electric cars through the power of its solar city subsidiaries
(Nieuwenhuis 2018). The company under discussion is known to be debuted in the year of
July 2003. The company had been renowned for growing at a robust paradigm in the initial of
its existence. However, the same is recognised to have been suffering from a financial
problem in the recent dates (Hess and Andiola 2017). In this connection, the given report
concentrates on analysing the gap that exists between the company and its stakeholders and
the issues behind the difference. Thus, the report suggests the key steps that would leverage
success to the concerned organisation.
Stakeholder and Gaps
As stated by Rong et al. (2017), the major stakeholders of the Tesla Motors Inc. are
recorded as its customers, suppliers, investors as well as the government. These stakeholders
connected to Tesla Inc., profoundly influences the internal and the external working structure
of the same. This is because the stakeholders affect the demand as well as the supply of the
goods and services offered by the concerned motor parts company. However, it was also
examined that several gaps lie between the stakeholders and the company under discussion
(Hoang and Rothaermel 2016). Concerning the customers, it was examined that their demand
to purchase an eco-friendly car lacks behind with concern to Tesla Motors. This is because
the same would cost a high amount of investment to the company, and the company wants
the same at a reasonable cost. Concerning the employees, the gap exists in the conditions of
safety and security while working with the types of machinery living in the company. As
recorded in the studies, it was examined that the Die Casting machine used in the
manufacturing unit caused to injuries of 3 workers (Sharma 2016). Therefore, the company

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should be focused on providing training to the employees with the usage of the machines and
make sure that they are safe while working in the company. Concerning the investors, the
existing gap was recognised as the profitability of Tesla Inc. The investors were recorded to
make considerable investments in the company, but the company failed to make any
significant amount of profit out of the same. Concerning the governments as the stakeholders,
the gap that existed was of the satisfaction of the interest of the government due to the lack of
the legitimate consistency of the company.
Key Solutions to Organisational Success
As stated by Baker (2016), the success of an organisation depends on the evaluation
and success of its performance and the competency level the firm has gained in the business
market as compared to its potential customers. In this connection, the given report tends to
examine the possible critical solutions that would influence the organisational success of
Tesla Motors Inc. The same are specified as below.
Measuring and managing the organisational performance
As critically described by Steiss (2019), the maintenance as well as measuring the
performance level of any business entity plays a vital part in the monitoring and ensuring that
the firm can meet its desired and prescribed goals and targets on a timely basis or not. In
concern to this ideology, the Tesla Motor Inc. can impose several techniques and
measurement plans in order to keep track of the performance level of the company that is
specifically based on its productivity. Take, for example; the company is to measure its
manufacturing performance as per the number of cars the same is able to furnish in one day.
Also considering another instance of the customer service department, the performance of the
company can be evaluated based on the inquiries that were resolved, the number of emails
sent by the customers that are answered adequately and the number of complaints handled in

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a recognisable manner. Tesla Inc. can also establish the use of KPI's in order to monitor its
production as well as the inventory (Zhang, Pei and Vasarhelyi 2017). The same would also
help the concerned automotive industry to assess the paradigm of the achievement of goals in
a predetermined duration.
Figure 1: Determining the development of KPI
Communicating Performance to the Key Stakeholders
As mentioned earlier in the report that the critical stakeholders of Tesla Inc. are
recognised as the employees, customers, investors and the government. In this connection,
the report tends to suggest that in order to achieve a better paradigm in the success of the
firm, Tesla Motors should remain focused on communicating their performance level and
activities to the potential stakeholders. Specifically, the communication of the performance
does not alone means to disclose the financial report of the firm, but also the revealing of the
information regarding the vision and mission of the company, the strategic plans and

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implementations as well as the targets, milestones and the critical issues related to the
working procedure of the company (Engert and Baumgartner 2016). This is because the more
critical the transparency between the company and its stakeholders, the best would be the
level of success of the same. The same can be effectively achieved by means of publishing
the annual report on the websites of the company concerning the vital factors of the
significant financial data, the strengths and the values of the company, the risk factors, the
products and services the company offers and the network channel the company deals with
along with the technological modifications. The company can manage its blogs and official
pages in the field of social media that includes the platform of Facebook, LinkedIn as well as
Twitter that would help the stakeholders connected to the Tesla Company remain abreast
about the latest developments and achievements done in the same (Talwar et al. 2017).
Risk Management
As opined by Waddock and Bodwell (2017), managing the risks associated with a
business firm includes the process of recognising, evaluating and finding a way to control the
same. In this connection, the Tesla Motors Inc. can utilise its managerial resources in order to
decrease as well as the future risks that may come up in the business procedure of the same.
The concerned automotive industry should proactively identify the potentialities of risk
factors that the company can face from both its internal as well as external environment.
Take, for example; the risks may include the launch of the new products, the ineffectiveness
to meet the increasing demand as well as the failure to complete the Gigafactory on time; all
these risks may affect the working of the concerned automotive industry. Thus, the company
should focus on building the various risk mitigating plans beforehand and implement the
same whenever needed.

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Figure 2: Determining Risk Management criteria at Tesla Motors
Management and Improvement in the Quality
As opined by Zeng, Phan and Matsui (2015), managing the quality and fostering
continuous improvement in the manufacturing firms is a crucial part of the same. Thus, the
concerned automotive industry of Tesla Motors Inc. should concentrate on their quality
management concerning the value and usability of the products and services the same offers
to its users. The quality management should include the pricing strategies, the standard of the
product and the same leveraging to the satisfaction of the subjective criteria of the end
customers. The best way to manage the manufacturing process for Tesla Motors is the LEAN
approach (Synnes and Welo 2016). The same means to decrease the amount of waste during
the method of manufacturing the products connected to Tesla Motors and that too without
compromising in the quality of the productivity. Moreover, the philosophy of Just-In-Time
model can be used to enhance the efficiency of the company’s productivity and also facilitate
the smooth flow of raw materials from the end of the suppliers connected to the firm. The

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implementation of the same will ensure effective delivery of the final products to the end
customers connected to Tesla Motors.
Figure 3: Showing expectancy in the growth of sales of Tesla concerning Quality
Management
Financial Performance
As discussed by Gitman, Juchau and Flanagan (2015), any productive business entity
deals with a high amount of financial data and activities. In this connection, the concerned
automotive industry should be sufficient enough to reveal all the information about the
aspects of its financial viability. Tesla, in regards to its market niche of the electric vehicles,
should be accountable to release its details of the modern electric cars. This is because the
same will help the company to effectively market its product in the eyesight of its potential
consumers, and therefore, the sales and the revenue of the company would increase. The
same would, therefore, bring a turn in the financial performance level of the company to be
active and efficient.
The perspective of the clients and the customers
As stated by Pearson (2016), the clients and the customers are the ones who purchase
the products and services sold by any business entity and thereby determining the success of

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the same. In this connection, the Tesla Motors Inc. should provide its buyers with positive
customer relationship by satisfying their demands and desires concerning the kind of car the
clients wishes to. In order to achieve a higher level of customer satisfaction, Tesla Motors
should perceive their plans and processes of serving their products in a way that the
customers connected to the company are co-relatively satisfied with the same and stays loyal
to the company. This will help the company to gain a higher competitive advantage as
compared to its intense competitors in the business market of the automotive industry as well
as increase a better customer and brand loyalty. This, in turn, will help in the retention of the
company in the long term.
Strategies that can be adopted for all the major stakeholders
Stakeholders Strategies
Employees  Providing employees with effective
and efficient training and
development programs.
 Maintaining a healthy and human-
friendly working environment for
the employees.
 Fostering the employees towards
professional development and
learning programs.
 Listening to the feedbacks and
demands of the workers and making
necessary changes.
 Fostering the ideology of multi-
culture aspect in the working

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structure of the organisation.
Customers  Meeting the demands and needs of
the customers on a timely basis.
 Listening to their complaints and
taking actions upon the same.
 Providing customers with the best
service possible.
 Keeping the pricing strategies as per
the demand of the customers.
 Keeping excellent business
communication with customers and
clients.
 No fraudulence or unethical
practices should be practised in
order to sale the goods and services
to the customers.
Investors  Leveraging their income investment
to profit and benefit the financial
condition of the investors.
 Expanding the global perspective by
the investment and funding made by
the investors so as to increase the
loyalty of the investors.
 Fostering corporate social
responsibility towards the investors

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who are dedicated to the funding
operations in the company.
 Initiate board meetings with the
investors in order to discuss the pros
and cons of the business and fund
possible solutions.
 Keeping transparency in the
financial activities as well as the
terms and conditions of the business
with the investors.
Government  Effective and efficient procurement
of the legislations fostered by the
government.
 Accurate reporting of the activities
undertaken by the company.
 Proper payment of the taxation.
 Following the laws and orders set by
the government bodies.
 Adhering towards the environmental
laws and policies implemented
strictly by the government and not
performing any unethical means of
production that would harm the
ecological balance.