North South University

Course Name: Organizational Management

Course Code: MGT212 (Section 20)

Project Name: “Business Case Analysis of Tesla, Inc.”

Date of Submission: September 24, 2020

Submitted By:

Student Name ID
and their respective parts
Tasnim Sultana Jarin: 1911698630
Introduction & “Strategic Management”
Samir Ahmed: 1931497630
“Global Business” & Conclusion
Raisa Musharrat Hossain: 1931471030
“Organizational Structure and Design”
Tanzim Alam: 1931108630
“Controlling”

Submitted To:

Ms. Afnaan Ahmed

Lecturer, Department of Management

 Table of Contents

1. Introduction ……………………………………………………………… 3
2. Global Business…………...……………………………………………… 3
2.1 Global Perspective…………………………………………………... 4
2.2 Organization Go Global ………………………………………........ 4
2.3 Regional Trading Alliances………………………………………… 6
2.4 Doing Business Globally …………………………………………… 6
2.5 Summary …………………………………………………………… 8
3. Strategic Management………………………………………………….. 8
3.1 SWOT Analysis …………………………………………………… 8
3.2 BCG Matrix ……………………………………………………….. 10
3.3 Corporate Strategies ………………………………………………. 11
3.4 Stability Strength …………………………………………………. 14
3.5 Summary ………………………………………………………….. 15
4. Organizational Structure and Design………………………………... 15
4.1 Organizational Structure…………………………………………. 15
4.2 Organizational Design …………………………………………… 19
4.3 Advantages and Disadvantages …………………………………. 20
4.4 Summary…………………………………………………………… 21

5. Controlling……………………………………………………………… 22

6. Conclusion …………………………………………………………….. 28

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 1. Introduction (By Tasnim Sultana Jarin)
We are very glad to share our report on Tesla Motors, an inspiring and young automobile
company, with a bold vision, which build electric vehicles under the personal and professional
management.

In this report we provide, a picture of Tesla’s strategic management including SWOT analysis,
BCG matrix, organizational structure and designs, how they are doing business globally. Last but
not the least, we conclude with overall controlling system of Tesla.

To understand real life and dynamic business, we enjoyed our work. All of us brought powerful
ideas and negotiated to shape a shared vision. Now we learned to apply management principle to
a real-world business as we work under a tremendous company and know their principles.

2. Global Business (By Samir Ahmed)

2.1 Global perspective

Multinational companies usually follow attitudes depending on their business model. Generally,
companies follow these 3 types of attitude-
 Ethnocentric Attitude
 Polycentric Attitude
 Geocentric

Ethnocentric Attitude:
In these types of attitude companies follow the home country’s practices in other countries. They
already set a benchmark for their products and services back in their homeland and follow the
already existing benchmark in foreign countries.

Polycentric Attitude: 
This attitude is fully opposite of ethnocentric attitude. Companies adapt to the foreign market by
doing practices based on different country’s perspectives. Their product line and services are
different based on the countries they are operating in.

Geocentric Attitude: 
When companies prefer to practice both Ethnocentric and polycentric attitudes, they follow
geocentric attitudes. Companies introduce homeland practices in a foreign country and also adapt
changes and environment.

Tesla Inc. follows the ethnocentric attitude. Tesla’s philosophy is to change the traditional car
industry to a new modern and sustainable future. Tesla is the first successful EV car company.
As the first in the market, their benchmarks have to be at a level that can compete with the
traditional vehicle market. Therefore, their position in the market is very sensitive. They set a
benchmark which they think is satisfactory and apply the same benchmark all over the world.

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Currently Tesla is officially doing businesses in- North America, Europe, UK, Middle East, and
Asia/Pacific. [ CITATION Jos19 \l 1033 ]
Tesla sells their car only through online to cut the middle man which is known as dealership and
sell directly to the customer at a lower price. It means customers have to order their car online
and Tesla directly ships the car to them. If customers want to see the car physically, there are
many Tesla physical stores in malls and other places for showcases where customers can check
and order from there through online. [ CITATION Lor19 \l 1033 ]. It’s a very new concept in the car
industry. Although it's a new concept and very unusual for many countries, Tesla continues their
same sales strategy in every country they are doing business. 

Tesla now has 4 Giga factories in the USA, China and Germany where they produce their cars.
Tesla’s first 2 factories are in the USA and 3rd and 4th one is in China and Germany
respectively. Tesla ensures that their made in USA cars and made in China cars have the same
quality. In some cases, Chinese made tesla gets a better quality because of Tesla’s day by day
improvement philosophy. But overall their Chinese made cars and U.S. made cars get the same
treatments. [ CITATION Gus19 \l 1033 ]

Tesla provides Supercharging facilities all over the world. As of March 2020, Tesla operates
more than 17,000 Superchargers in 1,942 stations worldwide. It allows all customers to get the
same experiences all around the world. [ CITATION Wik \l 1033 ]

They are also very sensitive about after sales service. Just to ensure that every car gets proper
servicing, Tesla only allows themselves and their certified 3rd parties to service their cars. Every
country where they operate, they provide after sales service by themselves to ensure the quality.
It portrays, they are maintaining their standard all over the world.

2.2 Organization go Global

When corporations expand their businesses globally, they sometimes partner up in an agreement
with other foreign corporations.

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Strategic alliance:
Strategic alliance is an agreement between 2 or more corporations to pursue a goal which would
be beneficial for both parties while remaining independent organizations. In strategic alliances
every partner has to share at least one resources. Such as machinery, Facilities, R&Ds etc.

Joint venture: 
Joint venture is a strategic alliance where 2 corporations or more start a new independent entity
for specific business purposes. While them maintaining separate entities.
Tesla is doing joint ventures and other strategic alliances depending on their goals. As a MNC
Tesla does agreement with other entities with other corporations and attains their and other
corporation’s goals and objectives. Since 2010 Tesla became public limited, they were able to
achieve substantial successes. As of today, Tesla is now worth a whopping 450 billion USD from
226 million USD back in 2010. [ CITATION Coi20 \l 1033 ] 
In 2008 after they started selling their first car named roadster, they didn’t have a market or
legitimacy. Also, they were plagued with technical difficulties and cost overruns. In 2009 Tesla
worked out an alliance with Mercedes-Daimler. Mercedes-Daimler has an experience of 130
years in the automobile industry. This alliance provided tesla with superior engineering
expertise and 50 million dollars which had been injected into the business and saved them from
bankruptcy. 

Following year Tesla also made another alliance with Toyota Motor Corporation. This alliance
allowed Tesla to buy an old factory in California named New United Motor Manufacturing Inc.
or NUMMI which was built by Toyota & General Motors in a joint venture back in 1984. When
Tesla bought the plant, it was the only large automobile manufacturing plant in California. This
is the factory that made tesla today a large scale manufacturer who produces cars for the
majority. Tesla’s always grand plan was to make cars for the majority. This factory initiated their
grand plan. Their 35000 dollars model 3, which received more than 400000 preorders just in
3 months. Although they faced problems to keep up with the numbers initially, they were able to
succeed and fulfill the demand. [ CITATION Tom16 \l 1033 ]
In 2014, Tesla Inc. did a joint venture alliance with Panasonic Japan. Panasonic is a market giant
in the consumer battery sector. As Tesla, a battery car manufacturer, their expertise in battery
technology was essential to survive. Both Panasonic and Tesla jointly invested 5 billion dollars
to build a lithium-ion battery plant in the USA. [ CITATION Fin \l 1033 ]
Tesla is still continuing their strategic alliance business model to expand. For the Chinese
manufactured cars, Tesla made a deal with South Korean company LG Chem and Chinese
company CATL. Panasonic is not involved in this joint venture. Only LG Chem and CATL will
be the battery supplier for Chinese manufactured cars. [ CITATION The20 \l 1033 ]
[ CITATION HaH16 \l 1033 ]
Besides their significant alliances tesla also has somewhat partnership in companies such as- 
 AGC Automotive: windshields
 Brembo: brakes
 Fisher Dynamics: power seats
 Inteva Products: instrument panel
 Modine Manufacturing Co.: battery chiller
 Sika: acoustic dampers

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  Stabilus: liftgate gas spring
 ZF Lenksysteme: power steering mechanism

[ CITATION JBM30 \l 1033 ]

Tesla's partnering with other corporations shows that they achieved expertise in the fields such as
R&D, Finance, Manufacturing and Technology by strategic alliances. Tesla was initially a very
small company to produce mass vehicles and batteries. Their plan of partnering with large
companies opened many opportunities to grow. 

2.3 Regional Trading Alliances

Regional trading alliances are a type of agreement between 2 or more countries to encourage the
transaction of goods and services more freely across the border of both countries. There are
certain rules between all the members and everyone has to follow those rules. 

NAFTA & Tesla:

NAFTA or North American Free Trade Agreement was created in 1992. The Agreement was
between 3 countries- USA, Canada & Mexico. The agreement benefited mainly the USA and
Mexico but Mexico got the most advantages. USA automobile manufacturers moved many
production to Mexico which created many jobs in Mexico.
NAFTA benefited Tesla to expand business in Canada and Mexico. Although, Tesla has to
follow few rules in terms of manufacturing their cars to get free from tariff in those 2 countries.
There is a rule about car manufacturing in NAFTA. Apparently, if a car is assembled in the USA,
Mexico or Canada, 55% of that car has to be made in North America at least. Then it can be
considered as a NAFTA vehicle which would exempt any tariff. Tesla’s always plan was to build
cars for everyone. It means an economic car that is going to sell a very large number and Model
3 was that car .Tesla mainly started doing profits after the launch of Model 3. So, Model 3 was a
very important product for Tesla to expand all over the world which includes NAFTA members-
Canada and Mexico. Canada has a 6.1% and in Mexico around 20% taxes on imported cars. So,
to get the “NAFTA vehicle” treatment, Tesla makes 50% of their car parts in the USA or Canada
and 25% in Mexico. Instead of making the battery manufacturing plant in South Korea or Japan
as they are doing businesses with Panasonic and LG, They build the plant in the USA. Which
helped Tesla to reach the 55% mark. [ CITATION Fre17 \l 1033 ]
Tesla also enabled a business in Canada regarding a pre-owned car resale program. Tesla can
sell their pre-owned cars which they sold in the USA to Canada. Because of NAFTA the whole
export-import procedure has been eased up. This program helps Tesla to move pre-owned cars
from their inventory quickly. As a result more cash flow for the company and more
profit. [ CITATION Bra19 \l 1033 ]

2.4 Doing Business Globally

Tesla is a multinational company (MNC). They operate their business globally. Their
organizations do- Export, Imports, Global Sourcing & Licensing based on the operations.
Tesla initially manufactured their cars only in the USA and imported them worldwide from the
USA. But importing from the USA used to be very expensive in many mainstream markets of

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Tesla’s. China is one of the biggest markets for Tesla right now. Back in 2014 when Tesla
started selling cars in China, The prices of Model S were 50% higher than the price in the USA.
The Model S's price was 81000 USD in the USA but In China after shipping and taxes the price
jumped to 734000 yuan or 118000 USD. The premium price for an already premium priced car
was too much for customers. Tesla knew it was going to be impossible for them to sell the
mainstream model 3 at a premium price and compete with Chinese home grown brands such as-
BYD and others. They saw an opportunity to build a Giga factory in Beijing, China.
Manufacturing cars directly in China and selling them directly to the customer would not only
save them the shipping cost to import also it will reduce the import taxes. Also, the labor cost in
China is comparatively very low then the USA. Tesla started their Giga factory’s construction
right after the launch of model 3 in the USA. They built the factory within a year and started the
production of model 3. The Chinese made model 3s are 13% cheaper than the imported one from
the USA. [ CITATION Gra19 \l 1033 ] By lowering the price model 3's sales are now skyrocketing in
China. 
Tesla claims that in future the price of their cars will be more affordable in China. Tesla is now
planning to export Chinese made model 3 in other Asian and some European markets. It will be
cheaper for Tesla to export the Chinese made cars in those countries than the US made one. 

Tesla has also built a new Giga factory in Berlin Germany. This Giga factory will export the
Tesla cars in some parts of Europe. The reason for building this factory is also for tax reduction
and the freight cost reduction. Also, manufacturing directly in Germany will give Tesla
advantages to compete with the homegrown Germany brands such as Mercedes-Benz, BMW,
Audi and Volkswagen.[ CITATION BBC19 \l 1033 ]
Tesla has already built a new research and development center in China. This research and
development center will be cheaper to run because of cheaper engineers and man powers. 
Tesla doesn’t sell any manufacturing facility licenses to 3rd parties. But sells Technology and
patents as licensing. Tesla sells their battery & auto pilot technology to other manufacturers. It

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means they allow other manufacturers to use their battery & auto pilot technology through
licensing.  [ CITATION Son20 \l 1033 ]

2.5 Summary
Summarizing Tesla’s Global business illustrates that Tesla is a multinational company, doing
businesses all over the world. Tesla’s business is brand new to the auto industry. As an electric
car manufacturer their initial presence and impression is very significant for their permanency in
the automobiles market. Therefore, Tesla follows ethnocentric global perspective to keep their
pristine brand image. Tesla puts the benchmark of their products at a high level and maintains
the same benchmark all over the world. They sell their cars only through online to cut middle
man and extra cost. Tesla also signed many strategic alliance agreements. Joint venture with
Panasonic to produce battery for the cares, Strategic alliance with Daimler-Mercedes for cash
flow and tech team & also with Toyota for buying California’s last biggest factory to build car in
mass production are some of the foremost strategic alliance Tesla made over the course of a few
years. Tesla as an American brand, Tesla got few advantages in tariff of doing businesses in
Canada and Mexico because of NAFTA. Tesla is expanding their businesses based on regional
based popularity. After the USA Tesla sees Europe and China as its biggest market. Tesla
already built 2 Giga factories in China and Germany to reduce taxes and freight cost to provide a
more competitive price. In the near future from those factories Tesla will export cars to other
Asian and European countries. In China Tesla has built a research center which will be cheaper
to run compared to the US research center. Tesla sells licensing of only technologies to other
3red parties. Such as- Autopilot & Battery cell technology. Tesla already got into a vast market
which indicates Tesla's significance in the market.

3. Strategic Management (Tasnim Sultana Jarin)

3.1 SWOT Analysis

SWOT (strengths, weakness, opportunities and threat) is a technique for evaluating the
performance, competitiveness, risk and opportunity of a company, as well as part of a market,
such as a product line or division, a sector or another organization. By using internal and external
data, the SWOT analysis will inform an organization where it wants to change internally and
help to build strategic plans.

 STRENGHT

 The first automobile company to develop and invent the fastest and energy-efficient
electronic sports car.
 A strong competitor as they made partnership with potent brand i.e. Toyota, Panasonic.
 They focus on new, innovative, stylish, unique, creative and modern product concepts
which attract the market fast.
 They have the ability to make infrastructure, battery production by own.
 Addition of more functional safety bring a new dimension.

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 Tesla produce new innovative car with affordable price.
 Factors include timing, such as low energy costs, energy availability, global warming,
people's perception of the eco-friendly or green world.
 Tesla maintain the strategic positive and certain partnership.
 Successful attempt of making a strong global brand image.
 Innovative, experienced and gifted tech entrepreneur and pioneer- Elon Mask, who
founded PayPal, SpaceX earlier.
 The customer of Tesla mostly from the niche market.
 In the car they provide various kind of ICT tools.
 Collaboration with many universities help them to promote the products.
 Tesla has the own institution for problem solving.
 They build the future foundation for practice and research.
 The model S won the 2013 Motor Trend’s Car of the Year award and it is the safest car
according to crash test.
 They have the best location near the great talented people in California.

 WEAKNESS

 Higher production cost than rivals.

 Operating the limited history compare to their competitors.
 Restricted sales contributing to a loss of profitability.
 They have a limited infrastructure system to charge the battery.
 Tesla has to depend continuous innovation process.
 Workers need to have best technological idea and experiences.
 Tesla has been troubled with a number of development issues.
 Tesla has a high debt-to - income ratio and has just recently made money.
 Electronic vehicles rely on minerals that are being used easily, with no substitutes yet
available.
 Consistent output capability still not achieved.
 Spreading its emphasis on a diverse range of business segments rather than consolidating
volume.
 Dependency on wholesaler for distributing products.
 There still a question remaining, what would happen to Tesla if Elon Mask walk away?

 OPPORTUNITIES

 Fast growth of international market like China, South America.

 Expand the eco charging point system via the creation of collaboration.
 Act with a larger collection of governments to include options for electric
vehicles.
 The availability of oil is limited hence, the higher price of oil contributes to more
demand for electric vehicles.

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  Nowadays, people are more aware about environment pollution.
 Usage of absorbing power from solar panel as an alternative of battery
technology.
 Safe manufacturing facilities for the production of batteries.
 Online sale become the most powerful instrument for its expansion.
 Capability to build new stores.
 Affiliate partnership with associated suppliers.
 Wholesale delivery relationship is developing.
 Improvement of new jobs and condition facilities.
 Standardization is an outstanding method for acceptance and protection.
 Tesla has been very successful in European markets, particularly Germany, and
the company in Asian and Canadian market.

 THREATS

 Global players are now investing actively in the manufacture of electronic vehicles.
 Major penalties may be due if the legal action went against Tesla.
 The rivals have a good presence in the vital market, and China is growing home ground
products.
 Restricted market capital and rising demand from other car makers may cause production
problems.
 Alternative solutions can be used to fix congestion and emissions.
 Quite large rivals, more and more manufactures recognize their own eco conscious
vehicles. Although they (not all) are bigger than Tesla, they have more financial capital
so they can live longer if oil prices do not rise.
 It takes several hours to recharge its EV batteries whereas it only takes a few minutes to
fill the with gas.
 Limited supply of raw materials.
 Knowledge of the value of EV is not well dispersed.
 Insurance premiums are continually rising.
 Increase in price input can result in higher prices.
 Changes in legislation may have an effect on company.
 Expensive than the gasoline engine vehicles.

3.2 BCG Matrix

The BCG matrix is a structure designated by the Boston Consulting Group to determine the
strategic position and value of the business Brand portfolio. It classifies the business portfolio
into 4 categories (STAR, CASH COW, DOGS, QUESTION MARK) based on the quality of the
industry (growth rate of the industry) and the competitive position (relative market share). These
two dimensions reveal the possible viability of the business portfolio in terms of market share.
The basic aim of this matrix is to support or explain in which business you should invest and
which business you should divest.

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STARS: High market share or high growth rate. In Tesla’s case:

Earning: Stable Growing

Cash Flow: Neutral

Strategy: Invest for growth

Cash Cow: High market share / low growth rate. For Tesla:

Earnings: High and Stable

Cash Flow: High and Stable

Strategy: Invest

Dogs: Low market share/ low growth rate. TESLA has:

Earning: Unstable

Cash Flow: Negative

Strategy: Divest

Question Mark: Low market share / High growth rate. Under Tesla company:

Earning: Unstable but Growing.

Cash Flow: Negative.

Strategy: Invest.

Boston Consulting Growth Matrix indicates and reveals that, the portfolio of Tesla is moving
from Question Mark to Stars. This is the perceptiveness of higher growth rate and low profits,
but growing market share and negative cash flaw. This further represents the existing lack of
facilities for charging points, warehouses, dealerships and stock limits. Future output would
show development opportunities and promising development for the upper quadrant of the BCG
matrix.

3.3 Corporate Strategies

Corporate strategy is a strategy decision that entails a well-developed, long-term vision where
companies set out to build corporate value and inspire the workforce to take effective actions to
maximize customer loyalty.

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In addition to the demands and the market environment, the organizational strategy must
represent an optimum solution to these variables. With this in mind, it is beneficial to divide the
Corporate Strategies into 3 potential classifications.

1) Growth Strategy

2)Stability Strategy

3)Renew Strategy

Growth Strategy

Growth strategies are strategies that intended to expand a company in a particular direction. It
might involve entering new markets, growing or diversifying existing ones, or leveraging
forward or backward alignment to take advantage of economies of scale.

Growth Strategy-Market Development

Entering a new market is an effective idea for the growth strategy. When anyone develop the
market, have an access to more customers and sell more. At the same time, they can concentrate
on their primary line of products. By launching additional new stores, increasing online presence,
selling overseas or reaching different categories of buyers, any business can easily enter into a
new market.

In Tesla’s case, it concentrates on its niche business segment as the existing market place, but
extend to other areas, such as Europe and Asia, in order to raise revenues. Expansion in
international markets reduces fierce competition in the USA. Again, it already has factories in
the United States and in Europe where components are made and assembled. Since, it has limited
resources, the place for its expansion is very selective.

 Advantages
 Revenues and profits are increasing rapidly.
 Creates a strong, successful brand name internationally.
 Influences sales through name identification, it also helps attract local workers to
sign up for new job and collaborate with the media of each country as part of all
campaign activities.
 Organization become leader or pioneer by its specialization characteristics.
 Risks are divested by entering new markets.

 Disadvantages
 Organizations often face vulnerability while manufacturing and changing external
environment.
 Expansion needs a huge amount of capital.
 A good supervising needed to start the expansion.

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Growth Strategy- Product Development

Product development is a strategy which is focused on designing new products or changing

existing products so that they appear as new and selling them to current or emerging customers.
This strategy normally works when there is little possibility of future development in the existing
business of an organization.

At that point, an organization has one of three options:

1. Either produce an improved product with the current demand on the current market

2.Either improve the established product for a new market,

3.Or simply to switch away from the industry entirely, and to avoid developing.

Tesla will benefit from its strong product growth and emphasis on innovating new vehicles in
order to reach a larger variety of buyers. If the plan is correctly applied, Tesla will build a
reputation as an organization on the leading edge of the EV (Electronic Vehicle) industry. In
depth, Tesla motors should manufacture different kinds of electric vehicles, such as sports cars,
not just the existing model, as Tesla actually suffers from the number of units sold and
distributed so that we have to diversify the goods just to expand the revenue and market
awareness that will meet more consumers of different tastes. Later, we saw a model with
different name Model X which introduced in 2014.

 Advantages
 Increase the number of consumers based on market satisfaction.
 Brand awareness is rapidly expanding.
 Competitive advantage occurs in the dominated larger companies.
 It may allow a growing business to diversify its risk and established long lasting
reputation, since they are having multiple product lines.
 Perceptual value creating among the customers by it.
 Increasing competition in the international market.

 Disadvantage

 New competitors will be increased in the current market situation.

 There might have risk of changing consumer’s tastes.
 The company's attention could be scattered after launching new products.
 Older versions with few features are becoming less attractive and ultimately
obsolete.

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Growth- Diversification Strategy

Diversification is a strategy that entails entering a new sector or field that the company is not
currently involved in or developing new goods or services that business does not currently sell.
The goal of diversification is to distribute risk when increasing profits from numerous sources,
enabling the company to expand rapidly but in a sustainable manner.

Diversifying into a sector other than that of the existing company; manufacturing EV vehicles.
Using the battery capacity for other applications, such as storage power from solar panels.
Leveraging the use of the popular brand identity and leveraging resources to build new strategic
strengths and capabilities.

 Advantages

 Opportunity to extend product or service capabilities and retain market unity.

 Shift in expertise and strengths from one company to another.
 Sharing of services or equipment to minimize costs.
 Allow good use of current tools and expertise, such as talents, sales and marketing,
general information management and delivery platforms.

 Disadvantage

 Difficulties and complexities in organizing separate but related operations (e.g. Philip
Morris' General Food and Kraft subsidiaries)

3.4 Stability Strength

Stability Strategy is a corporate strategy where an organization works on retaining its existing
business share. An organization following such an strategy relies on the current product and
business.

Tesla is doing good by introducing Tesla Roadster (2019), Tesla's record-setting revenue in 2019
have helped the electric carmaker raise more revenue in one year than ever before. Tesla
generated $24.6 billion of revenue in 2019. But in 2012, Model S a new developing products
Tesla invested a huge and they tested Stability Strategy that time and trying to overcome
previous losses. Consequently, Tesla abled to move on with growth strategies. Tesla used it as a
temporary strategy.

 Advantages
 Can have some profits and time to recover previous losses.
 Company can give its full focus on its new products and its development.

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  Enhancing internal process and issues.

 Disadvantage
 Sometimes, market share is falling.
 Lose the future investment incentive for a rising industry.
 Rapid technical changes often cause a big crisis in the industry.

3.5 Summary
Strategic management is an important part of management, that any businesses can be
successful, profitable, make a strong and faithful position in the market without implementing
strategies carefully. Starting a business might be easy, but it will take an uphill struggle to make
the business profitable and successful. As like any other large and strong company, Tesla Motors
company finds it important and effective to have a strategic plan. In my Strategic Management
part, I demonstrated Tesla’s major strategies through SWOT analysis, BCG matrix, and the 4
Growth strategies that they are currently formulating and running smoothly. Swot analysis shows
risks and the probability of successful paths, help to understand the Tesla’s condition internally
and externally. Furthermore, I try to show the step by step growth strategies of Tesla. First of all,
the company designed a very expensive sports car that allowed the company to get recognized.
Then the idea was to back down and construct a luxurious vehicle. In return for this model, the
Tesla Motors won all sorts of safety awards for the best automobile platform. Not just this, but
even with this, the organization has demonstrated that electronic vehicles can be brought to a
new stage. This is how I have described many more strategies in detail.

4. Organizational Structure and Design (By Raisa Musharrat Hossain)

A company’s organization structure and design is the system the company uses to
organize their activities and it interprets the forms of interactions between the company’s various
departments. It is the division of goals and responsibilities within the company.

4.1 Organizational Structure and Characteristics of Tesla Inc.

Tesla Inc. has an organizational structure that promotes constant business growth. Tesla
is a manufacturer of fully electric automobiles, batteries, solar panels, and similar energy and
automobile related solutions. Since they have so many product sectors, Tesla uses the
organizational and corporate structure of departmentalization to assist and simplify huge control
of the organization. Tesla’s operations and implementation of new strategies wholly depend on
the structure of departmentalization structure.

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 Out of all the types of departmentalization, Tesla strictly and predominantly follows the
Functional Departmentalization. It has a number of teams and divisions which are:

 Energy
 Engineering and Production
 HR and Communications
 Sales and Marketing
 Legal and Finance
 Software and IT

Each of these divisions is led by several vice presidents. The vice presidents are led by Elon
Musk, the CEO. The CEO, other Chief Officers, and VPs comprise Tesla’s corporate staff.

Figure 1:
Structure of
the head of
each
division.

Grouping activities on the basis of these divisions (functional departmentalization) are

strictly followed by Tesla. Their full organizational structure also has bits of other
departmentalization structures like geographical, product, and process. However, they are not as
predominant. All the divisions mentioned above implement various strategies and carry out
marketing campaigns that supports the other types of departmentalization. 

Geographical Departmentalization: According to Tesla’s website, Tesla’s organizational

structure has geographical divisions in the United States, Norway, China, and Other. The
headquarter office divides work in respect to each country’s financial reporting. Tesla has
different procedures of operation and number of sales in different areas. The United Sates, being
where Tesla’s headquarters is, is responsible for more almost three fourths of their sales. Europe
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is the second largest region, especially in Norway since Tesla’s Europe division office is in
Norway.

Process Departmentalization: Tesla is known to planning, manufacturing, producing,

and delivering their products by itself. They don’t ship in parts from part suppliers, instead
they build their own car using their own parts and deliver them. Starting from planning to
delivering, all steps in between are done by them. These are the general steps Tesla follows:

 Process production – They take a bunch of raw materials and discharge a

physical-chemical transformation on them. Once the transformation is
completed, it is next to impossible to turn the raw materials back to its
original form.
 Part Production: They assemble the transformed items to create the product,
whether it be a car, a solar panel or batteries. To make a car, for instance,
they place windows, panels, and tires, fuse the engine and create the interior
of the car. These individual parts have been through the transformation
process production in the previous stage.
 Assembly Line: This is the step in the production process where the product
is built step by step by moving from workstation to workstation. By the end
of the assembly line, the product is complete.
 Lead Time and Made to Order: Lead time is the amount of time it takes
between an order a customer places and the delivery of the product. Made to
order, to put in Elon Musks words is, “Imagine you’re in a restaurant and you
place an order, this triggers a production process which results in you
receiving your food.”

Once process production, part production, and assembly line is complete, lead time and made
to order take place to deliver to the customers.

Customer Departmentalization: Satisfying customers’ expectations is a crucial objective in

of their management structure. Tesla practices this departmentalization through daily quality
checking reports, quality enhancing methods, and conduct research on the automotive and energy
markets. Furthermore, Tesla pursues to modify its products to satisfy high standards for quality
expected by customers. For example, their operations managers regularly perform quality
checks, and add modifications to production processes. Moreover, to avoid quality issues Tesla
with suppliers of parts during the early days of the company, Elon Musk shifted the company
toward manufacturing of its own parts (process departmentalization). This change improved
quality control and product quality which brought in an influx of satisfied customers.

Product Departmentalization: Tesla has three main product lines which are automobiles,
batteries and superchargers. Although, overall functional, each of the three product lines has
divisions of its own, and each of these divisions has professionals in every area needed to

17
produce and sell that product, such as marketing, manufacturing, accounting and human
resources.

Figure 2:
The product
departmentalization of
Tesla. It shows the
three product lines of
battery, automobile and
charger and the
divisions of employees
working in each
product line.

As shown in Figure 2, the employees of each department answer to the managers of the
respective departments. The employees of HR reports to Manager of HR, employees of product
divisions answer to Manager of Product Divisions, employees of finance to their respective
manager and so on. The managers then answer to the Corporate Staff who leads each of the
departments. The corporate staff is shown in Figure 1, which has all the various vice presidents
and sub vice presidents of each department. The VP’s and SVP’s then report to Elon Musk,
theCEO. This whole process follows the characteristic of Chain of Command. It has a top to
middle to bottom hierarchical structure where the CEO sets the course of how Tesla will run
which is then carried out by the corporate staff, middle managers, and employees. The final

18
decisions are made by the top level staff. Each level has responsibility to carry out the orders as
given by the higher up.

Tesla also heavily follows the characteristic of Centralization Tesla, Inc. in its corporate
structure. The basis of centralization is utmost managerial control over the organization via
decisions that the top managers plan and carry through. In this case, the heads of the
departments, meaning the corporate staff, comprise the main headquarter, which directly controls
all activities. In its organizational structure, Tesla does not support decentralization, which is
giving all employees to be a part of the decision-making process, of any of the regional, domestic
or overseas offices. The company’s headquarters make most of the decisions for every operation
taken place, whether it be domestic or international.

In 2018, Elon Musk told Wall Street Journal, that he will restructure and flatten Tesla’s
management organizational structure. The flat span of control can be described when a manager
supervises the maximum number of employees he or she can supervise. Tesla’s many key
executive officers such as a few VP’s and SVP’s of several departments were let go in 2018. In
their place, employees would either directly report to Musk or the few remaining executive
officers at Tesla. This means, whereas Musk and the remaining executives had minimum number
of employees to supervise before (tall span of control), now that many of the managers have
been fired, they will have to supervise the maximum number of employees they can and take on
more operational responsibilities. Thus, this establishes the characteristic of a flat span of
control. Firing many of the department heads have also allowed Musk to communicate directly
with some of the employees positioned way below in the chain of command. He believes that via
this direct communication, they will be able to reach the heart of any problems within the
company and its employees. This then brings in some concepts of the unity of command
characteristic which is when each employee has one main supervisor. Since most of the
employees will be directly reporting to Musk himself or in some cases the remaining executives,
this means they have only one supervisor. And so, from 2018 and onwards Tesla has changed
their structure and followed the characteristics of a flat span of control and some touches of unity
of command.

4.2 Organizational Design of Tesla, Inc.

Tesla follows the Matrix structure organizational design. A matrix structure design is a
type of design that many world-renowned organizations use. By using a matrix structure,
companies insert or add a long term project into their core organizational structure. The put into
these projects the effort, planning, and everything else that they do normally when carrying their
daily missions. Tesla has implemented several long-term plans into their organizational structure.
They made many planning strategies, are planning to use advanced resources, hired new
employees and even constructed several offices for their long term projects to happen. This long-

19
term project was called Space X. This project’s main aim is to “reduce space transportation costs
to enable the colonization of Mars.” The conception and aim of this plan was introduced to the
public in 2008 and ever since then. Space X became a whole new company itself. Whereas Tesla
was all about automobiles, they added a plan to their repertoire to manufacture spacecraft as
well. Later on when Space X became too big, it ventured into its separate company with now
more than 8,000 employees working at the company. Elon Musk remains to be the CEO and
owner.

Since, Space X ventured into its own unit, it is no longer considered a plan of Tesla, Inc.
The next long term project implemented by Tesla, as Musk mentioned although very vague, is to
create a wide range of models, including low priced family cars. This project works hand in hand
with Tesla’s initial project of high performance electric sports car and supports the company’s
mission to build a solar electric sustainable economy.

Another one of the long term plan is for Tesla Motors to be co-marketing sustainable
energy products with various companies. For instance, they will be offering good sized solar
panel from SolarCity, a photovoltaics company, at a cheap price. This system will be placed and
installed on the roof of any house at any place, seeing as it has a small compacted size, and will
produce approximately 50 miles per day of electricity. That means that if a person travels less
than 350 miles a week, that person will be “energy positive.” This long term plan is about
conserving a person’s usage of energy for transportation and instead will actually be inserting
more energy back into the system than what a person uses or consumes in transportation. So, in
short, as Musk said it, “this prolonging plan is to:

1. Build a sports car.

2. Use that Money to build an affordable.
3. Use that money to build even more affordable car
4. While doing all the above, also provide zero emission electric power generation options.”

These long term plans are for way in the future and are already put into motion by Tesla.

4.3 Advantages and Disadvantages of the Structures Tesla follow

Tesla, Inc. benefits from its organizational structure of departmentalization and design of
matrix structure in terms of effective and strong managerial control of both domestic and
international operation and the ease of inserting new projects throughout the organization. Also,
the geographical regions assist with financial reporting, and create the basis for future
globalization of procedures in the international automotive industry. These advantages allow
Tesla to utilize its organizational structure and design for more international growth and to set up
competitiveness against other car manufacturers like Toyota Motors, Honda Motor

20
Company, General Motors Company, Volkswagen, and Bavarian Motor Works (BMW). The
organizational structure empowers the company to control the progress of competitive advantage
and international growth.

A disadvantage of Tesla’s corporate structure is the inability to change or adapt which

limits innovation and quick adjustments within the organization. For example, Tesla
headquarters being the deciding factor for any operation in its international divisions restricts the
independent ability for these offices overseas to quickly respond to problems they experience in
their respective geographical markets. In other words, they do not have a boundary-less structure
to inspire creativity. Tesla, Inc. can choose to be flexible with their characteristic of being too
centralized. An organizational structure with some level of decentralization favors to be more
successful and effective in producing more competitiveness against local rivals or in overseas
markets. Not only that, it encourages innovation and creative thinking which might benefit a
company with a strict centralized structure.

4.4 Summary
To sum it all, the organizational structure Tesla uses is departmentalization and the type
they predominantly focus on is functional departmentalization. All tasks and operations are
divided into its teams of energy, engineering and production, HR and communications, sales and
marketing, legal and finance, and software and IT. Each of these teams has their own managers
the employees answer to and the managers answer to the senior vice presidents and vice
presidents of that team. The SVP’s and VP’s then answer to the Elon Musk, the CEO. This chain
of command has a strong essence of centralization, which is when the top managers are the
decision makers. In 2018 Tesla fired a lot of its top managers, which heavily affected their
management structure. Whereas before, the managers were supervising minimum number of
employees, after firing so many top managers, the remaining managers now had a lot more
employees to supervise. This changed Tesla from having a tall span of control to a flat span of
control. Employees either directly reported to the CEO or one of the remaining managers. Since
each employee now had a single supervisor, this also brought in some concepts of unity of
command.
Some other departmentalization Tesla uses, but not as vigorously as functional, are
geographical, product, process and customer. So, they have a combination of all the different
departmentalization structures. The organizational design Tesla uses is a matrix structure. By
following this design, they can add or insert any long-term projects to their base organizational
structure. Tesla has already implemented a few of these projects and has put in many resources,
strategies and, even employees to make these plans work.

The advantages of the organizational structure and design Tesla uses are: competitive
advantage and ease to insert strategies. The advantages help Tesla create a brand image in the
global automotive market. The disadvantage that comes with so much centralization is that it is

21
not boundary-less, or it does not get perspectives from all employees and inspire creativity. As a
result, innovation takes a lacking.

5. Controlling ( By Tanzim Alam)

Firstly, what is controlling? Controlling is a process which through us tries to see that whether
we are actually following the targets or not. Controlling is basically monitoring, we try to see the
actual performance as we planned through some targets they matched or not. Concept of
controlling is very important for any company/organization because this is how they make
decision; they move forward, they get strength to compete their competitor.

Basically the purpose of control to make sure that activities or plans are completed in a way that
helps to achieve the organizations goal.

Now let’s see about Tesla. How they control everything with a clear vision.

Tesla (July 1, 2003) is an American vehicle and clean energy company. They currently produce
cars, battery energy storage from home to grid scale, some solar product and services. Tesla
started their company almost 17 years ago. Every year they produce so many vehicles.
According to Elon Musk tesla would produce 360000/400000 electric vehicles this year. There
are many categories Tesla in market like, model s/y/3/x etc.

There are three types of control process:

(i) Measuring actual performance.

(ii) Comparing actual performance against standard.

(iii) Taking managerial action.

Controlling is basically compared between target and actual performance. Tesla is too much
good at this. Their target is too much high. Every year the produce many model of cars, batteries,
plug etc.

After succeed in US tesla also successfully tap into chines and European market. Their target is
spread their business worldwide and they make it also succeed. They placed 11 out of 33
consumer reports 2020automotive brand ranking.

The first process of control is measuring actual performance and that’s how exactly tesla still
doing their job. Sometimes they got ordered from customer more than they actually produce per
year. Then they have to produce extra product. So, suppose they made 50000 cars but the
demand was 60000 in 2020 and the shocking thing is this is actually happening with tesla every

22
year from 2014. So, we can say that their actual performance is > their targets. In this part they
are successful.

Everything was good for tesla unless 2018 came. Tesla was trying to manufacture there model 3
by totally robotic way. They placed plenty number of robots to manufacture model 3. They
expected to produce 5000 cars in a week by robot. They expect too much but their manufacturing
performance was not good. Because in some part of manufacturing robot could not understand to
do something by their own. In that year their target was different and high but performance was
low. That’s why Tesla faced so much trouble in 2018. Then they take steps on it. They again
decided to add human worker to manufacture their product. Tesla actually targeted to produce
more care within few cost. That’s why they started to produce cars by robot. When they realize
their mistake then they decided to change their plan on controlling.

Types of control: there are many types of control such as,

 Feed forward
 Feedback
 Concurrent
 Information (MIS)
 Benchmarking
 Balanced scorecard

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Feed forward control of Tesla: Before an activity takes place we start to monitor.
Basically tesla started their journey at San Carlos, California. At first they were doing business
inside US. After they make Nevada base at US. But The CEO of tesla was thinking to expand the
business worldwide. That’s why he started to think how he expanded the company to Asia. On
July 10, 2018 they build their company in the biggest electric market of the world, China. Tesla
always thinks before to expand their business somewhere. Elon Musk knows that Germany is
always favorable for car based Company. He starts to think built a company for Tesla in
Germany. He monitors everything to make the decision. He announces tesla will start their work
in Berlin, Germany by July, 2021. If tesla starts manufacture electric cars in Germany their
demand will be very much there. Because tesla make electric cars and these are environmentally
sustainable. People will be willing to buy their product. Also tesla produces solar panels and
roofs, tesla batteries. All European country include Germany will appreciate tesla with a big
welcome. And that’s how feed forward control will help tesla to conquer the European market.

Concurrent Control: While an activity is going on and we are monitoring it. This is
basically regular on going activity. Concurrent controls make sure that the employee work
activities produce the actual output. Tesla is always very serious about concurrent control. They
want to be best in the market. That’s why they monitor everything that makes their product
phenomenal. Elon Musk said that they use high quality material, body part for their electric car.
Tesla monitors some strategy to get best output such as,

Designs of product and service

Quality management

Location strategy

Environment

Job designs and human resource

Layout design and strategy

Best supply chain management etc.

Tesla makes sure all of these for their production. They maintain all these strategy in US, China.
Tesla always works in a unique way. That is always helping them to reach their customers. Tesla
was trying to make model 3 by robot. They monitored everything but their project was going
wrong. That’s why the replaced human instead of robot for manufacture some sector.

Feedback control: takes place after a work activity done. This is actually important one.
Because you feed forward for the company and also do concurrent but don’t do any feedback
control then your whole process will be a loss. Tesla looks after the feedback. After finishing the
manufacturing of cars or batteries tesla works through a feedback process. Like as, they give

24
their cars or batteries to their expert to check them. Before not even checking them they don’t
launch them in the market. One of the important feedback loops from tesla is insurance. Their
cars went through many tests. After manufacture a model they check out their whole machines,
robots and also human worker. Manufacturing a model is long time process. So, they take
feedback from their activity after every work. They also take some good feedback from recent
good work to make sure for future works. This is important. Suppose they manufacture a car in a
way that brings them success then they have to continue that process for future. So, in this case
feedback control is important. Basically every successful company makes sure all controls
specially feedback. It’s a way to know about the activity that they had done.

These three controls are mainly important for a company. There are also some other controls that
helps a company to go on.

Informational Control: is a process that helps us to be secure from other competitor.

Because, it helps us to secure our strategy from stole. Like, Tesla follows some unique way to
manufacture their cars, batteries. They use their own technology in their cars. So, they don’t
want to lose that special technology/strategy. In this case informational control helps us to be
safe on this way.

Management information system (MIS) is basically a data base system that protects an
organizations data. It prevent UN authorize users to steal information from that company. SO,
MIS protect the system of an organization and also monitor them.

Data- There is more than 5000 worker work for tesla. MIS basically maintain this data from
outsider. Because the worker who work for tesla they know anything related tesla. So, an
outsider can try to know their employees name to harass them for important information based
on tesla. MIS helps in this case to protect any kind of data related tesla.

Information- Some decision that is taken by any high rank manager in tesla in important for
them. MIS protect this kind of information to be leaked. An outsider will try to know about their
decisions for out coming products and MIS protect that from them. Tesla use MIS for,

>Secure future plan for product

>Building competitive advantage

>Value chain

> Beat the market leader

Benchmarking: is a monitoring technique against the market leader with my best

performance and know my position in the market.

25
Tesla started their journey back to 2003 in California. At first their vision was to compare them
against local motors in USA. They started to make batteries, solar panel. These works help them
to reach out the customers easily. After release their first car in 2008 they started compare them
shelves against their competitors. Some American famous car company such as, Ford, Subaru,
Mazda are kind of market leader. Tesla started competition against them. Different time when
they make a car they compare them differently in the market. When the made model 3, model
(s), model (x), model (Y) them compare their product with the market leaders in different ways.
The best car of Tesla is model (s). They started competition with the market leaders with that car.
Now a days there are hundreds car company around the world include USA and tesla is start to
also compare their product with them. Germany is called as home for cars because they made the
best car of all time such as, BMW, Mercedes-Benz, Volkswagen, Porsche etc. Tesla is starting
compare against them. Also they are trying to make a car base I Germany. That’s proof that they
are beating the world market with their cars.

After Tesla release model (s) they got a huge response from customers and that’s what keeps
them forward to expand their business USA to Asia. In Asia it’s hard to balance business in cars.
Because there are some markets leaders such as, Japan, China, Taiwan, Korea etc. But Tesla
made their care base in china and still succeeds. They are doing business inside these market
leaders. That’s proof what tesla capable of now.

So, Benchmarking is a practice of comparing process with the market leaders. It is very
important for a company to expand their business. Because this is how they will know about
their own success/performance. Also they can move on from bad to good achievement. Tesla is
doing well with benchmarking in every model they had mad yet.

Balanced scorecard: is a strategy performance management tool. Tesla always focus on

 Customer service
 Research
 Marketing strategy
 Financial

Senior manager from tesla actually makes this balanced scorecard. Mainly they give priority on
customer service. First of the year the top managers set a goal for whole year’s research,
customer service, marketing strategy. Tesla gives the customer insurance opportunity and get
free customer service. They try their best to provide customer service. Top management of tesla
makes this scorecard for the whole year. All four ways tesla plan to start a new year and end of
the year they calculate their output result. For example, model 3 is the best-selling car in US.
Their target was to beat the market leader. Tesla beat Toyota and Honda in 2019.

26
Contemporary issue: There are many contemporary issues but among of them two issue is
important.

>Controlling customer interaction and

>Corporate governance.

In controlling customer interaction (service profit chin) is important one. We monitor in service
profit chin employee performance, because employee performance helps to increase customer’s
satisfaction. When customers will be satisfied then we can earn extra profit.

Tesla always gives priority on customer service. Many customers wait for upcoming tesla model
to buy. Just because of their best customer’s service. Tesla knows that customers are everything.
If they are satisfied with your service then they will to buy from you more. Increasing employee
performance will give you extra profit. Tesla always monitor thee feedback from their customer
and try to increase customer service.

So, in service profit chin employee performance is very important.

Corporate governance: is the structure of rules, practices. It includes principals of transparency,

accountability, security. We basically monitor an organization by corporate governance and try
to see that the company is transparent, honest or not. We mainly monitor senior management or
CEO of the company. Elon Musk is just not funder of tesla but also a co-founder of PayPal and
solar city. So, corporate governance is too much important for tesla. So, the top managers as well
use their power in a good way

Summary
Well, controlling is an important managerial function. Every modern organization has to cope
with changes in environment. The control function helps managers to respond every change
when it’s necessary. By controlling we try to see the actual performance based on target. There

27
are many companies trying to improve their controlling system. Tesla is one of them. In every
sector of control tesla is best. That’s what makes them a well-known company around the world.
There are many types of control such as, feed forward, feedback, concurrent, information,
benchmarking. Tesla tries to improve all level of controlling and also try to fix the contemporary
issue such as customer service. So, basically controlling helps an organization to think big and
do as they thought. It will help an organization expand their business globally. It will help them

to make something even better in the market to compete with the competitor. Controlling can
make them well known; teach them how to win the market and make them stronger to survive
among others. We exactly see that in Tesla. Tesla focuses on controlling just to achieve those
things. That’s how tesla becomes no 1 on luxury hybrid and electric cars category in 2019.

5. Conclusion (Samir Ahmed)

Tesla Inc. is an American automobile company. Tesla took the electronic vehicle into a
different level. The company has been doing business globally for many years. The uniqueness
of Tesla lies in their product mainly but despite the product due to the global strategy followed
by Tesla they are doing well in their business. For doing business globally any of these three
(Ethnocentric, Polycentric & Geocentric Attitude) need to be followed. While doing the report
we have found that Tesla follows the ethnocentric attitude for keeping the benchmark of their
product. Tesla has some strategic alliances & joint ventures. Moreover the company is benefited
with some regional agreement. For running it operations globally Tesla also built their factories
in other countries as well. By doing this they are achieving cost efficiency. Moreover by starting
factories outside of their own country Tesla is creating employment facilities for the host
countries. Running a business operation globally is not that easy and not cost efficient always so
they also assess the Export & Import facilities. Tesla is a globally renowned company so if it
blends the Ethnocentric & Geocentric Attitude, focuses more on trade agreements then maybe
people from all around the world can benefit themselves with their cars. For making a business
profitable the management needs to focus always which is not that easy. If we go for the SWOT
analysis of Tesla we can clearly say that they are running their operations smoothly. Being the
first provider of electronic automobiles Tesla created a strong brand image, their partnership
decisions are the core strengths. As their products are expensive, it's their major weakness and
competition is always the biggest threat in this era. Despite that they have the opportunity of fast
growth in the international market. Tesla does follow the Growth strategy for their business.
Tesla’s organizational structure lies on departmentalization. This structure is a useful & time
consuming one as all the departments are divided based on the operations. Due to this there is
accountability for each & every employee and the operations are also completed on time so
ultimately there is no waste of resources. Tesla follows the worldwide renowned Matrix structure
organizational design. These two organizational structures helped them to achieve competitive
advantage & build a strong brand image in the global automobile industry. But despite all these
due to centralization Tesla also faces some drawbacks. So the company should work on that as

28
well. The business environment, the market keeps changing. So for running the operations of a
company effectively control is a must. Tesla has a strong control in all its operations. But the
company is still trying to improvise their controlling approaches. The more they are expanding,
the more the market is changing it will lack. So continuous focus is required. 
 
Tesla has a strong business perspective. They are the no 1. On the luxury hybrid and electric
cars category in 2019. All of these are possible as; they are focused on their operations, they
are innovative, they provide the best quality, and they have a strong brand image.

29
 Appendix

Questionnaire by Tanzim Alam (Controlling)

Q1. What do you think about controlling?

Q2. Do you think customer service is important for your company?

1) Agree. 2) Disagree. 3) Strongly agree. 4) Strongly disagree. 5) Neutral.

Q3. Do you think feed forward control help you to understand the demand of new customers?

1) Agree. 2) Disagree. 3) Strongly agree. 4) Strongly disagree. 5) Neutral.

Q4. What do you do after getting feedback from recently done product?

Q5. Do you think concurrent will help you to focus on your going product?

1) Agree. 2) Disagree. 3) Strongly agree. 4) Strongly disagree. 5) Neutral.

Q6. We saw Tesla faced some robotic trouble in 2017 and how did you control that trouble?

Q7. Do you think benchmarking will motivate employees to make a compete mind?

1) Agree. 2) Disagree. 3) Strongly agree. 4) Strongly disagree. 5) Neutral

Q8. Would you consider the controlling process as a major one?

Q9. How do you cope up with contemporary issues?

30
Questionnaire by Samir Ahmed (Global Business)

1. What type of Global Perspective Tesla follows?

2. Why does Tesla follow ethnocentric attitude? Are there any possibilities that Tesla might
change the global perspective?
3. Does Tesla follow any strategic alliances? If so, what type of strategic alliances Tesla
follows?
4. Has Tesla been benefited by strategic alliances?
5. Do you agree NAFTA gives advantages to Tesla?
1) Agree. 2) Strongly agree. 3) Disagree. 4) Strongly disagree. 5) Neutral
6. Why did Tesla build Giga factories outside the USA? Why are China and Germany the
countries which Tesla chose?
6. How is Tesla going to be benefited by the Chinese research center that Tesla built?
6. Will selling the battery cells and autopilot technology to other manufacturers increase the
competition?

31
Questionnaire by Raisa Musharrat Hossain (Orgnaizational Structure/Design)

1) What do you think about having a more decentralized organizational structure?

2) How do you benefit from a flat span of control?
3) Don’t firing top managers mean more responsibilities for the remaining top managers and
the CEO? Why do that?
4) Don’t you think a boundary-less structure would benefit the company more?
1) Agree. 2) Strongly agree. 3) Disagree. 4) Strongly disagree. 5) Neutral
5) Would you consider using different organizational structure for each of your product
line?
6) We see that most of the sales are in United States. So, how does geographical
departmentalization help you in terms of sales and revenues if most of it comes from the
US already?
7) Do you think your customer service system you use improved your overall product
quality?
1) Agree. 2) Strongly agree. 3) Disagree. 4) Strongly disagree. 5) Neutral
8) How does creating your own parts and making the entire product by yourself help you
more than buying parts from part suppliers and assembling those parts?

32
Questionnaire by Tasnim Sultana Jarin (Strategic Management)

1. What are the major challenges Tesla can face in future?

2. How would you face if the strategy include in the report goes wrong?

3. How Tesla’s business model is different from its rival company?

4. Why did Tesla transform its business model?

5. For the upcoming future, what strategies will you suggest to follow?

6. What will be the recommendation from you for Tesla Motors?

7. Has the company’s strategies are sustainable competitive strategy?

8. What new market opportunities does Tesla possess?

9. What strategies Tesla should follow for customer satisfaction?

10. Don’t you think Stable Strategy make more complications?

a) Agree b) Disagree c) Strongly Agree d) Strongly disagree e) Neutral

33
 References

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the productivity of manufacturing incumbents: Effects and mechanisms. Journal of

Business Venturing, 32(3), 237-259.

Chapters from books: writer (Stephen P. Robbins, Mary Coulter, Joseph J. Martocchio, Lori K.

Long) 2018.Book name Management 14th edition, Chapter name controlling pp. 632-649.

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