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TESLA MOTORS STRATEGIC PLAN.

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Presentation on theme: "TESLA MOTORS STRATEGIC PLAN."— Presentation transcript:

1 TESLA MOTORS STRATEGIC PLAN

2 Market Entry Car manufacturing industry is quite a competitive industry. Tesla as a global company needs to develop a comprehensive market entry strategic plan. It will enhance the company’s capability to remain resilient and regulate the market target consumption framework. The resolve will help develop competitive advantage. Through market entry strategy the company is able to conduct market analysis to provide information for the investing firm potential.

3 Market Expansion and Merger & Acquisition
Globalization has complicated the business management and has necessitated adverse changes in the businesses operating worldwide and which solely depend on networking to support and expand their functions and processes (Caunhye, Nie & Pokharel, 2012). Mergers are prudentially handled as the driving motivation could be flawed and far-fetched.

4 Merger Due to prevalent problems associated with the dynamics of corporate operational issues and marrying the organizational cultures and sometimes makes the objective concrete (Cartwright & Cooper, 2014). In this case, the Tesla bets on the technological advancement of the SolarCity through the development of sustainable energy tech which seemingly has a promising future.

5 Vision: “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.”  Mission: “to accelerate the world’s transition to sustainable energy.” Values: Drive: driven to deliver excellent service through leadership and professionalism Attitude: being an ambitious, passionate, reliable and dedicated workforce Fairness: acting with objectivity, empathy, integrity and transparency Focus: focusing on people, economic and environmental responsibility

6 Model for Strategic Priorities

7 Organizational Values and Culture
Tesla Motors have a culture of being inquisitive about the quality of the engine and sustainability Incorporated organizational values and culture in the company has managed to develop competent human resource. Enhanced creativity necessary for designing innovative products in the automotive business.  Focusing on consumers need it has been established that consumers prioritized feature of a vehicle are quality, engine power, efficiency rather than price.

8 Culture Significance In future in order to sustain the innovative culture Tesla must recognize the six building blocks: resources, processes, values, behavior, climate and success.  Development of a comprehensive and implementation of a well-articulated strategic plan The best bet to exploiting the opportunities and unlock its full potential to maintain at the helm of the industry.

9 Culture Significance Tesla continues to lure more clients into their products through innovative technology by exploiting its ecological image. The innovative nature resulted in the incorporation of a high-performance hardware giving the Tesla users power to drive at supersonic speed. Through the developed corporate culture workforce is motivated to generate new ideas and solutions. There is a link between the motor culture and personality.

10 Competitive Advantage
In a bid to develop competitive, performing the SWOT analysis is critical. It helps in identifying the crucial factors which determine and influence the supply and demand curve which ought to translate to profits in the long run (Birk, 2015). Tesla has identified with their customer needs, emerging issues in the business world offering the firm a competitive advantage towards the competitors Introduction of a new and more effective battery system to install an independent solar energy system (Cao, 2015). Another great impressive innovation is the long awaited release of an electric vehicle.

11 Environmental Analysis
The environment in which a business operates in has a lot of influence on the performance of a firm. Telsa motors operations like any other business enterprise in the industry are affected its environment. In doing an environmental scan for a business enterprise various factors are considered. These includes things like the influence of the market forces to the operation of the firm, the nature and internal operations of the firm among others (jackson, joshi & erhardt, 2003).

12 Environmental Analysis
As such, the environment of a firm in the industry consists of the internal and the external environment. Scanning both the internal and external environment effectively leads to a business firm formulating and designing very effective strategies that may help it gain competitive edge over its competitors in the industry.

13 SWOT Analysis Like any other firm, tesla motors environment consists of both the internal and external environment. The internal environment presents the firm with strengths and weaknesses while the external environment provides opportunities as well as threats to the firm. Analysis of a firm`s environment can be done using swot analysis tool (hill & westbrook, 1997)

14 SWOT Analysis This explores the internal environment as well as external environment effectively. This helps a firm to identify its strengths, weaknesses, opportunities and threats. This helps a firm to develop effective strategies to enable the firm to outcompete its rivals in the industry. The SWOT analysis of Telsa motors is as follows.

15 Strengths Leadership. the management of telsa motors is very effective and hence it helps a firm to outcompete its competitors in the industry (mangram, 2012). The firm hire highly qualified and competent employees who manages the firm’s operations. Huge market share. the firm has maintained its strong sales growth for years. This is greatly facilitated by the good marketing strategies adopted by the firm. Strong dealership and brand recognition are the other strengths of tesla motors. The firm should therefore maximize on them to improve its performance in the industry (binkiewicz, chen, & czubakowski, 2008).

16 Weakness poor financial management. Tesla motors has high levels of debt as compared its competitors in the market. This is means its capital is highly leveraged. Time consuming procedures. The production and delivery of telsa motors is very ineffective as compared to its rivals in the industry (binkiewicz, chen, & czubakowski, 2008). This leads to delays in delivery of its products to the consumers in the market. Limited infrastructure. This limits the operations of the firm hence leading to low performance in the industry.

17 Opportunities Huge market. the market for tesla motors products is ever increasing. This provides an opportunity to the firm to increase its productions in order to meet the increased demands for the products in the market. Government incentives. the government offers incentives to firms that are producing products that are environmentally friendly. Tesla motor cars are environmentally friendly as they do not pollute the environment. As such, the government offers it some incentives to continue with their operations in the industry.

18 Opportunities New automotive technology. Tesla motors possess high levels of automotive technology which they use to produce their automobiles (mangram, 2012). This offers a good opportunity for the firm to grow in the market. Merger with solar city has offered the firm an opportunity to the firm to grow its business operations. This will greatly increase the competitiveness of the firm in the industry.

19 Threats Inflation of the prices of raw materials. The rise of the prices of the raw materials will greatly increase the costs of operations of the firm. Stiff competition. The high competition the firm is facing in the market is posing a great threat to its operations in the industry (binkiewicz, chen, & czubakowski, 2008). Government regulations. The laws and regulations of the government are sometimes unfavorable to the business enterprise hence lowering its performance significantly in the industry (mangram, 2012). The external and internal environment of the tesla motors greatly shapes its decision making process in the industry. This greatly helps the firm perform well in the industry.

20 Appendix SWOT ANALYSIS. Strengths. leadership. huge market share.
strong dealership and brand recognition WEAKNESS. poor financial management. time consuming procedure. limited infrastructure.

21 Appendix Opportunities. huge market government incentives
new automotive technology merger with solar city Threats. inflation of the prices of raw materials. stiff competition government regulations

22 References Birk, D. (2015). Tesla Motors, Inc. Market Analysis and Definition. Caunhye, A. M., Nie, X., & Pokharel, S. (2012). Optimization models in emergency logistics: A literature review. Socio-economic planning sciences, 46(1), 4-13. Cao, M. N. (2015). Future growth of Organic solar Cells in the Building Integrated Photovoltaic Market. Cartwright, S., & Cooper, C. L. (2014). Mergers and acquisitions: The human factor. Butterworth-Heinemann.

23 References Jackson, s. e., Joshi, a., & Erhardt, n. l. (2003). recent research on team and organizational diversity: Swot analysis and implications. journal of management, 29(6), Hill, t., & Westbrook, r. (1997). Swot analysis: it's time for a product recall. long range planning, 30(1), Mangram, m. e. (2012). The globalization of tesla motors: a strategic marketing plan analysis. journal of strategic marketing, 20(4), Binkiewicz, n., Chen, j., & Czubakowski, m. (2008). Tesla motors. unpublished document.


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