Strategy Playbook for Exceptional Results
Report prepared by:
Date:
Walden University
WMBA 6990: Capstone: Sustainable Business Practices and Strategies
Section 1: The Organizational Profile
Tesla Motors is an American electric vehicle manufacturer founded in 2003 by a group of entrepreneurs, including Elon Musk. It designs, manufactures, and sells luxury electric vehicles, energy storage systems and solar roof tiles. Its headquarters is in Palo Alto, California (Benton, 2022). Tesla Motors has disrupted the traditional automotive industry by introducing its patented powertrain technology, Autopilot, and over-the-air software updates. It is currently the world’s second-largest maker of electric vehicles, behind only Volkswagen Group and ahead of Toyota Motor Corporation. Tesla’s mission is to accelerate the world’s transition to sustainable energy. The company is committed to creating the most inspiring and enjoyable products on the market and achieving the highest customer satisfaction levels in the industry (Dudovskiy, 2021). They prioritize safety and dependability with the goal of driving down costs for their customers. Tesla focuses on providing the clearest and most efficient pathways to sustainable energy.
Part 1: Analyzing the Organizational Culture
Tesla Motors is an innovative, ambitious, and customer-oriented organization emphasizing ethics, values, diversity, and social responsibility. These principles form the foundation of their culture and guide the company’s actions and behaviors in the marketplace (Dudovskiy, 2021). In this discussion, we will explore how the organizational culture of Tesla Motors has enabled them to differentiate themselves from their competitors and stay ahead of the curve in the highly competitive automotive industry.
Tesla’s Current Organizational Culture
The current organizational culture of Tesla Motors can be classified as innovative, ambitious, and customer oriented. Ethics, values, diversity, and social responsibility play a role in this culture. An example of ethics playing a role would be Tesla’s commitment to sustainable energy, demonstrated by their initiatives, such as installing solar panels at their manufacturing facilities to reduce their carbon footprint (Benton, 2022). Another example of values central to the culture is Tesla’s dedication to creating an exceptional customer experience, from their vehicles’ design to their mobile app’s user-friendly interface. They are also committed to increasing diversity and inclusivity in their workplace and have created a network of resources to foster an environment where all individuals can contribute and learn. Finally, Tesla is highly committed to social responsibility through initiatives such as their Renewable Energy Program, which provides renewable energy to needy households.
Benefits Of Organizational Culture
Organizational culture is essential to the Success and sustainability of any business, as it shapes how employees interact with one another, the quality of products and services produced, and the organization’s reputation in the market (Meyer, 2019). Tesla Motors’s organizational culture has significant benefits when positioning itself in the market.
The company’s emphasis on innovation and customer service has allowed it to differentiate itself from competitors, with its flagship electric vehicles setting it apart from traditional gasoline-powered cars (Benton, 2022). This focus on delivering customers the highest quality products and services has earned Tesla a reputation as an industry leader. It has helped the organization to increase its market share consistently.
Tesla’s commitment to sustainability, in terms of its production processes and products, has also benefited its position in the market. Its initiatives, such as transitioning its factories to renewable energy sources, installing solar panels for their properties, and developing electric vehicles, have attracted the attention of socially conscious customers who are looking for companies that not only care about the environment but also have a track record of taking meaningful action to reduce their carbon footprint.
Tesla’s organizational culture has also been instrumental in creating an inclusive and diverse workplace (Dudovskiy, 2021). This commitment to diversity has allowed the organization to attract top talent from various backgrounds and experiences, resulting in a highly skilled and knowledgeable workforce. This, in turn, has enabled the company to remain at the forefront of innovation and stay ahead of the competition.
All in all, Tesla’s organizational culture has been integral to its Success and positively impacted its position in the market (Meyer, 2019). By fostering an innovative, ambitious, and customer-oriented culture, the company has been able to differentiate itself from its competitors, attract socially conscious customers, and maintain an inclusive and diverse workplace.
How Conditioning and Culture Could Challenge Tesla’s Strategy.
Organizational culture and conditioning can significantly impact an organization’s strategy and ability to execute it effectively. For Tesla Motors, culture and conditioning could challenge the company’s strategy in various ways. One way is in terms of innovation (Meyer, 2019). The company’s culture is focused on creativity and pushing the boundaries of what is possible in the automotive industry. Given its current resources, this can lead to ambitious ideas that may not necessarily align with the company’s overall strategy or be feasible. This can be further complicated by existing conditioning within the organization, as established norms and practices can act as a barrier to new, more innovative ideas.
Another challenge that could arise from culture and conditioning is the company’s customer service. The Tesla culture strongly emphasizes customer satisfaction and delivering exceptional experiences. However, this can sometimes clash with the company’s bottom line (Benton, 2022). Suppose established conditioning within the organization leads employees to take a too-conservative approach to customer service. In that case, it could impede the company’s ability to deliver on its promise of providing world-class customer service.
Finally, culture and conditioning can also affect the company’s workforce. If employment practices or other processes are based on outdated norms, the company’s ability to recruit and retain top talent could be hampered (Dudovskiy, 2021). This could limit the company’s access to diverse perspectives and innovative ideas, negatively affecting its ability to execute its strategy effectively.
References
Benton, L. (2022, November 30). What drives Tesla Company culture to Success? Solution-focused thinking. – liberty mind. Liberty Mind – Bringing well-being into the workplace. Retrieved January 15, 2023, from https://libertymind.co.uk/what-drives-tesla-company-culture-to-success-solution-focussed-thinking/.
Dudovskiy, J. (2021, April 23). Tesla Organizational culture: A brief overview – research-methodology. Research. Retrieved January 15, 2023, from https://research-methodology.net/tesla-organizational-culture-a-brief-overview/.
Meyer, P. (2019, February 22). Tesla Inc.’s Organizational Culture & its characteristics (analysis). Panmure Institute. Retrieved January 15, 2023, from https://panmore.com/tesla-motors-inc-organizational-culture-characteristics: Tesla’s organizational culture empowers its continuous improvement of the business