Tesla Motors and Global Automobile Industry †MyAssignmenthelp

Question: Discuss about the Tesla Motors and Global Automobile Industry. Answer: Introduction: A detailed and evidence based evaluation of stakeholder environment for Tesla and US automobile industry is analyzed. Moreover, identifying stakeholders along with their importance is also prioterised in this section through use of certain stakeholder analysis tool (Anton, 2015). The stakeholder groups of Tesla along with the US automobile industry include general ecosystem, industry level, internal stakeholders and potential new stakeholders (Anton, 2015). Stakeholders Expectation/ Interest Importance General ecosystem stakeholders that includes environment regulation and political support International concerns regarding climate and pollution changes has resulted in generation of tough federal state level policies in order to enhance air quality and decreasing greenhouse gas emission. This stakeholder group promotes development of clean renewable fuels and improvement of environment (Chowdhury, 2014). 5 This stakeholder group has its relevance in enhancing Tesla Companys energy storage competitiveness. This has further facilitated the company to attain advantage from the research and development. The company is attaining exceptional support from the government in ensuring its success and development (Dockalikova Klozikova, 2014). Industry level stakeholders that includes consumers and potential competitors The consumers of Tesla Company gives increased importance to the maintenance of corporate social responsibility. Considering such expectation the company has focused developing new ways in decreasing the battery costs. Major competitors of Tesla such as Federal signal increases the expectation of maintaining high competitive advantages (Grnig Khn, 2015). 4 Consumers and the competitors are deemed to impact the revenues of the company as they are highly interested in reasonable pricing and product quality. Position of the competitors is analyzed for increasing the companys efforts in developing CSR activities that can benefit its stakeholders (Kotabe Helsen, 2014). Internal stakeholders such as the employees Being one of the major stakeholders, employees impacts business performance and productivity. Satistifying such expectations, Tesla Company has developed a competitive compensation strategy and HR programs. This is in order to generate skills development and leadership development (Lamas et al., 2017). 3 Employees of Tesla Company are deemed to be the critical success factor within the automobile industry. This stakeholder group is deemed to be important for the company for the reason that this group offers the company to implement is CSR strategies in a better manner and increases business productivity (Liu Li, 2017) Potential new stakeholders such as new investors Investors of the Tesla Company have increased interest in impacting the capitalization of the organization. Investors along with the stakeholders have increased interests in the growth and profitability of the company (Porter Millar, 1985). 3 This new potential stakeholder group is deemed to be important for Tesla Company for the reason that sustainability and recent socio cultural trends supports business growth of the company. This further encourages the investors in investing more within the company (Rothaermel, 2015). Stakeholder Map Stakeholders interests/ expectations Positive International concerns regarding climate and pollution changes Increased importance in the maintenance of corporate social responsibility. Negative Tesla Company has developed a competitive compensation strategy and HR programs. developing new ways in decreasing the battery costs Low High Importance to success Stakeholder Action Planning Issues Actions Comments Global pollution and climate change In addressing such concerns Tesla Company has developed green electric car in order to promote the energy innovation along with attaining goal to attain the sustainable environment (Rothaermel Zimmer, 2014). Electric cars developed by Tesla Company are expected to have decreased impact on international CO2 levels. This initiative if the company is increasing the living standards of people through offering energy efficient vehicles Violation of national legislation Tesla Company has focused on developing better communications along with public relations planning and coordination. This also encompass social media tracking along with the senior management training Tesla Company attains information along with training sessions in order to promote compliance with the national legislation laws (Rowland, 2015). Supply chain based concerns such as environmental, social and governance concerns such as late delivery and recalls To deal with the concerns associated with its supply chain the company is focusing on developing its digital supply chain. For decreasing the environment impact of its supply chains, Tesla has developed exceptional inventory management strategy (Shah, 2016). The company dealt with the rejection of its traditional franchise dealer sales model. The company focuses on dealing with the social and governance concerns has focused on maintaining less inventory along with considering production on demand. Tesla has focused on decreasing the capital and risk associated with storing excess inventory (Sippel, 2015). The stakeholder position analysis of Tesla Company revealed that the company has three major competitors within the US automobile market namely Toyota and Honda (Rowland, 2015). From such analysis it is gathered that the company is dealing with issues related with developing environment friendly vehicles and is struggling with the mass market manufacturing of its few vehicles. Moreover, issues have also been discovered in the batteries of the vehicle. From the stakeholder analysis, it has been gathered that increased importance must be given to its two major stakeholder groups that includes environment regulation parties and its consumers. Consumers are one of the major stakeholders of the company those are dealing with the quality control issues. Increased complains were being received from its consumers regarding the vehicles that are getting overblown (Dockalikova Klozikova, 2014). Tesla Company is also dealing with issues related with the consumers those complained that they had to wait for weeks for repairs for their cars. Focusing greatly on the consumer service is the major consideration for the company. Moreover, government clean air regulations imposed increased risks for Tesla Company. Considering such concerns, the company must focus on abiding by the regulations imposed by the environmental regulation authorize by giving them increased importance (Dockalikova Klozikova, 2014). Importance of Consumers- Tesla is dealing with issues that are impacting its ability to offer vehicles to all its consumers on a timely basis and in an economical manner. Increased complains were being received from its consumers regarding the vehicles that are getting overblown. Tesla Company is also dealing with issues related with the consumers those complained that they had to wait for weeks for repairs for their cars (Grnig Khn, 2015). As consumers are important stakeholders of the company to attain competitive advantage over its major business rivals, Tesla must carefully considers their changing needs and expectations. In order to attain highest consumer satisfaction score, the automobile company must consider the upstart of its electric cars within the international market. Moreover, in order to attain better consumer satisfaction in comparison to its competitors, Tesla must focus on maintaining emotional connection with them. Generating sustainable energy solutions is deeme d to be highly important as huge number of its consumers these days are relying on the companys efforts in maintain quality (Grnig Khn, 2015). Importance of Environment Regulation Authorities- The Company is facing environmental issues regarding the vehicles and its emissions control. The energy independence and securities act is dealing with the energy policy of the United States. Tesla made sure that it will maintain higher energy independence and security and will increase the clean renewable fuels production (Kotabe Helsen, 2014). This stakeholder group must be given increased importance by the company for the reason that it is facing tough competition from its major business rivals such as Toyota and General Motors in developing the most environment friendly cars. This can facilitate the company in attaining increased competitive advantages (Kotabe Helsen, 2014). Moreover, attaining support from the environment regulatory authorities can facilitate Tesla in production of electric transportation technology. Through abiding by the clean air act Tesla can attain huge funding from government environment regulations autho rity for advancing its technology vehicles (Rowland, 2015). In consideration to the issues, Tesla Company has developed two most effective strategies in order to manage its stakeholders legally as well as ethically for maintaining a competitive advantage over all its major business rivals within the US automobile industry (Dockalikova Klozikova, 2014). In maintaining consumer satisfaction and for attaining effective environment regulation Tesla has focused on developing strategies that integrates shared value principles with ecosystem (Dockalikova Klozikova, 2014). These two ethically and legally maintained strategies and its useful implications are explained under: Manufacturing of environment friendly cars for meeting consumer needs- Development of environment friendly vehicles in a sustainable manner is one of the big initiatives taken by the company for running its business ethically (Dockalikova Klozikova, 2014). Elon Mask, the CEO of the company has developed an effective strategy to develop clean energy vehicles for the international market. Tesla Company is also focused on implementing eco-friendly technologies considers its impact on the market niche (Dockalikova Klozikova, 2014). Considering such strategy, the investors of the company are interested to invest more in the company for Tesla is making great attempts in changing the way power is used ethically by this automobile company (Grnig Khn, 2015). Tesla has developed an effective ethical and sustainable strategy of enhancing electric vehicles technology that is facilitating the company in dealing with global warming. This also serves as an important aspect in decreasing the indi viduals footprint within the environment. This strategy will be helpful in making sure that the regulations set by the environmental authorities are followed properly by the company. This will also facilitate the company in maintaining its reputation among conscious consumers within the international market (Grnig Khn, 2015). Developing highly aggressive and innovative strategies focused on environmental regulation- To maintain the environmental standards in an ethical manner, Tesla Company has developed a strategy of developing novel design of its vehicles along with maintaining effective computerization and connectivity. The strategy has also focused n developing strict emission standards in order to boost its bottom line (Dockalikova Klozikova, 2014). Abiding by the regulations developed by the environmental regulatory authorities, the company will make sure that it attains competitive advantage over its business rivals. This can be possible if the company is developing regulatory strategies for maintaining unique sustainable position in the US automobile industry. Tesla has employed emissions regulations strategy in order to attain effective financial advantage (Dockalikova Klozikova, 2014). Following this strategy, the company can attain high environmentally sustainable company ratings from the reg ulatory authorities of the nation. Considering the same, Tesla has made a proposal to California Air Resources Board by a group of medium size automakers like Volvo. This strategy has satisfied the requirements of selling plug-in hybrids than fuel-cell vehicles (Anton, 2015). References Anton, R. (2015). An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces, Diamond, PESTEL, and SWOT Analysis. Chowdhury, S. D. (2014). Strategic roads that diverge or converge: GM and Toyota in the battle for the top.Business Horizons,57(1), 127-136. Dockalikova, I., Klozikova, J. (2014, November). MCDM Methods in Practice: Determining the Significance of PESTEL Analysis Criteria. InEuropean Conference on Management, Leadership Governance(p. 418). 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