Business Management Assignment Exploring Tesla’s Organizational Structure

Question

Task:
Prepare a detailed business management assignment discussing about the organizational structure and management of Tesla.

Answer

Introduction: Tesla, selected to prepare this report on business management assignment, is based on a U-form functional structure. This paves the way for the continued growth of the business. Tesla's corporate structure is designed to define and elaborate the interactive patterns of the organization's components based on legal and socio-economic aspects. To analyze the business processes of selected companies, Tesla organizational structure has been given a traditional look and its directorial tendency has been highlighted on the limited expansion of its activities in the economy international market. To increase the uniqueness of the business within the organization, the key principles related to the characteristic economy play an important role in the analysis of the cost aspect of the opportunity and decision-making choice. It also comprises maximizing results in terms of profit and production to maintain variability in the company’s activity level. 

The economic interpretation related to the organizational structure of Tesla entangles the analysis of various strategies and implementation choices related to business growth aimed at improving the organization. This helps in dealing with the problem of lack of resources in production choice. It is primarily related to the construction of an effective curve of production. The legal aspects involved in the economic situation as well as the proper accomplishment of the policies of the Tesla professional body are related to the laws that are involved to increase opportunities in manufacturing processes.

The Tesla organizational structure follows a series of rules, regulations and including legal aspects to develop its business processes by maintaining ethical conduct. Government intervention plays an essential role in leading to the political as well as legal involvement of the organization. There are certain rules and regulations approved by the government by which the development of the company can be achieved so they are expected to follow them. Also, political factors affect the ability of the organization to establish a harmonious relationship of supply and investment.

The drivers of economic change are considered from three angles, influencing it to sustain the Tesla Group's business activities. These are:

• Technical innovation: Tesla contributes to the technological innovation of organizational infrastructure by producing automobiles and the power to clean their electric vehicles. These include electric vehicles, solar panels, energy battery storage, solar roof tiles and solar city acquisitions. Among the technological innovations of Tesla's organizational structure is the creation of notable electric vehicles through which customer expectations can be fulfilled. Tesla is promising to create unique vehicles through world-changing components of technology and rapid battery production focused on sustainable charging.

• Economic aspects: The economic aspects of the Tesla organizational structure can be cited as indicating sustainable financial conditions aimed at the worldwide conversion of transportation and to produce energy in a market-centric assessment by customer engagement as well as the support of board campaigns. This includes the lack of reliable dealers to water direct marketing and high energy opportunities for enthusiastic customers. This helps maintain a high level of business motivation for the company. It incorporates building-out as a new power infrastructure at supercharger stations to give comfort to the company owners while travelling long distances and add a significant boost to its production line.

• Social aspects: The social aspects of the Tesla organizational structure refer to the legal and political factors by which certain rules and regulations can be maintained and through which the company's ethical code is followed. Legal reasons relate to all security cases that are centred around the financial assertions of the SolarCity guidelines. These include security lawsuits relating to the Solarcity acquisition as well as disposal with the SEC for potentially significant private transactions.

Business Model: Tesla bets on the expedition to take advantage of competitors in a larger market than the growing corporate structure. It works with a management style that makes it possible to overcome communication barriers, giving its employees free access to the executive team to share ideas and the potential for beneficial inclusion of business strategies. The company prioritizes problem-solving, meeting customer needs, and maintaining communication. It works with possible classification to prevent the proper knowledge flow. The functionality of the Tesla organizational structure is based on the adoption of a corporatized structure that indicates less classified friction. Company executives encourage employees to create cultural flexibility by supporting supple communication. Tesla organisational structure seeks solutions for the forefront by advancing the business market by rapid integration. Tesla CEO Elon Musk has taken a unique place in the global market to maintain affordable and high-quality production. Tesla cars are hugely popular, though the company faces many difficulties for its investors and analysts. Because of this, Tesla's unique business model integrates different perspectives for hardware suppliers and automation of a technology-based company.

Impact of politics and legal framework:

• Influence of political factors- The Tesla organization has had to face many economic difficulties to improve its economic growth. Just as government intervention is an important issue, these political factors are equally important for the betterment of the organization. The government has implemented some disciplines which should be complied with for the development of this organization. Consumers also need political help to maintain a simple and good relationship with those who supply them. The political party is also important in bringing new opportunities to the Tesla organization. The macroeconomic activity is crucial for maintaining the various strategies within the company, which is the effect of political support. The description of the various strategic plans underlying the company identifies the government's interference in the business management of the far-fetching economic sphere of the Tesla structure.

Among some of the major and fundamental forces of society, especially the government entity, one of the major influences on the Tesla Company is the role of the government in international marketing. An example of this is that the company's directed trade policies can in many cases determine the performance of the domestic industry.

• Long term implication- Tesla is now known as a brand that is hard to beat. They take the use of technology very seriously and as a result, they are unbeatable in both service and product quality. They are known all over the world as an electronic company. At present they have started building spacecraft and are ready to work in any case. Some long-term implications must be applied for such a skyscraper company. Although they are great in terms of services and products, many people think that their company lacks proper planning. Since 2006, they have focused on building electric cars. They have been successful, and in 2016 they set out to improve those electric cars again.

For a long-term strategy, Elon Musk always prioritizes the market over profit. It aims to hold a 1% share in the global market. He aims to make the cars they build from 2022 onwards starting at 25,000$ and they are also trying to put as many facilities inside the car as possible. The implementation of some of these completely new features is expected to maintain the company's long-term stability.

• Influence of legal system and antitrust law- Antitrust law affects both manufacturer and customer equally. Some of these acts are described in detail in such acts as - Clayton act, Sherman act, etc. The current President of the United States has this antitrust law. Some rules must be followed. Failure to comply will result in penalties, which will greatly harm the business. Businesses are suffering in many cases due to the implementation of this antitrust system. There is antitrust law involved in monopolization, price, executive dealing, collusion, predatory pricing, etc. This is detrimental to both the consumer and the seller. This can lead to the deterioration of the economic situation of the organization.

In 2014, Elon Musk announced that anyone could use the company's patents. It is announced that everyone will be able to use their technology, no lawsuit will be applied to them. This decision boosted all the improvements, starting with the company's revenue, as Tesla was already one of the leading companies in the globe and such a decision helped to reach the pinnacle of improvement. All that is required is that the patent is put to good use by other manufacturers.

Recommendations: At present, what is most needed for the development of Tesla is to improve the company's supply chain. This will also reduce the cost of many expensive electric vehicles and allow different classes of people to use them which will increase the company's business. The company also needs to focus on using high demand batteries. Porter's Five Forces model suggests the Tesla company should increase production. SWOT analysis shows that the company needs to pay more attention to profitability. To increase revenue, it should spread its business to other countries besides America and China.

Conclusion: This essay discusses all aspects of Tesla's social, economic, critical, and ethical issues, as well as its various problems and solutions in the business field. The business statistics are also discussed here which could change Tesla's underlying business structure. The CEO of Tesla has outlined some plans that will affect the company's business is also shown here. By improving the legal factor, economic condition and the quality of infrastructure and products, the company will be able to prove itself as the best electronic manufacturer.

References:

 1.Sharon K. Parker and Gudela Grote, 'Automation, Algorithms, And Beyond: Why Work Design Matters More Than Ever In A Digital World' [2020] Applied Psychology. https://iaap-journals.onlinelibrary.wiley.com/doi/epdf/10.1111/apps.12241

2.Ben Shneiderman, 'Bridging The Gap Between Ethics And Practice' (2020) 10 ACM Transactions on Interactive Intelligent Systems. https://doi.org/10.1145/3419764

3.V.J. Thomas and Elicia Maine, 'Market Entry Strategies For Electric Vehicle Start-Ups In The Automotive Industry – Lessons From Tesla Motors' (2019) 235 Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2019.06.284

4.Daria Battini, Dmitry Ivanov and Pietro Gianesello, 'Closed-Loop Supply Chain Simulation With Disruption Considerations: A Case-Study On Tesla' (2017) 4 International Journal of Inventory Research. https://www.researchgate.net/profile/Dmitry-Ivanov-6/publication/323761995_Closed-loop_supply_chain_simulation_with_disruption_considerations_a_case-study_on_Tesla/links/5d0dcd6d92851cf44040e8a3/Closed-loop-supply-chain-simulation-with-disruption-considerations-a-case-study-on-Tesla.pdf

5.Andrea Laplane and Mariana Mazzucato, 'Socializing The Risks And Rewards Of Public Investments: Economic, Policy, And Legal Issues' (2020) 2 Research Policy: X. https://doi.org/10.1016/j.repolx.2020.100008

6.Yurong Chen and Yannick Perez, 'Business Model Design: Lessons Learned From Tesla Motors' [2018] Towards a Sustainable Economy. https://doi.org/10.1007/978-3-319-79060-2_4

7.Tina Matthews and others, 'Tesla Energy' [2020] Science, Technology and Innovation Studies. https://doi.org/10.1007/978-3-030-58301-9_15

8.Ilias Kapoutsis and Antonia Lampaki, 'Business In The Swamp' [2021] Organizational Dynamics.

https://doi.org/10.1016/j.orgdyn.2021.100838

9.Hyeonjoo Kim, 'Analysis Of How Tesla Creates Core Innovation Capability' (2020) 15 International Journal of Business and Management. : https://doi.org/10.5539/ijbm.v15n6p42

10.Maxime Hoze, 'Tesla: A Tech Company Selling Cars' (Hdl.handle.net, 2021) < http://hdl.handle.net/10362/122623 > accessed 4 December 2021 

11.Matthew Rimmer, 'Elon Musk’S Open Innovation: Tesla, Intellectual Property, And Climate Change' [2018] Intellectual Property and Clean Energy. https://doi.org/10.1007/978-981-13-2155-9_19

12.Gerard H. Th. Bruijl, 'The Relevance Of Porter's Five Forces In Today's Innovative And Changing Business Environment' [2018] SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.3192207

Bibliography:

1Parker S, and Grote G, 'Automation, Algorithms, And Beyond: Why Work Design Matters More Than Ever In A Digital World' [2020] Applied Psychology. https://iaap-journals.onlinelibrary.wiley.com/doi/epdf/10.1111/apps.12241

2Shneiderman B, 'Bridging The Gap Between Ethics And Practice' (2020) 10 ACM Transactions on Interactive Intelligent Systems https://doi.org/10.1145/3419764

3 Thomas V, and Maine E, 'Market Entry Strategies For Electric Vehicle Start-Ups In The Automotive Industry – Lessons From Tesla Motors' (2019) 235 Journal of Cleaner Production https://doi.org/10.1016/j.jclepro.2019.06.284

4 Battini D, Ivanov D, and Gianesello P, 'Closed-Loop Supply Chain Simulation With Disruption Considerations: A Case-Study On Tesla' (2017) 4 International Journal of Inventory Research https://www.researchgate.net/profile/Dmitry-Ivanov-6/publication/323761995_Closed-loop_supply_chain_simulation_with_disruption_considerations_a_case-study_on_Tesla/links/5d0dcd6d92851cf44040e8a3/Closed-loop-supply-chain-simulation-with-disruption-considerations-a-case-study-on-Tesla.pdf

5 Laplane A, and Mazzucato M, 'Socializing The Risks And Rewards Of Public Investments: Economic, Policy, And Legal Issues' (2020) 2 Research Policy: X https://doi.org/10.1016/j.repolx.2020.100008

6Chen Y, and Perez Y, 'Business Model Design: Lessons Learned From Tesla Motors' [2018] Towards a Sustainable Economy https://doi.org/10.1007/978-3-319-79060-2_4

7 Matthews T and others, 'Tesla Energy' [2020] Science, Technology and Innovation Studies https://doi.org/10.1007/978-3-030-58301-9_15

8 Kapoutsis I, and Lampaki A, 'Business In The Swamp' [2021] Business management assignment Organizational Dynamics https://doi.org/10.1016/j.orgdyn.2021.100838

Kim H, 'Analysis Of How Tesla Creates Core Innovation Capability' (2020) 15 International Journal of Business and Management: https://doi.org/10.5539/ijbm.v15n6p42

9 Hoze M, 'Tesla: A Tech Company Selling Cars' (Hdl.handle.net, 2021) http://hdl.handle.net/10362/122623 accessed 4 December 2021

10 Rimmer M, 'Elon Musk’S Open Innovation: Tesla, Intellectual Property, And Climate Change' [2018] Intellectual Property and Clean Energy https://doi.org/10.1007/978-981-13-2155-9_19

11 Bruijl G, 'The Relevance Of Porter's Five Forces In Today's Innovative And Changing Business Environment' [2018] SSRN Electronic Journal https://dx.doi.org/10.2139/ssrn.3192207