WMBA 6990: Capstone: Sustainable Business Practices and Strategies
Part 1: Evaluating the Health of the Organization
Tesla Motors has an innovative, ambitious, and customer-oriented organizational culture. This culture focuses on ethics, values, diversity, and social responsibility, incorporating initiatives such as its Renewable Energy Program and its commitment to sustainability through its production processes and products. It also prioritizes customer service, emphasizing delivering an exceptional customer experience.
The influence of Tesla’s culture on morale is mainly positive. The company’s innovative and ambitious mindset helps employees stay motivated and encourages them to think outside the box to tackle challenging problems (Benton, 2022). Furthermore, its commitment to diversity indicates its belief that everyone should be treated fairly and given opportunities for career advancement and growth. This creates a sense of inclusion, which further enhances morale. Additionally, Tesla’s focus on customer satisfaction and providing exceptional experiences reinforces a positive atmosphere within the organization. On the negative side, Tesla’s organizational culture often makes employees work extended shifts, which could be a health risk factor for the employees.
Evaluating the overall health of Tesla Motors, the organization is healthy overall. One indication of this is its financial performance; the company has consistently reported growth in sales over the past few years and is currently one of the most valuable automakers in the world (Dudovskiy, 2021). Furthermore, Tesla’s commitment to sustainability, social responsibility, and ethical business practices demonstrates a commitment to corporate governance that benefits the public and helps strengthen its reputation as an industry leader.
However, there are also areas in which Tesla lacks health. This can be seen in its high employee turnover rate, possibly due to the company’s tumultuous culture, as some have speculated (Benton, 2022). Furthermore, Tesla’s current organizational practices may sometimes align with its stated goals or objectives, which could hinder its effectiveness in achieving them.
Part 2A: Evaluating the Need and Opportunity for Change
When assessing what characteristics constitute a successful business, it is essential to consider the ability to remain competitive while maximizing profits, the alignment of goals and strategies with customer and market needs, the implementation of effective internal processes, the capacity to innovate, and the ability to create open and safe working environments. An exemplary example of a successful business is Oracle Corporation. It has maintained its competitiveness in the IT industry by providing software solutions that meet customer demands and respond to market trends (Harrist, 2019). Oracle has invested heavily in developing sophisticated, streamlined processes to help ensure the efficiency and effectiveness of all aspects of its operations. This includes its customer relationship management, enterprise resource planning, and data integration processes.
The company has also prioritized creating an environment that encourages open dialogue and provides opportunities for career development and flexibility. This has enabled Oracle to attract and retain top talent and fosters higher engagement levels among its employees. Additionally, Oracle has taken measures to protect the safety and wellbeing of its workers, demonstrating a commitment to workplace safety and inclusion in decision-making. In short, Oracle’s commitment to its customers, employees, and the market have enabled it to remain one of the most successful businesses globally. It provides a great example of how effectively integrating these characteristics can help a business succeed.
Similarly, Tesla Motors has been successful in many of these same areas. The company has remained competitive in the automotive industry thanks to its innovative electric vehicles and commitment to providing customers with a high-quality experience (Harrist, 2019). Tesla has also implemented efficient and effective internal processes, such as its state-of-the-art production and streamlined supply chain. Moreover, the company has created an open and creative culture, promoting diversity and offering employees opportunities to develop professionally and personally.
Despite its success, Tesla still faces challenges that could limit its future growth. These challenges include their high employee turnover rate, which reflects a lack of job satisfaction, their reliance on government incentives and tax credits, and the potential risks associated with their ambitious projects, such as production delays and cost overruns. To remain successful in the future, Tesla will need to address these issues and focus on developing policies and procedures that foster job satisfaction and effective team collaboration (Benton, 2022). Additionally, Tesla should reduce their reliance on government incentives by exploring cost-saving measures, such as improving production efficiency or introducing sustainable business practices into their operations. Finally, Tesla should continue to prioritize innovation, remaining at the forefront of technological advancements to stay competitive.
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 February 5, 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 February 5, 2023, from https://research-methodology.net/tesla-organizational-culture-a-brief-overview/.
Harrist, M. (2019, January 8). Oracle brandvoice: The right culture: The invisible, pervasive force that’s key to cloud success. Forbes. Retrieved February 6, 2023, from https://www.forbes.com/sites/oracle/2019/01/08/the-right-culture-the-invisible-pervasive-force-thats-key-to-cloud-success/
Meyer, P. (2019, February 22). Tesla Inc.’s Organizational Culture & its characteristics (analysis). Panmure Institute. Retrieved February 5, 2023, from https://panmore.com/tesla-motors-inc-organizational-culture-characteristics