WMBA 6990: Capstone: Sustainable Business Practices and Strategies
Part 2B: Evaluating the Need and Opportunity for Change
A company’s success depends on its ability to adapt to change. The change process can be complex, but a company must stay relevant and profitable. Tesla Motors is a company that has experienced a great deal of difference in recent years. The company has faced challenges but has also had opportunities for success. To continue to be successful, Tesla Motors must evaluate the need and opportunity for change.
The electric vehicle industry is multiplying, and Tesla is one of the leading brands in the space. The company is committed to innovation and has developed a reputation for producing high-quality, performance-oriented vehicles. Tesla also has a large and loyal customer base (Menon, 2023). However, Tesla faces stiff competition from other electric vehicle manufacturers, making its vehicles expensive. Additionally, Tesla has faced challenges with delivering vehicles on time, and its Autopilot feature has been linked to several accidents.
Despite these challenges, Tesla has significant opportunities for growth. The company can continue to grow its market share in the electric vehicle industry, develop new technologies and applications for its vehicles, and expand its customer base by targeting new markets (Menon, 2023). However, Tesla faces some threats, such as competition from other electric vehicle manufacturers, falling oil and gas prices, and changing political policies.
Purpose of change
The purpose of change for a business can vary depending on the company’s specific needs. However, some common reasons for change include adapting to new market conditions, developing new products or services, improving efficiency, and reducing costs. A business can overcome resistance to change by communicating the need for change to employees, customers, and other stakeholders. Additionally, a business can create a plan for change that includes specific goals and timelines. Finally, a business must be prepared to implement the changes and monitor the results to ensure that the changes are effective.
Part 3: Evaluating Organizational Readiness
Introducing new technology can be daunting for any organization, regardless of size. A successful implementation depends on many factors, including organizational readiness and change management. In this section, we will evaluate the organizational readiness of Tesla Motors and explain how change management can be an effective tool for developing and executing a business strategy.
Organizational readiness is essential for the success of a strategy for many reasons. First, it ensures the company has the necessary infrastructure to support the new technology or process. This includes hardware, software, and training (Gabutti et al., 2022). Second, it helps to ensure that employees are on board with the change and are adequately prepared to implement it. Finally, it helps to reduce the risk of disruptions and downtime during the transition period.
Tesla’s organizational readiness can be seen in its willingness to invest in research and development. It has developed some cutting-edge technologies, such as its autonomous driving system, to improve the performance and safety of its vehicles. The company has also invested heavily in developing a strong presence in new markets domestically and internationally (Wang et al., 2020). This shows that the company is willing to take risks and invest in potentially profitable strategies. In addition, Tesla has embraced the concept of digital transformation and incorporated innovative technologies into its operations. This includes creating its mobile application, launching a fleet of robotic cars, and, more recently, acquiring Autopilot. These initiatives demonstrate the company’s commitment to staying ahead of the competition and being open to change.
Change management is developing and executing a plan that enables an organization to transition from one technology, process, or strategy to the next. An effective change management plan considers a new technology’s impact on employees, customers, and other stakeholders. It also includes training to ensure everyone knows the new technology and how to use it (Gabutti et al., 2022). Change management can help an organization successfully transition to a new strategy or process. It ensures that all stakeholders are on board and that any disruptions are minimized. Additionally, it allows an organization to adjust quickly to new technologies and processes as they arise. An organization can develop and execute a successful strategy by utilizing change management.
Gabutti, I., Colizzi, C., & Sanna, T. (2022). Assessing organizational readiness to change through a framework applied to hospitals. Public Organization Review. https://doi.org/10.1007/s11115-022-00628-7
Menon, K. (2023, January 25). A holistic look at Tesla Swot Analysis. Simplilearn.com. Retrieved February 11, 2023, from https://www.simplilearn.com/tutorials/mba-preparation-tutorial/tesla-swot-analysis
Spring, K. (2021, October 27). Overcoming resistance to change within your organization. Overcoming Resistance to Change within Your Organization. Retrieved February 11, 2023, from https://www.betterup.com/blog/resistance-to-change
Wang, T., Olivier, D. F., & Chen, P. (2020). Creating individual and organizational readiness for change: Conceptualization of system readiness for change in school education. International Journal of Leadership in Education, 1–25. https://doi.org/10.1080/13603124.2020.1818131