TESLA PROJECT.

You are required to read Case 16, titled “Tesla’s Strategy in 2020: Can It Deliver SustainedProfitability?”.
Tesla introduced its first vehicle, the all-electric Roadster, in early 2008. Then, in 2012, Tesla
released its Model S Sedan, a fully electric luxury sedan with an all-glass roof and several other
features. Model S steadily became the best-selling large luxury vehicle in the United States,
surpassing Mercedes-Benz. Tesla’s CEO Elon Musk had a desire to “accelerate the world’s
transition from…gasoline-powered motor vehicles to…electric vehicles.”
Will Tesla be able to achieve its strategy to become the world’s biggest and most highly regarded
producer of electric vehicles?
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Prepare a report on your finding on the Tesla case
Your project must be submitted as a Word document
(.docx, .doc)*.
Read through Case 16: “Tesla’s Strategy in 2020: Can It Deliver Sustained Profitability?”
in your textbook.
Carefully go through all chapters covered in your course and analyze the Tesla case within the
frameworks available. Because this situation is fluid, there’s no correct or incorrect answer;
what’s important is your application of course materials and the process of your analysis.
Begin with a SWOT analysis, and then read through and thoroughly answer all the questions.
When conducting your SWOT analysis, feel free to review the many business articles on Tesla,
the stock chat message boards (for sentiment), and any source of information you feel is helpful.
Remember to provide citations for any material you quote verbatim.
Your paper should provide answers to the following questions:
1. Create a SWOT analysis for Tesla. Refer to pages 95–99 in your textbook. List Tesla’s
strengths, weaknesses, and potential opportunities and threats. Be sure to include these in
your paper by either listing them or creating a diagram similar to Figure 4.2 (page 97).
Then write your conclusions and implications of the analysis. Lastly, provide at least two
recommendations based on this analysis. Explain your reasons for these
recommendations.
2. Based on what you’ve read about Mercedes acquiring a stake in Tesla and strategic
partnerships from your text, what are the potential pitfalls of this alliance? Do these
pitfalls apply in Tesla’s case, given their patent policy? Explain why.
3. What type of diversification strategy does the launch of Tesla’s energy business
represent: related or unrelated? Explain why. Does Tesla’s new energy business meet the
three Tests of Corporate Advantage?
4. What kind of vertical integration strategy did Tesla choose for its distribution and supply
chains—backward or forward integration? What are the advantages of its chosen
strategy? What are the disadvantages?
5. In reviewing Tesla’s manufacturing strategy, does the part of Tesla’s value chain it
outsources make strategic sense? Explain why or why not.
6. Which of the five generic strategies is Tesla pursuing with its marketing strategy?
Explain.
7. What are the key elements of Tesla’s culture? What problems do you foresee that Elon
Musk will have in sustaining that culture amid growing competition? Explain.
Grading Criteria
The following is a breakdown of how your project will be graded:
1. Content 85%
o Question 1: 25 points
o Questions 2 through 7: 10 points each
2. Written communication 10%
3. Format 5%
Here’s a brief explanation of each of these criteria:
Content
The student
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Provides clear answers to the assigned questions
Addresses the questions in complete sentences, not just simple yes or no statements
Provides a clear analysis of the assigned topic and presents reasonable conclusions with
appropriate supporting information
Writes in his or her own words and uses quotation marks to indicate direct quotations
Uses at least three other sources. At least one of these sources must be found through the
Penn Foster online library.
Written Communication
The student
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Answers each question in a complete paragraph that includes an introductory sentence, at
least four sentences of explanation, and a concluding sentence
Uses correct grammar, spelling, punctuation, and sentence structure
Uses logical thinking in presenting his or her arguments
Stays focused on the assigned issues
Provides clear organization (for example, uses words and phrases like first, however, on
the other hand, and so on, since, consequently, next, and when)
Makes sure the paper contains no typographical errors
Supports his or her opinions by citing appropriate information using either APA or MLA
format. Need information on resources for proper citation and works cited page.
Format
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Type your submission, double-spaced, in a standard print font, and size 12 font. Use a
standard document format with 1-inch margins. Do not use any fancy or cursive
fonts. Your paper should be written in Microsoft Word or a Word compatible program
such as Google Docs.