final presentation tesla management project(swinburne university)

PROJECT TESLA Zach HugginsNikita KulkarniJames MalinAnthony Campana

Group F4

TESLA – WHO THEY ARE

• Founded in 2003, and based in Silicon Valley• Exclusively electric vehicles • Major change in management in 2008 • Leading the industry in technology and design

PEST

SWOT

STRENGTHS

• Strong reputation• Elon Musk• Daimler strategic alliance• Panasonic strategic alliance

• Worlds first mass produced highway capable EV• Ability to manufacture vehicles in house• Sell all vehicles themselves, no other dealers• Popular among younger age groups

WEAKNESSES

• Low global supply of batteries• Use a lot of new technology that is more expensive• Lower demand for electric vehicles• Charging infrastructure is still being developed and expanded• Unfounded supply chain

OPPORTUNITIES

• Large un-captured market• Government implementing more support for clean energy• Accessories

• Home charge kits

THREATS

• Introduction of laws prohibiting direct sales• Competitor products• Current business model limits Tesla's production of vehicles opening up the chance for

larger manufactures to steal market share

SUSTAINABILTY Tesla’s Giga Factory• Net Zero energy quota• To double the world’s battery product

SUSTAINABILITYTheir Cars• The Good the Good and the disappointment

• Tesla is leading the charge forcing other companies to jump in the market

• They are also the world leaders in pure electric cars

• Although the electric car concept may not be as good as it sounds

• 20MPG = 14 L/100Km• 218MPG = 1.3 L/100Km!

SUSTAINABILITY• Tesla as a company – a comparison to other companies

Daimler AG over 12 month period had and min and max share price of $65.22 to $100.32 USD

SUSTAINABILITY• Tesla as a company – a comparison to other companies

And Toyota over 12 month period had and min and max share price of $97.80 to $140.24 USD

SUSTAINABILITY• Tesla as a company – a comparison to other companies

However Tesla on the other hand over 12 month period had and min and max share price of $148.94 to $289.04 USD

CHANGE AND INNOVATION

• Balancing risk and reward• Gigafactory

• Changing legal environment• Direct sales prohibited in six US states

CHANGE AND INNOVATION

• Open innovation model• Open vs closed• Strategic alliances

CHALLENGES OF PLANNING AND MANAGERIAL DECISION MAKING

Positive decisions: 1. Backwards business plan

2. Unusual Goals 3. Selling cars directly

4. Open patents

CHALLENGES OF PLANNING AND MANAGERIAL DECISION MAKING

Possible problems caused by their decisions:1. Could sacrifice what consumers want in the car when

making it cheaper 2. Cars might not hold value in rapidly developing

technology industry 3. Not reaching deadlines could hinder the companies

growth 4. Large number of competitors

SOCIAL AND ETHICAL RESPONSIBILITY

• Code of Business Conduct and Ethics• Separate Code for the CEO and Senior Financial Officers• Demonstrated ethical approach in 2013 with the Model S fires• Employees not so happy, working long hours

SOCIAL AND ETHICAL RESPONSIBLITY• A better future, Tesla’s aim • Risky business endeavor and yet Tesla is moving forward• Opening eyes and making people think about battery powered

vehicles• Gender Equality not Tesla’s strong suit• Robyn Denholm – only women among all the Top executives

CONCLUSION AND RECOMMENDATIONS

“All In all Tesla is an incredible company, but with some flaws they are leading the innovation and sustainability

charge with great success however they are still a young and sometimes unstable company with a lot to learn”

-Group F4-

THANK YOU