in every organization’s success or failure some key points for instance how the
company plans to achieve the goals, how the organize company’s structure in
order to help in achieving goals, how they lead and how they control every single
thing within organization. Tesla has some strong strategies for POLC that makes
them successful.
1. PLANNING:
Elon Musk’s mission statement at Tesla, Inc. is “Our goal when we created Tesla a
decade ago was the same as it is today: to accelerate the advent of sustainable
transport by bringing compelling mass market electric cars to market as soon as
possible.”
The planning strategies and reason of their success are as following:
Elon Musk, is sure about his vision and where he wants to see his company
and for this he is working efficiently with a united team.
Musk admits that he cannot fix the company problems alone but As a team
they can able to develop and integrate a series of strategic plans that will
be aimed in fixing the problems and reaching the company goals and
objectives.
When company figure out the problems they translate that problem into
short-term goals i.e. they work through the problem step by-step.
Tesla developed quarterly check-ins at all levels of the company. Through
these check-ins is they review their problems, goals, and objectives and
figure out what needs some adjustment.
Tesla identifies their long-term goals and become well organized enough as
a company and team to work together towards them.
Tesla has specific mission statement and their progress proves that they are
efficiently implementing their strategies and objective to reach their goal.
Tesla have made charters and innovations that are not easily reproduced by
competitors.
ORGANAZING:
Tesla Inc. practices its corporate structure to assist widespread control of the
organization. Elon Musk’s leadership effectiveness depends on the corporate
structure’s ability to publicize and backing the implementation of new strategies
for business growth and improvement.
Tesla has a functional or U-form organizational structure i.e. they uses
organizational function as the main central factor. The following characteristics
are significant in Tesla’s organizational structure:
1. Function-based hierarchy (most important): the following functional offices
direct and represent the global hierarchy:
Chairman & Chief Executive Officer
Finance
Technology
Global Sales and Service
Engineering
Legal
2. Centralization: their main emphasis is on managerial control on the entire
organization through decisions that a central group or team generates.
3. Divisions: The company’s main divisions in its corporate structure are (1)
Automotive and (2) Energy Generation and Storage
Tesla maintains minimal regional divisions, specifically four: the USA, Norway,
China, and a catch-all division for operations in other locations.
These divisions allow Tesla to tailor their strategies, marketing campaigns, and
financial reporting to different geographies with different customer populations
and legal requirements.
LEADING:
The Board of Directors at Tesla are professionally leading by constantly
setting high standards for the company’s employees, officers, and directors.
The Board of Directors to serves as a sensible fiduciary for shareholders and
to oversee the management of the Company's business.
They modify their guidelines time to time in the best interests of the
Company or as required by applicable laws and regulations.
Elon Musk and Tesla, Inc. participate in a few philanthropic
initiative/programs that they aim to do good while also helping the firm do
well. Ex: Tesla Foundation.
One major issue:
The governance issue impacting Tesla, Inc. board is the high operation costs and
R&D. The high operations costs are driving Tesla, Inc. to a net loss. For this the
Board of Directors need to estimate and decide what measures can stop or
sustain this issue from getting any bigger. They are currently eliminating all
unnecessary costs to manage this important issue. One of the ways they are
trying to eliminate costs is by recently letting go of a few lower level employees
since Tesla is unable to afford them at the moment. Tesla’s goal is to sell as many
cars as possible to make up for such high operation costs.
CONTROLLING:
Tesla defined 3 traditional roles of the board of directors is:
1. Monitor: they monitor by acting through committees and convey the advances
to management’s attention it might have overlooked.
2. Evaluate and Influence: board examines management’s proposals, decisions,
and actions; agree or disagree with them; give advice and offer suggestions; and
outline alternatives.
3. Initiate and Determine: board has to define company’s mission and specify
strategic options to its management.
Some others activities are also ongoing in tesla for controlling purposes:
•Feedback monitoring: They gather systematic feedback from beneficiaries and
stakeholder. Líonra was responsible for this.
• Administrative monitoring: administrative monitoring ensure that
progress and timelines were monitored, milestones noted,
actions delivered and budget and expenditure recorded.
It was also focused on TESLA partners .
By these monitoring processes TESLA collected following progress reports:
1. Physical indicator data every six months.
2. Pre-agreed progress indicators every six months.
3. Financial progress against approved budgets and
actions every three months.
The responsibility of lead partner NWRA includes organizing and
chairing the TESLA Steering Committee, troubleshooting across
all areas, financial and budgetary managing, ongoing
communication and publicity and considering and approving changes
and refinements of the budgets and actions of project.