Balanced Score Card: Tesla
Create at least 3 measurable project objectives of the four listed below for each quadrant of the scorecard based on your analysis Tesla:
- Final Objectives
- Customer Objectives
- Internal Business Process Objectives
- Learning and Growth Objectives
- Add/determine targets, timelines, and metrics for each objective.
Explain in 350-525 words on the Balanced Score Card Template:
- Why these objectives are appropriate for the project.
- Why these metrics and timelines are appropriate for your strategic plan.
Tesla, Inc. Balanced Scorecard
| Quadrant | Objectives | Measure | Metrics | Target
Year 1 |
Target
Year 2 |
Target
Year 3 |
| Financial | Stabilize revenue generation | Market value | Share market percentage | 3% | 5% | 8% |
| Boost profitability | Vehicle/car prices | Percentage of cars | 1% | 3% | 5% | |
| Cash reinvestment | Materials/vehicle parts | Percentage of material cost compared to manufacturing cost | 85% | 80% | 70% | |
| Customer | Generate demand | Driver experiences | Market surveys | 80% | 85% | 90% |
| Create customer loyalty | Customer reviews | Customer surveys | 85% | 90% | 95% | |
| Long-term brand awareness | Customer rankings | Customer surveys | 75% | 85% | 95% | |
| Internal Business Process | Communication | Effective communication | Customer feedback & employee feedback | 80% | 85% | 90% |
| Reliable services | Employee skills, customer reviews on Tesla services | Percentage of customer satisfaction to Tesla services | 85% | 90% | 95% | |
| Improve production | Quicker production times | Production department stats | 90% | 95% | 100% | |
| Learning & Growth | Manage corporate reputation | Global industry ranking | Monitor competitive position | 75% | 80% | 90% |
| Training & development | Clear instructions | Programs for employee training | 80% | 90% | 95% | |
| Performance management | Employee and customer feedback | Performance reviews (Poor = 1, excellent = 5) | 85% | 90% | 95% |
Why these objectives are appropriate for the project
Tesla’s project objectives have been classified into four (4) areas: financial, customer, internal business processes, and learning and growth objectives. These objectives are appropriate for Tesla’s objectives in multiple ways. According to (Furrier, 2020), objectives form the structure for project development and measurement of project performance both now and in the future. Tesla’s project objectives guide the company to generate demand and boost sales up for Tesla’s electric vehicles in the automobile industry. Also, these objectives help Tesla to build long-term brand awareness and manage corporate global brand image. In addition, the objectives enable Tesla to manage its existing customer base and create global loyalty, customer attraction, and customer referrals. As a result, Tesla will be in a position to create market value, employee skills, customer relations, quicker production times, and effective communication which boosts production and productivity (O’Kane, 2020). Besides, Tesla’s financial objectives are driven by profit growth and cost efficiency; and this guides Tesla to raise asset utilization, improve cost structure, and enhance customer value. In a nutshell, these objectives boost Tesla’s ability and capability to achieve its strategic goal, vision, and mission while maximizing customer value.
Why these metrics and timelines are appropriate for your strategic plan
In Tesla’s strategic plan, metrics and timelines are vital in measuring its results. This is why the metrics are simple and effective. In each project objective area, i.e., financial, customer, internal business processes, and learning and growth, Tesla has unique metrics and specific timelines to achieve its measurable goals (Rowland, 2018). The different metrics in Tesla’s strategic plan include share market percentage, percentage of vehicles, market and customer surveys, employee and customer feedback, competitive position monitoring, employee training programs, and performance reviews. These metrics are appropriate to Tesla in several ways. First, when entering new markets with customized brands. According to (Rowland, 2018), a big percentage of Tesla’s content is western/American. This means Tesla’s products do not conform to Japanese and Indian cultures due to customs/tariff barriers and cultural diversity. By using customized content, based on customer reviews, Tesla will enter these markets. Second, boosting share market percentage and relying on reviews would give Tesla a competitive advantage in the electric vehicle segment. In this metric, Tesla will have to offer its vehicles at affordable costs to compete other firms like Hyundai and Ford. Third, these metrics guide Tesla in providing its employees with the necessary resources needed to provide quality customer services, this helps differentiate Tesla from rivals (Furrier, 2020). Last, Tesla’s project timeline helps the company set clear direction and priorities to ensure the set targets are met at the specified timeframe.
References
Furrier, A. (2020, April 21). Tesla: Business model and strategic analysis. Retrieved February 3, 2021, from Medium: https://medium.com/@alecfurrier/tesla-business-model-strategic-analysis-c7d00bdc0339#:~:text=Tesla’s%20broad%20differentiation%20strategy%20is,such%20as%20solar%20roof%20tiles.&text=According%20to%20the%20About%20Tesla,world’s%20transition%20to%20sustaina
O’Kane, S. (2020, April 29). Tesla turns a profit and says it may hit 2020 delivery goals despite pandemic. Retrieved February 2, 2021, from The Verge: https://www.theverge.com/2020/4/29/21241728/tesla-q1-earnings-financial-results-elon-musk-coronavirus-profit
Rowland, C. (2018, June 24). Tesla, Inc.’s generic strategy & intensive growth strategies (analysis). Retrieved February 2, 2021, from Panmore: http://panmore.com/tesla-motors-inc-generic-strategy-intensive-growth-strategies-analysis