Introduction
MBA FPX 5910 Assessment 1 Tesla, Inc., the chosen business organization for this Capstone, is a renowned firm due to its pioneering electric vehicle (EV) car models and guidance by its chief executive officer (CEO), Elon Musk. Established in 2003 as a private company and becoming public in 2010 (Gregersen & Schreiber, 2019). The company is worldwide identified with its cars, the Model S and more affordable Model 3. But Tesla’s offerings extend beyond cars, all supported by the firm’s vision of sustainable energy. Tesla sells renewable energy to homes and companies alike, through the “Powerwall” and “Solar Roof,” which are usable anywhere globally and, if connected to standard power grids, can offset the use of fossil fuels.
Over its sixteen years, Tesla has experienced both challenge and success, having grown from a single factory in Fremont, California, to now operating two Giga factories—one in Buffalo, New York, and the other in Sparks, Nevada. Tesla, Inc. operates on the organizational structure of either functional or unitary in character, where homogeneous resources and functions are combined to create specialization. Yet, even this organization may be too fixed and can hinder global responsiveness in regional markets (Meyer, 2018). In order to stay close to their aim of speeding up the world’s transition to sustainable energy, Tesla needs to give more autonomy to its international departments.
Statement of Scope
Product lines at Tesla, though multifaceted, are interrelated. None of the separate products have been so resilient on its own as Tesla’s electric automobiles. Recently, the company has received negative publicity for various reasons, further complicating its position. Tesla is an ideal focus for this Capstone project due to the company’s journey of overcoming internal conflicts and external scrutiny, with much of it centered on Elon Musk’s leadership. A perfect example of such turmoil was when the SEC sued Tesla after Musk’s offer to take the company private, an offer that would have been the largest of its kind (Ferris, 2018).
The overall purpose of this Capstone project is to study how Tesla has been a leader in electric vehicles despite being in the limelight all the time. In addition, I will assess if the company could potentially survive on its non-automotive business segments, i.e., energy storage solutions. Automobile sales by Tesla account for 85% of its total revenue (Tesla, 2017), including battery, powertrain, and other component sales to other companies. However, recent developments indicate a slowdown in growth and declining revenues, with second-quarter results in 2019 disappointing expectations (Grant, 2019). This project will utilize strategic analysis to determine whether Tesla’s other product lines by themselves would be enough to sustain the company without the EV segment.
Demonstration of Outcomes
Proper and accurate data collection is crucial to the success of this strategic analysis. Tesla’s corporate website, The Wall Street Journal, the SEC, and the Capella Library will be used to gather information that is necessary. Scholarly peer-reviewed articles will be utilized where applicable. One of the greatest data collection hazards is being fed incorrect or misleading data, which could result in bad conclusions. These hazards may be stayed off through sound sources and analysis tools. Additionally, the utilization of modern word-processing software will keep the possibility of spelling and grammatical mistakes to an absolute minimum. For sensitive data or intellectual property, advance permissions will be obtained as deemed fit.
Table
Leadership Skills & MBA Program Outcomes
MBA FPX 5910 Assessment 1 The success of this Capstone project depends on the application of skills and techniques acquired through the MBA program. This project will demonstrate base knowledge by utilizing business processes, systems, and technology through various analytical tools such as SWOT analysis, Balance Scorecard, and PESTEL analysis. These are utilized to evaluate Tesla’s historical performance and future prospects across its product ranges.
Information integration of discipline will be done through the inclusion of sources with different perspectives. Financial statements, global production levels, and company performance will be examined to quantify Tesla’s sustainability without the EV industry. Critical thinking and problem-solving will be applied to develop evidence-based solutions to issues for Tesla. They will be based on data analysis, stakeholder input, and studies of workability.
Innovation and sustainability will be examined by considering Tesla’s current strategies, as well as comparing them with market competitors. Also, teamwork in virtual, global, and culturally diverse environments will be analyzed by examining Tesla’s internal operations and international market strategies. Finally, ethical principles will be researched by examining Tesla’s decision-making strategies and their impact on the overall performance of the organization
Conclusion
To ascertain Tesla’s viability without the automotive segment, a detailed analysis of its other product segments and corporate finances will be necessary. The project will analyze if Tesla can continue to thrive on the basis of its energy products alone and provide strategic recommendations to support the company’s transition away from electric vehicle dependence.
References
Ferris, R. (2018). Tesla shares surge 10% after Elon Musk shocks market with tweet about going private. CNBC. Retrieved from: https://www.cnbc.com
Gregersen, E., & Schreiber, B.A. (2019). Tesla Inc. Encyclopedia Britannica. Retrieved from: https://www.britannica.com/topic/Tesla-Motors
Grant, C. (2019). Tesla’s growth story nears final chapter. The Wall Street Journal. Retrieved from: https://www.wsj.com/articles/teslas-growth-story-nears-final-chapter-11564006645?ns=prod/accounts-wsj
MBA FPX 5910 Assessments 1 Capstone Project Summary
Meyer, P. (2018). Tesla Inc.’s organizational structure & its characteristics (Analysis). Panmore Institute. Retrieved from: http://panmore.com/tesla-motors-inc-organizational-structure-characteristics-analysis
Tesla, Inc. (2017). Annual Report. Retrieved from: https://www.annualreports.com/
Tesla.com. (2019). Tesla’s mission is to accelerate the world’s transition to sustainable energy. Retrieved from: https://www.tesla.com/about
