MBA FPX 5910 Assessment 2

MBA FPX 5910 Assessment 2:Business Proposal Analysis

The main topic of this proposal is evaluating the survival strategies for Tesla’s auto business, particularly in its stand-alone product lines. Tesla, Inc. has serious global quality problems and is losing market share due to them. This can be observed particularly in how they handled the Model 3, which nearly saw them excluded from the Chinese market. According to Alvarez (2019), “The decline in share prices during Q1 of 2019 is due to issues in the delivery of Model 3 in China due to short production and Chinese government-delayed deliveries.” In addition, Tesla continues to face price cutting and social media criticism that take away from its reputation. This proposal will analyze how Tesla can still dominate the electric vehicle (EV) sector under international scrutiny and if the company can remain in business employing only parts and subassemblies if it closes down automobile production. Tesla’s demise would trigger a catastrophic ripple effect, primarily on current Tesla EV owners, as Tesla also handles all upkeep. This proposal, along with the attached strategies, scope of data, and action plan, aims to provide a guide for using independent car product lines in order to retain market share and enhance survivability. The methods and methodologies presented in this MBA program will be presented through an analytical report and a presentation explaining the processes and deployment methods of the survival plan.

Proposal Definition

The key strategy for maintaining Tesla’s market share is addressing the quality issue in their vehicles and implementing a risk management plan to prevent future problems. Tesla already took the first step by agreeing to repair flaws on over 5,000 Model 3 EVs. However, this was only after Consumer Reports retracted their recommendations due to reliability issues (Olsen, 2019). A secondary approach defines what Tesla will do if it is unable to maintain its market share. The concept here is to identify the most profitable and sustainable product lines that Tesla must hold onto. The overall goal of this project is to provide relevant data in Tesla’s auto business, such as market share, financial information, and quality documentation. This data will be utilized in identifying if Tesla can sustain its current EV market share and will be utilized in the development of recommendations to ensure Tesla’s success in case it cannot be a market leader.

Strategy and Action Plan

The general strategy in this capstone project is gathering data from credible sources such as market reports, financial statements, customer surveys, and peer-reviewed business journals. These sources will include Tesla’s business site (Tesla.com) for general information, the Securities and Exchange Commission (SEC) for financial reports, and the Wall Street Journal for market reports. Making the data current and credible, it will be from sources that are not older than ten years old for academic journals, five years old for journal papers, and two years old for market or financial reports. The action plan is to interpret the data in order to determine Tesla’s sustainability in the absence of car manufacturing. The results will be concluded in analytical reports, charts, and tables according to client requirements and project objectives.

Leadership Assessment and Application

Effective leadership is crucial in resolving the business challenges that Tesla is facing. The skills required in this project include a sense of control, building relationships, involvement, open communication, and problem-solving (BetterUp, 2019). These leadership abilities will help interpret the data, set solutions, and communicate those solutions to stakeholders effectively. Leadership coaching will also engage in mentoring and closing gaps in these abilities. The BetterUp test or SWOT analysis will guide leadership development and provide a strategic process in addressing Tesla’s challenge.

Conclusion

Tesla, Inc. is faced with monumental business challenges, and solutions proposed herein attempt to lead the company through such challenges and overcome them successfully. Whether Tesla can sustain itself in the EV sector on the basis of parts and subassemblies alone is something to be seen later. But from the above strategies, it is clear that Tesla must move quickly in order to solve its current problems and ensure its future in the market. This proposal meets all the necessary requirements and time constraint limitations, adding value to the company. As the consultant of this capstone project, I respectfully request to move to the next step in the process.

MBA FPX 5910 Assessments 2 Capstone Proposal

Olsen, P. (2019). Tesla Model 3 Loses CR Recommendation Over Reliability Issues: Owners report problems with paint, trim, and electronics. Consumer Reports. Retrieved from https://www.consumerreports.org/car-reliability-owner-satisfaction/tesla-model-3-loses-cr-recommendation-over-reliability-issues/

Tesla Inc. (2018). Annual Report. Retrieved from http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_TSLA_2018.pdf