CASE STUDY: TESLA ASSIGNMENT ESSAY

CASE STUDY: TESLA ASSIGNMENT

BUSI 400

Case Study: Tesla Assignment Instructions

Overview Develop appropriate business strategies, policies and solutions for Tesla that will create sustainable competitive advantage for the company. Case information for this question can be found on page 323 of your text.

The strategic management process enables organizations to achieve competitive advantage through three stages: strategy formulation, strategy implementation, and strategy evaluation. Your strategic plan should progress through all of these phases, resulting in recommendations that establish the firm in the market with a competitive advantage they can maintain going forward. Assume you are creating a pitch to present to Tesla leadership. You will need to analyze its external/internal environment and propose strategies, policies and/or solutions based on those findings that will create a sustainable competitive advantage for the company. APA formatting is required, and a minimum of 3 sources must be utilized in addition to the text. The length of the paper should be 7-10 pages. Instructions

The completed case must include the following components:

· Executive Summary: This is a summary of your entire case study, not a summary of Tesla present day. One should be able to read the executive summary section and understand the main points of the paper

· Current State of the Organization: Vision Statement, Mission Statement, Current Objectives, Current Strategies

· Internal & External Analysis: SWOT, Porter’s 5 forces

· Competitive advantage (current)

· Evaluation and Recommendations: Strategies, policies and or solutions for implementation that will create a sustainable competitive advantage for the company based on the results of your analysis. Include implementation plan for recommendations and be sure to explain how the competitive advantage is specifically sustainable over time

· Evaluation of recommendations: How will success be tracked or determined for the recommendations provided?

Note: Your assignment will be checked for originality via the SafeAssign plagiarism tool.

Page 323:

Tata Motors and Tesla are two of a large number of firms that have taken steps to flatten their hierarchical structures. Tata, an India-based automaker, cut half of the levels in the organization, going from 12 to 6 levels of management, after the firm hired a consultant to help improve its structure. Similarly, Tesla announced in 2018 that it would flatten its structure “to improve communication.” These firms are not alone in their drive to cut out layers of management. Once survey concluded that 93 percent of polled firms indicated they intended to flatten their organization in the near future.

Proponents of flat leadership structures argue they offer cost, flexibility, and creativity benefits. First, flatter organizational structures are designed to be more responsive faster acting. By cutting out layers of management that analyze and approve initiatives developed by lower level employees and teams, the firm empowers these teams to act quickly. Second, flatter organizations allow workers and teams to have autonomy, a desirable attribute for younger employees. Third, by cutting out layers of management, the firm reduces the cost of a large administrative task. Fourth, feedback loops through the organizational structure are quicker and shorter. Top level managers are closer to line employees and the market, allowing them to have better insight into the dynamics within the firm and the market.

However, critics have argued that flattening organizations face unintended negative consequences. First, managers find that the bulk of their time is spent on communication. A number of studies have found that managers in flat organizations spent 80 to 90 percent of their day communicating, leaving little time for other tasks. This can lead to “interaction fatigue” on the part of managers. Second, middle-level managers often serve as critical negotiators between different units in the firms and between front-line employees and top managers. In cutting these managers, some firms have found that frictions between units have increased. Third, the removal of middle managers positions can be demotivating for some employees since there are reduced opportunities for advancement into the ranks of management. Echoing these concerns, Harvard researchers Thomas DeLong and Vineeta Vijayaraghavan argue that long serving middle managers are competent and steadying influence in the firm. They are experts at how the firms operates and can insulate the firm from impulsive decisions that come from either the top or the bottom.

Theses conflicting perspectives suggest that organizations seeking to flatten their structures need to be aware of both the potential costs and benefit of the action. But the ultimate value of the action appears uncertain.

CASE STUDY: TESLA ASSIGNMENT