Analysing Tesla Case Study

Paper Type:  Case study
Pages:  7
Wordcount:  1703 Words
Date:  2022-04-14

Tesla Inc. formerly referred to as Tesla Motors Inc. is a manufacturing company based in Palo Alto California. The firm conceptualizes, develops, produces, and sells electric vehicles and systems for storing energy. Tesla is also in the field of installing, operating and maintaining solar and other energy storage products. Therefore, the company operates via the energy generation and storage as well as the automotive department. Tesla is a world-renowned manufacturer and seller of electric vehicles with its three brands, Model X, Model 3, and Model S, as the most marketable. Tesla Inc. sells automobiles via the company's own sales and services network. It also has a range of energy storage inverters such as the 14kWh Powerwall 2 and the 200kWh Powerpack 2. There are also inverters for massive energy requirements such as in the commercial sector.

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The corporation develops the energy storage devices to include converter panels, inverters, electrical hardware, and racking. Tesla Inc. is a global company with a presence throughout North America, Europe, and Asia. It is the most recognizable company in the discussions regarding electric cars. It competes with other major corporations like BMW, Audi, Honda, Toyota, Sunrun Inc., AES Energy Storage etc. as an engineering student, I would love to work with Tesla, especially in the area of renewable energy systems. Sustainability is the future, and hence I find the field of renewable energy to be interesting since it is the foundation of Tesla Inc.

Part 2

The external environment of Tesla Inc. is a crucial determinant of its successful operations.

Economic and Legal Environment

Macro-environmental factors will determine the aggregate supply and demand in the industry while the micro factors impact the firm's competitive advantage. Economic activities have increased globally since the recession, and this has led to an increase in employment opportunities. High employment figures mean that more people have the disposable income to spend on automobiles. Tesla's Model X is an ideal choice for many people who are shopping for a luxury vehicle. The low cost of renewable energy compared to gasoline is also an economic factor that affects the sales of Tesla. People are installing the energy storage devices as well since the bills cheaper than electricity.

The legal aspects affecting Tesla Inc.'s operations include the state bans on direct automobile sales from the manufacturer to the final consumer. Roughly five states, most recently Michigan, have banned Tesla from hiring sales personnel, offering test drives, or soliciting sales. Consumers can only view the image in a gallery and make an online order. These laws require Tesla to sell its vehicles via automobile dealerships, but other states allow direct sales to the customer. International patent protection safeguards the designs of Tesla Inc. in overseas markets. Some governments have passed legislation on vehicle carbon emissions and manufacturers must adhere to them, but Tesla is not worried since it is built on fossil-free energy.

Technological Environment

Technology around the world is changing at a rapid pace. Tesla Inc. must stay innovating to avoid the trap of obsolescence. The increasing popularity of mobile systems is of particular importance to Tesla since new car designs are showing a growing trend of integrating these devices. Tesla is a forerunner in the innovation sector, and it continues to improve the efficiency of batteries and the electric vehicles. New ideas on battery-powered, 'green cars' and the self-driving technology are significant forces of disruption if the automobile, and renewable energy industries. Tesla is already actively involved in developing ideas for the future of the industry.

Competitive Environment

Tesla Inc. is one of many automobile manufacturers around the world who make high-quality products for their customers. However, there is a low threat of new entry since Tesla has carved its niche in the electric-powered sector while the rest of the industry produces gasoline cars. Some companies like Toyota have been experimenting with green energy too but not on the scale of Tesla. This niche is proving to be attractive as it shows signs of sustainability and further growth in future. Corporations like Audi and Volkswagen have recently developed plug-in car models. Apart from producing batteries and electric energy systems, other companies are looking into green fuels like hydrogen and bio-diesel.

Social and Cultural Environment

Many people are of the idea that clean fuels or electric engines are the way to go for the future. The threat of global warming and climate change has created high levels of awareness amongst the general public. Going green is an essential term in many conversations today, and companies are gradually hopping onto the bandwagon. These concerns over low carbon emissions and renewable energy place Tesla's products at an advantageous position.

Global Environment

The global environment consists of the worldwide interactions that influence and control the operations of a firm. Climate change is a universal aspect that is affecting many sectors of life, and hence there are concentrated efforts towards minimizing its impact. Automobile firms must show the efforts they have made towards environmental conservation. Apart from the vehicles, the energy storage devices designed by Tesla are also in line with the global agenda of saving energy and sustainability.

Part 3

Organizational Structure

Tesla Inc. utilizes a functional structure which delegates responsibility based on the organizational functions. For example, there is a group of staff members engaged in sales and services while another is focused wholly on engineering. The company is relatively new in the market, and small in size, hence the functional structure is the best approach to oversee international and domestic operations.

Tesla Inc. divides its operations into the automotive part and energy generation and storage. These are the two business models of the company. These divisions are not as crucial to the processes as the functional breakdown. There are also geographical divisions made in line with the organization's global reach and mostly used for financial reporting: Asia Pacific, United States, and Europe.

Tesla Inc. utilizes centralization in the corporate structure. Managers can control the company via decisions generated by a team or a central group. In this context, the office heads in the global hierarchy form the central headquarters of the company where they directly control all the operations. The headquarters make the majority decisions for the overseas operations. Tesla uses a flat organizational structure that is often used by start-up firms due to its simplicity.

Culture

Tesla has complex, non-standard, and complex products that are developed via teamwork and seamless collaboration to come up with industry-leading technologies. The companies tried and tested approach of knowledge sharing and management allows the different departments to function in a manner that encourages creativity through teamwork. The corporate culture is formal despite the prevalence of collaboration, and there are clear lines of communication. The goal of Tesla is to create sustainability in the transport sector by mass manufacturing electric cars. The chairman, Elon Musk, is well known for his efforts on global sustainability and renewable energy. The company values constant innovation and moving fast to create viable solutions for, seemingly, impossible tasks.

Part 4

Strengths

  • Highly innovative processes
  • Robust brand name
  • Overall control in the production process
  • A unique range of products
  • Healthy growth in sales
  • It has strategic alliances with other corporations like Toyota
  • Sound leadership from the top through to the workers

Weaknesses

  • The high cost of research and development
  • Customers wait long for the delivery of their cars
  • There are high levels of debt since Tesla is heavily leveraged
  • Limited infrastructure in terms of charging stations to power the electric vehicles
  • There is a limited number of battery manufacturers on the market
  • The cars are high-priced

Opportunities

  • The car market is shifting towards clean energy, and Tesla is poised to be a leader
  • Mass production of affordable cars (Model 3) will boost sales
  • Most of the current market is centred in the US, but the international market is showing excellent growth potential
  • The merger with SolarCity made Tesla a household name in the energy storage sector
  • Improved technology to discover self-driving features for the future

Threats

  • Tesla faces aggressive competition from other automakers like Toyota and Volkswagen
  • Dealership regulations in the US mean that Tesla cannot sell directly to customers in some states
  • The fluctuating price of lithium and graphite used in the batteries
  • Falling oil prices will make it affordable to drive gasoline engines, and hence few electrical cars will be on demand
  • The possibility of employee unionization

Personal SWOT Analysis

Strengths

  • I excel, and like, physics
  • I am keen about attention to detail
  • I love finding solutions to practical problems through logical thinking
  • I have excellent communication skills
  • I have a degree in engineering
  • I enjoy working with others

Weaknesses

  • I am sometimes too quick to jump to conclusions
  • I have a short attention span on theoretical matters

Opportunities

  • Tesla's culture is based on teamwork
  • Tesla is a manufacturer of cars and energy saving technology hence there is a demand for engineers
  • Tesla is still a young company with plenty of growth potential for new employees
  • The company manufacturers unique items hence my attention to detail will be utilized

Threats

  • I do not have an advanced master's degree like other recruits
  • Increased automation could lead to a reduction in the employee numbers

I will be a good fit for the company since I have several qualities that are needed by employees at Tesla. I am a stickler for details, and I believe engineers must be like that to produce masterpieces. My love for teamwork dovetails with the firm's culture of group participation, especially amongst engineers and developers. I will need to improve my attention span since theory is an important part of making me a complete engineer. I believe that I will excel, and enjoy, working with a revolutionary corporation that is laying down the infrastructure for the future and caring for the environment.

Conclusion

Tesla Inc. is an industry leader in the design and manufacture of electric cars. Their energy storage department is also showing considerable growth such that it is one of the world's major players in this sector. Tesla is faced with various threats, but the opportunities and strengths show that the future is bright. I would like to work for the corporation since it is technologically advanced and conscious about making a positive impact in the world.

Cite this page

Analysing Tesla Case Study. (2022, Apr 14). Retrieved from https://proessays.net/essays/analysing-tesla-case-study

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