TESLA INC MGT162 Individual Assignment PDF

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FUNDAMENTALS OF MANAGEMENT (MGT162)

PLANNING, ORGANIZING, LEADING AND CONTROLLING (POLC) APPLIED IN TESLA, INC.

PREPARED BY NUR SHAHIRA ZAKIAH BINTI MOHD ZAKI 2019448234

PREPARED FOR DR. MARIAM BINTI SETAPA

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TABLE OF CONTENTS 1.0

Company background..................................................................................................... 2

2.0

Planning .......................................................................................................................... 3

Vision and Mission ................................................................................................................. 3 Strategizing............................................................................................................................. 4 Goal and Objectives ............................................................................................................... 4 3.0

Organizing ....................................................................................................................... 5

Organizing structure ............................................................................................................... 5 Organization Chart ................................................................................................................. 6 4.0

Leading ........................................................................................................................... 7

Motivation ............................................................................................................................... 8 5.0

Controlling ....................................................................................................................... 8

The controlling processes ...................................................................................................... 9 6.0

Conclusion ......................................................................................................................9

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1.0

Company background

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla’s founded in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors, and the company’s name is a tribute to inventor and electric engineer Nikola Tesla. Tesla’s current products include electric cars, battery energy storage from home to gridscale, solar panels and solar roof tiles, as well as other related products and services. In 2008, Elon Musk who contribute most of the funding in the early days has served as CEO since that. According to Tesla’s CEO, the purpose of Tesla is to help expedite the move to sustainable transport and energy, obtained through electric vehicles and solar power. In 2020 Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market and 23% of the battery-electric market. Through its subsidiary Tesla energy, the company develops and is a major installer of solar photovoltaic energy generation system in the United States. Tesla began production of its first car model, the Roadster in 2009 this was followed by the Model S sedan 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 all-time best-selling plug in electric car, with more than 800 000 delivered through December 2020. Tesla’s global vehicle sales were 499 500 units in 2020, a 35.8% increase over the previous year. In 2002, the company surpassed the 1 million mark of electric cars produced.

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Planning

Planning are purpose to ensure the organization is both effective and efficient in its activities. Its importance to ensure managers and employees put forth greater effort, helps to determine company’s opportunity (SWOT) and enables company to identify the course of action by setting objectives and choosing alternatives that will be most profitable. In purpose to have good planning in management a company need to have their vision, mission, strategy goals and objectives to sets the strategic direction of an organization, set and defining the actions necessary to achieve those goals.

Vision and Mission 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 was founded in 2003 by a group of engineers. The central idea was to prove that electric cars could be as good, if not better than gasoline alternatives. As Elon Musk took over as a CEO, he started to roll out a strategy where Tesla could have an entry price competitive with other cars in the market. That is why the first car Tesla launched was a sport’s car, as its pricing was in line with the market. Therefore, as go-to-market and entry strategy Tesla used a higher-priced segment of the market, in seemingly sharp contrast with its mission. Yet his was a transitional business model that enabled Tesla to be viable in the short-term and yet achieve its mission in the long-run. That’s because, in order to become fully viable as a business model, Tesla needed to create an entire ecosystem, also made of energy solutions that could enable electric cars to become competitive in terms of convenience (meant as the ability to charge anywhere) in respect to gasoline vehicles. Hence, as Tesla rolls out its business model, by enabling this ecosystem to grow, year over year, the company can enter larger and larger segments of the markets by offering lower-priced options, that might make it possible for Tesla’s vehicles to achieve mass adoption.

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Strategizing How new company, Tesla that eat up more cash flow in the early growth phase turn out to be ranked top 10 best companies in 2021 in 18 years? What is their strategy that differentiate Tesla, Inc with others companies who operate longer than it? Here we will discuss the strategy used by Elon Musk to turn out his company today.

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Building a new architecture Tesla, Inc. mostly known as the company that produces cars. But what differentiate

Tesla cars with others is Tesla make cars that use battery to replace petrol. In purpose to make something new in the world, Tesla need to made the whole changes like charging station and the specific battery that use for Tesla’s car. So that the buyers will feel it convenient and it worth for them. Indirectly, Tesla need to build new architecture for their blueprint. That’s what differentiate Tesla with others company. Their strategy is unbelievable to achieve their goals that only in everybody imaginations.

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Delivering solutions Other than charging cars that we can talk about Tesla brand, there is an unbelievable

feature that made our mind blow up, self-driving car or in term of air vehicles, auto-pilot. Even though the risks are high but Tesla has compounded major bet upon by having a multi-level strategy that targets components, products and systems and everything has going well and succeed. All the system and features that presented by Tesla had change people imagination into reality, obliquely it attracts more investor and customer to try something new exist.

Goal and Objectives •

To accelerate the world’s transition to sustainable energy

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To having the safest factories in the world

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To create an entire sustainable energy ecosystem

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To make products accessible and affordable to more and more people

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To accelerating the advent of clean transport and clean energy production

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3.0 Organizing

Organizing is the process of determining the tasks to be done, who will do them, and how those tasks will be managed and coordinated. It is to structured or arrange the relationship between people, the work to be done and the facilities so that goals are achieved.

Organizing structure Tesla has a functional or U-form organizational structure, that offer a limited line of products because it makes efficient use of specialize resources. This method eliminates overlapping in execution of organizational activities. The uses of organizational function as the main defining factor. For example, the company has a structural group of employees for engineering, and another for sales and service. In this company analysis case, grouping based on business function stands as the most significant feature. The characteristics that are significant in Tesla’s organizational structure is function-based hierarchy, centralization and divisions.

The most significant characteristic of Tesla’s corporate structure is the function-based hierarchy in its global organization. This hierarchy involves functional teams or offices that oversee domestic and international operations.

Chairman & Chief Executive Officer

Finance

Technology

Global Sales and Service

Engineering

Legal

Figure 1

Tesla, Inc. uses centralization in its corporate structure. The emphasis of centralization is managerial control on the entire organization through decisions that a central group or team generates. In this case, the heads of the offices of the global hierarchy form the corporation’s central headquarters, which directly control all operations. Next is division, this characteristic 5

of the corporate structure focuses on the extent of geographical or other types of divisions in Tesla Inc.’s automotive business. These divisions are used to implement different strategies and marketing campaigns, and to organize financial records and reports. The company’s main divisions in its corporate structure are Automotive and Energy Generation and Storage.

Organization Chart Tesla does not provide an organizational chart or much about its executive team on their website. The only information about management anywhere is listed on the Tesla website, where there it lists three executives. Musk as chairman, product architect, and Zachary J. Kirkhorn, Tesla’s Chief Financial Officer. Nevertheless, Tesla organizational structure can be characterized as divisional. Although it is difficult to list Tesla organizational structure under a specific rigid category due to its unique nature, the structure can be characterised as divisional and flexible. As it is illustrated in figure below, Tesla organizational structure comprises a number of divisions such as energy, engineering and production, HR and communications, legal and finance, sales and software. Each division is led by several vice presidents, except software division, which is led by one vice president and Director of Artificial Intelligence.

Figure 2

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4.0 Leading Leader means people who can influence the behaviour of others without having to rely on force or those accepted by others. While motivating and directing the members of the organization so that they contribute to the achievement of the goals of the organization is the definition for leading and leadership means the process of directing the behavior of others toward the accomplishment of some objective or causing individuals to act in a certain way or to follow a particular course. The principles of leadership effectiveness that shown by Elon Musk are •

He knows himself.

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Being a role model.

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Knowing his team and be a team player.

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Be honest with himself as well as to others.

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Not avoid risks.

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Believing himself.

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Taking the offense rather than the defense.

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Knowing the ways of disagreement and the means of compromise.

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Being a good follower.

The trait focus approach assumes that some people are endowed with certain characteristics making them effective leaders. There are three trait focus approach physical characteristic, personality and aptitudes that presented by Elon Musk. Here is a little bit childhood story of CEO’s Tesla, Elon Musk is a South African-born American entrepreneur and businessman, he was born on June 28, 1971, in Pretoria, South Africa. As a child, Musk was so lost in his daydreams about inventions that his parents and doctors ordered a test to check his hearing. When he was 10, Musk developed an interest in computers. He taught himself how to program, and when he was 12, he sold his first software: a game he created called Blastar. Now, Musk had gone through many things include failure in his business, but he get up again and he had shown us what his company can do. Dolly Singh, former HR head at SpaceX once said, “The thing that makes Elon is his ability to make people believes in his vision.”

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Motivation Elon Musk motivated his teams to influencing their behaviour to behave in a way that ensures the accomplishment goal with inspires his team. One of the keys of transformational leadership is having vision and getting others to not only believe in it but inspired enough to help make it happened. “You have to have a very compelling goal for the company,” Musk has explained. “If you put yourself in the shoes of someone who’s talented at a world level, they have to believe that there’s potential for a great outcome and believe in the leader of the company, that you’re the right guy to work with.” In order to set the place in every industry he has his hand in, Musk believe in making his own way. Obviously, to achieve things that have never been achieved before, Musk have to do things that have never been done before. “Other advice I would give is to not blindly follow trends,” the entrepreneur and engineer has said. “Question and challenge the status quo.” Perhaps one of his biggest strengths and faults is Musk’s ability to adapt and change course at the drop of a hat. The billionaire has been known to change his mind based on whatever needs attention at that moment or to change course on projects quickly.

5.0 Controlling

Control is making something happen the way it was planned to happen, while controlling define the process managers go through to control. Controlling is a systematic effort by business management to compare performance to predetermined standards, plans or objectives, determine whether performance is in line with these standards and presumably to take any remedial action required and to see that human and other corporate resources are being used in the most effective and efficient way possible in achieving corporate objective.

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The controlling processes

Setting standard for performence

Measuring actual performence

Comparing actual performence with standard

Responding to deviations

•Tesla goals is to create an entire sustainable energy ecosystem

• In Tesla, there is a team incharge to carry out an inspection to ensure the specification and standard to achieve their goals

•Tesla use performance appraisal in employee self service to compare the performance.

•If the deviation from performance is unacceptable, then they must take the corrective action. If the deviation is acceptable, no correction is necessary

Figure 3

6.0 Conclusion Tesla, Inc. is the company that started an entirely new industry by avoiding bankruptcy. Firstly, to begin with, the company built a very exclusively expensive sports car with their special features. In return for this model the Tesla, Inc. received all kinds of awards from safety to the best car model. Not only this but also with this the company proved that the electronic vehicles can be taken to a new level where most of the people thought would never be possible. The demand for Tesla auto mobiles tends to increase model after model. In conclusion, the four components of management are planning, organizing, leading and controlling applied, gave the big impact onto Tesla, Inc. To start with the formulation Tesla, Inc. stated its vision and mission along with the objectives and goals. Following with the objectives, a good plan was implemented for the company to achieve its vision. To achieve its vision Tesla, Inc. ensures of the evaluation and what needs to be controlled of the strategies implemented.

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