Strategy Playbook for Exceptional Results
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Date:
Walden University
WMBA 6990: Capstone: Sustainable Business Practices and Strategies
Section 3: The Organizational Strategy
Part 1: Developing the Strategy
Tesla Motors is a leading automotive company known for its innovative and forward-thinking approach to business. This has enabled them to differentiate themselves from traditional automakers and become one of the most successful companies in the industry. At the same time, they are also committed to sustainability initiatives, ethical values and practices, and social responsibility (Benton, 2022). In this discussion, we will explore how Tesla Motors’ organizational culture has enabled them to stay ahead of the curve in the highly competitive automotive industry by proposing a comprehensive sustainability strategy.
Proposed Strategy
The proposed strategy for Tesla Motors is to develop a comprehensive sustainability strategy that leverages its commitment to innovation and customer orientation. This strategy will focus on increasing efficiency and reducing environmental impact while providing better value to customers and other stakeholders (Dudovskiy, 2021). Specifically, this strategy will focus on four initiatives. The first initiative is renewable energy initiatives. Tesla Motors will work to reduce its carbon footprint by investing in renewable energy sources such as solar, wind, and hydroelectric power. Through renewable energy sources, Tesla Motors can produce clean energy and help reduce its emissions.
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The second initiative is to reduce waste. Tesla Motors will strive to reduce the waste generated from its manufacturing and operations processes. They will also explore ways to recycle or reuse existing materials and resources to reduce the need for new production. This will help make their operations more efficient and reduce their environmental footprint. The third initiative is improved efficiency. Tesla Motors will look to increase the efficiency of its operations and manufacturing processes, focusing on optimizing energy usage, increasing production efficiency, and streamlining processes and procedures (Benton, 2022). This will help them save money on energy costs and improve their bottom line. Finally, the fourth initiative is job creation and economic development. Tesla Motors will strive to create good jobs and economic development by committing to sustainability activities and initiatives. This will benefit their team members and community by providing meaningful employment opportunities.
Diverse Perspectives:
The diverse perspectives of Tesla Motors’ internal and external customers/stakeholders are essential to the successful development and execution of this business strategy. Customers want access to innovative, sustainable products and services that offer great value, so Tesla Motors must invest in renewable energy initiatives, reduced waste, and improved efficiency (Dudovskiy, 2021). Employees appreciate working for a company that values sustainability and is trying to reduce its environmental impact, so Tesla Motors must dedicate resources towards these initiatives. Finally, communities have the potential to benefit from job creation and economic development resulting from Tesla Motors’ sustainability efforts, so those initiatives should be prioritized.
The sustainability strategy should provide customers access to innovative and efficient products that meet their needs and provide long-term value. The strategy should focus on creating an environment where employees take pride in their work, feel respected, and contribute meaningfully to the organization’s mission (Furrier, 2022). Tesla Motors should strive to create jobs and economic development opportunities for the community that benefit local citizens while contributing to more sustainable practices.
Anticipated Risks:
The anticipated risks of this proposed business strategy include cost overruns on renewable energy projects, such as installing solar panels or wind turbines. These projects require significant capital investments that could prove too costly to recoup if not carefully managed. Additionally, Tesla Motors could experience delays in implementing process improvements or increased efficiency in its operations and manufacturing processes (Furrier, 2022). This could lead to lost opportunities or even decreased production output and profitability. Furthermore, there is always the risk of difficulty in achieving significant reductions in waste due to inferior technology or cost structures that make such reductions uneconomical.
Another anticipated risk is increased competition from traditional automakers who are also investing in sustainability initiatives. This could lead to decreased market share for Tesla Motors and reduced profits due to the higher cost of sustainable alternatives. Finally, there is the risk of public opinion shifting away from Tesla Motors’ commitment to sustainability, which could lead to negative press and reduced sales (Furrier, 2022). This could be caused by anything from Tesla’s competitors using deceptive tactics to discredit its efforts to mismanagement of sustainability initiatives or communicating these efforts in a way that fails to resonate with customers. Therefore, it is essential that Tesla Motors carefully monitor public opinion and respond quickly and appropriately when necessary.
References
Benton, L. (2022, November 30). What drives Tesla Company culture to Success? Solution-focussed thinking. – liberty mind. Liberty Mind – Bringing well-being into the workplace. Retrieved February 18, 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 18, 2023, from https://research-methodology.net/tesla-organizational-culture-a-brief-overview/
Furrier, A. (2022, December 16). Tesla: Business Model: Strategic Analysis. Medium. Retrieved February 18, 2023, from https://alecfurrier.medium.com/tesla-business-model-strategic-analysis-c7d00bdc0339