MBA FPX 5910 Assessment 1

MBA FPX 5910 Assessment 1:Introduction

Tesla, Inc., the chosen business organization for this capstone, is a familiar business due to its early electric vehicle (EV) car models and guidance by its chief executive officer (CEO), Elon Musk. It was founded in 2003 as a private organization and became public in 2010 (Gregersen & Schreiber, 2019). The company is world-renowned for its vehicles, the Model S and the more affordable Model 3. Yet, Tesla’s offerings extend beyond automobiles, all of which are supported by the company’s vision for clean energy. Tesla provides renewable energy to corporations and homes in the form of the “Powerwall” and “Solar Roof,” which can be used anywhere in the world and, when connected to traditional power grids, can reduce the use of fossil fuels.

Over its sixteen years, Tesla has encountered challenges 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. adheres to the organizational type of either functional or unitary in nature, where homogeneous functions and resources are combined in an effort to establish specialization. Nonetheless, this format is also inflexible and could negatively impact global responsiveness, especially at the regional levels (Meyer, 2018). For Tesla to keep pace with its mission of expediting the world’s transition to sustainable energy, it has to provide more independence to its international units.

Statement of Scope

Tesla’s product offerings, although varied, are interdependent. None of the distinct product offerings has been as strong standing alone as Tesla’s electric cars. 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 great example of this disruption was when the SEC sued Tesla after Musk made a proposal to take the company private, a proposal that would have been the largest of its kind (Ferris, 2018).

The central aim of this capstone project is to explore how Tesla has managed to be a market leader in electric vehicles despite being under scrutiny all the time. In addition, I will assess whether the company would be in a position to hold its own with its non-car business segments, i.e., energy storage devices. Tesla auto sales account for 85% of its total revenue (Tesla, 2017) from selling batteries, powertrains, and ancillary components to other companies. However, the latest reports indicate stagnant growth and dipping revenues, with second-quarter results of 2019 being short of expectations (Grant, 2019). This project will utilize strategic analysis to determine whether Tesla’s other product lines by themselves would be able 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 most critical dangers involved in data collection is being provided with incorrect or deceptive data, which may result in erroneous conclusions. All such dangers may be averted by utilizing good sources and methods of analysis. In addition, the adoption of modern word-processing packages will remove the possibility of spelling and grammatical mistakes as far as possible. In the case of sensitive material or intellectual property, early permissions will be requested as and when needed. 

Leadership Skills & MBA Program Outcomes

Success of this capstone project is dependent upon application of skills and techniques gained from the MBA program. This project will demonstrate base knowledge through applying business processes, systems, and technology by using a variety of analytical tools such as SWOT analysis, the Balanced Scorecard, and PESTEL analysis. These are utilized to measure Tesla’s previous performance and prospects across its product lines.

Discipline integration of information will be attained through the use of sources with differing perspectives. Financial reports, global production levels, and corporate performance will be used to quantify Tesla’s sustainability within the EV market. Problem-solving and critical thinking will be applied to develop evidence-based solutions to problems for Tesla. They will be based on data analysis, stakeholder input, and workability studies.

Innovation and sustainability will be examined by looking at Tesla’s current strategies, as well as contrasting them with market rivals. Teamwork in virtual, global, and culturally diverse environments will also be examined by examining Tesla’s internal operations and international market plans. Finally, ethical principles will be examined by examining Tesla’s decision-making plans and how these influence the overall performance of the company.

Conclusion

To establish Tesla’s sustainability without the automotive segment, a detailed review of its other product lines and corporate finances will be necessary. The project will investigate whether Tesla can continue to thrive on the back of its energy products alone and provide strategic recommendations to support the company’s transition away from electric vehicle dependence.

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: http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_TSLA_2017.pdf

Tesla.com. (2019). Tesla’s mission is to accelerate the world’s transition to sustainable energy. Retrieved from: https://www.tesla.com/about