Answer both questions fully and provide creditable sources. Origin.docx
- 1. Answer both questions fully and provide creditable sources. Original work now plagiarism 1. Consider the position for which you are interviewing candidates and post one of your interview questions, including the job title. Discuss why you developed this question and what response you would expect a potential candidate to provide. 2. It is important to ensure that a candidate fits with the culture of the organization. What actions can be taken in the recruitment and selection process to find the best candidate that fits with the culture of the organization? Tesla: Company and Industry Analysis Florida Institute of Technology Group 3 Lakesha Burton • Alann Gutierrez • Meshayla Jones • Trent Laney • Leah Riley Table of Contents Company Background 3
- 2. Analysis 4 Issues and Recommendations 6 References 7 Exhibits 8 Company Background ALL-DISCUSSION *Everyone will gather some info and post in a discussion; Alann will compile into cohesive section. *MAKE SURE TO PROPERLY CITE REFERENCES IN APA AS YOU COLLECT INFO--POST ALL INFO COMPLETE WITH IN-TEXT CITATIONS AND REFERENCES.
- 3. Analysis o Competitive advantage and business models TRENT o Mission, vision, values and corporate governance TRENT o PESTEL analysis, five force analysis, driving forces, and strategic group maps for the industry ALANN a. PESTEL analysis: 1. Political factors 2. Economic conditions in the firm’s general environment (local, country, regional, worldwide) 3. Sociocultural forces 4. Technological factors 5. Environmental factors (concerning the natural environment) 6. Legal/regulatory conditions b. Five Forces analysis:
- 4. 1. Competition from rival sellers 2. Competition from potential new entrants to the industry 3. Competition from producers of substitute products 4. Supplier bargaining power 5. Customer bargaining power c. Driving Forces (pg. 68-70 in text for list of potential/usual major driving forces; should be no more than 3 chosen, per text) d. Strategic Group Map(s) (industry) 1. Toyota Motor Corporation 2. Volkswagen 3. Daimler 4. BMW 5. Honda Motor Company 6. General Motors Company 7. Tesla 8. Ford Motor Company 9. Nissan
- 5. 10. Fiat Chrysler Automobiles § A brief history of the industry (development stages) § You may use business models, market share, perceived quality and other critical and relevant variables to identify viable strategic groups in the industry § Competitor analysis – what other companies are currently doing o SWOT, value chains, and benchmarking Leah Strengths ● Innovative process - allows customers to make a purchase that has a better effect on the environment, but maintains a high-end and luxury status, which appeals to a wealthier market base. ● Brand recognition - Tesla is well-known for its high-end, environmentally friendly products, and its innovation and presence at the forefront of modern technologyical advances. Weaknesses ● High prices - even Tesla's low-end model is still financially out of reach for many consumers. ● Limited presence - Tesla sells direct-to-consumer, which is prohibited in many U.S. states, and which
- 6. posed a problem when they opened debuted their sales galleries. They also have a limited amount of supercharger stations on major highways only, making long-distance drives a daunting task for Tesla owners. Opportunities ● Business diversification - Tesla can have its proverbial hand in many pots. Not only can they sell cars, but they could delve further into the battery business. They have already started launched service centers and charge stations. Because there are more aspects to their vehicles are so complex and unique, they have needed to delve into invest in other industries to make their product practical. This will also assist with cost-efficiency, and eventually help the company offer more lower-priced vehicles due to higher realized margins. ● Global expansion - to act against Tesla's weakness of limited presence, Tesla has the opportunity to expand to other countries where it does not yet have a market presence. {Maybe the opportunity should instead point to the necessary thorough penetration of the current markets, in order to better serve current and future customers within these markets? For example, targeted expansion of the supercharger stations and service centers in order to not only maintain reputation but improve it with long-term expansion in mind. Musk states that steady, slow and determined growth is the way to success, and growth to new markets (when the need for more charging stations and service centers, as you pointed out in the weaknesses, is evident within the current markets) may not be the best way to go because they would be focusing on new endeavors instead of completing those that are current. I am open to discussion on this!}
- 7. Threats ● Dealership regulations - as mentioned earlier, Tesla can't cannot sell direct-to-consumer through many of its sales galleries. This is the result of a law put in place to prevent manufacturers from cutting out dealerships. (Thompson, Peteraf, Gamble, & Strickland, 2016) ● Fluctuations in material prices - Tesla has to enter into contracts with suppliers, such as Panasonic, to ensure that prices stay the same remain steady for a period of time. The material prices could increase as soon as the contract ends, which changes the overall price of the product. Tesla is all about value chains. Tesla has added value to the company in a variety of ways. From With the supercharger stations, the full-service centers, and the high quality materials that go into producing their automobiles, Tesla is constantly adding value to throughout every aspect of the company. While Tesla is all about value chains, value chains are all about identifying the primary activities and support activities that create customer value. (Thompson, Peteraf, Gamble, & Strickland, 2016) Tesla’s gigafactory is a great example of how it’s it has added value to the company {through what channel?/expand on how the addition of the gigafactory did this
- 8. for depth}. The gigafactory produces battery packs and Tesla announced its creation the debut of the gigafactory that produces battery packs in February 2014. (Thompson, Peteraf, Gamble, & Strickland, 2016) This gigafactory’s planned output of 500,00 lithium battery packs exceeded what was produced globally in 2013 alone. In By 2016, Tesla had found ways to build a better lithium-ion battery that would simultaneously reduce the cost. (Thompson, Peteraf, Gamble, & Strickland, 2016) These advances allowed the gigafactory to supply Tesla’s need for battery packs as Tesla’s sales grew, which in turn materially enhanced the company as a whole through vertical integration. (Thompson, Peteraf, Gamble, & Strickland, 2016) {Leave only this in-text citation, if the previous sentences were not direct quotations. If they were, please edit to avoid a high plagiarism score.} Benchmarking is a key ingredient used by business executives to set goals. Whether they are benchmarking their own company or keeping an eye on the competition, it’s it is a good way to set a realistic goal for the future. Since Tesla was the first of its kind, it didn’t did not have any other company to set as a benchmark to compare itself to. Now, automotive companies are using Tesla as a benchmark in producing the production of electric vehicles. When GM started building their first electric vehicle, they’d they would be
- 9. hard-pressed to find a benchmark that wasn’t other than Tesla. (Kljaic, 2019) Cadillac, a General Motors brand, is also known for being a luxury vehicle, but they’re they are a little behind when it comes to the innovation with regards to of the electric vehicles (Kljaic, 2019). The president of GM is one of the few who openly admits to taking notes from Tesla. (Kljaic, 2019) Tesla is one of the few automotive companies who that can only use itself as a benchmark rather than competing with another company because it is so unique. It’s The company’s investment into energy storage sets it apart from other companies manufacturers because they will be able to drive down their costs in the long-term and patent new technology, which will cost other companies more money {By this, do you mean to say that other companies will have to turn to Tesla’s patented technology in order to successfully develop their own line of electric vehicles? If so, expand/clarify a bit. If not, clarify how it will cost other companies more money.}. {Insert reference here, or after the last sentence where the source information has been referenced within this paragraph, instead of after each sentence- -unless it is a direct quotation.} o Competitive strategies ALANN
- 10. § Identify and compare key strategies pursued by major players in the industry; you are also expected to discuss which strategy seems to be most successful in the industry, and the rationale for this success *Low-cost provider, broad differentiation, focused low-cost, focused differentiation, best-cost provider According to U.S. News, the top ten (largest and most valuable) automotive manufacturers include the following (use this list for strategic group map, etc.): 1. Toyota Motor Corporation ($214 billion) a. Strategy: low-cost provider, broad differentiation b. Best-selling hybrid on the market (Prius), but aims to develop its electric car division in order to catch up to leaders in that sector. Remains the largest automobile manufacturer in terms of market cap, but has suffered the same slow
- 11. growth or regression as other legacy automakers in recent years, due to the evolving industry. 2. Volkswagen ($101.7 billion) a. Strategy: low-cost provider, elements of broad differentiation b. Cheated on emissions tests 2008-2015; backlash in 2015. Has turned around and made improvements since, but is still working on catching up and will need to put more efforts into innovation, fuel efficiency, alternative fuels, etc. in order to remain relevant in this evolving industry. 3. Daimler ($84.3 billion) a. Strategy: focused differentiation b. Produced the first car with driverless technology (though not complete/fully driverless) in 2014 (Tesla mainstreamed this concept later). Recent investments in battery-electric drivetrains; investors hopeful that this will pay off in the near future.
- 12. 4. BMW ($71.1 billion) a. Strategy: focused differentiation b. Launched their first hybrid vehicles in 2013 and 2014, but seem to be falling behind in this area recently with minimal developments since. Historically, they are one of the most successful luxury automobile manufacturers. 5. Honda Motor Company ($61.5 billion) a. Strategy: low-cost provider b. Seems to be dragging behind competitors in terms of innovation and the evolution of the industry; they project their first driverless vehicle to be launched by 2025, but there are already projected to be more than 20 million driverless vehicles on the road by 2020. 6. General Motors Company ($52.9 billion) a. Strategy: broad differentiation, low-cost provider b. Recently took the title of largest U.S. auto company from Tesla (in terms of
- 13. market cap). The Chevrolet Bolt EV is Tesla’s Model 3 biggest competitor (in the affordable, long-rang electric vehicle market). Growth rate compared to the S&P 500 over the past 3 years is 10% less. 7. Tesla ($48.1 billion) a. Strategy: focused differentiation; moving toward best-cost provider with introduction of new, lower-priced models while maintaining quality b. Vertically integrated, taking a page from Ford’s early history, but a step further and more focused. Musk emphasizes slow, steady growth instead of growing too quickly and letting things slip out of control. (Namminga, 2018) 8. Ford Motor Company ($44.1 billion) a. Strategy: low-cost provider b. Faced potential bankruptcy in the last decade, but managed to bounce back after dropping several brands (consolidating) along with other cost-cutting measures. Still playing catch-up in the innovation department,
- 14. because their recent efforts have been focused on basic survival. Recent investments in AI aims to cut workforce to save even more money. (Bhasin, 2018) 9. Nissan ($41.4 billion) a. Strategy: broad differentiation; some elements of low-cost provider b. Partnered with Renault on a driverless vehicle, released the Leaf electric car in 2011, which is the best-selling electric vehicle globally. 10. Fiat Chrysler Automobiles ($36.6 billion) a. Strategy: broad differentiation b. Includes some of the top brands in the global automobile market; increased annual revenue by 24.1 billion in 4 years (from 2013-2017). Analysts project continued steady growth and the company is expected to remain in the top ten automobile companies for the foreseeable future. (Duggan, 2018)
- 15. o Offensive and defensive strategies, vertical integration and strategic alliances LaKesha o International strategies ALANN § Global/local market position (e.g., size of major markets, products, customers and end users, pricing structure) o Corporate strategies Leah Corporate strategies establishes an overall strategy action plans for managing a set of businesses in a multi-business company. (Thompson, Peteraf, Gamble, & Strickland, 2016) Corporate strategy is concerned with how to improve the performance of the businesses by capturing cross-business synergies and making them a competitive advantage against other companies (Thompson, Peteraf, Gamble, & Strickland, 2016). In Tesla’s case, their corporate strategy has been to integrate vertically, which is exactly what it did when they it began manufacturing energy storage and battery packs in 2014. (Thompson, Peteraf, Gamble, & Strickland, 2016) {Leave only this in-text citation, if the previous sentences were not direct quotations. If they were, please edit to avoid a high plagiarism score.} In 2016, Tesla issuesd it’s
- 16. the second installment of its plan, which includes plans proposals to reconfigure cities and energy systems, and as well as improve our environmental impact, which moves Tesla beyond the standard car company. (Gans, 2016) From the start, Tesla has had a clean blank slate from which to create a product that fills a the need for an environmentally friendly option, rather than just adding new updated software and hardware to a century-old product line. (Gans, 2016) Now the CEO, Elon Musk, considers marrying up his solar power company with the automotive company in order to truly minimize the vehicles’ carbon footprint. (Gans, 2016) Tesla enjoys aims to implementing a corporate strategy that appeals to a wide range of consumers who care about the future of the environment and facilitates the company’s social responsibility goals can consistently act as a socially responsible corporation. (Gans, 2016) {Leave only this in-text citation, if the previous sentences were not direct quotations. If they were, please edit to avoid a high plagiarism score.} o Ethics, CSR and environmental sustainability TRENT § How well the company measures up against the competition on these criteria Meshayla o Organizational structure and skills
- 17. o Operational excellence. Meshayla o Corporate culture Leah A company’s corporate culture represents shared values and customs that impact the decisions and behaviors of employees. (Meyer, 2019) Tesla promotes an innovative, problem-solving organizational culture. (Meyer, 2019) Tesla has six main points to objectives in its corporate culture, including the following: move fast, do the impossible, constantly innovate, reason from “First Principles,” {In-text citation for direct quotation? Also, can you expand or clarify what this means? This may be an opportune time to utilize a direct quotation to list the six objectives for clarity reasons.} think like owners, and we are ALL IN. (Meyer, 2019) This kind of structure promotes a more creative, innovative, and team collaborative environment. Tesla encourages new ideas, thinking outside of the box, and working together to reach a common goal. This helps the company to continue developing new technology to keep the company and maintain separated separation from competitors. (Meyer, 2019) {Leave only this in-text citation, if the previous sentences were not direct quotations. If they were, please edit to avoid a high plagiarism score.} The major advantage to of Tesla’s corporate culture is that the company is able to sustain a continuous development of high-quality technology in order to advance its products line and
- 18. attract more customers. (Meyer, 2019) It also allows Tesla to quickly efficiently respond to consumer needs by quickly producing generating solutions to any arising issues. (Meyer, 2019) The disadvantage is that the never-ending pressure to innovate can be mentally draining on human resources, and cause causing them employees to burn out ; and they will either leave the company or stop producing at a high level. (Meyer, 2019) {Leave only this in-text citation, if the previous sentences were not direct quotations. If they were, please edit to avoid a high plagiarism score.} o Business performance LaKesha § Tracking and discussion of company performance over time (at least 5 years) § Financial outlook § Include stock analysis if applicable Issues and Recommendations Key Strategic Issue ALL-DISCUSSION o From your team's industry analysis and competitive analysis
- 19. of the firm, identify a single major strategic issue facing the company (the best issues are typically either major problems to be solved, or major opportunities to exploit) Alternatives o Develop, in detail, two or three viable strategic alternatives. In each alternative you should § Show how it addresses the key strategic issue § Show the ability of the company to successfully pursue each alternative (from competitive advantage analysis, and financial analysis) § Discuss the advantages and disadvantages of each alternative o Make sure you completely discuss all of the above for the first alternative, and then do the same for the second alternative o Do not switch back and forth between discussing each alternative Recommended Course of Action
- 20. o Select one alternative and discuss why this alternative was chosen over the other Implementation o Discuss how the recommended course of action can be implemented and how the disadvantages and risks of the chosen alternative can be minimized or handled References (2019). Tesla Inc. Reuters. Retrieved from https://www.reuters.com/finance/stocks/company- profile/TSLA.O Gans, J. (2016). Why Elon Musk’s New Strategy Makes Sense. Harvard Business Review. Retrieved from https://hbr.org/2016/07/why-elon-musks-new- strategy-makes-sense Kljaic, V (2019). Cadillac Obsessively Benchmarking Tesla for Upcoming Electric SUV. InsideEVs. Retrieved from https://insideevs.com/cadillac-benchmarking-tesla-upcoming- electric-suv/ Meyer, P. (2019). Tesla Inc.’s Organizational Culture & Its
- 21. Characteristics (Analysis). Panmore Institute. Retrieved from http://panmore.com/tesla-motors-inc-organizational-culture- characteristics-analysis Thompson, A., Peteraf, M., Gamble, J., Strickland, A.J. (2016). Crafting & Executing Strategy: the Quest for Competitive Advantage (21st ed.). New York: McGraw-Hill Education. Bhasin, H. (2018, June 14). Top 14 Ford Competitors - Ford Competitor analysis. Retrieved April 3, 2019, from https://www.marketing91.com/ford-competitors/ Duggan, W. (2018, May 8). The 10 Most Valuable Auto Companies in the World. Retrieved April 4, 2019, from https://money.usnews.com/investing/slideshows/the-10-most- valuable-auto-comp anies-in-the-world?onepage Namminga, A. (2018, April 19). Applying Vertical Integration: What Companies Can Learn From Tesla's Master Plan. Retrieved April 3, 2019, from http://www.forbes.com/sites/theyec/2018/04/19/applying-