}oel A.

Rouino B.
Ashley C.
Biianna E.
Cam
illa L.
Tiang v.
Yanping Z.
P
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2
: S
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F
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I
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Agenua
Final Piesentation (Pait 2)
! Stiategy Foimulation
IE Natiix
SW0T Natiix
Quantitative Stiategic Planning Natiix
Final Recommenueu Stiategy
! Stiategy Implementation
0iganizational Stiuctuie
Taiget Naiket
Piouuct Positioning Nap
Balanceu Scoiecaiu
Exteinal Factois Evaluation (EFE)
}oel A. & Ashley C.
!"# %&'"()*+ ,*-'.(/ 0"123' 4*'1)2 5-.("
0ppoitunities
Availability of seivice anu chaiging stations foi electiic vehicles
6,7,8
u.uS S u.1S
uoveinments aiounu the woilu establishing gieatei incentives anu
iegulations in suppoit of loweiing emissions anu gasoline
uepenuencies
2,4,S,9
u.2u S u.16
Bigh gas piices that aie likely to continue iising u.1u 4 u.4u
Thieats
Byuiogen fuel cell technology (competition)
1u
u.Su S u.9u
Bigh cost of ueliveiy oveiseas (taxesshippingfees) u.1S 1 u.1S
Public peiceptions u.2u S u.6u
Total 1.uu 2.8u
*See souices
Inteinal Factois Evaluation (IFE)
Rouino B. & Camilla L.
!"# 6)'"()*+ ,*-'.(/ 0"123' 4*'1)2 5-.("
Stiengths
Biveise piouuct lines
1,2
u.2S S u.7S
Emphasis on R&B anu visionaiy leaueiship
S,4
u.2S 4 1.uu
Contiol ovei supply chain
S
u.1u S u.Su
Weaknesses
Negative public image, tainisheu bianu
6,7
u.1S 1 u.1S
Lack of chaiging infiastiuctuie
8,9
u.uS 2 u.1u
Bigh costs
1u,11
u.2u 2 u.4u
Total 1.uu 2.7u
*See souices
IE Natiix
5'(.)2

789:;
<="(*2"

7>?@9>?AA;
0"*B

7C9C?AA;
Bigh

(S-4)
I II III
Neuium

(2.u-2.99)
Iv vI
Low

(1-1.99)
vII vIII IX
D(.E F GH1+I J*1)'*1)
4"'(")-3
Ashley
SW0T Natiix
5'(")2'3/ K 5

1. Biveise piouuct lines
2. Emphasis on R&B anu visionaiy
leaueiship
S. Contiol ovei supply chain


0"*B)"//"/ K 0

1. Negative public image, tainisheu bianu
2. Lack of chaiging infiastiuctuie
S. Bigh costs
LMM.('H)1'1"/ K L

1. Availability of seivice anu chaiging
stations foi electiic vehicles
2. uoveinments aiounu the woilu
establishing gieatei incentives anu
iegulations in suppoit of loweiing
emissions anu gasoline uepenuencies
S. Bigh gas piices that aie likely to
continue iising
5L

S2-01: Inciease R&B to have batteiy
chaiging time less than hyuiogen vehicles
S2-02: Leveiage visionaiy leaueiship in
oiuei to influence goveinment iegulations
0L

W2-01: Naiket theii ability to pioviue
Supeichaigeis to fulfill the high uemanu foi
chaiging stations
WS-02: Leveiage goveinmental tax cieuits
to absoib some of the high costs
N3("*'/ K N

1. Byuiogen fuel cell technology
(competition)
2. Bigh cost of ueliveiy oveiseas (taxes
shippingfees)
S. Public peiceptions
5N

SS-T2: Stiengthen contiol ovei theii own
supply chain to lowei cost of ueliveiy
oveiseas since eveiything is uone
uomestically
SS-TS: Expanu contiol of the supply chain
with a focus on quality in oiuei to impiove
public peiception
0N

WS-T2: Expanu NNE (multinational
enteipiise) to absoib costs by cheapei laboi,
shipping, taxes, etc.
W1-TS: Inciease maiketing anu PR effoits to
inciease public peiception

Camilla & Ashley
Leveiage visionaiy
leaueiship in oiuei to
influence goveinment
iegulations
Naiket theii ability to
pioviue Supeichaigeis to
fulfill the high uemanu foi
chaiging stations
Expanu NNE (multinational
enteipiise) to absoib costs
by cheapei laboi, shipping,
taxes, etc.
Key Factor Weight
AS TAS AS TAS AS TAS
Strengths From IFE
Diverse product lines 0.25 0 0.00 0 0.00 4 1.0
Emphasis on R&B anu visionaiy leaueiship 0.25 4 1.00 3 0.75 2 0.50
Control ovei supply chain 0.10 3 0.30 3 0.30 4 0.40
Weaknesses From IFE
Negative public image, tainisheu bianu 0.15 1 0.15 3 0.45 1 0.15
Lack of chaiging infiastiuctuie 0.05 2 0.10 4 0.20 2 0.10
Bigh costs 0.20 3 0.60 4 0.80 4 0.80
Sum of Weights 1.00 2.15 2.5 2.95
Opportunities From EFE
Availability of seivice anu chaiging stations foi electiic
vehicles
0.05 2 0.10 4 0.20 3 0.15
uoveinments aiounu the woilu establishing gieatei
incentives anu iegulations in suppoit of loweiing
emissions anu gasoline uepenuencies
0.20 4 0.80 2 0.40 4 0.80
Bigh gas piices that aie likely to continue iising 0.10 3 0.30 4 0.40 3 0.30
Threats From EFE
Byuiogen fuel cell technology (competition) 0.30 3 0.90 3 0.90 1 0.30
Bigh cost of ueliveiy oveiseas (taxesshippingfees) 0.15 0 0.00 2 0.30 4 0.60
Public peiceptions 0.25 0 0.00 2 0.50 2 0.50
Sum of Weights 1.00 2.10 2.7
2.65
Sum of Total Attractiveness Score 4.25 5.2 5.6
Quantitative Strategic Planning
Matrix
Rouino & }oel
Final Recommenueu Stiategy
! Expansion of manufacturing capabilities into Europe, Asia, and
South America by deploying resources and capabilities in the
procurement, production, and distribution of Tesla vehicles.
! Take advantage of economies of scale and lower costs
" Decrease costs of shipping overseas
" Increase local responsiveness
" Take advantage of government incentives for electric vehicles
" Gain larger target market
" Low-cost input factors
Tiang
Cuiient 0iganizational
Stiuctuie
Chairman
Product Architect
and CEO
Chief
Technical Officer
Chief
Financial Officer
Chief
Designer
Chief
Information Officer
Vice President
Business Development
Vice President
Human Resources
Vice President
Supply Chain

Board of
Directors

Functional Structure
Tiang
Pioposeu 0iganizational Stiuctuie
Matrix Structure (geographic)
Tiang
Corporate HQ
North
America
South
America
Europe
Australia
Asia
CTO
Chief
Designer
VP Supply
Chain
CFO
CIO VP HR VP Bus.
Dev.
Tesla's Leaueiship Piinciples
! Commitment to quality
! Commitment to customers
! Creating the electric car without
compromises
! Achieve higher product quality at
lower prices
Biianna
What's it like to woik foi
Tesla.
Pros
7
! Challenging, fast paced environment
! Smart colleagues, great learning potential
! Friendly/open working environment
! Free soda, coffee and cereal
! Employees have passion about what they do
Cons
7
! Pay and benefits arent as good compared with
similar companies
! Requires long hours (lack of work/life balance)
! Location is isolated from restaurants, only food on
campus is cereal
! New hires are not as qualified as before
! Dynamic culture is fading, more politics
Biianna
Tesla Cultuie Impiovement
Pioposal
1. Improve work/life balance
! Decrease employee workload/
hours requirement appropriately
! Reinforce importance of breaks
through tone at the top
2. Improve benefit offerings to attract
competent employees
! Build on-site gym, or reimburse
employees for gym memberships
! Build a cafeteria on site
! Offer more than just cereal and
juice for free
! Sponsor family care programs
(child care, etc.)
Biianna
Cuiient Taiget Naiket
! Shoppers
" Male in the upper economic class
" Environmentally conscious group
" Early new technology adopters
! Sellers
" Tesla
Yanping
New Taiget Naiket
! Shoppers
" Middle economic class
" Male in the upper economic class
" Environmentally conscious group
" Early new technology adopters
! Sellers
" Independent dealers
" Tesla
Yanping
Piouuct Positioning Nap (cuiient)
H
i
g
h
e
r

Q
u
a
l
i
t
y

Lower Price
Yanping
Piouuct Positioning Nap (pioposeu)
H
i
g
h
e
r

Q
u
a
l
i
t
y

Lower Price
Yanping
Balanceu Scoiecaiu
<("* .O LPQ"-'1="/ N*(2"' N*(2"' R"*I+1)" S(1T*(#
4"/M.)/1P1+1'#
Customei Peispective
Roll out Nouel X by a
uefinite uate
22u1S Business Bevelopment
!"#$%"&'(%$ *%$+,%-./0%
12-$%#+% $%0%23%
$%-&42/5%( 67 89:
9;<;98=
>#23?#-.3$/24
@
A/2#2-%
Piocess anu Stiuctuie
Peispective
Inciease Nouel S
piouuction by 6u% so
that company can
iecognize ievenue
moie quickly
8
uS2u1S Nanufactuiing
B%#$2/24 #2( C$&D."

12-$%#+% %E,'&7%%
+#./+?#-./&2 67 F9:
G
98<;98= HI
Biianna
Conclusion
! Take auvantage of economies of scale to ueciease costs.
! Stiategy: Inciease NNE (multinational enteipiise) to absoib costs by
cheapei laboi, shipping, taxes, etc.
! Nake the Ev moie affoiuable to the aveiage consumei, while pushing
upwaiu towaius quality!
Refeiences
1. http://scienceofrevenue.com/tag/tesla-marketing-strategy/
2. http://ir.teslamotors.com/management.cfm
3. http://en.wikipedia.org/wiki/Tesla_Motors
4. http://www.fas.org/sgp/crs/misc/RS20811.pdf
5. http://evworld.com/news.cfm?newsid=32914
6. http://www.examiner.com/article/tesla-s-new-electric-car-is-eco-friendly-but-is-it-
affordable
7. http://www.bloombergview.com/articles/2014-03-20/tesla-can-topple-the-car-dealer-
monopoly
8. http://www.glassdoor.com/Reviews/Tesla-Motors-Company-Reviews-E43129_P3.htm
9. http://www.bloomberg.com/news/2014-02-19/tesla-quarterly-results-beat-analyst-
estimates-on-model-s-growth.html
10. http://www.washingtonpost.com/blogs/wonkblog/wp/2012/09/21/cbo-government-will-
spend-7-5-billion-on-electric-vehicles-what-are-we-getting-back/
Refeiences cont.
10. http://www.therichest.com/rich-list/poorest-list/countries-with-the-cheapest-labor/
11. http://www.econedlink.org/lessons/index.php?lid=342&type=student
12. http://um.dk/en/tradecouncil/barriers/what-is/
Naiket Position Suivey
1. Bow woulu you iate Tesla on Piice.
2. Bow woulu you iate uN on Piice.
S. Bow woulu you iate BNW on Piice.
4. Bow woulu you iate Tesla on Quality.
S. Bow woulu you iate uN on Quality.
6. Bow woulu you iate BNW on Quality.