Wk1 – Apply: Degree of Alignment
Degree of Alignment – Tesla, Inc.
Company Overview
Tesla, Inc. is an automobile company founded in 2003 and headquartered in Palo Alto, California, U.S. Tesla designs, produces and sells electric vehicles globally. Currently, Tesla manufactures not only all-electric cars but also indefinitely scalable clean energy generation and storage brands. Tesla’s differentiation strategy, which focuses on electric car automation, battery technology, software updates, and eco-friendly products, has become the automobile’s long-term play (Rowland, 2018). In this paper, Tesla’s degree of alignment between its current courses of action and its mission, vision, structure, values, and culture will be analyzed.
Analysis: Tesla’s Degree of Alignment
The mission statement of Tesla is “accelerating the world’s transition to sustainable energy.” This mission strategically aligns with Tesla’s commitment to addressing the existing market opportunities for renewable energy. Tesla’s mission statement’s alignment with its strategic model is notable in various components: the acceleration, the world’s transition, and the enhancement of sustainable energy (Rowland, 2018). This exceeds expectations for communities’ improvement. Thus, Tesla remains in an advanced state of acquiring market dominance in the global automaker industry..
The vision statement of Tesla is “acceleration of the most compelling car player of the 21st century by leading the globe’s transition to electric cars. This vision statement calls for Tesla to continue focusing on renewable energy. The electric car market needs are addressed by this vision, for it facilitates the growth of the world’s renewable energy sector. The alignment to strategic management is evident in the components of a compelling, car company, and the world’s transition to electric cars of this century (Rowland, 2018). Globally, Tesla continues to expand in regions like Asia, hence making it easy to obtain a competitive advantage over rival firms.
The core values of Tesla include always doing the best, respect and encouragement of people, continuous learning, and respect for the work environment (Furrier, 2020). These core values of Tesla motivate over 90% of their employees. Besides good pay, Tesla emphasizes on respect for diversity, employee motivation, and a conducive work environment. This employee alignment amounts to employee loyalty, and cohesive core values are significant in upholding employee alignment at the company. Besides, Tesla encourages continuous learning as a strategy to promote creativity and innovation. All these contribute to Tesla’s productivity and increased annual sales revenue since employees are 100% committed to their work.
The organizational structure of Tesla is U-form or functional. In the U-form structure, Tesla utilizes organizational function as the primary defining factor. For example, Tesla has a structural team of employees for engineering, sales and marketing, and customer service departments (Meyer, 2019). The attributes of Tesla’s company structure include function-based hierarchy, centralization, and divisions. Its function-based hierarchy is aligned to the hierarchy such that functional offices oversee local and global operations.
On the other hand, Tesla’s organizational culture empowers to create and innovate profitable solutions to the automobile industry’s emerging market needs. Thus, Tesla’s corporate culture is built on the “innovative problem-solving” element (Meyer, 2019). For instance, Tesla’s corporate culture is aligned to the emerging market problems by introducing advanced electric cars that reflect the merits of the company’s culture. This culture pushes Tesla to move fast, do the impossible, innovate continuously, and think like the company owners.
Conclusion & Recommendations
Tesla has an excellent degree of alignment between its current strategic measures and the mission, vision, values, structure, and culture. To enhance Tesla’s sustainability and position in the industry, Elon Musk and the entire Tesla should invest more in technology, encourage creativity and innovation of tech vehicle, promote the supercharger product, emphasize on employee diversity, and be role models by living true to Tesla’s core values.
References
Furrier, A. (2020, April 21). Tesla: Business Model and Strategic Analysis. Retrieved March 24, 2021, from Medium.com: https://alecfurrier.medium.com/tesla-business-model-strategic-analysis-c7d00bdc0339
Meyer, P. (2019, Feb 22). Tesla Inc.’s Organizational Culture & Its Characteristics (Analysis). Retrieved March 24, 2021, from Panmore: http://panmore.com/tesla-motors-inc-organizational-culture-characteristics-analysis
Rowland, C. (2018, August 27). Tesla, Inc.’s mission statement & vision statement (an analysis). Retrieved January 19, 2021, from Panmore Institute: http://panmore.com/tesla-motors-inc-vision-statement-mission-statement-analysis