TEAM 7 Tesla Presentation Anna CEO Essays

Submitted By cfs454
Words: 627
Pages: 3

Tesla Motors
Anna Sender
Jackie Tran
Danielle Cyr
Justine Pasiecnik
Lauren Kelly

● Current Situation o Financial Ratios
● Analysis & Problem Diagnosis o External Environment o Internal Environment o Strategic Challenges
● Strategic Formulation
● Strategic Implementation

Current Situation

Current CEO Elon Musk

Tesla Model S (left) and Model X (right)


Financial Ratios


Profitability Ratios:
How profitable is the company? Financial Ratios


Activity Ratios:
How efficient are the operations of the company? Financial Ratios


Leverage Ratios:
How efficiently is the company financed in terms of debt and equity?

Financial Ratios


Liquidity Ratios:
How capable is the company of meeting its shortterm obligations?

External Environment
● General Environment o Demographic Segment
 Targets middle to upper class, and those with higher income. o Economic Segment: Consequences of World Financial Crisis
 Gas prices and limited natural resources
 Few alternative technologies vying for market dominance o Political/Legal Segment
 US National Institute of Standards and Technology
 Federal Energy Regulatory Commission o Social-cultural Segment
 Fuel gas emission and Global Warming o Technological Segment
 Electric vehicle charging station infrastructure

External Environment
● Industry Environment o Bargaining Power of Suppliers
 High o Bargaining Power of Buyers
 Low o Threat of Entry
 Low o Threats from Substitute Products
 Low o Industry Rivalry
 High


Internal Environment

Resources o Tangible
 Financial Resources
 Suppliers
 First to market with luxury zero emission vehicle o Intangible
 Widely recognized brand
 Innovative technology
 Patents of drivetrain and battery
o Developed ability to apply commoditized small cylindrical lithium cells, which are generally used to consumer electronics, to cars through good proprietary power management. o Empowering and self-driven employees that promote company’s development. o Great partnerships with Toyota, Daimler AG, and Parasonic.
Core Competencies o Patents and differentiation

Strategic Challenges

● Guarantee sufficient battery supply - mechanical problems, driving range restrictions.
● Domestically expanding the business - charging stations
● Maintain brand loyalty - negative press
● Price Pressures - expensive car, high manufacturing costs
● Internal Infrastructure Development - management problems
● Manufacturing Challenges - battery cost

Strategy Formulation

Business-Level Strategy
● Sustainable Competitive Advantage o Differentiation to Integration
 Cost Cutting
 Broaden the Market o Open Innovation
 40 Patents and 200 more pending
 Influx of further ideas
● Battery
● Supercharging Stations
● Work with other companies to buy Tesla parts o Restructure Upper Management
 Hire a new CEO and/or Engineer

Corporate-Level Strategy
Where to compete?
1. Industry Value Chain
2. Range of products and services
3. Geographically