Tesla Motors had strong financial performance in 2011, exceeding its targets for vehicle sales and profits. Its mission is to accelerate sustainable transport by producing mass market electric vehicles. Tesla aims to fulfill this mission while remaining profitable through innovation. Top management, including CEO Elon Musk, have experience in technology and business. They pursue strategic management focused on innovation, data analysis, and sustainability. Social and technological changes increased demand for high quality electric vehicles, benefiting Tesla.

1. Analysis of Tesla Motors, Inc.: The First U.S. Car Company IPO Since 1956
By: Ian Clark

2. Current Performance:
During the time of this case study Tesla's performance was up from when they began making
and shipping cars in the year 2008. Tesla's market share also increased to capturing eight percent
of the luxury car market as well. Throughout 2011 when this case study was written , Tesla's
performance was consistent, this was in part because of their release of the S type model which
allowed them to hit their target margin of 5,000 units to be ordered and sold. Not only did Tesla
hit this target they exceeded it by also having more than their goal of 1,800 roadsters to be sold
as well. The profit for Tesla in 2011, ended up exceeding their target by in taking over two
hundred and fifty million dollars, this is much above their initial investment capital of one
hundred fifty million dollars they were reported as having in 2008. Additionally Tesla was a
publicly traded company in 2011, and their market shares appreciated in value to over on
hundred dollars a share, currently in 2016 their stock sits at approximately two hundred and
twenty dollars a share.
Strategic Posture:
The current mission of Tesla Motor Company is stated as being "To accelerate the advent
of sustainable transport by bringing compelling mass market electric cars to market as soon as
possible." This mission is being upheld and expanded upon as all Tesla cars are powered with
alternate fuel, in their case being powered by very high powered battery systems. The objective
of Tesla is to carry out their mission while remaining profitable and able to innovate and change
as needed to remain in business and to continue to accelerate the non-dependence on fossil fuels.
The objectives and mission of Tesla is clearly stated as they are saying exactly what they are

3. setting out to do and why they are different than other automobile makers. Furthermore, they are
very clear in their objectives as they are simply wanting to carry out their mission while
remaining profitable enough to keep their employees paid and their doors open. Their objectives
also are apparent in their performance as much of their success relies on the innovation of
making their cars non fossil fuel powered, this type of differentiation sets Tesla apart from other
cars and allows the consumer to know instantly why a Tesla is better and or different than
driving another type of car. Furthermore, they have brand recognition as being one of the
original auto companies to start making electric battery powered cars.
Their concept also allowed for further realization of their mission as many other auto
companies are beginning to make cars which are powered with means other than fossil fuels as
well. Thus, in short, Tesla is in business to create sustainable transportation via electric cars, and
they are also in business to turn a profit while doing so. Their corporate objectives are to
continue to expand and innovate their cars to bring sustainable transportation via electric cars to
the masses as profitably and as efficiently as possible. The business objectives of Tesla are to
remain a relevant automaker in relation to the older and larger auto company' such as Ford or
Toyota, this is basically to keep in competition with these companies to both realize their vision
for sustainability in automobiles as well as to remain a profitable business which supplies
sustainable electric cars to the masses. Their functional objective is to as said in their mission, to
continue to advance their automobiles as being superior quality vehicles both in the general
realm of automobiles but at the same time also among electric cars. The objectives of Tesla are
in consistent with each other as they all tie into making the other parts happen successfully. The
main strategy which allows Tesla to maintain control of its product is the way in which they have
captured the entire distribution and sales of their products, Tesla's are only sold at their own store

4. fronts and many times the only place to service a Tesla is at a Tesla facility. Therefore with
controlling their entire production as well as distribution Telsa can control how its products are
made and sold. Therefore, allowing the production and distribution of their products to remain
consistent with their mission, objectives. The external environment which Telsa is consistent
with, is the recent focus on combatting climate change as well as other environmental factors
through more sustainable automobiles and the large "race" for alternative fuels to fossil fuels,
many consumers are beginning to turn to these type of cars for this reason as well as the rise in
prices of oil. The internal environment which Tesla is consistent with, is their ability to make a
quality car which can meet or exceed the performance and reliability of its fossil fuel and non-
fossil fuel competition, Tesla has been named "the best electric car" by such magazines as "Car
and Driver" as well as has won countless awards for the innovation and quality of their vehicles
craftsmanship.
Board of Directors and Top Management:
The group which constitutes top management within the Tesla Company are the chief officers
and the board of directors. The CEO and owner of Tesla is Elon Musk, the same man who was
president of PayPal and SpaceX. The board of directors and the owner Elon Musk all have
previous experience in technologies, business ownership or supervisory roles as well as
experience with other auto companies such as Harold Kroeger who previously was a high
ranking professional for Mercedes Benz. The board of directors and the owner are mostly
internal employees, while some of the directors have other ventures and are external directors.
The stock of Tesla is now publicly traded and the board does own a significant controlling
majority of the stock. The board members of Tesla all have international experience as many of
them are either from companies which are abroad or have previously worked for companies

5. which deal on the international level. Furthermore, they all share a concern with the environment
and sustainability as environmental sustainability is why some of them are there and is also a
founding principle of the company itself. Many of these board members have been on the board
at Tesla from the beginning, all have been on the board at least a year. All of these members
from the board are considered top managers as they all have input on the creation of policy for
Tesla as well as what direction the company will take and deciding what the employees need to
do to meet that direction. Additionally there are some separate chief officers of the company who
handle day to day operations as well, thus, the top management is a mixture of internal directors
as well as internal employees whom serve as chief officers for the company. Tesla does have a
systematic approach to management which praises innovation as well as forward thinking. They
also rely heavily on data in making managerial decagons as well as put much effort into R and D
as they constantly differentiate themselves by creative new and inventive designs, this is now
especially important as many other manufactures are also now making electric cars. Top
management is very involved in the strategic management of Tesla, as they are all connected
very heavily to current projects as well as the data of how these projects are progressing and
why. Then from this data they create policy which helps to stream line processes and minimize
wasted resources. Tesla prides itself with an image rooted in ethics, innovation and
sustainability, they make decisions to use certain materials and modes of production to be
consistent with being an ethical and sustainable company as well as socially responsible. As
previously stated, executives own significant stock in the company both as to create vested
interest and to offer competitive benefits to retain skilled executives. Top management ,
communicates with lower level management via memos and directives, also they do try and
maintain an open door policy with lower level management but this is regimented as Tesla is a

6. very large company, thus a protocol is followed when contacting top managers. The skill set and
experience of the top management team is capable of handling future challenges as many of the
top managers have previous experience with success at other companies such as Zip2 and
Mercedes Benz.
External Environment:
S: Social
The creation of a company such as Tesla which focuses on making quality cars which are also
not harmful to the environment has aided in creating a demographic which prizes ethical/
sustainable consumption as well as quality of a product. There has been an increase in the
awareness of the need for environmental action, especially in the realm of consumerism, Telsa
has capitalized on this as they make very high quality cars which also do not pollute the
environment in the ways gasoline powered cars do. Thus, a main driving social factor behind the
success of Tesla is being environmentally conscious. However, another factor is that Tesla has
done something which is new, and people who are progressive in their mindset also tend to lean
toward innovative ideas such as the one Telsa has undertaken.
T: Technological
The advancement of battery power and the degree of which electricity has been harnessed has
allowed Tesla to create cars which can now out preform gasoline powered cars in both power
and reliability. This has in turn pushed other companies to being making electric cars as well,
which has motivated Tesla to invest more heavily in their R and D and create some of the well-
made electric cars in existence.

7. E: Economical
The appeal of a Tesla automobile typically falls toward the middle class to the wealthy as a Tesla
can range in price of 30,000.00 to well over 50,000.00. However, the amount which is saved in
gas can offset this cost. Tesla however is vulnerable to fluctuating economic trends such as
recessions, as in recessions, automobile purchases tend to not be focused on the brand new but
instead the used automobile, currently Tesla's main revenues are not in the used automobile
market.
E: Environmental
Tesla is heavily influenced by environmental factors, the environment being one of their main
selling points. Thus, environmental issues could actually increase sales as people may feel they
are not only buying a car but contributing to the solution to some of the problems with the
environment. Environmental sustainability being a large issue has cemented Tesla in a niche
market.
P: Political
The main political factors to do with Telsa are environmental sanctions on cars as well as
disputes over ownership between the founders. However, the disputes between the founders have
since been resolved.
Summary of External Factors:

8. Below is an EFAS Table summary of some of the external factors which affect the
growth and development of Tesla Motor Company. These factors are the main threats and
benefits, I believe, externally to the company based on this case study. Many of the factors deal
with the environment and imitation of the Tesla concept. The reason for this is that the main
factor which differentiates a Tesla is how it is powered and the effect and/or non-effect it has on
the environment and the fact they do not rely on gasoline as well with how these relate to the
external environment for this company.
External Factors Weight Score Weighted Score
Environmental Concern 20% 4 0.8
Environmental problems 15% 4 0.6
Climate change 10% 3 0.6
Oil Prices 10% 4 0.4
Amount of pollution
from automobiles 10% 3 0.3
Other companies making
electric cars 15% 1 0.15
Other alternate fuel
sources 10% 2 0.2

9. Imitation of Concept
from a customer view
standpoint 10% 2 0.2
Totals 100% 3.25
Corporate Structure and Culture:
The corporate culture and structure of Tesla Motor Company is one which focuses on
new ideas as well as making those ideas work given the practical constraints of the field of
Physics, as every car is a limited and controlled by physics, thus, these laws must be considered.
The culture at Tesla is very production driven, they have heavily mandate schedules for
employees such as sometimes strict breaks as well as time off policies, however they do provide
avenues to being promoted as well as invest in employee development. There is a well-defined
culture of shared belief in the mission of Tesla and a shared fixation on efficiency as well as
production, this stems from being an automaker which is attempting to compete with much
larger companies some of whom are now mimicking Tesla's concepts. These shared beliefs also
are focus on constant innovation as Tesla relies heavily on its brand recognition which is derived
from differentiation, therefore Tesla is always looking for ways in which to make its product
unique and to stand apart in terms of quality. The culture is consistent with policies as many
policies regard target production rates, as well as profit goals, in addition to maintaining their
high levels of ethical compliance and quality of design. Tesla's culture mirrors these beliefs as
they are a culture of productivity, innovation, and relating back to the mission of Tesla. As stated

10. before the culture is consistent with policy, strategy and objectives of the company because all of
these aspects are intertwined with each other and are the results of each other at Tesla. Tesla's
position on change and internationalization is to constantly mold itself with changes to continue
being the forerunner in producing cars on the edge of technological progression as well as being
relevant in many different countries, thus, Tesla is very much a company in support of
internationalization as they are looking to spread consumption of their product in as many
avenues and places as possible. The culture of Tesla incorporates many different word views
and approaches to its mission and the design of an electric automobile, thus it employs a
multitude of people from a large array of backgrounds and nationalities, and thus this company is
very compatible with many different backgrounds present within its employees. Lastly, as
previously states, the company is heavily in favor of environmental sustainably as its main
reason for being created is the idea of sustaining the environment by producing sustainable cars.
Also this is done in a way which also considers the culture of each nation in which Tesla
operates, as with Tesla a core value is putting the customer first and the best way to do that is to
know and respect the culture of the country of the customer.
Corporate Resources: Marketing
The marketing plans, objectives, and strategies are centered on the idea of exclusivity and being
somewhat scare by intention. Some of the ways this is achieved is that there are no Tesla dealers,
thus, one must go to Tesla to buy a Tesla. This allows Tesla to monitor and control the customer
experience as well as to better know what is working and what is not in terms of sales and
budgeting. Additionally, there are no commissioned sales people, which is another way to
differentiate the Tesla name and buying experience from other auto makers. Tesla cars are

11. marketed via reputation and their storefronts but not aggressively sold like other brands of
automobile. Tesla purchases are conducted online, then the cars are made to order as well as
usually involve a wait of months to have the car made to order. In some places the customer
cannot see or drive a Tesla without a deposit to be placed, as a standard rule to test drive a Tesla
a refundable deposit of five thousand dollars is required. Therefore, these marketing tactics set
Tesla apart as a unique and elite auto maker, despite not all of their vehicles carrying an
extremely expensive price tag, as many people who are not incredibly wealthy can afford a
Tesla. That being said a lower income person would most likely not be able to have a Tesla, so
their marketing is somewhat socioeconomically class focused, and capitalizes on the
connotations associated with the socioeconomic classes of people.
The marketing of Tesla, is more implied from their practices, and from their budgets, they have
engineered a marketing design which requires little investment and more on placement and
posturing as something elite. The marketing strategy is somewhat consistent with their mission
as they have a very low investment sustainable marketing strategy of product control which
requires little to no money just control over their product. However, this marketing strategy is
inconsistent with providing electric cars to the masses as it presents Teslas to be somewhat of an
elitist approach to environmental sustainability via making cars , which is in conflict somewhat
with its stated mission , as the wealthy are not usually the masses.
Tesla is preforming very well in terms of holding a niche market via its marketing strategies,
however it does rely on a smaller number of customers for its sales with this type of marketing
strategy. Thus, exposing them to being more adversely affected by fluctuations. They are gaining
market share with the wealthier environmentally conscious, but losing market share with middle
to lower income people as they are marketing to make their product more exclusive and elite.

12. The trend which emerges from this analysis is that wealthy environmentally conscious will be
driving Teslas while most other people will not be as inclined to seek them out as they will be
seen as more exclusive to the wealthy, thought they currently are not entirely. This could
negatively impact their performance as they will be competing with luxury brands which the vast
majority of this market is focused on decadence and not sustainability. The marketing
performance of Tesla compares to be much smaller than other auto makers as their total sales are
larger as well as number of cars made. Marketing managers are using market research to appeal
to a very small niche market in the wealthy demographic, as well as applying this to a product
which has a long life cycle as Teslas are not items which are very readily disposable. The
marketing seems to remain the same in the different countries it operates as all those countries
have a western notion of exclusivity. Marketing does however, account for being
environmentally sustainable as no resources are being used, simply controlling how the Tesla is
bought and seen. The marketing manager in this process is someone who takes the data and
engineers how to control the product image and distribution in such a way which allows for the
desired image of the product to take shape.
Finance
The current financial objective of Tesla is to continue to grow and allow for their stock to
appreciate while still maintaining high levels of quality and adhering to their mission of making
electric cars which aide the environment. Their objectives are implied from how they are
appealing now to the wealthy and still putting a large focus on quality, customer, and research
and development. Their financial objectives are consistent with their mission as they are still
making electric cars for people, while not necessarily the masses, it is more their marketing
which does not reflect their mission rather than their financial practice. As, they are, financially

13. frugal in many areas except their product and remaining environmentally sound as well as
offering their customer a one of a kind experience with their cars. Tesla is preforming well in
terms of financial analysis as at the time of this case study they were profitable to investors as
well as increasing the value of their shares as well as their revenues. The trend which emerges is
that through product distribution and control, Tesla can focus in making their cars in the best
way possible while not diverting money to things such as marketing, instead they can invest
heavily in R and D and keeping control of their product and also their market. Their financial
practice support past decisions in the sense they have always looked to remain profitable in
producing electric cars. This type of finance strategy allows for Telsa to have the competitive
advantage of being able to use more capital for enhancing their product and making their buying
experience more unique and appealing. The performance of Tesla compares with larger
automakers as their profit margins are very high , sometimes higher than other makers, but their
numbers overall are sometimes lower due to the company’s small size. The financial managers
are using standard accepted techniques for measuring, controlling and accounting for their
financial performance, many times the techniques being used are the same as other companies,
with slight variances, in which areas receive how much investment.
Tesla , seems to employ an across the board take to its financial decisions , no matter which
country it is in as they maintain such a high level of control over their product and distribution.
Finance copes with global issues by investing its capital in the very limited and sustainable way
in which it does by investing mostly in R and D and keeping product control.
The financial manager seems to take on the role of delegating the finances to ensure , employees
are paid, R and D remains a top priority as well as allowing for Tesla to have as minimal output

14. of capital as possible when not absolutely necessary to product improvement or customer
experience.
Corporate Resources: R & D
The R and D objectives of Tesla are to constantly upgrade and improve their automobiles in an
effort to continue making top tier electric vehicles. These objectives are clearly stated on the
Tesla website in more words than I have paraphrased them in, but also they are implied by their
budgets and performance as much of their capital is invested heavily in R and D. Furthermore,
much of what sets them apart as a car company selling very advanced, alternative fuel source
cars is that they do so much with their R and D in creating cars which are unique to themselves.
The strategy they employ for R and D is consistent with the companies mission of providing
quality electric cars to the masses as they invest most of their budget into R and D as they are
very focused on creating the best electric car they can possibly create, also they are focused on
preforming in the same realm or better than their electric and non-electric automobile
competition.
The role of technology in the corporate performance of Tesla is paramount as, the main measure
of its product is the ability it has to be as technologically advanced of an automobile as possible.
When people buy a Tesla they expect the car to have all of the advances of a standard gasoline
car, but also they are looking for something more as Tesla's concept presents their cars as new
and something more than a gasoline car, thus the mix of engineering , basic and applied research
are mixed into equal parts as they wish to engineer a car which can perform better than it is
expected to, while at the same time remaining appealing and interesting to consumers as being
something set apart from any other type of car. Lastly, it takes a large amount of research to
create a car which can also be a sustainable type of automobile in terms of the environment as

15. this is also a large selling point to buying a Tesla. R and D at Tesla gives them a large
competitive advantage as Tesla has found many new and more efficient ways in building award
winning electric cars , also their R and D is something which they imply in their marketing as
well. Technological discontinuity could be a very detrimental problem to Tesla as their main
driving force behind what sets their actual cars apart from others is the level of technological
advancement they have obtained. Tesla invests much more heavily in their R and D than other
similar sized corporations as it is the largest investment they make, as they do not really
advertise outside of the way in which they place and control their product distribution as
mentioned earlier. R and D of Tesla is very universal across the board , the only time which they
may adjust is if the country they are in has legal constraints about how cars have to be built there
to be legally constructed, in that case Tesla would adjust their approach so they could legally sell
cars in that country. Tesla considers environmental sustainability in their R and D, as one of their
main aims is environmental sustainability, they try very hard to meet this part of their mission
and also to be a green company. The R and D manager is charged with allocating efforts and
funds in such a way which allows the company to create an appealing, technologically advance
and environmentally conscious vehicle which appeals to consumers enough to be bought instead
of other automobiles made by other auto makers.
Corporate Resources: Human Resource Management and Information Management
Summary of Internal Factors:
IFAS Table

16. Strengths Score Weight Weighted Score
Culture built on being progressive and creating
innovation in automobiles 4 0.15 0.75
Morale Boosting Programs for employees 5 0.15 0.75
International Operation 4 0.1 0.4
Employing people of multiple backgrounds 4 0.15 0.6
Heavy investment into R and D 3 0.2 0.6
Strong management team 4 0.15 0.8
Being seen as the original electric car maker 4 0.1 0.4
Representing a high standard in automobile
production 4 0.1 0.4
Standing behind their product with warranty and
service incentives 4 0.1 0.4
Weaknesses Score Score Weighted Score
Being a smaller company than competition 2 0.1 0.2
Relatively small production work force 2 0.2 0.4
Heavy reliance on battery power 3 0.2 0.6
Limited resources for battery production 2 0.25 0.5
Relatively smaller capital reserve 2 0.1 0.2
Sometimes long hours for employees 3 0.05 0.15
Limited consumer base 3 0.05 0.15
Demographic being difficult to predict 3 0.05 0.15

17. This table was constructed of Internal factors which influence the state of Tesla Motor Company,
as one can surmise from the table a large weakness is the limitations of their smaller size and
limited resources in the shadow of their larger competition. Other weaknesses are their market
being unpredictable at times as the current trend of being environmentally conscious, which they
have made most of their niche could subside in terms of the following they currently have.
However, their strengths include, having very positive and strong brand recognition as the
originator of a type of automobile as well as having an alternate power source for their vehicles
which is something very in demand. In short, this is a small company by comparison but their
innovative approach and ever progressing dedication to being the best at what they do may
cement this smaller auto maker in the fabric of automobiles for some time to come.
Situational Analysis:
Strategic Factor Analysis Summary (SFAS) Matrix;
Strategic Factor Analysis
Summary (SFAS) Matrix Internal Factors(from IFAS)

18. Strengths Weaknesses
Increase in concern for environment
Other auto
companies
making electric
cars
Advances in lithium ion battery production
Small size of
company
New Technology allowing electric cars to
achieve new levels of power and performance
Limited market
presence
External Factors(from EFAS) Increased interest in alternative fuel sources
Imitation of
Concept by less
quality models
External Opportunities S/O Strategies Rating Weight
Pro creative culture
Use environmental sustainability to increase
sales 4 0.1
Use of information on benefits of
alternative fuels for consumers
Create a trend of using alternative fuels based
on benefits of alternative fuel cars to
consumers 4 0.2

19. Established as a top quality maker of
electric cars
Market the quality of a Tesla vs other electric
cars to consumers 3 0.25
Allowing employees to be heard in
research and development
Allow employees to continue to have an active
role in the creation of new Tesla models 3 0.25
External Threats S/T Strategies Rating Weight
Stress of long hours
Give employee PTO days to boost morale,
award holidays for meeting goals 3 0.2
Staff being divided over their
opinions on what to pursue on new
Tesla models
Unite employees by allowing for a vote to
decide which efforts to move forward with 4 0.15

20. Heavy reliance on batteries
Reward employees for finding new ways to
produce electric power for their cars , which
could be more efficient than batteries 4 0.2
Directors being external persons Allow more employees to become directors 3 0.45
Company Uniqueness Competitive Advantage and Sustainability
Tesla is a unique company which has an interesting concept of trying to reduce emissions and
pollution which are a result of being reliant on fossil fuels. Also they offer the consumer an

21. automobile which does not rely on the technology associated with fossil fuels but instead offers
new and sometimes more efficient machines to transport consumers to their destinations.
Furthermore, Telsa offers a very open and non-aggressive way for consumers to buy a car and to
know what they will be paying as well as everything about the cars specs they are buying, as
Teslas can only be bought directly from Telsa, thus, the people selling their cars are more
knowledgeable about the cars they are selling than a commissioned sales person. These
approaches to car manufacturing, sales and distribution are main factors which set Tesla apart as
a car maker and distributor. Tesla has the competitive advantage of offering environmental
friendly cars as well as a completely unique customer experience as well as a set of features
which come with their cars. The sustainability of Tesla is strong as they are very careful with
their brand and have built a reputation for themselves as being the top and original brand of
electric cars in the world.
Missionand Objectives:
The mission of Tesla is "To accelerate the advent of sustainable transport by bringing
compelling mass market electric cars to market as soon as possible." I believe this mission is
very appropriate in regard to the key objective and strategic factors of Tesla, as much of their
objectives and strategy center on establishing themselves as both technologically advanced as
well as sustainable to the environment. Their mission being to provide a new technological
advancement in auto making to the masses also to promote environmental sustainability through
achieving this mission. I do not believe the mission should be changed as their mission is aligned
with everything the company does on almost every level as many if not all of the aspects of this
company are very directly tied back to their mission statement. Their objectives are also very
much in line with their stated mission, the only suggestion for change in their objectives I would

22. have is the level of exclusivity they are trying for with their marketing, I believe making quality
cars for the masses and not only the elite would be more lucrative to this company as well as
more helpful in achieving their overall mission. Rather than standing behind their cars being
quality designs and being elite and exclusive, they could instead stand behind the quality of their
cars as cars for all people, so that all people may aid in sustaining the environment, all people or
a large amount of people being the definition of "masses" rather than simply masses of one
percent of the world's population.
Strategic Alternatives/ Recommended Strategies:
The current objectives of Tesla, aside from their marketing, I feel are much grounded in what the
company has set out to do, and are beneficial to their performance and growth. However, as I am
have said I feel that their marketing strategy would be more beneficial in being modeled to be
less exclusive, and more inclusive of more demographics as this would increase their sales and
their market presence as a top automaker. Their marketing strategy being changed could be
feasible as there is a larger interest in what they are producing, in that they are producing
sustainable automobiles which appeal to a large number of people over a multitude of
demographics as environmental sustainability in relation to a person's automobile is a large
selling point currently, otherwise why would automakers across the board be attempting to
market their cars as "green" in some way or another? Thus, Tesla has a large competitive
advantage here, of being very "green" as their cars create zero emissions, this alone would be
enough for many people besides the elite they are marketing to currently, to want to buy and
drive a Tesla. This augmented approach to marketing, could cement Tesla as a top automaker in
the world, rather than a popular niche automaker as some would say they currently are. They
would also be seeing tremendous growth as they would be in more market segments as well as

23. would have much larger brand recognition and loyalty. The functional alternatives which would
need to be implemented would be minimal as it would only require leadership to shift their
placement of their cars and how they are distributed, thus, the change to opening up their brand
to the world would simply require planning and implementation from their leadership, instead of
a massive capital investment.
Strategy Implementation:
To implement a strategic change in marketing, all that would be required for Tesla, would be for
top management to create a plan of action, and dictate this plan to marketing manages to
implement with personnel. This would be more easily done than with other automakers as Tesla
retains a high degree of control in their products sale, manufacturing, and distribution. Tesla
could effectively change how their cars, are marketed , distributed and sold almost overnight as
they almost employ a Rockefeller type of control of their product with a very linear type of
ownership over production and distribution. The top management and board should develop
these changes, the top managers should implement them into policy. Top management and the
board as well as the lower level managers and employees should all be in charge of some aspect
of these changes as it will take all of these people to make these changes happen across the
board. These changes are very financially feasible as all it would take is the decision to move
forward and a plan of action based on market and company data to be drafted and implemented,
a large capital investment would not be needed to make these changes. The new standard
operating procedure to be enacted would solely need to be the previously mentioned change in
marketing to the elite and making the Tesla exclusive to this type of consumer, all other
operations could remain the same.
Evaluation and Control:

24. The current information system Tesla has for measuring feedback on implantation of activities is
sufficient as they can measure performance, market response and profitability accurately with
their current information systems and metrics. Performance can be pin pointed to area, unit,
project and function with accuracy and with feedback on what is allowing the company to grow
from a profit standpoint as well as an image standpoint and what is not. The information
gathered by Tesla is timely as they are very rooted in remaining on the most up to date point of
technology in making and selling electric cars. Tesla currently uses forms of benchmarking for
financial goals as well as goals in relation to their mission and image. I feel the standards being
used by Tesla are appropriate as they are preforming very well and are growing as a company.
Furthermore, Tesla has reward systems for recognizing performance in the form of raises,
increase in responsibilities, promotions, and actual awards for achieving goals.

25. References:
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Titanium!". Jalopnik.
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Plates to Model S". Tesla Blog. Tesla Motors.
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prevent fires". Autoblog Green. AOL Inc.
5. Mahaffey, Kevin (2015-08-06). "The new assembly line: 3 best practices for building (secure)
connected cars".
6. Tatarevic, Bozi (2015-10-15). "Tesla Doesn't Want You to Work on Its Cars". The Truth
About Cars.
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