MBA501 Stakeholder Analysis And Strategy Development Report: Tesla Motors Assessment 1 Answer

pages Pages: 4word Words: 890

Question :

Assessment 1 Information

Subject Code:
Subject Name:
Dynamic Strategy and Disruptive Innovation
Assessment Title:
Stakeholder Analysis and Strategy Development Report
Assessment Type:

35 %
Total Marks:

Your Task

Develop a stakeholder analysis and strategy development report.

Assessment Description

You are required to research Tesla Motors and develop a Stakeholder Analysis and Strategy Development Report. As a starting point, listen to the BBC interview with Tesla CEO Elon Musk;

The report should include an Executive Summary, Table of Content, and cover the following key focus areas.

1. Introduction to Tesla Motors

This section should include an introduction to Tesla Motors. Need to capture the vision and mission of the company with recent developments, challenges, and industry trends. Essential to provide a concise summary and an analysis of facts.

2. Tesla Stakeholder View of the Organisation

Prepare a diagram with Tesla as the central organisation surrounded by the company’s stakeholder groups using the stakeholder view model.

For each stakeholder group identified in the stakeholder view model, research Tesla further and prepare a list identifying and describing the specific stakeholders within each stakeholder group.

3. Stakeholder Analysis for four selected stakeholder groups

Select four specific stakeholders and analyse their behaviour and motives.

Tip: choose a stakeholder from each of the different four stakeholder categories discussed in MBA 501 workshops to avoid repeating yourself in sections D and E.

4. Stakeholder category identification and generic strategic programs for each of the four selected stakeholders

Identify the stakeholder category that each of the four stakeholders belongs to and list the generic strategic programs available for managing each stakeholder.

5. Recommended strategic program for each of the four selected stakeholder groups including reasons for recommendations

Recommend a specific strategic program for each of the four identified stakeholders that are consistent with one of the generic programs identified in section D.

Assessment Instructions

  • Need to capture recent developments with regards to Tesla Motors and the industry.
  • Incorporate academically oriented articles and books into the analysis.
  • Minimum five academically oriented articles and books apart from industry reports, credible online news sources, business magazines, websites, etc.
  • Concepts relevant for this assignment are in workshops 1-5
  • Need to follow a report format
    • The Executive summary and table of content will not be included in the word count
  • Study the attached assessment rubric carefully
  • Watch the assignment briefing webinar conducted by the Subject Coordinator – refer subject welcome message from the Coordinator for the date and time

Important Study Information

Academic Integrity Policy

KBS values academic integrity. All students must understand the meaning and consequences of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct Policy.

What is academic integrity and misconduct? What are the penalties for academic misconduct? What are the late penalties?

How can I appeal my grade?

Click here for answers to these questions:

Word Limits for Written Assessments

Submissions that exceed the word limit by more than 10% will cease to be marked from the point at which that limit is exceeded.

Study Assistance

Students may seek study assistance from their local Academic Learning Advisor or refer to the resources on the MyKBS Academic Success Centre page. Click here for this information.

Show More

Answer :

Stakeholder Analysis and Strategy Development Report

Tesla Motors

Executive Summary

This report reveals the recent developments, industry trends and some of the prime challenges that will be illuminated in this report. The stakeholder view model will be used to portray the prime stakeholder group of Tesla and how these stakeholders contribute to the overall development of the organization. The behaviour and motive of some of the prime stakeholders of Tesla Motors is more employees oriented which helps employee to adapt with the business economic changes. The stakeholder analysis of the Tesla Company has shown the there are several stakeholders who directly and indirectly impact the business growth of the company.  

A. Introduction to Tesla Motors

The report will highlight key aspects of Tesla Motors and also provide a stakeholder analysis along with a strategy development report. The report will identify and portray the overall aspects of the roles played by the prime stakeholders of the organization.  It is analyzed that specific recommendations would be endowed for a strategic program for each of the identified stakeholders of the organization. Tesla Motors is one of the prevalent automotive and energy company grounded in America. The company specifies in electric car manufacturing and solar panel manufacturing. The company operates several production & assembly units in Nevada, the company owns a vehicle manufacturing unit in Fremont. The company is coming up with new models with state-of-art technologies, and the company is looking forward to enhancing the efficiency of the vehicles in the best possible waytesla (Hettich & Müller, 2017). 

Tesla’s mission statement was released in the year 2016 was, “to accelerate the world’s transition to sustainable energy.” According to the mission statement, the company is looking forward to discourse the market prospects for renewable energy. The corporate mission statement published by Tesla motors indicates that the company is asserting the industry to move forward with the adoption of advanced technologies that uphold a sustainable business. In general, the company is focused to the production of electric automobiles only; as awareness about the importance of renewable sources of energy has been spread, and there is a demand is also elevating the marketplace (Ayala, 2016). 

Whereas Tesla’s vision statement is, “to develop the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.” The vision statement portrays the company’s focus on renewable source of energy. The company identifies the automobile sector as a platform for enabling the development of a renewable energy source. The prime focus of company is to integrate state-of-art technology with the electric cars that would deliver far more than the customer expectations and it would also uphold sustainability in the business. The company thrives to use advanced technology with a renewable source of energy (Hess, et. al., 2017). 

Tesla Motors is one of the eminent organizations in the world that primarily focuses to diversify their business using state-of-art technologies with renewable sources of energy. The company influencing the overall industry to use renewable source of energy and uphold a sustainable business model. The company sternly sticks to its mission, vision and values in order to uphold a sustainable business in the marketplace (Dibble, 2017). Tesla's vision is to be the driver behind the world's progress to electric vehicles. Be that as it may, an organization does not exist just to serve the clients. It likewise exists for making investor esteem. Tesla's vision neglects to be explicit and does not express unmistakably where the organization needs to be as far as business and budgetary position and rivalry later on. It just clears up that it wishes to be the pioneer of the world's progress to electric vehicles. Again like its statement of purpose, it is not exactly explicit. A dream must be sufficiently explicit while leaving enough space for further alteration in future.

Some of the prime challenges for Tesla motors include, threatened Asian market for Tesla due to other players, opposition from other automobile manufacturers, Wages, and lack of money. Tesla would have to strategize competently to sustain in the marketplace. Recently, Tesla has started delivering models of its cars in Europe and China in order to uphold the profit volumes in the marketplaces. The company has renovated its old models and re-released into the marketplace with new design and features to fascinate the customers and to attain competitive advantage as well (Stewart, et. al., 2015). Tesla's initial years were exceptionally subject to such partner bunch as Investors. They are vital for organization's capitalization and income. Financial specialists and investors are concerned for the most part about the productivity and business development. Tesla's CSR is attempting to fulfil such interests utilizing long haul procedures, coordinated to change the car business. For example, the choice to enable different associations to utilize Tesla's licenses can augment the quantity of brands and items that utilization power and furthermore can expand the interest for such items, which can assist Tesla with growing to an ever increasing extent that compares with financial specialists' interests. 

How to develop your company's KPI

Tesla's worries about natural side of the street numbers the networks premiums, as we were pointing previously, which can be advantageous additionally for speculators, in such a case that the picture of the organization is certain, than it tends to develop and remain concentrated on new items or expanding quality that would enable it to sell more duplicates of the vehicles and steadily increment its benefits, fulfilling financial specialists and investors as a partner gathering. The statement of purpose of Tesla clarifies the focal point of the organization which, as of now referenced in the principal passage was to demonstrate that electric vehicles could be superior to anything the gas controlled ones. The fundamental focal point of the organization is to enable the world to lessen its reliance on carbon energizes and change towards a cleaner world with the assistance of economic vitality. Tesla makes EVs and vitality stockpiling frameworks and furthermore introduces and keeps up sunlight based and vitality stockpiling items.

B. Stakeholder View of the Organization

The key stakeholders of Tesla Motors are portrayed in the figure presented below.

Key Stakeholders of Tesla Motors

Figure 1: Key Stakeholders of Tesla Motors

The company is not only limited to communicating performance to the stakeholders, but also share the vision, mission, stratagems, targets, milestones, and so on. Tesla is also obliged to share the accomplishments made by the organization in recent times. Stakeholder part a significant role in the overall development of the organization; a positive stakeholder influence in an organization would help to attain sustainability in the marketplace. The roles played by these stakeholders and how they are being an imperative part of Tesla motors are elaborated subsequently (Jazouli & Mitchell, 2017). Tesla's initial years relied upon a progression of subsidizing from financial specialists. These partners are critical in affecting the capitalization of the organization. Financial specialists and investors have premiums in the benefit and development of the business. Tesla's corporate social obligation methodology tends to these premiums through long haul procedures that expect to change the car showcase. For instance, the organization's choice to enable different firms and people to utilize its innovation licenses is relied upon to expand advertise interest for electric vehicles, in this way making development open doors for Tesla car deals. The supportability and natural neighbourliness beliefs of the organization are likewise in accordance with current sociocultural patterns, along these lines supporting business development. Thinking about its productivity lately, Tesla's corporate social duty methodology fulfills the premiums of financial specialists/investors as partners of the business.

Communities: Tesla Motors is highly influenced by communities because they essentially entitle the organization's image in the marketplace. Tesla manufactures electric cars with advanced technology; communities part an imperative role to spread awareness about environmental impacts and the importance of eco-friendly vehicles (Dibble, 2018). 

Employees: Employees are crucial for the success of Tesla Motors; as they influence the company performance and throughput of the business. Tesla ensures employee satisfaction by providing competitive salaries, offering professional growth, and so on (Perkins & Murmann, 2018). 

Suppliers: Suppliers are a key driver for the success of any business; as they influence the supply chain in an effective manner. Elon Musk works closely with the business in order to bring better results in the business (Stringham, et. al., 2015).

Shareholders: In the beginning, Tesla was highly reliant on shareholders; as they part an imperative role to maintain the cash flow in the organization. Shareholders are primarily concerned with business expansion and productivity (Hardman, et. al, 2015). 

Government: Tesla Motors is reliant on the actions were taken by the government; the company is concerned with the legal actions and compliance which would contribute to the economic growth of the state (Chen & Perez, 2018). 

Financial institutions: Financial institutions part an imperative role to lend money to the businesses for a project or at the time of need. They make sure that cash fallow is maintained in a business (Liu, et. al., 2017).

Public/Customers: The quality of the product, as well as the proceeds of Tesla, is primarily influenced by the customers. The company identifies the customer demand and strategizes to meet the demands by developing a profitable business. 

The aforementioned are the key stakeholders that part an imperative role to drive the organization in an efficacious manner. Each stakeholder plays a significant role to uphold sustainability in the business. 

C. Stakeholder analysis for selected stakeholders

Among the aforementioned stakeholders Communities, Employees, Government, and the customers are the four important stakeholders influencing Tesla’s decision at the most. 

Communities: Communities’ influence a major part of Tesla Motors, as the corporate image of Tesla is heavily influenced by the communities. Communities involve the stakeholders who are environmental activists, therefore, they part an imperative role to promote Tesla. In the year 2014, Elon Musk publicized that other organizations can also use Tesla’s patents; this was a strategy to promote the company’s technologies and benefits they are providing to the customers. Communities have the potential to promote the company with the help of which the company sales would be maximized (Sollars, et. al., 2018).  

Employees: Employees are one of the crucial factors for the success of any business. They part an imperative role for enhancing the company performance and to elevate the productivity as well. Tesla considers its employees as a prime aspect of their business; they consider that their employees are major contributors to the success of the business. Tesla thrives to content their employees by rewarding them periodically and by providing them with attractive compensation strategies. Elon Musk follows the leadership style that greets creativity and innovative ideas from employees; therefore, employees are a crucial part of the business. Competency of the employees parts an imperative role to uphold sustainability in the business; it would allow the organization to attain a competitive advantage in the marketplace. 

Government: Tesla Motors is a public company at the present time; therefore, the company is highly reliant on governmental actions. The fact is tacit that government as a stakeholder influence Tesla Motors to a great extent. The legal actions, company compliance part an imperative role to contribute to the economic growth of the state. Therefore, the government is one of the prime stakeholders that influence the organization to a great extent (Wise, et. al, 2019). 

Customers/Public: The quality of the product and product pricing are some of the prime factors that influence the business of any organization. Customers part an imperative role to influence the product pricing and product quality of the organization. Tesla is primarily concerned with its customers, and the company is thriving to reduce its production cost by maintaining its quality. For instance, the company is trying to replace its batteries with cost-efficient batteries to reduce their product cost. Tesla Motors ensures that its customers are satisfied with their products (Janasz, 2018). 

D. Stakeholder categorization and generic strategy programs

The strategic management is a significant part of an organization that emphases on the stakeholder’s power whether they have the potential to corporate or threaten the corporate strategy. It is imperative to comprehend the stakeholder power in order to uphold the corporate strategy. Subsequent are the stakeholder categorization based on the identified key stakeholders.

Swing Category

Government as a stakeholder can be included in the swing category, as the rules and regulations of the government have high cooperative potential and competitive threat as well. For instance, new rules, decisions, and guidelines by the government influence the organization to a great extent. As Tesla is public at present; the company needs to comply with the governmental norms at a high priority. If the decision made by the government does not suit Tesla Motors, the organization can take several steps such as, making amendments in rules, changing the transaction process and making necessary changes in the decision forum. Usually, the swing category is adopted in circumstances when the stakeholder group has a high position and competitive threat as well (Sioshansi, 2017). 

Hold Category

Usually, hold strategy is adopted at the times when a stakeholder group has low competitive risk and cooperative potential to uphold the present strategic platform and stakeholder ranking as well. Tesla can use this strategy when a stakeholder is not doing anything in the organization, but only managing existing programs. For instance, if a stakeholder group is just responsible for monitoring the existing processes and rules of the organization, the company can use hold strategy at that instance.

Offensive Category

Offensive strategies are usually adopted at the times when a stakeholder group has a low competitive threat and high cooperative potential. For instance, the efforts of communities for the publicizing the product has high cooperative potential and low competitive threat. Tesla can make attempts to make amendments in stakeholder strategies when required. 

Defensive Category

Defensive strategies are usually adopted at the times when a stakeholder group has low cooperative potential and high competitive threat. For instance, Tesla can use defensive strategies to strengthen existing values and principles and allowing the stakeholder groups to make the change process. Employees can be considered as a stakeholder group that belongs to the defensive category; Tesla would allow the employees to bring innovation in the organization using their ideas and creativity (Moritz, et. al., 2015).


  • Tesla should adopt offensive strategies if a stakeholder group develops any objective that influences the cooperative potential in a negative aspect. For instance, of the communities develops any strategy that influences the organization in a negative aspect, Tesla should make attempts to change their objectives or make amendments in their strategies.
  • The company should effectively communicate with the community stakeholder groups to ensure that they are thriving to bring positive results for the company.
  • The company should maximize their contacts with environmental activists in order to publicize the efficiency of their cars. 
  • The company should only opt for defensive strategies if they find any competitive threat to the company. For instance, if the employee unions are unnecessarily increasing their demands, Tesla should develop a clear communication channel and offer them with future benefits.
  • Tesla should uphold a clear communication channel with the employees and maintain a positive relationship with them.
  • Tesla should opt for swing strategies if any governmental norms or regulations influence the organization to a greater extent. The company should try to change some rules and make amendments in the transaction process.
  • Being public, Tesla should ensure that they comply with all the government norms and regulations strictly.
  • Lastly, Tesla should adopt hold strategies if they find any stakeholder group with low cooperative potential and low competitive threat as well. 


Tesla is one of the eminent organizations that primarily focus to manufacture automobiles integrated with state-of-art technology and renewable sources of energy. Tesla is one of the leading manufacturers of electric automobiles with unique technology. Stakeholders part an imperative role of the expansion and sustainability of any business; the key stakeholders in Tesla are communities, government, people/customers, suppliers, financial institutions, shareholders, and employees. Each of the parts a significant contribution to the success of Tesla Motors; as they are primarily responsible for attaining sustainability and competitive advantage in the marketplace. The report has elaborated each and every aspect of stakeholders in Tesla Motors. The stakeholder categorization is also an imperative aspect in an organization to comprehend the relative power of the stakeholders and to recognize their perspective to collaborate or threaten the corporate stratagem.