MGT523 Winter 2020: Analysis of Tesla's Operations and Strategy

This project provides a strategic analysis of Tesla's operations and strategic decisions, focusing on the company's business model, competitive advantages, and management policies. The analysis examines key decision-making criteria and offers recommendations for future improvements. It explores Tesla's strategies in servicing, selling, and charging electric vehicles, highlighting its use of advanced technologies and cost-effective products. The report also reviews Tesla's organizational structure, management practices, and its approach to solving problems and adapting to market changes. The project offers insights into how Tesla can improve its operations, inventory model, and marketing strategies to generate greater sales and customer satisfaction, with an emphasis on organizational changes and global expansion.

Running head: MAKING OPERATIONS AND STRATEGIC DECISIONS
MAKING OPERATIONS AND STRATEGIC DECISIONS
Name of Students:
Name of University:
Author Note:

1MAKING OPERATIONS AND STRATEGIC DECISIONS
Table of Contents
6. Solving future problems..............................................................................................................1
6.1. Phase 6: key decision-criteria...................................................................................................1
6.2. Phase 7: recommendations.......................................................................................................3
Reference List..................................................................................................................................5

2MAKING OPERATIONS AND STRATEGIC DECISIONS
6. Solving future problems
The portion addresses about the alternative decisions available to the firm and how the
adoption of these decisions are effective for attaining organizational goals. Solving the future
problem is assumed as an effective skill that leads to organizational success. Firms undergo
various market analysis to under the market status of the consumer and the consumer demand.
This is done by understanding the core problems and think of policies according (oGncalves et
al. 2015). The firm then critically evaluates the pros and cons of the policy in terms of
organizational development and profit.
6.1. Phase 6: key decision-criteria
The business of Tesla is purely based on three strategies like servicing, selling and
charging the electric vehicles. It follows a generic business model that enables the firm to
maintain a comparative advantage with rest to differentiation, cost leadership and focus
(Rothaermel 2017). Tesla effectively estimates the outcomes of alternative strategies in
correspondence to Porter, Pestle and SWOT. It does not consider vague and weak compromise’s
and take decisions relating to organizational structure.
Tesla follows a generic strategy model that enables the firm to focus on the usage of
advanced technogies in electric vehicles (Nisar, Palacios, & Grijalvo 2016). Tesla calculates the
role of advanced technologies in profitability and driving business growth. Tesla serves products
that are cost effective and has eco-friendly technology. The firm introduces policies that attracts
a large number of international customers. The company analyzes how effectively the policies
were running by doing a comparison about the past outcomes (Välikangas 2018). The data of
each period is obtained which is then compared with the performance of individual and firms. It
clearly estimates the problems being faced by the organization and reconstruct policies that

3MAKING OPERATIONS AND STRATEGIC DECISIONS
benefits the company. It then uses effective tools to change the organization structure and the
management practices that can improve organization performance. Problems are being faced by
each company that needs a change in its management and operation policies. (Batson, et al.
2015) Tesla first find out its core competent areas then then implements a strategy that focuses
on uniqueness of the products under differentiation strategy.
The effect of the management policies can be felt on business development as it is
primarily focusses on changing the efficient outcomes of the firm. Tesla has already structured
its employees as per their background on sales, service and engineering and follows a
hierarchical structure. The management operation of the firm is crucial for its effective
performance of the organization. Tesla is a big businesses and for maintaining organizational
discipline, management board is divided into five components like audit, nominations,
disclosure, numeration and corporate responsibility.
Organization is divided into separate teams in order to reach performance efficiency due
to increased competition among and outside team members (Rothaermel 2017). . In case of
inefficiency of Tesla employees, the management teams can understand the implication of
delaying opportunities. They respond by raising the flexibility of operations among the workers
and decrease the layers of management. Tesla has quality batteries that uses less power and
lower overall cost such that Tesla uses this policy to generate brand value in the market during
crisis.
6.2. Phase 7: recommendations
There are various approaches the needs to be followed by Tesla to generate greater sales.
It has taken decisions as per generic model and handling the management practices efficiently.

4MAKING OPERATIONS AND STRATEGIC DECISIONS
Tesla can effectively improve its machine process that will lead to provision of quality products
at lesser time frame and gain greater comparative advantage. The effectiveness of the operation
can be felt on the business with effective techniques and technologies. (Moritz et al. 2015). The
company must focus on its inventory model in order to get huge profits. Tesla does very little to
attract customers and generate brand value (Välikangas, L. (2018). It can introduce new
marketing policies related to advertising in social media platforms normal platforms.
Tesla must spread about its safety techniques and introduction of energy efficient
technologies to its customers. Tesla must increase its global operation and so they must invest in
trade and development. The company must make organizational change according to customer
needs. Tesla must diversify its products and generate a greater level of customer satisfaction
(Goncalves et al. 2015). These decisions are taken with respect to performance of firm and
management operations. Thus, Tesla can generate greater sales when it effectively improves its
methods of implementing strategic decisions. It is recommended for Tesla to make changes in
organizational structure and generate maximum profits.

5MAKING OPERATIONS AND STRATEGIC DECISIONS
Reference List
Batson, M. A., Petridou, N., Klomp, D. W., Frens, M. A., & Neggers, S. F. (2015). Single
session imaging of cerebellum at 7 Tesla: obtaining structure and function of multiple
motor subsystems in individual subjects. PLOS one, 10(8), e0134933.
Goncalves, N. R., Ban, H., Sánchez-Panchuelo, R. M., Francis, S. T., Schluppeck, D., &
Welchman, A. E. (2015). 7 tesla FMRI reveals systematic functional organization for
binocular disparity in dorsal visual cortex. Journal of Neuroscience, 35(7), 3056-3072.
Moritz, M., Redlich, T., Krenz, P., Buxbaum-Conradi, S., & Wulfsberg, J. P. (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.
Nisar, A., Palacios, M., & Grijalvo, M. (2016). Open organizational structures: A new
framework for the energy industry. Journal of Business Research, 69(11), 5175-5179.
Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education.
Välikangas, L. (2018). Forum on Tesla and the Global Automotive Industry. Management and
Organization Review, 14(3), 467-470.