Please answer the questions in detail about the case study, please use words from the textbook (see example file for how questions should be answered)
Full page photo PDF created with pdfFactory trial version www.pdffactory.com http://www.pdffactory.com PDF created with pdfFactory trial version www.pdffactory.com http://www.pdffactory.com PDF created with pdfFactory trial version www.pdffactory.com http://www.pdffactory.com PDF created with pdfFactory trial version www.pdffactory.com http://www.pdffactory.com This case analysis should include information from Chapters 1-14th Link to book- https://drive.google.com/file/d/16_7oIG0OvQgLRKrj-YdAyjwcDcUd2AKK/view No references needed just answer the question in detail 1) General introduction of the case study (at least 5 sentences in detail) 2) a PESTEL analysis (diagram and explanation)-see attached file 3) State the strength and weakness of the organizational structural 4) Discuss Business strategy (which does Apple relate to (cost leadership, differentiation, focus, and hybrid strategy) and EXPLAIN 1) Explain the strategic position. 5) state the key stakeholders 6) explain the strategic options 7) Discuss the strategic management 3 1) Synopsis of all three articles The first article discussed Tesla’s decision to close down physical stores and sell their vehicles directly to customers online. The second article explores the frustrations of Tesla owners over the long waits experienced when taking their cars in for repairs. Tesla attributed the lag time to logistical miscalculations and clarified that solutions were being implemented. The third article addressed how Tesla lost their recommended status from Consumer Reports as the quality of the Tesla Model 3 was brought into question. 2) Create Tesla PESTEL High a) High Production in new areas Trade Laws Opportunities Threats P Growth opportunities in new locations Global Deceleration E Increase in ridesharing activities S New security technology Software concerns T State laws and requirements Climate Change L E b) Explanation Political: Trade laws between the U.S and China could force Tesla to pay steeper tariffs, which could interfere with the company’s plans to keep costs at a minimum. To combat this, Tesla was looking to produce their cars in China without a local venture partner to avoid cost increases and provide the affordable Model 3 car (Rosenbaum, 2018). Economic: It is anticipated that global growth will be slow and therefore, there could be a widespread reluctance to spend money. This might be an opportunity for Tesla to identify new locations where the company can offer its products and services. Social: The increase in ridesharing amongst consumers could mean that less people could want to buy the new Tesla Model 3, which could impact vehicle sales (Culley, 2019). Technological: Using software brings about new concerns over potential hacking cases. This could provide Tesla with the opportunity to create extreme security measures to assure the public that the car owner’s information is safe. Environmental: Climate change is still a major concern for society and car manufacturers are part of the reason for pollution. Tesla should therefore ensure that all of their processes make as little impact on the environment as possible. Legal: According to the article, most state laws require for vehicles to be sold through verified distribution networks. By selling cars through their own stores and online, Tesla could run into potential legal problems. 3) Discuss the forecasting of Tesla Tesla seems to be reliant on range forecasting as reflected by how Musk indicated that by moving sales online, costs could be decreased by 5% to 6%. Tesla also expects to “deliver as many as 400,000 vehicles worldwide.” This indicates that there is a level of uncertainty in terms whether the exact numbers will be reached, however, the numbers provided are guidelines. 4) Define the scope Tesla Inc. operates within in the automotive and energy storage industries and has been in operation for fifteen years. Tesla’s customers at the moment seem to be in the U.S, Europe and China. Therefore, those particular areas can be identified as the regions where Tesla may focus their efforts. 5) Analyze the industry using the Porters Five Force Framework a) Threat of entry The barrier for potential entrants to enter the automotive industry is high. There are numerous car manufacturers in the market which people trust. New car manufacturers could struggle to find suppliers because suppliers may be working with established manufacturers. Starting a car manufacturing business would also require a high capital investment. b) Bargaining power of buyers Buyers have low power in terms of price negotiation when it comes to Tesla. Buyers can exert pressure on the company to improve quality and customer service. Should Tesla fail to meet the demands of their existing customers, current customers and future prospects could be lost. Customers could choose to purchase other car brands because they would be aware of the risks of purchasing a Tesla vehicle. c) Threat of substitutes The threat of substitutes is quite high in the automotive industry. BMW, Ford and Volkswagen have created electric cars from which customers can purchase. This is because the interest in electric cars has been increasing over the years. However, people are still choosing fuel-powered cars and therefore Tesla needs to ensure they are providing value. d) Bargaining power of suppliers The power of suppliers is high because Tesla is reliant on their suppliers for parts. If their suppliers do not deliver parts on time, that could delay Tesla’s manufacturing process and cars may not be delivered on time. 6) What are the company’s resources and capabilities, what type resources and capabilities can contribute to competitive advantage and superior performance, how can resources and capabilities be evaluated, and how resources and capabilities be developed and managed? Tesla has a number of technological resources and experienced human resources available to them to create success. The ideas from their human resources could help Tesla find innovative ways of using new technology in ways that other car manufacturers have not. This could give Tesla a competitive advantage and customers the impression that their vehicles are superior. Resources and capabilities can be evaluated using the organization’s goals as benchmarks. Resources and capabilities can be further developed and managed through the regular implementation of training programs and knowledge sharing initiatives. 7) Cultural analysis a) Historical influences: Nikola Tesla was an electrical engineer who was known for his inventions and Tesla could have drawn inspiration from his works. b) Cultural influences: Society may have previously avoided electric cars because they may have found them unattractive and quite inconvenient. This could have prompted Tesla to design their cars to look modern and encourage people to purchase them. c) The problem of strategic drift: A strategic drift occurs when an organization’s strategy is not relevant the external environment in which it operates, leading to a business’s failure. Tesla needs to ensure that their new low-cost model is relevant to market expectations and needs otherwise their efforts could be unsuccessful. 8) Discuss business strategy and EXPLAIN. Tesla employs a hybrid strategy of the focus and cost leadership strategies. Tesla used the differentiation strategy which is reflected by how the company used technology to create efficient cars that did not severely impact the environment. Tesla also incorporated a modern design to show customers that electric cars can be luxurious. Thus, Tesla wanted to become the brand of choice if customers were looking to purchase upscale electric cars. Tesla is now attempting to use the cost leadership strategy with the launch of their Model 3. The Model 3 has been positioned as an affordable electric car that would appeal to the masses. Tesla has attempted to keep costs as low as possible by selling their vehicles online and closing down physical stores. 9) Create a SWOT analysis Strengths · Established as a global luxury brand. · Tesla ranked highest on owner satisfaction. Weaknesses · Lack of carefully planned logistics which leads to slower service. · Increased production results in decreased vehicle quality. Opportunities · Sell to new and different markets worldwide through online store. · There is an opportunity to collaborate with or form supplier networks in new areas. Threats · Investors could sell shares due to Tesla potentially not making a profit in the current quarter. · Negative sentiments about Tesla online and revoked endorsement from Consumer reports could dissuade potential customers from purchasing newer models. 10) Industry’s strategic position, determine its strategic options, and recommend a course of action. Tesla is currently the leader in the electric-car market and the company could have continual success if it is strategic in its actions. Tesla should focus on mastering its distribution network to avoid lags when cars need to be repaired. This could be done by establishing new supplier networks in a number of locations before Tesla decides to manufacture more cars. Tesla should also work on their existing customer relationships, especially because there is a concern that personal shopping experiences will be lost through their online store. However, using technology, interactive and personal digital experiences can be created online to make Tesla customers feel as if they are part of a valued community. Works Cited Curley, R. Global ride sharing industry valued at more than $61 Billion. 4 January 2019. 8 March 2019. Rosenbaum, Eric. Tesla and China trade war: Elon Musk’s belief China will outsell US gets a new test. 4 April 2018. 8 March 2019.