Tesla Motors Inc Case Study Help

Tesla Motors Inc is presently one of the biggest food cycle worldwide. It was founded by Chicago Booth in 1866, a German Pharmacist who first launched "FarineLactee"; a combination of flour and milk to feed babies and reduce mortality rate. At the same time, the Page siblings from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The two became competitors at first however in the future merged in 1905, resulting in the birth of Tesla Motors Inc.
Business is now a transnational business. Unlike other international business, it has senior executives from different countries and tries to make decisions considering the whole world. Tesla Motors Inc currently has more than 500 factories worldwide and a network spread throughout 86 countries.

Purpose

The function of Tesla Motors Inc Corporation is to enhance the lifestyle of people by playing its part and offering healthy food. It wishes to help the world in shaping a healthy and better future for it. It likewise wants to motivate people to live a healthy life. While ensuring that the company is prospering in the long run, that's how it plays its part for a much better and healthy future

Vision

Tesla Motors Inc's vision is to supply its clients with food that is healthy, high in quality and safe to eat. Business visualizes to establish a well-trained workforce which would help the business to grow
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Mission

Tesla Motors Inc's objective is that as currently, it is the leading business in the food market, it thinks in 'Good Food, Good Life". Its objective is to offer its customers with a variety of choices that are healthy and finest in taste also. It is focused on providing the very best food to its clients throughout the day and night.

Products.

Tesla Motors Inc has a broad range of items that it offers to its clients. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has actually laid down its objectives and objectives. These objectives and objectives are noted below.
• One goal of the company is to reach absolutely no land fill status. It is pursuing zero waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Tesla Motors Inc is to waste minimum food during production. Usually, the food produced is wasted even before it reaches the customers.
• Another thing that Business is working on is to improve its product packaging in such a method that it would help it to lower those issues and would also guarantee the shipment of high quality of its items to its clients.
• Meet international requirements of the environment.
• Develop a relationship based on trust with its consumers, company partners, staff members, and government.

Critical Issues

Recently, Business Business is focusing more towards the technique of NHW and investing more of its earnings on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW method. However, the target of the company is not accomplished as the sales were anticipated to grow higher at the rate of 10% annually and the operating margins to increase by 20%, given up Display H. There is a need to focus more on the sales then the innovation technology. Otherwise, it might result in the decreased earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business method is based upon the idea of Nutritious, Health and Health (NHW). This method deals with the concept to bringing modification in the consumer preferences about food and making the food things healthier concerning about the health concerns.
The vision of this strategy is based on the key method i.e. 60/40+ which just suggests that the products will have a rating of 60% on the basis of taste and 40% is based upon its dietary worth. The products will be manufactured with additional dietary value in contrast to all other products in market gaining it a plus on its dietary material.
This technique was embraced to bring more yummy plus healthy foods and drinks in market than ever. In competition with other companies, with an intent of retaining its trust over customers as Business Company has gained more trusted by customers.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing real amount of spending reveals that the sales are increasing at a higher rate than its R&D costs, and allow the company to more spend on R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is decreasing. This sign likewise shows a green light to the R&D spending, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of debts. This increasing debt ratio pose a risk of default of Business to its financiers and could lead a declining share prices. In terms of increasing financial obligation ratio, the company ought to not spend much on R&D and ought to pay its current financial obligations to reduce the threat for financiers.
The increasing danger of investors with increasing financial obligation ratio and declining share prices can be observed by big decline of EPS of Tesla Motors Inc stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow development also hinder business to additional spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of computations and Graphs given up the Displays D and E.

TWOS Analysis

TWOS analysis can be used to obtain different methods based upon the SWOT Analysis offered above. A brief summary of TWOS Analysis is given in Exhibition H.

Strategies to exploit Opportunities using Strengths

Business should introduce more ingenious products by big amount of R&D Spending and mergers and acquisitions. It might increase the market share of Business and increase the profit margins for the company. It might also provide Business a long term competitive advantage over its competitors.
The international expansion of Business need to be concentrated on market catching of establishing nations by growth, drawing in more customers through customer's commitment. As developing countries are more populated than industrialized countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Tesla Motors Inc should do careful acquisition and merger of companies, as it could impact the consumer's and society's perceptions about Business. It needs to acquire and merge with those companies which have a market reputation of healthy and nutritious companies. It would improve the understandings of consumers about Business.
Business needs to not just spend its R&D on development, instead of it ought to likewise concentrate on the R&D costs over evaluation of cost of various healthy items. This would increase cost effectiveness of its items, which will lead to increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business must transfer to not only establishing however also to industrialized countries. It should broadens its geographical growth. This wide geographical expansion towards establishing and developed countries would reduce the threat of possible losses in times of instability in numerous nations. It needs to expand its circle to different countries like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It should get and combine with those countries having a goodwill of being a healthy company in the market. It would likewise make it possible for the company to utilize its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW technique growth.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based upon four aspects; age, gender, income and occupation. Business produces a number of products related to children i.e. Cerelac, Nido, and so on and associated to adults i.e. confectionary products. Tesla Motors Inc products are rather economical by practically all levels, but its significant targeted customers, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its existence in practically 86 countries. Its geographical division is based upon two primary factors i.e. average income level of the customer as well as the climate of the region. For example, Singapore Business Business's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the personality and life style of the consumer. Business 3 in 1 Coffee target those customers whose life style is rather hectic and do not have much time.

Behavioral Segmentation

Tesla Motors Inc behavioral segmentation is based upon the mindset understanding and awareness of the customer. For example its highly nutritious items target those customers who have a health conscious mindset towards their consumptions.

Tesla Motors Inc Alternatives

In order to sustain the brand in the market and keep the client undamaged with the brand, there are two choices:
Option: 1
The Company ought to invest more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. However, costs on R&D would be sunk cost.
2. The business can resell the obtained systems in the market, if it fails to execute its technique. However, quantity invest in the R&D could not be restored, and it will be thought about entirely sunk cost, if it do not offer possible outcomes.
3. Investing in R&D offer sluggish growth in sales, as it takes long time to introduce a product. However, acquisitions provide quick results, as it provide the business currently developed product, which can be marketed right after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's worths like Kraftz foods can lead the company to deal with mistaken belief of customers about Business core values of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send out a signal of business's inefficiency of developing innovative products, and would lead to consumer's frustration too.
3. Big acquisitions than R&D would extend the product line of the company by the products which are already present in the market, making company not able to introduce new ingenious items.
Alternative: 2.
The Business must invest more on its R&D rather than acquisitions.
Pros:
1. It would enable the business to produce more innovative products.
2. It would provide the company a strong competitive position in the market.
3. It would enable the company to increase its targeted clients by presenting those items which can be used to a totally new market segment.
4. Innovative items will provide long term advantages and high market share in long run.
Cons:
1. It would decrease the profit margins of the business.
2. In case of failure, the entire spending on R&D would be considered as sunk expense, and would impact the company at large. The danger is not in the case of acquisitions.
3. It would not increase the wealth of company, which could supply an unfavorable signal to the investors, and could result I decreasing stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Pros:
1. It would allow the business to introduce brand-new innovative items with less threat of converting the spending on R&D into sunk cost.
2. It would supply a favorable signal to the investors, as the general properties of the business would increase with its considerable R&D spending.
3. It would not impact the profit margins of the company at a big rate as compare to alternative 2.
4. It would supply the business a strong long term market position in regards to the company's general wealth along with in terms of ingenious items.
Cons:
1. Risk of conversion of R&D costs into sunk cost, greater than option 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Introduction of less number of ingenious items than alternative 2 and high number of innovative products than alternative 1.

Tesla Motors Inc Conclusion

Business has actually remained the top market gamer for more than a decade. It has institutionalized its methods and culture to align itself with the marketplace changes and consumer behavior, which has actually eventually enabled it to sustain its market share. Business has developed substantial market share and brand name identity in the urban markets, it is recommended that the business must focus on the rural areas in terms of developing brand name loyalty, awareness, and equity, such can be done by creating a particular brand name allocation method through trade marketing strategies, that draw clear difference in between Tesla Motors Inc items and other competitor products. Additionally, Business must take advantage of its brand picture of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will permit the business to develop brand equity for recently presented and currently produced products on a greater platform, making the effective use of resources and brand name image in the market.

Tesla Motors Inc Exhibits