Strategic Management

ECB30103
ICE-BERG THEORY OF
STRATEGIC FOCUS AND
VALUE
(Tesla Inc Motors)
NAME ID No

Ariff Luqman Bin Peter 62212220297

Nur Aisyah binti Ibrahim 62212220074

Hadwan bin Noh 62212219141

Rafa Abdul Afaizal bin Rahim 62212120304

Muhammad Khairul Shahmi bin 62212119589

Kamarudin
Introduction Strategic Focus and Values
+ Strategic focus is visible when an organization is incredibly clear
on its mission and vision and has a consistent, effective plan for
achieving those goals.
+ Values is main ethics or principle that the organization will
always commit to. A company needs motivate workers to do their
best while also limiting their behavior. Strong, clearly expressed
values should be a true representation of your organization's
expectations for proper workplace conduct, and they should play a
major role in creating a healthy culture.
Tesla Motor Strategic Focus & Values
+ Tesla, Inc. creates, produces,
manufactures, and sells electric
vehicles, as well as creates,
manufactures, installs, and sells
solar energy generation and
storage devices. Automotive and
Tesla Model S
energy generation and storage are
two of the company's products.
 Tesla Motor Strategic Focus & Values
Vision Mission Values
+ To create the most compelling car + To accelerate the world’s transition + Constantly improving their
company of the 21st century by to sustainable energy. technologies without losing or
driving the world’s transition to improving efficiency in order to
+ The corporate mission
electric vehicles. achieve the desired outcomes.
acknowledges the firm's batteries
+ This corporate vision highlights the and related energy storage products' + Tesla strive to constantly upgrade
company's focus on renewable importance in industries other than their current technologies in order to
energy. The company specifically the electric vehicle industry. provide the best quality at the most
addresses the electric vehicle reasonable price
market as a significant avenue for
+ Tesla always recognize and
promoting global renewable energy
rewarding hardworking engineers
market development.
and workers with appreciation and
prizes
Tesla Objective
+ Create an alternative energy electric
vehicle.
+ Concentrated on high-priced, high-
performance electric vehicles that compete
with conventional luxury vehicles
+ Maintain innovative leadership in the field
of electric vehicles, while also
encouraging environment responsibility
and corporate responsibility.
+ Increase sales as well as profit.
 Tesla’s Organizational Structure & Process

CEO (Elon
Musk)
Programs Design Engineering
CFO Autopilot Business Human Manufacturing
CTO Global Sales
& Services Development Resources
 Tesla Organizational Structure & Process
U-Form organizational structure Centralization on a Global Scale
+ The U-form means unitary-form, structure that + Tesla employs global centralization in its
uses organizational function as the main factor. corporate structure.
+ Tesla has a functional organizational structure
+ Global centralization is a management
that allows it to focus on the importance control
control that directs the whole organization's
over the company. Human Resources,
Engineering, Processes and Autopilot, decision-making through a central
Manufacturing, Design Through, Global Sales, collective.
and Services are some of the functional + The leaders of the offices in the global
departments.
hierarchy comprise the corporation's main
+ Tesla is able to improve its capabilities to execute headquarters, which has direct authority
new strategies for managing its operations over all activities.
management because to this structure.
 Tesla Organizational Structure & Process

Divisions Advantages Disadvantages

+ In Tesla automotive business, + Multinational operations under + Inflexibility that limits the firm's
division are used to implement efficient management direction ability to change quickly.
different type of strategies and + The flexibility with which new tactics
marketing campaign based on may be implemented throughout the
geographical factor. These organization.
division are also used to
+ Regional divisions assist with financial
organize financial records and
reporting and analysis, and they
reports.
provide the groundwork for future
regional integration of plans and tactics
in the international automobile
industry.
 PESTEL Analysis
Political Economic
Social
Tesla has an ability to improve its Lower battery costs support Tesla's
Tesla has potential for growth as the
financial results through government business efficiency. The company's
incentives. Expanding free trade
popularity of low-carbon lifestyles
electric car products' affordability
agreements provide ways for Tesla to and the preference for renewable
would reduce production costs and
develop its global markets. energy grows.
improve profitability.

Environmental
As environmental consciousness and
Technological Legal
encouragement have grown, the
The advancement of technologies With the extension of international
company has opportunity to boost its
provides an incentive for Tesla to patent law, Tesla has potential to
electric vehicles focused on climate
improve the innovations in its securely expand its business
products. change issues, energy-saving internationally.
projects, and growing waste
management requirements.
 Suppliers
Suppliers to Tesla have a low Buyers
degree of forward Cars, in common, have
integration. This external low switching costs, giving
consideration relates to consumers high
suppliers' restricted bargaining power.
influence over product
delivery and purchase.

Substitutes Competitors

Porter Five Suppliers' impact is limited

by the modest availability
The automobile industry
is dominated by a small

Forces Analysis of substitutes. number of biggest rivals.

New Entrants

Tesla already has a powerful

brand that newcomers will
struggle to match.
 SWOT ANALYSIS

Weakness
Strengths • The target market is too small: Tesla currently only offers
Outstanding leader: Elon Musk is the CEO of many successful electric luxury vehicles, so Tesla is targeting upper-middle-
businesses. class buyers.
Interpersonal skills – Musk's ambitious vision has inspired • Restrictions on sales and profitability: Tesla's shortage of
workers, venture capital firms, stakeholders, and suppliers automotive manufacturing expertise is reflected in repeated
alike. output issues.

SWOT

Opportunities
Threats • Increasing environmental consciousness: Tesla is
• Highly competitive market: Even more automakers, such as attempting to develop a suite of items that people are
Volkswagen, are launching eco - friendly vehicles. likely to use in tandem, such as solar roofing, home
batteries, and automobiles.
 Iceberg of Tesla

• Overcoming HUGE, CRITICAL amount of

risk and failures

• “Failure is an option here. If things are not

failing, you are not innovating enough.”, Elon

Musk’s

• Aggressive Business Planning, pioneer to new

innovations

• Golden Chance from climate changes

concern
Conclusion
+ Tesla, Inc. has an organizational framework that promotes long-term business development. The organizational
or corporate structure of a business is the design and framework that determines the patterns of interactions
between the company's components. Tesla's organizational framework is conventional, reflecting the company's
managerial emphasis and control, as well as its limited global operational expansion.
+ Tesla Inc. makes considerable use of its corporate structure to maintain complete control over the company.
Elon Musk's leadership effectiveness is determined by the corporate structure's capacity to disseminate and
support the adoption of innovative company development and improvement methods.
+ Despite its expanding foreign activities, Tesla Inc.'s organizational structure develops characteristics that allow
strong management control of the company.
+ The structural qualities of the business assist optimize top-level managers' understanding about these
difficulties, allowing them to respond effectively. As a result, Tesla's corporate structure complements the
company's purpose and vision statements, which emphasize worldwide leadership in the automotive and energy
alternatives markets.