Group Project Assignment-3 PDF

Preview

Summary

atasasgae4r...

Description

CARS .

PRINCIPLE OF MANAGEMENT

FINAL PROJECT 2021 1-INTRODUCTION Tesla, In an American electric vehicle and clean energy company based in Palo Alto, GROUP MEMBERS California. Tesla's current products include electric c  SECTION: A grid-scale, solar panels and solar roof tiles, as well as  PROGRAM: BSAF 2020, Tesla had the highest sales in the plug-in and b  DATE: 2021-06-03 SUBMISSION capturing 16% of the plug-in market (which includes batteryelectric (purely electric) market. Through its s  INSTRUCTOR: EHTESHAM-UL develops and is a major installer of solar photovoltaic HAQ States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.

Founded in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors, the company's name is a tribute to inventor and electrical engineer Nikola Tesla. Elon Musk, who contributed most of the funding in the early days, has served as CEO since 2008. According to Musk, the purpose of Tesla is to help expedite the move to sustainable transport and energy, obtained through electric vehicles and solar power. Tesla began production of their first car model, the Roadster, in 2009. This was followed by the Model S sedan in 2012, the Model X SUV in 2015, the higher volume Model 3 sedan in 2017, and the Model Y crossover in 2020. The Model 3 is the world's alltime best-selling plug-in electric car, with more than 800,000 delivered through December 2020. Tesla's global vehicle sales were 499,550 units in 2020, a 35.8% increase over the previous year. In 2020, the company surpassed the 1 million mark of electric cars produced. Tesla has been the subject of numerous lawsuits and controversies arising from statements and acts of CEO Elon Musk, allegations of creative accounting, allegations of whistleblower retaliation, alleged worker rights violations, and allegedly unresolved and dangerous technical problems with their products.

TESLA Inc. VISION AND MISSION STATEMENT Tesla’s vision is to “create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles,” while its mission is “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” Tesla used a transitional business model as its ecosystem grow.

ENABLED PRODUCTS Product Tesla enters in a very competitive market and chooses to create a completely innovative product, which we can say is unequaled on the market. The innovation is above all in the duration of the batteries and the strength is then the performance. Tesla cars are, in fact, able to guarantee high performance by sports cars. Also, an innovation that has greatly impressed consumers is the so-called Autopilot, a semi-automatic driving system based on cameras, radar and sensors that has made products among the safest on the market and able to drive alone. In addition to automobiles, the company also produces components for EV produced by other car companies, aiming to satisfy its mission and deals with the production of batteries for domestic and industrial use. For this reason Tesla has made its open-source patents. Although the product portfolio is not very large, the Tesla brand is rapidly moving up the brand value rankings for the automotive market.

Tesla Inc

•

Model S. • • • • • •

Model 3. Model X. Model Y. Solar Roof. Solar Panels. Shop. Tesla Account. Tesla Account.

SERVICES WITH TECHNOLOGY ADVANCING AUTOMOTIVE SERVICE Over-the-air updates help to improve your Tesla over time, while remote diagnostics and the support of our Mobile Service technicians reduce your need to ever visit a Service Centre. In the rare case that your car requires a shop visit, service will be quick and seamless—and likely be complete before you finish your coffee.

CARS THAT VIRTUALLY MAINTAIN THEMSELVES Our Service Centers are continuously connected to our headquarters, allowing our technicians and engineers to work together to identify and resolve issues in real time. Within hours, we can make updates across our entire customer fleet. We are also developing new ways for your Tesla to self-improve. The result is a car that is constantly evolving and improving, allowing you to stay out of the shop and on the road.

MOBILE SERVICE Our objective is that you enjoy every minute with your Tesla, and will not have to worry about anything else. If your service need can be met by a mobile technician, we will offer our Mobile Service option at no charge, based on availability. Our growing Mobile Service coverage means that in most

instances we can come to you when and where you need it. 80% of repairs can be done outside of a Service Center.

QUICK AND SEAMLESS SERVICE Should we not be able to come to you via Mobile Service, please visit one of our Service Centers. With remote diagnostics and automatic check-in, we can pre-diagnose repairs and order parts before you even arrive. Simplified engineering means that most service does not require lifts. Our cars can usually be repaired right on the floor, saving you time.

APPOINTMENTS MADE EASY AND AUTOMATIC CHECK-IN • •

You can schedule, change or cancel a service appointment anytime through the Tesla app. Register in a minute or less, so you can be on your way.

OPTIMIZED REPAIR FLOW AND CONVENIENT SERIVCES • •

4x faster with 3x less space than conventional repair shops. We offer a variety of transport options to provide our customers with the most convenient service possible.

2-ORGANIZATION STRUCTURE

The formal arrangement of jobs and work duties that everyone is informed about within an organization is known as organizational structure. This helps an organization to lay out the specific activities of the workers to achieve the goals of the organization. This determines how the roles and responsibilities of every employee are specified and how the information flows from the upper level to lower-level departments. Tesla has a very clear-cut organizational chart and every person that works there knows about his or her responsibilities and is able to perform with great efficiency because the work is divided and, this helps them to perform their tasks without any sort of burden.

ORGANIZATIONAL CHART: The organizational chart is a way of visual representation to show the internal structure that the organization is based on and by describing the roles and responsibilities of each member of the organization. It gives an overview to tell about the design of the organization. Besides that, it also tells about the hierarchy of the organization from top to the bottom level. Below is the organizational chart of Tesla:

So by looking at the chart, we can easily have the view of the hierarchy of the company. We can see who is who, and what are his roles in that organization, and what power does he hold in the organization. It becomes easy to access information and communicate it which improves the collaboration between the workers. Every department has its responsibilities to perform in a certain manner. So everyone knows about their positions. If any employee wants to share something with the upper level, then they need to talk to their department head which in turns talks to his head of the department. In this way, everything runs in sequence without any disturbance.

KEY POSITIONS: The key position is the positional authority of a person that he or she holds in an organization. It is usually a high position from which the decision-making influences the entire organization including responsibilities of every worker and policies or rules of the company. So, for example, if the CEO of Tesla that is Elon Musk decides to change any policy, then the entire organization gets affected in a way that can change its nature of work. It influences the workers to change the procedures according to the policies that have been changed. So key positions make an impact on the structure of the organization as well.

NUMBER OF EMPLOYEES: The number of employees is also an important part of the organization because they usually run the overall work that causes an organization to achieve the required targets or goals. If the organization is a small one then a smaller number of employees will be considered. But for a larger company, a large number of employees are usually considered to increase the efficiency and in effect the productivity of the organization. So the employee number can affect the structure of the organization as well because if a smaller number of employees are working in a large company, all the work burden impacts the negative effects on the company. This is because the work does not get distributed and the target is not achieved in the required time. As for Tesla, it has a significantly large number with 70,757 employees working. Because of this reason, it is able to achieve the goals that it has been striving for and that has made it successful.

NUMBER OF DEPARTMENTS (Departmentalization): The number of departments shows that what type of departments are working in that organization. A specific department works in that specific work field and does not interfere with any other department. So it helps to achieve the goals more easily and effectively. Below is the view of Tesla departments:

INTRODUCTION OF DEPARTMENTS: A brief introduction of each Tesla departments is shown below: CHIEF FINANCIAL OFFICER (CFO): The CFO works on the financial issues or actions of the organization. The CFO analyzes the financial view of the company and manages the cash flow and planning including strengths and weaknesses of the company. So that right kind of decisions can be made in according to the situation of the profit or loss. CHIEF TECHNOLOGY OFFICER (CTO): The CTO works as the head of the technology department. He overviews the technologies for the betterment of the organization as well as for the satisfaction of the customers. He develops the policies and assess the procedures according to the new technologies being implemented. CHIEF DESIGNER: The chief designer is responsible for providing innovative products and giving new services that

can provide better product design. He also provides new ideas on architectural, graphic, user experience , and other package designs to improve the services. ENERGY DEPARTMENT: The energy department looks for energy resources that can help an organization using environmental and nuclear protection. It promotes scientific innovation so that different products are in better quality. Tesla works on renewable resources to minimize the resources. For example, it uses a battery to run its automobiles. ENGINEERING AND PRODUCTION: The engineering and production department is responsible to work on different products related to the technologies. So Tesla works on new technologies and tests these for the betterment of customers. HR AND COMMUNICATIONS: The human resource and communication department works on the hiring, training, and firing of employees according to their skills and abilities. It also works on communicating with different workers in any kind of situation and also on their benefits. Tesla always values its employees and provides good employee services as well. LEGAL AND FINANCE: This department cares for the legal situational matters that help the organization target only the legal legislations. Similarly, the finance department is responsible for acquiring funds and planning for new assets. This helps Tesla to provide the services according to the law. SALES DEPARTMENT: The sales department mainly works on sales providing to the customers. This helps to increase the market value by giving better quality products and satisfying the customers. Tesla has always provided good quality to its customers. SOFTWARE DEPARTMENT: The software department is responsible for providing good software to run the business and increasing efficiency. It helps the organization employees to work efficiently and effectively. So that maximum output is achieved in minimum time. Tesla provides its employees as well as customers with different kinds of software.

CHAIN OF COMMAND: The chain of command is the authority of command that flows from the upper level to the lower level. It gives a hierarchy to the departments and any kind of rules and procedures when decided by the upper level goes to the lower level. Tesla follows a strict level of the chain of command when giving orders.

FORMAT OF WORK (CENTRALIZATION/DECENTRALIZATION): Tesla works as a centralized organization and all of its decisions are made on the upper level of management. This is because all the products and services are crucial and they are firstly analyzed by the upper management and are then implemented in the market. So, in the case of Tesla, it doesn’t allow its employees or lower-level managers to make decisions but to contact the upper level.

MECHANISTIC OR ORGANIC: MECHANISTIC: A mechanistic organization consists of high job specialization, a clear chain of command, narrow span of control with high formalization. ORGANIC: An organic organization works as a cross-functional and cross hierarchy of teams with a free flow of information within different departments and a wide span of control. When looking at Tesla, it clearly shows that it is a mechanistic kind of organization and values high job and skill specialization in all aspects. It has a clear chain of command that runs from top to bottom with a narrow span of control and having high formalization.

3-PESTEL INTRODUCTION Tesla, Inc.’s electric automobile, battery, and solar panel sales revenues are increasing, despite competition with large firms, such as automobile manufacturers like General Motors Company, Honda Motor Company, Toyota Motor Corporation, Volkswagen, Nissan Motor Company, and BMW (Bavarian Motor Works). This condition indicates effectiveness in addressing the external factors in the remote or macro-environment of the business. As shown in this PESTEL/PESTLE analysis of Tesla, the external environment is diverse because of the variety of the company’s

product types and target markets. Strategic management solutions must correspond to such variety. Thus, it is imperative to identify and address the most significant of the external factors from these business environments. POLITICAL FACTORS AFFECTING TESLA’S BUSINESS This part of the PESTEL/PESTLE Analysis of Tesla Inc. identifies governmental impacts on businesses and their remote or macro-environment. Governmental entities are among the main societal forces that affect businesses and industries. For example, policies on trade can limit industry performance and the company’s revenues. In this external analysis case, the following political external factors are significant to Tesla and the automotive and energy solutions industries: • Governmental incentives for electric automobiles (opportunity) • New global trade agreements (opportunity) • Political stability in the majority of major markets (opportunity) Tesla, Inc. has the opportunity to strengthen its financial performance through incentives from governments. This external factor directly relates with the minimized carbon emissions of the company’s operations and products. In addition, this PESTEL/PESTLE analysis determines that expanding free trade agreements open opportunities for the company to expand its operations internationally. On the other hand, the political stability of major markets makes the remote or macro-environment favorable to Tesla’s generic competitive strategy and intensive growth strategies, which include market penetration. In this part of the PESTEL/PESTLE analysis of Tesla, political external factors present opportunities for growing the automotive business. ECONOMIC FACTORS The effects of economic conditions on the remote or macro-environment are considered in this part of the PESTEL/PESTLE Analysis of Tesla Inc. These conditions include market growth, trade levels, currencies, and other variables that influence the automotive business. For example, the solar energy market’s growth rate determines the growth opportunities of the company’s solar panel business. Tesla needs to address the following economic external factors that influence the automotive market: • Decreasing battery costs (opportunity) • Decreasing renewable energy costs (opportunity)

• Economic stability issues (threat) Tesla’s business performance benefits from lower battery costs. For example, this external factor translates to affordability of the company’s electric automobile products. This PESTEL/PESTLE analysis also considers decreasing renewable energy costs as an external factor that makes Tesla’s products more attractive. The business improves as renewable energy solutions become more popular. However, economic stability issues threaten the company’s financial performance, especially in Europe and Asia. This part of the PESTEL/PESTLE analysis of Tesla, Inc. highlights major opportunities for growth, despite the threat of economic instability in the remote or macro-environment of the automotive industry. SOCIAL/SOCIOCULTURAL FACTORS INFLUENCING TESLA INC.’S BUSINESS ENVIRONMENT Social conditions and trends affect a firm’s remote or macro-environment through employees, customers, and investors. This part of the PESTEL/PESTLE Analysis of Tesla Inc. considers how the business aligns with the social trends in its target markets. The company’s managers must ensure that strategies are applied to maximize the business benefits of such external factors. The sociocultural external factors important in Tesla’s business are as follows: • Increasingly popularity of low-carbon lifestyles (opportunity) • Increasing preference for renewable energy (opportunity) • Improving wealth distribution in developing markets (opportunity) This company analysis shows opportunities to grow the multinational automotive business. For example, Tesla Inc. has growth opportunities based on the rising popularity of low-carbon lifestyles and increasing preference for renewable energy. In the PESTEL/PESTLE analysis framework, these external factors improve market demand for the company’s electric vehicles and related products. In addition, Tesla has an opportunity to boost its financial performance based on the increasing wealth distribution in developing markets. This wealth distribution trend increases the population of potential buyers of the company’s relatively expensive cars. In this part of the PESTEL/PESTLE analysis, Tesla Inc. can grow its business internationally, based on sociocultural opportunities in its remote or macro-environment. TECHNOLOGICAL FACTORS

This part of the PESTEL/PESTLE Analysis determines how technologies influence the company’s remote or macro-environment. The advancement of Tesla’s automotive and energy solutions business depends on available technologies. For example, materials engineering technology determines the efficiency and cost-effectiveness of the company’s batteries. The following technological external factors are significant in Tesla, Inc.’s automotive business: • High rate of technological change (opportunity & threat) • Increasing automation in business (opportunity) • Increasing popularity of online mobile systems (opportunity) The high rate of technological change is an opportunity and threat in this business analysis. The high rate presents opportunity for Tesla to enhance its products’ technologies. However, the same external factor threatens the company in terms of the potential rapid obsolescence of technologies used in its products. Nonetheless, increasing business automation is a trend that creates opportunities in this PESTEL/PESTLE analysis case. For example, Tesla has growth opportunities through further automation of its business processes. In addition, the increasing popularity of online mobile systems should prompt the company to increasingly integrate these systems in its automobiles. The technological condition of the remote or m...