Tesla, Inc. Strategic Appraisal Report Your Name Eastern University BUSA-665 Leading Organizational Strategy Dr. Daniel Zimmerman Date: Executive Summary to the Board of Directors This stra ...

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Tesla, Inc.
Strategic Appraisal Report
Your Name
Eastern University
BUSA-665 Leading Organizational Strategy
Dr. Daniel Zimmerman
Date:
Executive Summary to the Board of Directors
This strategic appraisal report analyzes Tesla, Inc.'s current strategic position and provides recommendations to enhance its competitive edge. It examines Tesla’s mission and vision, external and internal environments, business model, strategy, and international opportunities. Tesla's innovative approach in the automotive and energy sectors has positioned it as a leader in sustainable technology (Yahdiyani, Safari, & Megawati, 2023). The company’s mission to accelerate the world’s transition to sustainable energy and its vision to create the most compelling car company of the 21st century underpin its strategy.
The external analysis highlights opportunities from government incentives for electric vehicles (EVs), growing environmental awareness, and advances in battery technology. Challenges include fluctuating raw material costs, regulatory changes, and intense competition. Internally, Tesla's strengths are its state-of-the-art manufacturing facilities, robust financial health, and strong brand equity. Due to the current positioning of the company focusing on the leading-edge battery technology, the superior level of autonomous driving software, and the direct consumer sales are well situated against its competitors. LLDs include expensive production cost and restricted production capability. Overseas opportunities with reference to overseas production sites are on the rise thanks to economic development and environmentally conscious globalization.
Strategic recommendations include sourcing management, increasing production capabilities for existing and projected volumes, increasing Research & Development investment, Beefing up Cyber security, and improving customer service. Focusing on such aspects will help Tesla continue and build up the leadership position and guarantee sustainable strong growth and competitive advantage.
Recommendations from the Strategic Analysis to the BOD:
1. Diversify supply chain to mitigate risks related to raw material shortages.
2. Expand production capacity in emerging markets to capitalize on growth opportunities.
3. Increase investment in R&D for battery technology to maintain leadership in innovation.
4. Strengthen cybersecurity measures to protect against potential threats.
5. Enhance customer service initiatives to improve brand loyalty and satisfaction.
Organizational Mission/Vision Statement
Mission Statement: To speed the world's transition to sustainable transportation.
Vision Statement: To become the most attractive automobile company of the 21st century by spearheading the world's shift to electric vehicles
Tesla’s mission and vision statements emphasize its commitment to sustainability and innovation (Li, 2023). By focusing on these core values, Tesla has revolutionized the automoti