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Expansion of Commonwealth Bank in Asia
    Expansion of Commonwealth Bank in Asia    13
INDEX:                                PAGE NO.
1. Company Selected                                 3
2. Industry Analysis                                3
3. Business Environment & Strategies                    4
4. Porter 5 Forces Model                            5
5. Dynamic Competitor Analysis                        6
6. PROBLEM 1 – PRODUCTION CAPACITY                 7
7. SYNTHESIS                                    8
8. STRATEGIC PLANNING                            9
9. STRATEGIC PLANNING                            14
10. STRATEGIC CONTROL & EVALUATION                16
References
Glossary & Abbreviations: CBA: Commonwealth Bank of Australia
             ICAL: Indigenous Customer Assistance Line
             SWOT: Strength Weakness Opportunity Threat
             PESTEL: Political Economic Social Technology Environment & Legal
             M&A: Mergers & Acquisitions
             JVs: Joint Ventures
             EVs: Electric Vehicles
    
EXECUTIVE SUMMARY:
Where most of the competitors were proceeding in this huge profit oriented auto industry, the South African born Elon Musk having a Canadian mom had different plans. Sustainability was the first priority in the mind of Tesla aiming for renewable source of energy over this dominated nonrenewable energy market.
COMPANY SELECTED – TESLA MOTORS:
INTRODUCTION
· Founded in 2003 by engineers in Silicon Valley.
· Electric car with instant torque, incredible power, and zero emissions.
· Accelerate the world’s transition to sustainable transport.
INDUSTRY ANALYSIS:
· Adoption of electric vehicles slow
· Tesla Model S $70K+ and X $80K+
· Tesla Model 3 $35K+ in future.
· Demand for lithium-ion batteries.
· New $5B ‘Gigafactory’ will provide
Competitive advantage for Tesla.
· Low oil prices (WTI NYMEX $48-60)
· 1.2 million EV’s by end of 2015 (0.5% of total global vehicle sales)
· Global warming and climate change
· G7 goal to eliminate carbon and greenhouse gas emissions by 2100
S
SOCIAL
T
TECHNOLOGICAL
E
ECONOMIC
E
ENVIRONMENTAL
P
POLITICAL
· Tax credits and incentives
· $7,500 income tax credit across US
· $8,500 rebate + carpool access in ON
· Emission regulations and penalties
· NADA prevents Tesla from selling
directly to consumers in some states
L
LEGAL
· Exporting US jobs and manufacturing
· Tesla sharing patents to encourage
development of electric vehicle market.
· Higher female employment (47.5% of US workforce in 2013)
· Smaller households (smaller cars)
E
ETHICAL
D
DEMOGRAPHIC
BUSINESS ENVIRONMENT & STRATEGIES:
ROLE OF STRATEGY IN AUTO SECTOR:
PORTER’S 5 FORCES MODEL:
Planning Stage:
UNDERSTANDING THE COMPETITIVE LANDSCAPE
5 FORCES MODEL – EV
UNDERSTANDING THE COMPETITIVE LANDSCAPE
DYNAMIC COMPETITOR ANALYSIS:
Business Environment
    Competitor Analysis (DETAILED):
    
    
    Competitors
    Main Concerns
    Room For Growth
    
1. Main competitor is Fisker
· Karma starts at $96,000
· Repeated troubles safety-wise
2. Chevy and Nissan both have Ev’s, but neither are sports cars
· Sales of both are down
    
· Lost money on the Roadster.
· Analysts limit value of EV market.
· Production capacity.
    · Stock is so low because Tesla lost $1.
· Billion on the Roadster.
· Most don’t know it was planned.
· Competitive price can allow for unlimited growth, especially in countries like China.
· EV market is constantly expanding, Tesla leads the market.
· With very few legitimate competitors.
· Tesla plans to release Model X (cheaper, mini-SUV) where they start making profits.
PROBLEM 1 – PRODUCTION CAPACITY:
PROBLEM ANALYSIS
KEY ISSUE
· Single assembly line causes significant delays and extremely long wait times for consumers
· Reliance on few suppliers can threaten production
· Unable to generate positive cash flow for the past 5 years
Tesla’s vehicle production capacity is low and depends on one manufacturing plant located in Fremont, CA
RECOMMENDATIONS:
STRATEGIC
ALLIANCE
Stable Strategic
Cooperative Network
REVISE
CORPORATE STRUCTURE
Synergistic
Alliance`s
COOPERATIVE
STRATEGY
SYNTHESIS:
STEERING TESLA IN THE RIGHT DIRECTION
Ultimately lead to improvements in Tesla’s performance and strategic direction
Strategic recommendations include Allainces and revised corporate structure
Tesla must address its production capacity and corporate leadership issues
What are the ways in which various Alliances can be classified?
     
     
    Tesla
    Tesla
    Tesla
    Tesla
    Tesla
     
    Type of Alliance
    Functional Level
    JV, Business Level
Pre Competitive
    Business Level
Pre Competitive
    Corporate Level
Non Competitive
    Corporate Level
Pro Competitive
     
    
     
    Tesla got access to Panasonic Supply chain, Agreement for R&D, Tech. Development
    Transfer of Technology or Joint Development of Technology for development of Heat sink in Batteries
    It was an equity partnership in which Daimler took 10% stake in Tesla
    It was an equity partnership of Tesla in the exchange of 3% stakes. Tesla...