In this business report I am assuming that I am working as an employee at a multinational manufacturing company named Volvo, which is situated in Gothenburg, Sweden. Our company manufactures and distributes cars, trucks, buses, construction equipment to customers around the world. Now-days Volvo has been accelerating towards the self-driving market, but it hasn’t been recognized for its achievements. Collaborating with one of the leading companies in the self-driving market can ultimately change the perspective people have about Volvos self-driving cars. I have written this report for Volvo’s (Chief Executive Officer) before he visits America to finalise the business contract with Tesla Inc. This business report consists of an investigation of Tesla Inc and the findings which I have conducted in order to present my CEO with a proposal that could potentially benefit the company. This report also highlights the strengths, weaknesses, work ethics, organisational structure of Tesla Inc that may give considerations to our CEO if he should do a business deal with Tesla Inc.
Tesla Inc or better known as the Tesla Motors is an American electric-automobile and energy storage company which is situated in Palo Alto, California. Tesla Inc was established in 2003 by two founders Martin Eberhard and Marc Tarpenning. They named the company after a famous inventor, electrical engineer, and a mechanical engineer Nikola Tesla.
Tesla produces distinct types of versatile electric cars and in 2008 it produced its first ever electric Roadster, which sold 2,400 roadsters with the starting price at $110,000. In 2016 “Tesla started to design the world’s first ever premium all-electric sedan from ground up – Model S – which became the best car in its class in every category” (Tesla, 2018). Eventually the Model S became the world’s best electric car and had all the reputation it needed. As of now Tesla’s factory is regarded as the one of the most iconic and advanced automotive plants which is situated in Fremont California. They also sell Tesla Powerwall and Powerpack, which are rechargeable lithium-ion battery energy storage. Most of the Tesla’s batteries are produced in Gigafactory-1 located in Sparks, Nevada. This gigantic and prominent factory produces Tesla’s energy storage products, Powerwall, and Powerpack. They also have half a million square meters of manufacturing and office space on staggering 150 hectares of land. They have decided to construct more space that will enable it to generate numerous jobs for the years to come. In today’s time Tesla has more than 10,000 employees working at the factory in Fremont. As being one of the largest companies to manufacture countless employers in California it generated an amazing 51,000 jobs. – put in ethics section
Before Elon Musk took over Tesla Inc, their mission statement was very straight-forward
“to accelerate the world’s transition to sustainable transport.” In spite of the fact that in the year 2016, under Elon musk’s supervision the company changed its mission statement “to accelerate the world’s transition to sustainable energy.” This new statement has made a huge impact on the organisation’s business as it otherwise perceives batteries and energy storage products and also open doors for sustainable power source.
Tesla Inc has a functional or a U-form organisational structure. The U-form structure utilizes organisational function as the fundamental factor. For instance, Tesla Inc has a structural batch of employees for engineering, sales, and services. Some of the structural attributes of the corporate structure are also present in Tesla Inc, however at a less degree. In this organisation examination case, gathering based on the business work remains as the most noticeable component. The accompanying traits are very critical in Tesla’s organisational structure.
1. Function-based hierarchy
The function-based hierarchy is the most critical attribute of the Tesla’s corporate structure. The hierarchy has many of the practical groups and workplaces that regulate the domestic and international tasks. As being the most prominent part of the corporate structure, this function requires a lot of attention by the corporate structure, where many companies aim to sustain a strict administrative control of their tasks. In Tesla’s business analysis case, the following practical offices coordinate and represent the world-wide hierarchy.
1. CEO (Chief Executive Officer)
4. Global Sales and Service
1. Elon Reeve Musk (Chairman, Product Architect, and CEO of Tesla): Elon Musk helped to establish Tesla and purses to manage the company’s product strategy such as the design, engineering, and manufacturing of exquisite and versatile electric cars. As being the Chairman and Product Architect, he helped fabricate Tesla’s first ever Roadster, from which he won an Index and a Global Green Award.
2. Deepak Prabhu Ahuja (Chief Financial Officer): Deepak Ahuja’s 20 years of global automotive financial experience has enabled Tesla to become a leading automobile company in the world. As the Chief Financial Officer, Deepak continuously brings invaluable insight and knowledge to the company.
3. Jeffrey Brian Straubel (Chief Technical Officer): Jeffrey Brian Straubel or otherwise called JB centres around technical direction and engineering design including battery technology, motors and power electronics, and high-level software sub-systems. He has established numerous Tesla initiatives such as the Tesla Energy business that provides storage for commercial utilities and consumers.