Question One: Tesla’s Functional Structure
Tesla Inc., formerly referred to as Tesla Motors, has experienced unprecedented business growth majorly due to its organizational structure. Organizational structure refers to the design and systems put in place to form interaction patterns among a company’s components (Meyer, 2018). Markedly, Tesla utilizes a function-based organizational structure, which primarily uses function as the primary defining factor. Though the firm has some structural attributes in terms of other types of corporate structure, functional characteristics stand out most. For instance, it has a structural group of engineers and another for services and sales. Notably, the business function is the most outstanding feature. The function-based hierarchy is another significant element, particularly in Tesla’s global organization. It involves functional teams separated geographically, but each oversees domestic and international operations. This feature is largely borrowed from the traditional corporate structure, where strict managerial protocols in operations were observed. The firm’s organizational structure is comprised of various functional offices that form the global hierarchy including chairperson and chief executive officer, finance, technology, global sales and services, engineering, and legal.
Question Two: The 7’s Model Analysis of Strategy Execution
Tesla applies the generic approach to gain a competitive edge over competitors. It applies advanced technology to make its electric vehicles as well as related products and a differentiation focus, through product development, to differentiate its brand from rival products. Further, the company utilizes the following intensive growth strategies.
- Market penetration (primary strategy) — increases sales revenues in current markets
- Product development (secondary strategy) – develops new products with advanced technologies, thus minimizing environmental impacts.
- Market development (tertiary intensive growth strategy) – by entering new markets to gradually expand its market base and grow global business.
- Diversification – to expand the company through new business creation.
Teamwork Framework — at the core of Tesla’s organizational culture is a synergistic teamwork that motivates innovative problem-solving skills in employees. As a result, workers develop solutions to current and emerging challenges while remaining profitable. The corporate culture consists of six main features including “move fast, do the impossible, constantly innovate, reason from “first principles,” think like owners, and we are ALL IN” (Meyer, 2018).
The company has a set of principles that draw a line and define its ethical limits in workplaces and products. It includes compliance with laws, rules, and regulations in the various industries Tesla operates in, competition and fair dealing, health and safety, as well as a code of ethics for all staffs including the CEO and senior officers.
Elon Musk has continually demonstrated incredible vision, dedication, and perseverance to actualize his vision. Notably, Musk is a transformational leader; he leads by example and convinces people, including employees and partners, to believe in his vision. He has managed to transform more than one industry by doing the impossible.
Recently, Tesla experienced a high turnover rate, which experts attributed to Musk’s style to ‘nano-manage’ various operations. Additionally, employees have to meet production targets, which adds more pressure as they must maintain a certain degree of precision to avoid mistakes.
Tesla has demonstrated a rare ability to dynamically innovate and adopt new technology, which has seen it rise to be among top motor makers in the world. The firm has a workforce that is well-versed with current and emerging technologies, motivated, and innovative, thus achieving significant milestones.
Meyer, P. (2018). Tesla Inc.’s organizational culture & its characteristics (analysis). Panmore Institute. Retrieved from http://panmore.com/tesla-motors-inc-organizational-culture-characteristics-analysis/
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