1 Introduction
Companies should either aligned with the changes in the existing competitive environment or react to such changes promptly, and anticipate actively with the changes in the customer demographics, potential new products or services, future technologies and hence recreate the industries (Tesla Motors, 2018). It needs to be really noted that the changes in industry are overall requesting answers from the organizations, and companies to focus on reshaping themselves and branch of the business.
1.1 Knowing Tesla Motors in brief
There are very few of the firms, who have been counted amongst domain who had incredibly changed themselves with the changing business globe. One of the few companies includes is Tesla Motors. Tesla Motors is recognized as one of American automotive companies founded in year 2003 with the public type in nature. We examined that research and development department of Tesla company is working in the area of energy to produce electric cars for consumers. The main founders of Tesla Motors are Martin Eberhard, Marc Tarpenning, Elon Musk, J. B. Straubel, and Ian Wright. Head office of Tesla Motor is situated in Palo Alto, California, U.S. presently; Tesla Motor is serving worldwide as mentioned in (Mangram, 2012).
Business setup of Tesla Motor is large and presently the strength of working employees are 45000 to well perform its internal and external operations in market to meet consumer’s obligations as per management standards. Management of Tesla Motors takes subsidiaries in the area of solar city, Tesla Grohmann and automation to accomplish their business goals. This research report has been carried within the context of Tesla Motors with the main focus of identifying the stakeholder’s view, stakeholder category, and recommendations.
The vision statement of Tesla Motors is stated as:
“To create the most compelling car company of the 21st century by driving the world's transition associated with respect to electric vehicles”
The mission statement of Tesla Motors:
“Design of Tesla Motors is to sell high performance in environment, use the sources of highly efficient electric, in order to produce sports cars with no having compromises.”
Management of Tesla Motors cars is based on combine style, use the power or need more acceleration and handling with advance information technology that make them among the fastest and more energy-efficient cars on the roads.
1.2 Challenges and Industry Trends
In 2017, Tesla Company has the wide ride since year 2017. Company has been worth in comparison to the past years, passing the Ford and the Fiat Automobiles in the market capitalization as well as threatening of the General Motors. The company has the pitiful amount of the available cash. It is considered that carmakers which company has overall challenged in the market capitalization in the year 2017, Ford, Fiat Chrysler, and General Motors, have each of the war chests. FCA has amount of $25 billion and car, Ford has overall socked away to the closing of $40 billion.
Today, Tesla Motors is facing several challenges. It is considered that challenge is with respect to company's acquisition of solar city. The second main challenge is that management should work in the area of research and development department to overall improve products or services quality in context of meeting consumer’s requirements.
Examined that management of company should need to face a challenge due to logistics. Tesla is running that transform into an acute shortage of car carrier that led towards delay in delivery. The management of Tesla Motor takes effective actions according to auto expert’s view. The duty of expert view is associated with respect to service delays as insignificant, as owners that accept the challenges of servicing a new type of car to meet consumer’s expectations (Savolainen, 2005).
1.3 Ongoing Developments
It is considered that company, Tesla has overall shifted narrative of auto industry. Research (Savolainen, 2005) has compared Google and Apple companies which has made the consumers which has believed that they are not buying into more in comparison to an isolated products. It has been explained that the market capitalization of Tesla has been $56 billion, whereas, Ford has been $42 billion and the General Motors have been $58 billion. It is considered that this is the main reason why company is playing an outsize role in the shifting of narrative of auto industry. Automotive industry is dynamically changing and becoming highly competitive since last couple of years. We observed that product segmentation for Tesla Motor is based on industry market. This industry market is in the form of power wall and power pack to fulfil consumer’s expectations. Management should need to improve type of segmentation for Tesla Motor in context of provided battery in industry market. This industry market is in the procedural lithium Ion, NCA battery and NMC battery (Weiss et al., 2012).
Figure 1 1 Tesla Global Sales Projections (Vu, 2019)
Tesla Motor work according to geographical segmentation to provide different products or services to meet consumer's obligation. This geographical segmentation is in practices of North America, Europe, Japan and Asia-Pacific. Summary and facts analysis is based on main product or services of Tesla Motors. The main products or services of Tesla Motor are in the form of manufacturing electric vehicles and Tesla Energy by providing quality oriented services to meet consumer's requirements. Production outcome recorded in year 2018 is 245,162 vehicles, worth of revenue generation is US $ 21.461 billion and operating income is US$ (0.388) billion and Net income is (0.976) billion. The worth of total asset is US $ 29.740 billion and total equity is US$ 4.923 billion recorded in year 2018.
2 Tesla and its Stakeholders: Relationship Efficiency
It is considered that Tesla company carries significant importance. In accordance to the consideration and analysis, it has been founded that the stakeholders do carry an immense importance. Management of Tesla Motors emphasize in the area to maintained regular and effective communication with its stakeholders. This is the key reasons that management of Tesla Motors are effectively communicates in context of internal and external stakeholders by proper organizing information to accomplish organizational goals within set time framework model.
Importance of stakeholders plays an active role within current business setup of Tesla Motors to accomplish their goals within set time framework model. Examined that the concept of key stakeholder is associated with respect to company performance; management of Tesla had to address its stakeholders to well perform business operations in market and meet consumer’s obligations by providing them quality oriented automobile services and also increase high competition in market (Chakeres & Vocht, 2005).
Presently, stakeholders are using theory that proposes that an organization is using effectively manage their human and physical resources and build strong relationship in order to sort or measure best performance of organization that neglect their current stakeholder relationship. This is the key reasons that management used importance of stakeholder to effectively run business operations and accomplish Tesla Motors goals (Van et al., 2010).
Research on Tesla and Stakeholder Model
It is considered that stakeholder theory is complemented by the graphical framework in accordance to Freeman’s stakeholder model (Vu, 2019). It is focused that most of popular management model are expressed with an adequate structuring of the organisation. The research has demonstrated preference for the narrative and visual knowledge amongst the practitioners overall prevailing prepositional model found in an academia.
Management of Tesla motor is using stakeholder model and theory to run its business operations. The outcome demonstrated that management of Tesla Motors used stakeholder theory. This stakeholder theory is based on three key components. These stakeholder theory components are in procedural of external, internal and used various classification of stakeholder to accomplish their goals and objectives (Nimsky et al., 2005).
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The aspects of external stakeholders are society, suppliers, government, creditors and customers in environment. Internal stakeholders are in the form of directors, company secretary; use the sources of sub-board management, employees and employee representatives that lead towards classification of stakeholders helpful for business expansion. The key operative functional activities of Tesla Motors stakeholder theory work through under the strong consideration of internal stakeholders that have an operational role in the company. Hence the role of stakeholder’s is very positive in context of corporate governance of the company for expansion of business operations in different countries for increase high competition in market (Nimsky et al., 2005).
3 In-depth Analysis of Tesla-Stakeholders model
We examined that stakeholder analysis plays an active role in context to measure the current performance of stakeholder groups. In this report, investigator used Freeman's model to known the current performance of stakeholder in order to determine and examining stakeholder groups, capacity and also willingness to threaten with the corporation (Muneer et al., 2015). This stakeholder groups are in the form of employee, owner, government and suppliers. According to present model stakeholder analysis is presented in the form of table is presented in figure 3-1
Figure 3 1 Stakeholder Analysis
3.1 Behaviour Analysis
Analysing the behaviour of consumers are important part of every corporate or company. They use the feedback of the customer or consumer in the form of written comments or verbal feedback and tries to analyse the sentiment of the consumer to read the gaps that can be filled with proper measures. The behaviour or sentiment analysis of different customers are important for a corporation or business as it clearly gives them a feedback about their products and what necessary amendments can be made to make customer experience better. Behaviour analysis of Tesla Motors is composed of three key components. These Behaviour analysis components has been discussed in the following section.
3.1.1 Corporative potential
The cooperative potential of Tesla is good enough to be leading the world business economy in its own related field. Tesla has never been a trend follower when it comes to business strategies or innovations. They started off with the most innovative concept of electric cars in the market and set a trend of new vehicle technology that could change the way motor vehicles are being operated in recent days. To fulfil these type of ground breaking concept, Tesla has prepared well with its corporate potentials so as to keep up with their vision and to compete its treat in the market.
3.1.2 Competitive threat
We investigative that competitive threat of Tesla Motor is very high in market as the innovation made by the company is extremely visionary and futuristic which all other vehicle manufacturing companies are trying to achieve to lead to foundation of modern concept and innovative Technology. Today, management of Tesla Motors are facing competitive threat from almost all other leading vehicle manufacturing companies such as BMW, Audi, Tata, Apple, Uber and many more added to that is Porsche Taycan (2019) one of the latest innovation from Porsche and Mercedes EQC (2019) from Mercedes in context of pricing, technology and other accessories. As all of the vehicle manufacturing companies are spending major amount of their budget for innovation and next-level technology such as fully autonomous technology, all of them are coming with something new and innovation to provide better consumer experience. These companies are actually collaborating with other software companies to compete with Tesla, however Tesla has also collaborated with Toyota for their future ventures.
3.1.3 Actual behaviour
The Outcome demonstrated that in context of Actual behaviour of consumers with respect to automotive is good in market. Mostly, People like Tesla Motors automotive to fulfil their requirements at affordable pricing. Quality of Tesla Motor is considered as good as compared to other luxuries cars to meet consumer’s expectations. This is the key reasons that Tesla Motors management wants to expand their business operations all around the globe and also increase high competition in market to meet consumer’s obligations (Savolainen, 2005).
3.2 Motives
Imperative aspects with respect to motives to meet consumer’s and management expectations are provided as below
3.2.1 Objectives
The main objectives of Tesla Motors are in stated as “in order to assess solar or energy expenditure with respect to workers during work shift in automobile industry. One of the key objectives is associated with respect to tesla Motors are based on automotive professionals are responsible for all stages of vehicle repair, ensuring that roadways are filled with safe and well-maintained cars, trucks and buses as well.
3.2.2 Stakeholder’s
Stakeholder’s are in form of involvement of government, owners, employee and suppliers to effectively run business operations in market.
3.2.3 Belief
Belief is to provide quality oriented products or services to meet consumer’s expectations.
3.3 Coalition
Coalition is in a form of automotive vehicles that present a remarkable opportunity to overall improve the ways of quality standards. Today, people want driverless vehicles that allow people to travel more easily and safely in environment.
4 Stakeholder Category Identification & Generic Strategic Program
Generic strategy program plays an active role in context of measuring the real performance of intensive growth of Tesla Motors. Importance of generic strategies program cannot be overlooked at any cost, typically in context to well perform internal and external operations in market. Examined that management of Tesla Motors is using generic strategies program in order to achieve competitive advantages against other firms in global automotive industry (Nurhadi et al., 2017). This generic strategy program of Tesla Motors is interlinked with respect to stakeholder groups. In this report this generic strategic program works under the strong consideration of government, owner, employee and suppliers in environment.
In current business analysis, management of Tesla Company focuses on generic strategy programs that reflect the company's focus on using advance information technology to speed up their business processes in the area of electric automobiles that lead towards products the ways of competing against other general motors companies. Generic strategy program of Tesla Company with respect to selected stakeholders.
Stakeholder Type one is known as the term of strategy that is hold in environment. In this strategy type one work through under the strong consideration of owners. Potential cooperation of Tesla Motor is high to minimize potential threats that are low in state. Mostly generic strategies are holding in position to excel their automotive products or services all around the globe. Mostly decisions are centralized according to current market requirements.
Stakeholder Type second is identified as the concept of strategy that is swing in environment. In this strategy type the company works through under the strong consideration of suppliers. Potential cooperation of Tesla Motor is low in order to sort or minimize potential threats. Mostly generic strategies are swing in position to excel their automotive products or services all around the globe by providing quality oriented services to consumers.
Stakeholder Type third is known as the concept of strategy that is defensive in state. This strategy type is used in order to measure performance of working employees to accomplish Tesla Motors goals according to management requirements. We investigated that strategy used in defensive and its potential cooperation is low, whereas potential threat is high in state to accomplish organizational tasks (Muneer, Milligan, Smith, Doyle, Pozuelo, & Knez, 2015).
Stakeholder Type fourth is associated with respect to strategy that is offensive and need government involvement to accomplish Tesla motors tasks according to management requirements. This strategy type is used in order to evaluate corporate governance strategies to run business operations in market. We examined that the term strategy is offensive in type and need government involvement. Potential cooperation of government is high, whereas the level of potential threat is low in environment to run business operations in market.
5 Recommended Strategic Program
The following are defined as the key recommendations that are provided in the aspect of this research so that key outcome and the results could be obtained.
- Implementation of the change within the workplace of Tesla is really necessary. It is considered today; employees are so much burdened with the work pressures that there is a need of considering the changes within workplace so that the productive outcomes can be extracted.
- It is highly recommended that stakeholder groups still need to be improved according to develop generic strategies programs to meet Tesla Motors overall business performance in market. The outcome of this investigation demonstrated that government used offensive strategy in the area of promoting product fastest and used the sources of most energy-efficient electric car on the market.
- Owner should need to work for more research and development program in context of innovative technology and improve their brand images.
- It is highly recommended that management should need to use positive strategic partnership in context of supplier to provide quality oriented products or services to finished products in the area to maintain its quality to meet consumer's requirements and increase high competition in market.
- It is highly recommended that management should need to provide proper training and development programs to their working employees for overall increase their performance that directly impact on Tesla Motors performance in market. Employees are normally used for the concept of growing market, rising consumer sentiment and provide government support to excel Tesla Motors products or services all around the globe.
List of References
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- Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of Strategic Marketing, 20, 289-312.
- Muneer, T., Milligan, R., Smith, I., Doyle, A., Pozuelo, M., & Knez, M. (2015). Energetic, environmental and economic performance of electric vehicles: experimental evaluation. Transportation Research Part D: Transport and Environment, 35, 40-61.
- Nimsky, C., Ganslandt, O., & Fahlbusch, R. (2005). Comparing 0.2 Tesla With 1.5 Tesla Intraoperative Magnetic Resonance Imaging: Analysis of Setup, Workflow, and Efficiency1. Academic radiology, 12, 1065-1079.
- Nurhadi, L., Borén, S., Ny, H., & Larsson, T. (2017). Competitiveness and sustainability effects of cars and their business models in Swedish small town regions. Journal of Cleaner Production, 140, 333-348.
- Savolainen, A. (2005). Driving towards a better future. World Pumps, 2005, 56-59.
- Tesla Motors. (2018). Retrieved May 01, 2019, from Electric Cars, Solar Panels & Clean Energy Storage | Tesla: https://www.tesla.com/
- Van Vliet, O. P., Kruithof, T., Turkenburg, W. C., & Faaij, A. P. (2010). Techno-economic comparison of series hybrid, plug-in hybrid, fuel cell and regular cars. Journal of power sources, 195, 6570-6585.
- Vu, H. (2019). toughnickel.com. Retrieved from https://toughnickel.com/industries/Tesla-Motors-Incs-organisational-performance-analysis
- Weiss, M., Patel, M. K., Junginger, M., Perujo, A., Bonnel, P., & Grootveld, G. (2012). On the electrification of road transport-Learning rates and price forecasts for hybrid-electric and battery-electric vehicles. Energy Policy, 48, 374-393.
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