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Executive Presentation of Tesla Motors. Team Yellow Tang February 21st, 2017 OGL 355: Leading Organization Innovation Dr. B. Agenda. Tesla’s Mission and Vision Company Structure Leadership Competitive Advantage SWOT Analysis Environmental Analysis Global Expansion Conclusion.
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Executive Presentation of Tesla Motors Team Yellow Tang February 21st, 2017 OGL 355: Leading Organization Innovation Dr. B
Agenda • Tesla’s Mission and Vision • Company Structure • Leadership • Competitive Advantage • SWOT Analysis • EnvironmentalAnalysis • Global Expansion • Conclusion
Introduction - Organization, Mission, & Vision Tesla Motors: electric car manufacturer and technology-design company Mission and Vision Statement • Tesla’s mission is to accelerate the world’s transition to substable energy, with a vision to create the most compelling car and energy company of the 21st century.
Organizational Structure Tesla Motors, Inc uses an organizational structure supported by the company'scontinuous business growth. Tesla implements a functional organization structure. A common type of company structure; dividing into smaller groups that specialize in certain areas of the business. The most significant characteristic in Tesla’s organizational structure include; Global Hierarchy, Global Centralization, and Minimal Regional Divisions.
Organizational StructureContinued. Global HierarchyIncludes; CEO, CFO, CTO (ChiefTechnology Officer), Vice Presidents of Engineering, PowerTrain Operations, North American Sales, Manufacturing, Service and Delivers, and Chief Design. Global Centralization: emphasises on the control of the entire organization through decisions the central team generates from Tesla’s central headquarters, Palo Alto, CA. Minimal Regional Division: Tesla’s automotive business branches off into many different divisions, used to implement strategies, marketing campaigns and financial reports. The 3 major divisions of Tesla include; The United States, China and Norway.
Leadership Transformational Leadership • Leaders who stimulate and inspire (transform) followers to achieve extraordinary outcomes. Elon Musk as a transformational leader • Attracts and influence employees by setting a energetic vision. • Channels positive employee morale for greater productivity. • Employee rewards go beyond a monetary paycheck Visionary Leadership • The ability to create and articulate a realistic, creative and attractive vision of the future that improves on the present situation
Competitive Advantage Tesla- Offering Best in Class Luxury Performance Innovative Manufactures Batteries & Charging Stations Environmentally Friendly No Gas Required
Tesla’s Mission is to accelerate the world’s transition to sustainable transport SWOT ANALYSIS ● Successful leadership track record ● Safety ● Innovative ● Best in class luxury vehicle ● Selective hiring process ● Partnership with Spacex & Sun City ● High-cost investments ● Insufficient cash flow ● Super-Charge stations ● High price points for models ● Skilled labor ● Stock prices ● Growing competition ● Development ● New facilities ● Investments ● Online market ● Consumer awareness
Going Global - South Africa • CEO Elon Musk’s home country • Exporting a high option due to lower costs • Setting up a foreign subsidiary is desirable by South African Government • High benefits from PowerWall Differences & Potential Issues • Hierarchy and order vs. selfish and assertive • Communication • Closing a deal
Conclusion "When Henry Ford made cheap, reliable cars, people said, 'Nah, what's wrong with a horse?' That was a huge bet he made, and it worked." -Elon Musk “If something is important enough you should try even if the probable outcome is failure” -Elon Musk Recommendations: • Tesla should consider opening dealerships as their competition does to become more available to more traditional consumers. Custom-building online and viewing through a “sales mall” is a smart step in the technological world, but if they wish to become a viable option to the more traditional car-buying consumer, opening a dealership would be a good option to consider. • While looking to sell Tesla cars outside of the United States, they should consider exporting their vehicles. Although the cost of shipment would be high, they would be able to fulfill the needs of South Africa without the start up cost of manufacturing plants. Based off the popularity they could explore different options at that point.
References Kissinger, D. (2017, February 21). Tesla Motors, Inc.'s Five Forces Analysis & Recommendations (Porter's Model). Retrieved February 21, 2017, from http://panmore.com/tesla-motors-inc-five-forces-analysis-recommendations-porters-model Meyer, D. (2016, September 26). Elon Musk’s Home Country Would Really Love Some Tesla Investment. Retrieved February 21, 2017, from http://fortune.com/2016/09/26/elon-musk-tesla-south-africa/ Meyer, P. (2016, July 27). Tesla Motors. Inc.'s Organizational Culture, Characteristics (An Analysis). Retrieved February 19, 2017, from http://panmore.com/tesla-motors-inc-organizational-culture-characteristics-analysis T. (2016, May 17). Buffett's Moat: How Sustainable is Tesla's Competitive Advantage? (TSLA).Retrieved February 06, 2017, fromhttp//www.investopedia.com/articles/insights/051716/buffetts-moat-how-sustainable-teslas-competitive-advantage-tsla.asp: Tesla. (n.d.). Retrieved February 19, 2017, from https://www.tesla.com/ Zach. (April 29th, 2015) Tesla’s Competitive Advantage- 5 Big Ones. Retrieved February 06, 2017, from http://evobsession.com/tesla-competitive-advantage-5-big-ones/