Tesla Motors: Internal and External Situation Review

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Case Analysis: Tesla Motors
Introduction: Internal and External Situation Review
Changes and transformation of any company occur according to the prevailing conditions in both the internal and external environment. Change in leadership comes with change on other developmental strategies which focus on improving the current situation of the company. Like any other company, the Tesla Motors Company has to undergo the five phases of the company’s life cycle which challenges its potential static position. The major phases of the organization life cycle include the birth stage, growth stage, decline stage, renewal, and death stages of an organization. From the past experience with the company, the financial position of the company has been declining basically due to poor management which results to decline in the general performance of the company. The poor managerial performance of the previous company’s CEO and lack of proper strategic plan have been the major contributor to the performance decline of the Tesla Company in the market. The provided herein is a well-defined strategic plan and case analysis of the Tesla Motor Company on the provision of appropriate approaches for performance appraisal of the company under the new management.
Central Problem Identification
For the past years under the previous management team, Tesla Motors have been experiencing poor performance characterized by a decline in its profitability to the extent of experiencing losses. The current performance position of the company creates a need for management transition in an effort to improve the performance and the company’s profitability. The transition of leadership comes with reviewing and restating of the company’s strategic plan, to identify areas that have been failing and provide appropriate measures. The overall target of reviewing the strategic plan is to restore the good performance of the company and increase profitability.
From the previous analysis of the company, its world stock market wavered due to the European sovereign debt crisis and the soared volatility due to “flash crash” which lest United State economic losses ever. Tesla Motors was greatly affected by the experienced market and economic uncertainty in the US resulting in huge losses. Despite the economic challenges, Tesla Company has always managed to boost its sales thus raising the value of the company up to 2billion in 2010. However, the management focused on the primary market of the company which showed a strong enthusiasm, failing to address the secondary market which focuses on long-term goals of the company. Over the years, the company has upgraded its products to secure broader market across the world and outdo the competing companies. The realization of these goals requires the establishment of a firm strategic plan which incorporates all the stakeholders and applauses innovations which creates attention and interest of the products.
Alternative Strategies to Address the Central Problem
For the achievement of the company’s goals, the company management needs to establish alternative strategies that will enable reaching the set objectives and which outdo the previously established strategies. For enhancing customer services, a very basic component for a successful business, Tesla Motors need to trade its EVs both online channels and company showrooms. The company should also ensure that its auto manufacturer can get their EVs to the company’s customers as fast as possible. This can be achieved by purchasing components of the patented electric powertrain from the Tesla Company. The company needs to inspire the auto manufacturers by ensuring them on the potential consumer demand to encourage them to ensure sportive performance thus enabling them to manufacture socially responsible vehicles.
The three major strategies that the company need to focus on in the current strategy is the introduction of the roadster model to the market and establish the keystone for electronic vehicles. Production and marketing of the new model of the vehicle “Model X” will crea...